Made in China

Baijiu brands Kweichow Moutai and Wuliangye Yibin are two of this year’s fastest risers, with brand value growth of $874m and $330 million respectively. Moutai has become the world’s second most valuable brand, with a value of $2.37bn. The challenge for local Chinese brands will be to try to expand their markets beyond China to insulate against evolving legislation changes at home. 

Champagne and wine

With a few exceptions, wine and Champagne brands continue to struggle. The biggest mover is Concha y Toro, which has seen its brand value increase by 35% to $663m. This can be attributed to the brand’s acquisition of declining Californian winemaker Fetzer Vineyards. Concha y Toro has been able to leverage this acquisition by taking advantage of its extensive distribution network, which includes subsidiaries in South Africa, Scandinavia, Brazil, UK and Singapore. 

Brand Finance CEO David Haigh said: “Though Chinese brands are making huge strides in volume share, the success of global brand ideas, innovative NPD and imaginative communication continue to drive margin growth for global brands.”

Analysis by Brand Finance (brandfinance.com). Other commentary contributions from Ed Will of Breakfast (breakfastagency.com). Wine and champagne brands are now recorded in a separate table so the number of spirits brands increases to 50. Last year’s rankings have been adjusted to reflect this change.

The methodology

Brand Finance calculates brand value using the Royalty Relief approach. This involves estimating the likely future sales attributable to a brand and calculating a royalty rate that would be charged for the use of the brand.

The steps in this process include:

- Calculate brand strength on a scale of 0-100 according to a number of attributes, such as emotional connection, financial performance and sustainability. This score is known as the Brand Strength Index

- Determine the royalty rate range for the alcoholic drinks sector by reviewing comparable licensing agreements sourced from Brand Finance’s database of licence agreements and other online databases