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Brand value increases across categories

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Part 3 | The Categories<br />

Soft Drinks<br />

BUBBLE BURSTING FOR COLAS<br />

BUT OTHER BEVERAGES FLOW Definition<br />

Health concerns remain key issue<br />

74 <strong>Brand</strong>Z Top 100 Most Valuable Global <strong>Brand</strong>s 2013<br />

COLA BRANDS promised to deliver<br />

the trifecta of hydration, refreshment<br />

and taste.<br />

But consumers in developed markets<br />

wanted more. To fit the needs of their overscheduled<br />

lives, they expected the brands<br />

to multitask, adding functional benefits,<br />

like an energy boost to the basic thirstquenching<br />

proposition. And consumers<br />

continued to worry about the healthiness<br />

of carbonated soft drinks (CSD).<br />

The new, more inclusive definition of<br />

the <strong>Brand</strong>Z non-alcoholic beverage<br />

category recognizes these trends. The<br />

The soft drink category was<br />

expanded this year and includes<br />

these non-alcoholic ready-todrink<br />

beverages: carbonated soda<br />

drinks (CSDs), juice, bottled water,<br />

functional drinks (sport and energy),<br />

coffee and tea (hot and iced).<br />

Top 15 Soft Drinks<br />

<strong>Brand</strong> <strong>value</strong><br />

2013 $M<br />

highly <strong>value</strong>d juice, coffee and tea brands<br />

that now appear in the ranking reflect<br />

both the attitudes of consumers who<br />

prefer these drinks and those who select<br />

them as alternatives to carbonation.<br />

CSD sales were especially challenged<br />

in markets like Western Europe, with an<br />

aging population and sluggish economy.<br />

To balance slacking demand, Coca-Cola<br />

and Pepsi looked to fast growing markets,<br />

like China and India, where consumers<br />

are less likely to have a soda drinking<br />

habit and tea is a more traditional drink.<br />

Among strategies implemented by the<br />

beverage brand leaders were:<br />

Shopper marketing<br />

<strong>Brand</strong>s continued heavy<br />

investment to win share, especially<br />

in the flat cola sector.<br />

Pairing with food<br />

They attempted to increase volume by<br />

marketing connected to meal occasions.<br />

<strong>Brand</strong> extension<br />

<strong>Brand</strong>s added new options to meet<br />

consumer desire for healthier and<br />

more functional beverages.<br />

<strong>Brand</strong><br />

contribution<br />

<strong>Brand</strong> <strong>value</strong> %<br />

change 2013 vs 2012<br />

1 Coca-Cola 64,698 5 7%<br />

2 Diet Coke 13,717 4 -2%<br />

3 Red Bull 10,558 3 6%<br />

4 Pepsi 9,799 4 -5%<br />

5 Nescafé 5,639 3 New<br />

6 Tropicana 4,808 4 New<br />

7 Nespresso 4,478 4 New<br />

8 Sprite 4,127 2 9%<br />

9 Fanta 3,974 2 -1%<br />

10 Gatorade 3,750 3 9%<br />

11 Mountain Dew 2,495 4 -3%<br />

12 Minute Maid 2,296 3 New<br />

13 Dr. Pepper 2,236 4 5%<br />

14 Diet Pepsi 2,230 3 -2%<br />

15 Nestea 1,852 3 New<br />

Valuations include data from <strong>Brand</strong>Z, Kantar Worldpanel, Kantar Retail and Bloomberg.<br />

<strong>Brand</strong> Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).<br />

Food & Drink | Soft Drinks<br />

Up 5%<br />

75

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