Top 50 Brand Value totals $136 billion
Ranking includes diverse categories
The 2012 Top 50 Most Valuable Latam brands total $135.7 billion in value.
Brazil accounts for just over one third-of that value, which isn't surprising since Brazil, one of the BRIC markets, is the world's fifth largest country in land area, just after China, and the sixth largest economy with a GDP of $2.0 trillion in 2010, a gain of over 200 percent in a decade.
But it's not just about Brazil. Mexico comprises 27 percent of the value of the 2012 Top 50 ranking. Together, Brazil and Mexico account for half of the brands, 14 each. Reflecting the diversity of the national economies, Brazil's brands represent eight product categories and Mexico's, six.
With 12 brands in the Top 50, Chile accounts for 20 percent of the 2012 Latam Top 50 total value, while Colombia with eight brands comprises 16 percent of total value. Five product categories in Chile and four in Colombia are included. In contrast, only two Argentine brands appear. They total just 3 percent of the value of the Latam Top 50 and come from two product categories.
All of the BrandZ™ Latam Top 50 most valuable brands are leaders in their country markets. Many enjoy regional prominence. The Chilean retailers Falabella and Jumbo operate stores throughout South America. The Mexican telecom Telcel serves much of Latin America. And the financial institution brands typically maintain locations in neighboring countries.
In addition, some of the BrandZ™ Latam Top 50 operate globally. Number 1 ranked Petrobras, the Brazilian energy giant, conducts exploration and refining activities in all parts of the world. The Brazilian food processors Sadia and Perdigão export worldwide. Cemex of Mexico is a global building materials supplier. Chile's LAN Airlines is in the final stages of a merger with TAM Airlines of Brazil to form one of the world's largest carriers, LATAM.
Retail ads the ranking
Retail is the most represented product category in the BrandZ™ Latam Top 50, with 14 brands listed. Eight of the retail brands are Chilean, four are Mexican, Brazil and Colombia each has one. The dominance of retail reflects it's central importance both for the distribution of merchandise and the provision of credit.
The second most represented category, financial institutions, also is fundamental to the health of Latin America's economies. Five of the 10 financial institutions are Colombian and three are Brazilian. Mexico and Chile each have one. With eight brands in the Top 50, communication provider is the third most represented category, pointing to the influence of communications today. Five of the telecoms are Mexican.
The mix of categories in the BrandZ™ Latam Top 50 ranking is determined by geography, history, politics and economics of the various countries. Chile's physical isolation in part inspired self-reliance and the development of retail. Brazil benefited from the richness of its natural resources. Economic turbulence and government policy has moderated the growth of brand value across most product categories in Argentina.
In some instances, the category mix suggests the influence of several powerful and wealthy Latin American entrepreneurs. Carlos Slim Helú, the Mexican financial magnate who Forbes magazine ranks as the world's riches individual, owns substantial telecom and retail interests. Colombian Lusi Carlos Sarmiento manages several bank brands under the holding company Angulo Grupo Aval Acciones y Valores SA.
Brand Contribution scores are high
The high Brand Contribution scores of Chilean brands indicate the potential strength of brands in Latin America. Brand Contribution measures the impact on the future earning potential of brand alone, excluding other factors such as financial performance. It rates brands on a scale of 1 to 5, with 5 being the best score.
Of the 12 Chilean brands in the BrandZ™ Top 50 Most Valuable Latam brands, all but one brand received a Brand Contribution score of 4 or 5. The exception is in the energy category, which typically scores low in Brand Contribution. Brands in the other Latam countries score moderately well in Brand Contribution. Overall, 21 of the Top 50 Latam brands score a 4 or 5 in brand contribution, 19 score 1 or 2 and 10 are exactly in the middle with scores of 3.
The highest scoring brands generally are retailers or beers. But Chile's LAN Airlines and its energy brand Copec also scored well as did Natura, the Brazilian cosmetics brand and Bimbo, the world's largest distributor of bakery products, which is based in Mexico. Energy and industrial brands generally score low in Brand Contribution.
Although appreciating in value, the Latam brands are not yet valuable enough to appear in the BrandZ™ Top 100 Most Valuable Global Brands ranking—with two exceptions. The Brazilian oil and gas company Petrobras ranks 75 in the 2012 Top 100 and Telcel, Mexico's telecom, ranks 97.
Several Latam brands appear among the BrandZ™ global leaders in their respective categories, however. Three of the Top 10 brands in the beer category are Latin American: Corona of Mexico and the Brazilian brands Skol and Brahma. Brazil's Natura ranks among BrandZ™ global leaders in personal care category. Skol and Brahma are owned by AB-InBev, the world's largest brewer, demonstrating the engagement of multinationals in Latam.
In 2012, for the first time, two Chilean brands ascended to the ranks of BrandZ™ global leaders in their category—retail. Falabella operates department stores and Sodimac, a Falabella specialist brand, operates in home improvement. While neither Mexico's Bodega Aurrera nor Lider of Chile, both supermarkets, are listed in the ranks of global retail leaders, they're owned by the world's most valuable retail brand, Walmart.