Brand value increases across categories
Brand value increases across categories
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