Megabrands

from Drinks Trade | Mar/Apr 2017

Eye

- The World’s Biggest Beverage Brands

The name ‘megabrand’ has an uneasy positioning in the alcoholic beverage market, and while many look on with envy at brands holding market leading positions, a mixture of Australia’s infamous tall poppy syndrome and nationals choosing the best known and most loved brands to price lead with, can cause even the world’s largest brands to feel the pinch. That being said, when a leader gets behind its own category, the benefits are felt by many - including savvy and astute retailers. Shoppers navigate by brands they know and understand; good store layout recognises those category leaders and uses them to draw in traffic. Sometimes however, megabrands can throw in a surprise or two, most notably when you consider the global nature of the drinks business.

Coca-Cola is one such megabrand and with pull over consumers not only in bottle shops, bars and clubs, but in grocery as well, it’s not surprising that it continues to dominate the global beverage market.

The soft drink brand is currently valued at US$34.2 billion (that’s approximately AUD$45 billion), making it the most valuable drinks brand globally. Topping that, Brand Finance also places Coca-Cola as one of the top 20 brands in the world, sitting alongside the likes of Apple and Google on the Global 500 list.

Key to Coca-Cola’s success has been its iconic contour bottle and unmistakable red and white logo, which have remained the brand’s trademark credentials for over 100 years and can be seen on shelves in 200 countries today.

Yet the brand no longer pulls the same ranks as it did back in 2007, when it was considered to be the most valuable brand in the world across all industries. According to analysts, growing health concerns over the effects of sugar and artificial sweeteners have had a substantial impact on consumers’ perception of the brand. The same can be said for rival Pepsi and energy drink Red Bull.

In an attempt to protect its image, last year Coca-Cola released a naturally sweetened option named Coke Life, but critics question the extent of its success.

Brand Finance quoted in its latest report, “The problem lies with its positioning. It is marketed as a more natural, low sugar version of Coke however, though lower in sugar than Coke, with 89 calories per can it is still very sweet.”

The outlook for alcohol brands seems more positive however, and in particular for those being made in China.

Both Moutai and the country’s top-selling beer brand Snow Beer are quickly growing scale outside of their home market. In fact, Moutai is now rated as the most valuable alcoholic drinks brand globally, up 90 places from last year on the Global 500 scale.

Recognised as the best brand of baiju (a traditional Chinese distilled spirit), Moutai has a long and rich history in China, considered to be a luxury item and consumed as a celebratory drink. And over the last few years, consumers across the world have become acquainted with the unique flavour of Moutai. In fact in Australia there now exists an entire store dedicated to the spirit.

China also lays claim to the world’s best selling beer brand with Snow Beer, which was recently picked up exclusively by Dan Murphy’s in Australia.

But while Snow Beer may be the world’s best selling beer brand, it is the States’ Budweiser that continues to edge out competition as the world’s most valuable beer brand year-on-year.

What began as an American original 139 years ago, is now a global brand today. Key to the positioning and exposure of the brand has been its long alignment with the Super Bowl. Reaching 160 million consumers on average each year, Budweiser’s emotive Labrador puppy

advertisements have quickly become one of the biggest topics of conversation surrounding the game.

Not far behind Budweiser is the Netherlands’ Heineken, which is now ranked as the seventh most valuable brand among both alcoholic and non-alcoholic beverages.

Established in 1873, Heineken has an enduring history and heritage as an independent global brewer. The Dutch beer has become recognisable the world over with its signature green bottle and red star, and is now sold and enjoyed in more than 170 countries globally.

Asahi too made the Global 500 list again this year, coming in at number 12 within beverages. The Japanese company has continued to expand its global footprint and grow its share of the beer market over the last few years. Just in February this year, Asahi made public that it had proposed to acquire Peroni, Grolsch and Meantime beer brands from the world’s largest brewer, Anheuser-Bush InBev. The offer followed a rise in Asahi’s Oceania financials and could be accepted if AB InBev’s acquisition of SABMiller is successful.

For nearly two centuries, Johnnie Walker has led the rise and popularity of Scotch whisky around the world and is now among the highest-ranking beverages. The iconic square bottle, stamped with the silhouette of the man himself, has become synonymous with quality Scotch and is collected by many a whisky aficionado today. Interestingly enough, for most of the brand’s history, Johnnie Walker has only offered a few staple blends, but in recent years the brand has released several special and limited edition bottles, including Johnnie Walker Black Label and Blue Label.

Moutai shop opening in Sydney

Room of Johnnie Walker

Australia and New Zealand

This year, Penfolds was named as the World’s Most Admired Wine Brand in Drinks International’s annual poll, toppling two-time winner Torres. Penfolds was also the only Australian wine brand to make it on to the list, as voted by almost 200 global industry experts. Penfolds is one of the oldest and most prestigious wine brands in Australia, established in 1844 in South Australia, and is recognised locally for raising the benchmark for Australian wine. Penfolds’ Grange in particular has become synonymous with superiority among aficionados and is collected by many across the globe. Just last year in Australia, Dan Murphy’s sold a bottle of Grange for a staggering $65,000. MW Dawn Davies told Drinks International why she voted for Penfolds. “It is one of the few brands to be able to span many price brackets but that has managed to keep its image as a premium brand,” Davies said. “It keeps consistent quality on the wines and ambassadors such as Peter Gago have worked tirelessly to keep the brand fresh in people’s eyes.” For the second year in a row, Villa Maria was also recognised by the list as the World’s Most Admired ‘New Zealand’ Wine Brand. The winery placed eighth, above wine brands Château D’Yquem and Tío Pepe; a remarkable achievement considering the youthful age of New Zealand’s wine industry. Nevertheless, Villa Maria fit the bill, with Christian Davis, Editor of Drinks International calling it: “a flag bearer for everything that is good about New Zealand.” Villa Maria is, “a brand virtually everyone admires, respects and, most importantly, drinks,” Davis added.

Australian Success Stories

Noble One is truly one of the sweetest success stories in Australian winemaking history. Thirty years have passed since the De Bortoli family first crafted its flagship wine and it can still be said that it is one of the most recognised dessert wines in the world. The first vintage was created by Darren De Bortoli in 1982 and since then, Noble One has been regarded as Australia’s benchmark dessert wine. Darren and his father Deen were admirers of the French dessert wine sauternes, and recognised the potential to replicate a similar style of wine from grapes affected by botrytis cinerea or ‘Noble Rot’ in the Riverina, where the family-owned wine company is based. Noble One’s worldwide success has arguably single-handedly put Australia on the map for the production of premium sweet wines.

INTERESTING FACTS:

• Noble One is served at 5 star and Michelin restaurants around the world. • Pope Benedict, a fan of sweet wines, received Noble One as a gift from the Prime Minister of Australia, Kevin Rudd. • With 136 trophies and 423 gold medals won around the world, Noble One is the most awarded wine in history.