Moutai remains world’s most valuable spiritBy Melita Kiely
Chinese baijiu Moutai has retained its position as the world’s most valuable spirit brand after growing 43% in brand value to US$30.5 billion from 2018 to 2019.
As reported in the Brand Finance Spirits 50 2019 ranking, Chinese baijiu brands continued to dominate the report and claimed the top four spots.
Brand Finance calculates the values of the brands in its league tables using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668.
The method estimates the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ – a net economic benefit that a brand owner would achieve by licensing the brand in the open market.
The second most valuable brand was Wuliangye baijiu, which grew 10% to US$16.0bn, while third most valuable spirit Yanghe was up 16% to US$9.1bn.
Luzhou Laojiao increased its worth by 40% to reach US$5.4bn, knocking Diageo’s blended Scotch brand Johnnie Walker into fifth position, following its 8% increase to US$4.6bn.
Sixth place went to Jack Daniel’s (up 23.3% to US$4.3bn); Hennessy came seventh (a rise of 17.0% to US$3.9bn); Bacardi nabbed eighth place (53.8% growth to US$3.7bn); Smirnoff was ninth (up 8.1% to US$3.5bn); and Gujing Gong Jiu placed 10th (up 10.3% to US$2.7bn).
Patrón Tequila is the highest new entrant in the ranking, placing 14th with a brand value of US$2.2bn.
David Haigh, CEO of Brand Finance, an independent brand valuation consultancy, said: “Chinese baijiu brands are stealing the show, accounting for 54% of the total brand value in our rankings this year.
“These brands have had to be nimble in adapting to the shift from an expansion market to a competitive market, following China’s recent economic and political changes.
“How they respond and embrace these changes will determine future brand value growth opportunities.”
Diageo’s Cîroc vodka recorded an “extraordinary” increase in brand value of 113% to US$941 million. Brand Finance attributed its growth to Cîroc’s ability to meet the increased consumer demand for flavour variety and its seasonal limited edition releases.
South Korean soju brand Chamisul also reported strong growth of 94% to reach a brand value of US$649m.
To see how the world’s biggest-selling spirits brands performed by volume in 2018, see the Brand Champions 2019 report.