Chinese brand Moutai (brand value down five percent to US$42.9 billion) is again the most valuable spirits brand in the world, according to a new ranking from the world’s leading brand valuation consultancy, Brand Finance.
The brand retained its top position in the Brand Finance Spirits 50 2022 table and continues to lead the sector with its iconic drink which is a unique, aspirational, and market-dominating product in China. The brand has been adept in supplying its product to Chinese customers by leveraging its iMoutai mobile application which has over 10 million users for online payments and e-commerce fulfilment.
The app also allows consumers to purchase the special drink in new and engaging ways.
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the world’s biggest brands to the test, and publishes around 100 reports, ranking brands across all sectors and countries. The world’s top 50 most valuable and strongest spirits brands are included in the annual Brand Finance Spirits 50 ranking.
The brand relies heavily on seasonal sales during the Lunar New Year and the Mid-Autumn Festival, with lower revenues expected in the summer months. Recently, the brand expanded its product range to meet the preferences of a younger demographic in China. To combat this slump in demand, the launch of its new range of alcoholic ice-cream parlours in the Guizhou province in partnership with Mengniu Dairy, one of the largest diary brands in the nation has proved to be quite popular.
“Over the course of the pandemic, alcoholic brands have been faced with difficult conditions including fluctuating demand due to national lockdowns across the world. The reopening of the economy has driven major growth in the sector with spirits brands growing by 6 percent year-on-year,” said Alex Haigh, managing director, Brand Finance.
In addition to brand value, Brand Finance determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance.
Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 100,000 respondents in more than 35 countries and across nearly 30 sectors.
Wuliangye (brand value up 12% to US$28.7 billion) is the strongest brand in the ranking with a Brand Strength Index (BSI) score of 89.4 out of 100 and a corresponding brand rating of AAA. In addition to being the strongest baijiu brand in the world, Wuliangye has also achieved the largest increase in brand value growth among the top five most valuable baijiu brands in the ranking.
Wuliangye has been successful in achieving the largest brand value increase among the top tier baijiu brands, while brand value of its competitor Moutai has decreased. The baijiu brand has been actively incorporating ‘Internationalise Baijiu’ into its corporate brand messaging strategy as a part of China’s One Belt One Road initiative. by engaging in international events including trade expos, the World Economic Forum in Davos and the Boao Forum for Asia to name just a few. The purpose of involvement in such events would be to promote Wuliangye’s baijiu culture and to actively expand in the international markets.
New entrant, Casamigos, is the fastest-growing spirits brand, almost tripling in value
Casamigos (brand value up 177% to US$450 million) brand value has almost tripled since last year and is now valued at US$450 million.
After its sale to the UK-based multinational alcohol company Diageo in 2017 for around US$1 billion, George Clooney’s brand continues to perform strongly with tequila sales skyrocketing globally. Not only has the brand followed sector-wide trends, but it has also pushed further than others by doubling sales this year.
The brand has also announced its plans to invest over US$500m to expanding production capabilities in Mexico, with the increased investment expected to assist in securing further growth for the brand in coming years.
