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Corona Overtakes Petrobras to Lead the 2013 BrandZ™ Top 50 Most Valuable Latin American Brands

September 23, 2013

Beer Brands Dominate in Terms of Value Growth, While Mexican Brands Contribute the Greatest Share of Total Value

Mexico City, Mexico – Mexican beer brand Corona is the most valuable Latin American brand, according to the second annual BrandZ™ Top 50 Most Valuable Latin American Brands ranking announced today by BrandAnalytics, a Millward Brown Optimor company. The ranking was commissioned by WPP. Corona increased its brand value by 29% in the last year to US$6.6 billion, due to the strong financial performance of its parent company and a solid brand positioning which is popular with consumers worldwide.

Petrobras, the Brazilian energy giant which topped the ranking in 2012 with a value of US$10.6bn, is now in fourth place with a value of US$5.8bn. The 45% drop in value is attributable to company finances and was largely caused by the devaluation of commodities across international markets, the brand itself remained strong.

The BrandZ™ Top 50 Most Valuable Latin American Brands 2013 looks at brands from Argentina, Brazil, Chile, Colombia, Peru and Mexico. Together, these nations represent around US$4,75 trillion in GDP, the equivalent of the world’s 4th largest economy after Japan. It is the only ranking that takes into account the views of potential and current buyers of a brand, alongside financial data, to calculate its value.

The total value of the brands in the Top 50 in 2013 added up to US$135.3bn, similar to 2012’s total value of US$135.7bn.

Category highlights

The FMCG category (beer, bakery, cosmetics and food) grew 73% as a whole, due to the ability of FMCG brands to sustain their value in times of financial crisis. The main contributor to this growth was the beer segment, which boosted its value by 96%.

Beer brands dominate the top 10 and the list of top risers, with Modelo (Mexico) and Brahma (Brazil) achieving the strongest growth at 85% and 61% respectively, while Skol, Brazil’s most valuable brand, grew 39%. Águila (Colombia) entered the ranking for the first time at #10. The segment benefited from the improvement in employment levels, which brought an increase in personal consumption. New entrants Águila and Póker (Colombia) and Cristal (Peru) show how the loyalty generated by local beer brands are helping them gain force against global competition.

The category with the biggest overall drop in brand value was services (communication providers and airlines) at 31%, a consequence of the decline of the telecommunications industry as a whole across the region. Telcel (Mexico) was a major contributor to the fall, decreasing 22% in value.

Energy, oil, mining and cement brands decreased in value by 25%, influenced by the performances of Petrobras, YPF and Vale, the fall in commodity prices, and unfavourable exchange rates. Despite dropping 8% compared to the previous year, financial institutions still make up 23% of the total value of the Top 50.

Country highlights

Mexico has overtaken Brazil to become the country with the highest percentage of the total brand value of the Top 50. Mexican brands contributed to almost a third (32%) of the total value, as Mexico’s proximity to the US and its high number of international brands enabled it to benefit from recovering economies. Its beer brands led the way, while banking and retail brands also performed positively – Banorte bank and the retailer Soriana entered the ranking for the first time, while the brand value of the Liverpool chain of department stores grew a massive 79%.

Brazil, which held the largest share of value last year, dropped into second place with a decrease from 34% to 28%. Factors included Petrobras’s devaluation in the capital markets, and a dip in the brand value of banks Bradesco (-18%) and Itaú (-39%) after the government’s strategy to stimulate the economy by reducing interest rates impacted their financial results.

Peru was included in the Top 50 for the first time in 2013, with a value contribution of 3%, due to the growing importance of the country in the region: its 6.3% increase in GDP in 2012 was the largest of all Latam countries.

Many of the brands that are leaders in their own country also have a presence across Latin America and a global footprint. Eight of the brands in the Top 50 also feature in the category rankings of the 2013 BrandZ Top 100 Most Valuable Global Brands: Petrobras,Ecopetrol, Falabella, Natura, Skol, Brahma, Corona and Águila

Fabian Hernandez, CEO of Millward Brown Latin America, says: “Despite the ongoing economic crisis and other factors that had a negative impact on economies in Latin America – including inflation, and the fall in commodity prices – the total value of the BrandZ Top 50 Most Valuable Latin American Brands has only declined slightly in the last year. This shows how strong brands are able to minimise the impact of unfavourable macroeconomic conditions, and deliver a strong business performance.”

Eduardo Tomiya, Managing Director, BrandAnalytics comments: “The BrandZ Latam Top 50 gives businesses the opportunity to check the ‘health’ of their brands, and compare it with their competitors." Those that have successfully grown their value this year have done so by differentiating themselves to achieve high levels of loyalty and consumer preference, which enables them to charge a premium, sustain sales and generate exceptional profits. Several local brands are now competing head-to-head on the global stage – in particular the beer brands – emphasising the growing importance of the region.”

The Top 10 Most Valuable Latin American Brands 2013

Rank 2013 Category Brand Brand Value 2013 ($M) Brand Value Change Rank Change Country
1 Beer Corona 6,620 29% 6 Mexico
2 Communication providers Telcel 6,577 -22% 0 Mexico
3 Beer Skol 6,520 39% 5 Brazil
4 Energy Petrobras 5,762 -45% -3 Brazil
5 Retail Falabella 5,611 7% 1 Chile
6 Financial institution Bradesco 5,492 -18% -3 Brazil
7 Energy Ecopetrol 5,137 21% 4 Colombia
8 Communication providers Claro 4,454 3% 2 Latam
9 Financial institution Itau 4,006 -39% -5 Brazil
10 Beer Águila 3,903 N/A New Colombia

Further information about the ranking can be found here.