Nestle SA, the renowned Swiss-based multinational, has yet again reaffirmed its position as the world’s most valuable food brand, achieving the pinnacle rank in Brand Finance’s recently released “Food & Drink 2023” report. This accomplishment marks Nestle’s consistent reign at the top since the report’s inception in 2015. The annual report evaluates various factors including brand strength, revenue, and royalty rates to ascertain brand value, and Nestle’s steadfast hold on the number one spot is a testament to its enduring global impact.
Savio D’Souza, the valuation director for Brand Finance, praised Nestle as an iconic global brand that consistently sets new benchmarks for the industry, garnering trust from consumers worldwide. He attributed this achievement to Nestle’s rich heritage, an array of trusted brands, and an unparalleled global reputation.
Over the past year, Nestle’s brand value has surged by an impressive 8%, rising from $20.8 billion to an impressive $22.4 billion. Brand Finance attributed this surge to robust sales growth across Nestle’s extensive brand portfolio and its pioneering strides in plant-based product innovations. Notable mentions include the introduction of whole-grain cookie dough by Toll House and the launch of innovative non-dairy milk products. A notable achievement was the company’s venture into dairy alternatives through a groundbreaking product formulated with animal-free dairy protein from Perfect Day.
The report spotlighted Nestle’s coffee business, which achieved high single-digit growth in organic sales during the initial six months of fiscal year 2023. Nestle’s expansion in this sector was augmented by its global coffee alliance with Starbucks, which followed the acquisition of Seattle’s Best Coffee in the preceding October. Of particular note, Nestle’s Nespresso emerged as the fastest-growing non-alcoholic drink brand globally, with an astounding 208% value increase, now valued at $2.9 billion.
Brand Finance lauded Nestle’s ability to anticipate evolving consumer preferences, stay ahead of trends, and effectively launch new products as instrumental to its continuous brand value growth. A significant contributor to this success has been the company’s Project Tasty stock-keeping unit (SKU) rationalization program. Initiated in 2021 to streamline portfolio complexity amidst pandemic-related supply chain challenges, the program identified and eliminated underperforming SKUs. This initiative, initially targeting individual product lines, has expanded to encompass entire brands and categories. Nestle’s CEO, Ulf Mark Schneider, expressed positive expectations for fiscal year 2023, foreseeing a favorable impact from this broadened focus.
Following Nestle’s lead, the second most valuable food brand was Yili, the Chinese dairy producer that clinched the position from Danone in 2020. Yili experienced a 17% surge in value, reaching $12.4 billion, attributed to robust domestic sales and enhanced international revenue. The inauguration of Yili’s Global Smart Manufacturing Industrial Park in China contributed to its value appreciation, thanks to its incorporation of cutting-edge technology.
Meanwhile, the snack category emerged as a growth leader among food brands, with the top five brands witnessing an average 40% value increase. Notably, Frito-Lay, a subsidiary of PepsiCo, Inc., claimed a substantial presence with four of its brands – Lays, Doritos, Cheetos, and Tostitos – securing prominent ranks within the snacking hierarchy. Additionally, the Chinese rice cracker brand ‘Want Want’ secured a position in the top five most valuable snack brands.
The Coca-Cola Co. maintained its supremacy at the pinnacle. Despite a 5% decrease in value to $33.5 billion in 2023, Coca-Cola retained its lead over PepsiCo, which experienced an 11% decline. Savio D’Souza applauded Coca-Cola’s historic brand narrative, enduring dedication to customer experience, and innovative marketing campaigns that have sustained its global leadership.
Nestle’s continued dominance, Yili’s rise, and the evolving landscape of food and beverage brands underscore the dynamic nature of the industry. Amidst these shifts, Nestle’s unwavering commitment to quality, innovation, and consumer-centric strategies has propelled its brand value to new heights, solidifying its position as a trailblazing industry leader.