According to Kantar’s latest BrandZ ranking, Coca-Cola has been named one of the 10 most valuable brands in the world for the first time in eight years.
Coca-Cola, which includes Diet Coke and Coke Zero variants, was among the only 16 brands to grow in value this year, coming in at 10th, up from 17th in 2022. according to the annual brand valuation report.
The brand’s value has grown by 8% last year, from $97.8 billion to $106.1 billion today.
The value of the world’s biggest brands fell by 20%. Kantar ranks Coca-Cola as a premium brand with strong pricing power. The Coca-Cola Company has invested heavily in its core brand, variants, and the rest of its portfolio over the past 18 months to try to minimize price increases. Last year, it increased marketing spending to help it “earn” higher prices.
At the end of 2022, Chief Financial Officer John Murphy said the business was increasing investment back into consumer-facing marketing in its portfolio for a “fast start” to 2023.
The brand seems pleased with the results, as they recently described how “consumer-centric segmentation” is key to helping it mitigate its difficulties in a challenging macroeconomic environment. awake.
Acknowledging the role of price increases as a strategy to combat inflation, CEO James Quincey also detailed in April this year that the ability to be near consumers is helping it grow.
At the same time, the company as a whole — not just the Coca-Cola brands — posted 5% year-over-year net sales growth to $11 billion in the first quarter.
Adele Jolliffe, an executive on Kantar’s Insights team, says Coca-Cola is a “hugely different” brand. “In the eyes of consumers, even though other brands of cola are available, it maintains that distinct feeling,” she added.
Jolliffe said that Coca-Cola “continues to set the standard in the category” for innovation. Kantar cites their recent collaboration with Jack Daniels on a Coca-Cola RTD product as an example of their outstanding innovation.
Innovation and expansion into different segments make Coca-Cola “a prime example of a brand that doesn’t just rely on its laurels,” adds Ellie Thorpe, BrandZ team leader at Kantar.
Kantar’s BrandZ valuation process takes the financial value generated by a brand in US dollars and multiplies that value by the brand’s contribution. The result is Brand Value – the amount a brand contributes to the overall value of a corporation. This isolation and measurement of intangible assets presents an additional source of shareholder value that would otherwise not exist.
That brand’s contribution stems from consumer research that aims to quantify the volume people buy and the high prices people pay that can be attributed to brand equity, connecting what people think with what they do.
This year’s analysis involved 4.2 million consumer interviews covering 21,000 brands across 540 categories in 54 markets.