Nestlé Ranked As Most Valuable Food Brand As Many F&B Brands Grow

What’s the most valuable food and beverage brand?

While food and beverage has more than its share of big names, Nestlé recently ranked as the world’s most valuable food brand and Coca-Cola
KO
as the most valuable non-alcoholic beverage brand. Both saw their brand values rise as many big F&B names grew, even amid the headwinds of inflation and the after-effects of the pandemic.

In its 2022 food and beverage report, Brand Finance valued Nestlé at a cool $20.8 billion, up from $19.4 billion, nearly twice that of runner up Chinese dairy brand Yili at $10.6 billion. They’re not alone.

Next in line? Snack brand Lay’s increased in value to $8.6 billion from $6.6 billion — part of the proof that many big food and beverage companies are getting bigger in the post-pandemic economy.

Hershey, the brand value consultancy said, ranked as the world’s “strongest” food brand. Want to know the world’s fastest growing food brand? Belvita, a breakfast biscuit first introduced in France in 1998, which grew its value by more than 60%.

Pepsi ranked No. 2 behind Coca-Cola in the non-alcoholic beverage category, as the duel between the two behemoth brands continues.

As Covid-19 restrictions were lifted, online sales began to grow. [GJG1] These inflationary times may not be the best for many F&B brands, but they are growing their values, a good sign at any time.

Top brands

Every year, brand valuation consultancy Brand Finance publishes lists of top brands based on evaluations of 5,000 of the world’s biggest F&B names. The latest ranking was a little unusual, in that it comes in the wake of global supply chain snafus and amid changes in social gathering restrictions.

The evaluations this time reflected, in part, how brands performed, reacted, and adapted amid these and other post-COVID-19 changes.

“Nestlé continues to consistently pursue its long-term brand strategy by innovating new products and moving forward in its digital transformation,” according to Brand Finance.

The consulting firm credited Nestlé with “rapidly testing new ideas and bringing products to market.” It says the company has been adept in dealing with change.

Inflation’s Impact

Morning Consult, which did its own study on brand popularity, said food and beverage brands snagged 8 of the top 20 slots on its list of fastest-growing brands for 2022, as “low price points appealed to cost-conscious consumers.”

“In a year of historic inflation, consumers’ tighter wallets impacted purchasing consideration for brands,” Joanna Piacenza, head of industry intelligence at Morning Consult, said.

They ranked Nestlé-owned frozen pizza brand DiGiorno among the fastest growing brands. Nestlé positioned DiGiorno as an alternative to restaurant pizza with the tagline, “It’s not delivery, it’s DiGiorno.”

In a cost- and health-conscious world, comfort seems to be fueling big food brands’ growth.

“People are returning to the brands they love,” Savio D’Souza, head of EMEA (Europe, the Middle East and Africa) consulting at Brand Finance, said in a written statement. “Food brand values are back above pre-pandemic levels.”

The pandemic impact

Global brands are tapping different markets to win slots in the Brand Finance report. Yili is riding a wave of popularity among the Chinese population, providing milk, cheese, powdered milk, and bottled water.

The pandemic may be helping as consumers seek immunity-building, nutritional, and health benefits, according to Brand Finance.

Closer to home, Lay’s grew its brand value by 31% to $8.6 billion. Brand Finance said COVID-19 changed “customer snacking preferences” as get-togethers and social events dwindled. They credited Lay’s with embracing its “digital presence,” in particular on Amazon
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, “to achieve large sales volumes as a result.”

Other top-10 brands largely shuffled their slots. Danone ranked fourth, down from third, at $7.9 billion, followed by Tyson at five, up from six, at $7.2 billion. Quaker was sixth, up from seventh, at $7.1 billion, and Kellogg’s was seventh, down from fourth, at $7.0 billion.

What’s driving the growth

Hershey’s’ ranking as the “strongest” brand was based on marketing investment, stakeholder equity, and business performance. Brand Finance cited production, sales and earnings growth in a “year of very strong performance.”

Belvita increased value by 62% to $1.6 billion, outpacing all other brands in terms of growth. The consulting firm cited Belvita’s “creation of a thriving cocoa sector” and the company’s shrinking of its environmental footprint by reducing packaging waste.

Biggest non-alcoholic beverage brands

Coca-Cola’s top rankings in the “most valuable” and “strongest” categories for non-alcoholic drink brands globally were supported by a brand value of $35.4 billion, up 7%. Brand Finance said Coke is “rejuvenating its brand offering to meet consumer and regulatory demand for low sugar content beverages.”

Coca-Cola today offers a wide range of zero-sugar products that help it “remain relevant in a competitive industry,” according to the study.

“As pandemic restrictions recede in the rear-view mirror, many non-alcoholic brand values are surging,” D’Souza said. “People are once again able to easily get together for a Coke, a Pepsi, a coffee or cup of tea.”

Pepsi took second, at $20.7 billion, up 12% in value and strength among non-alcoholic drinks. Brand Finance said Pepsi “acknowledges a new business reality whereby consumers are becoming more interested in the future of the planet and society.” Doing good really can be good for business.

If growth is good, then these have been good times for some brands. Monster, Lipton and Gatorade ranked as the three fastest-growing non-alcoholic beverage brands, amid an interest in health and wellness. Monster’s value surged 29% to $6.3 billion, while Lipton soared 27% to $3.2 billion and Gatorade rocketed 26% to $5.3 billion, as COVID restrictions were reduced.

Food and beverage top slots

The food and beverage industry seems to be doing pretty well in terms of brand growth, according to Morning Consult.

Eight food and beverage brands ranked among the top 20 in terms of growth in Morning Consult’s study, including STōK cold brew coffee at No. 4, Great Value Cream Cheese at 8, Gatorade Fit at 9, Chobani Smooth Yogurt at 11, Celsius
CEL
at 13, Chobani at 16, Häagen-Dazs at 17, and Frito-Lay at 18.

While these have been tough times, with Covid-19 and now inflation hammering companies, many big brands’ values have been rising.

That is good news, even as consumers are likely to continue looking for value pricing. Companies that can provide it are likely to see their values continue to rise in this brand new, old brand, world.

[GJG1]This doesn’t make sense. It was all online sales during the pandemic…?