Page 41 - BrandZ Top 100 Most Valuable Global Brands 2014

Section 03 | The Categories
Food and Drink | Beer

Beer

Drinkers drive volume in fast

growing markets and expect

variety in US and Europe

Major brewers build local and global brands

Expansion in fast growing markets drove Cider Like lavored beer, cider is seen

beer volume increases, but changing as an entry option for people who ind
social and drinking trends slowed the taste of beer too bitter. Of the
consumption in North America and major brands, only Stella Artois offers
Western Europe. As people, especially cider, both apple and pear.
Millennials, socialized more in mixed

groups of men and women, they drank Craft Beer Although the trend is
less and instead focused on experiencing inluential, craft beer represents less
new tastes and lavors.
than 8 percent of total beer volume
and around 14 percent of revenue in
To reach new, young beer drinkers in the US.
developed markets, the four major global

brewers – AB InBev, SABMiller, Heineken Building global and local
and Carlsberg – introduced their own brands
versions of lavored and craft style beers.
While the craft beer phenomenon is less
pronounced in Europe than in the US,
Industry expansion and consolidation

the growing desire for choice also is continued, as AB InBev completed its
expressed in the resurgence of ale in acquisition of Mexico’s Grupo Modelo,
the UK.
adding Corona to its portfolio of over
roughly 200 brands. Diageo, the UK-
The major brewers build their global based spirits giant, relaunched its

businesses by balancing the need for Guinness brand in Nigeria, which
economies of scale with respect for local consumes more of the brand than Ireland.
beer tastes and traditions. The BrandZM Top 10 Beer
ranking of the Top 10 beer brands relects Africa lacks beer industry infrastructure
this evolution. Four listed brands – that can be easily acquired. But
Budweiser, Heineken, Guinness and
expecting strong growth in Africa,
Brand
Brand Value

Stella Artois – are global beers. The other the major brewers have invested in Value Brand
% Change
brands are regional leaders, with four – distribution networks with the goal of 2014 $M Contribution
2014 vs 2013
Corona, Skol, Aguila and Brahma – from convincing drinkers to trade up to
Latin America.
higher quality beer.
1
Bud Light
12,580
3
16%

The world’s largest 25% 2 Budweiser 11,834 4
14%
Normally, the major brewers produce In contrast, the existence of industry
their global brands close to the market to infrastructure facilitated expansion into market
3
Heineken
8,670
4
5%
gain the greatest economies. But rising Latin American, which now is split, along 30% 4 Stella Artois 8,237 4
consumer concern with authenticity has a rough “line of demarcation,” between
produced exceptions. SABMiller brews AB InBev, which holds signiicant share The majors also continued to compete 5
Corona
8,025
4
21%
for share in the fragmented Asian market.
Peroni, an Italian brand, in Italy. All the in Brazil, for example, while SABMiller 8% 6 Skol 7,055 4
Heineken distributed in the US is brewed enjoys great success in Columbia. By China, the world’s largest beer market by
in Amsterdam. To compensate for the acquiring strong local beers, the majors 7
Guinness
5,014
4
12%
extra production costs, the brewers gained economies of scale and built consumption, is roughly twice the size of
market these beers as premium brands.
diversiied brand portfolios that they the US market. Lacking a beer drinking -6% 8 Aguila 3,676 5
tradition, consumption per person is
crowned with their global brands, relatively low, which suggests that 9
Miller Lite
3,630
3
17%
These other trends continued to unfold:
positioned at a premium price.
opportunity is high.
-6%
10 Brahma 3,585 4

Pairing with food Brewers promoted Brazil is a prime example of this strategy. Deinition
Source: Valuations include data from BrandZM and Bloomberg.
beer as an enjoyable – and affordable AB InBev acquired and invested in local Although still a market of regional Brand contribution measures the inluence of brand alone on earnings, on a scale of 1 to 5, 5 highest.
– complement to a good meal, a brands, Brahma and Skol, and introduced players, consolidation is happening in The beer category includes global
China. Snow, China’s largest brand,
premium beer being less expensive its own global brand, Budweiser, to the acquired Hong-Kong based Kingway and regional brands, which, in
than a modest wine.
market. AB InBev then reversed the Brewery at the end of 2013, for example. an increasingly consolidated
process, picking one of the local leaders, industry, are mostly owned by
Brahma, to build that brand outside
China Resources, a State Owned four major brewers.
of Brazil.
Enterprise (SOE), and SABMiller jointly
own Snow.

80 BrandZM Top 100 Most Valuable Global Brands 2014
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