The Chinese market and spirits industry has a firm grip on the top five spirit spots, according to data from Brand Finance.
Growth, however, is across the spirits sector with the total value of the world’s top 50 most valuable spirits brands having increased by five percent, up from US$129.7 billion in 2020 to US$135.9 billion in 2021. Performing particularly well in the ranking this year are the Chinese brands, with the nine brands that feature growing 27 percent in brand value on average.
Once again, Chinese Baijiu brands dominate the Brand Finance Spirits 50 2021 ranking, claiming the top five spots. Moutai maintains a clear lead at the top with a brand value of US$45.3 billion, up 15 percent year-on-year. Moutai’s revenues have suffered recently with sales reaching a five-year low, as the brand grapples with the sharp decline in consumer spending, as a result of the pandemic. The brand has been working towards increasing its direct sales channels, however, so that it can control prices more effectively as well as expanding it production capacity.
Fellow Baijiu brand Wuliangye sits in second with a brand value of US$25.8 billion and celebrates a 24 percent brand value increase. Wuliangye has thrived since optimising its product structure, streamlining the business by demerging many sub brands, and focusing on the high-end spirits market.
Yanghe (down 8% to US$7.1 billion), Luzhou Laojiao (up 25% to US$7.0 billion) and Gujing Gong Jiu (up 22% to US$4.0 billion) make up the top five. Following its 22% brand value increase Gujing Gong Jiu – famous for using the oldest existing distilling technique in the world – has climbed four spots to break into the top five, pushing whiskey giant Jack Daniels (down 17 percent to US$3.4 billion) into 6th spot.
Soaring into the Brand Finance Spirits 50 2021 ranking in 28th position is Jiugui Jiu following a staggering 96 percent brand value increase to US$760 million.
“China is home to the largest spirits market in the world and it has been flourishing in recent years as alcohol consumption increases and purchasing power is on the up,” said Richard Haigh, Managing Director, Brand Finance.
“Although we are beginning to witness a rise in popularity of international spirits across the country, the nation’s traditional Baijiu spirit still dominates on home soil with immense volumes sold each year, particularly by market leaders Moutai and Wuliangye. This dominance is reflected in their brand values being significantly ahead compared to other brands across the sector.”
Don Julio is strongest
Don Julio (down three percent to US$933 million) is the world’s strongest spirits brand with a Brand Strength Index (BSI) score of 88.8 out of 100 and a corresponding AAA brand strength rating.
The focus on keeping the authenticity of the brand and maintaining the same processes and quality since it was first created by Don Julio Gonzalez in 1942 remains of paramount importance. Don Julio launched its biggest marketing campaign to date at the end of last year, celebrating its founder and showcasing its commitment to supporting communities, and the restaurant sector.
Riding on the wave of increased popularity in tequila particularly in the US market – where volume consumption has grown exponentially over the past five years in particular – Don Julio has celebrated strong sales over the previous year. The strong performance of the brand helped to offset losses made in other areas of parent company Diageo’s portfolio.
