Keeping spirit values high
By Steve Mullins. Keep drinking. The brand value of spirits is up despite the economic downturn, according to the latest BrandZ 2009 rankings. Millward Brown says the category is up 5% on last year, with much of this spike coming from sales in developing countries where economies continue to grow, though at a slower pace.
And whisky’s doing particularly well in these markets as expanding middle classes spend disposable income on this status drink. In fact, two competing Scotch whisky brands, Johnnie Walker and Chivas, grew 42% and 30%, respectively, in brand value in the 12-month period under review. In fact, they rank among the top 20 brands, across all categories, when it comes to year-on-year value growth.
“One of the reasons for the increase in value for Johnnie Walker is the growing popularity of whisky in China,” says Millward Brown. “Their Keep Walking campaign has been extremely successful and it is much more than just a liquor.”
However, Smirnoff and Bacardi remain the top two names ranked by brand value, with both competing for a similar customer – one seeking fun and energy release compared with the whisky customers focus on discernment and status.
The value of the soft drinks category has grown 24%, with high brand contribution levels – the share of earnings from the products’ loyal consumers – helping to insulate it from current economic pressure, and consumers seemingly reluctant to switch to private label brands.
Health concerns drove the growth of juice-based drinks and water fortified with vitamins, Millward Brown says. The expanding range of heath-oriented products and the popularity of energy drinks were the greatest contributors to category growth. Health concerns drove the growth of juice-based drinks and water fortified with vitamins.
This move to healthier offerings has impacted the brand value of highly-sugared drinks, and both Pepsi and Coca-Cola have responded to the trend by releasing two low-calorie options Pepsi Max and Coke Zero, respectively.
Millward Brown says Coca-Cola’s marketing has become more focused on brand and moved away from promotion. One of the world’s greatest brands has just become greater, according to the report.
Two energy drinks, Red Bull and Gatorade, appear among the top 10 for the first time this year.
