The trend observed in recent years in Brazil is the growing value of consumer brands, which are now more predominant in the BrandZTM Top 50 Most Valuable Latin American Brands, displacing the traditional winners from the financial market, and Petrobras from the oil and gas industry.
Consumer brands add significant value,
dodging fluctuations in the economic
and financial setting, enforcing the
power of brands as intangible assets, and
taking on more significant positions.
In 2014, Skol is the most valuable brand in
Brazil and the second in Latin America. It
has the largest share in the beer market in
Brazil, with a performance that has benefited
greatly from the increase in the middle
class purchasing power in recent years. One
of the pillars of the brand’s success is its
longstanding communication consistency,
delivering a Meaningful and Different brand to
consumers, which is essential to brand value.
Skol’s communication efficiently combines
the functional and emotional aspects that are
vital to cement brand loyalty in this category.
Brand revitalization and differentiation come
from ever-present innovation. Sponsoring
music festivals to keep close to the young
target – vital for the brand, is a constant in
Skol’s activities. This year, the brand broke
Heineken’s traditional partnership with
Lollapalooza, and sponsored the event in
This year, it launched Skol 360 to shield the
brand against the action of cheaper brands
that are competing for the large group of
consumers from the emerging middle class.
Vying for space in the consumer relationship,
Skol has created the Barbecue Customer
Service with tips to prepare barbecue, a
traditional form of Brazilian get-togethers
with friends and family.
Sadia is a Brazilian brand that has seen 24% growth in
brand value in 2014, ranking sixth in the BrandZ™ ranking
in Brazil and 26th in Latin America. An example of a
successful post-acquisition strategy (Perdigão and Sadia,
the two main Brazilian food companies, underwent a
merger) the portfolio rationalization process considered
the value of the Sadia brand among consumers. Perdigão
showed good financial health but did not have the same
performance as Sadia in consumers’ perception of brand
value. The Sadia brand was built upon its “Brazilianness,”
a family brand from the south (where regionalism is
extremely ingrained), emphasizing a stronger bond with
the Brazilian family.
In this category with low distinction among brands, Sadia
has rescued and continued to spearhead innovation in
the market, focusing its efforts on products with higher
added value, living up to its brand history. “Frango Fácil”
(Easy Chicken) is the latest big brand launch that brings
convenience to consumers combined with quality, which
is always associated with Sadia (in Portuguese Sadia
means Healthy). Sadia’s consistent communication
uses ‘S as in Sadia’ as a tagline to their masterbrand
Sadia has faced, with great authority, the very strong
competition in this category - notably Seara Food’s
marketing investment, which brought Fátima Bernardes
(a TV news anchor and talk show hostess) to add quality
to Seara’s brand image.
Another player, the newest in the category, is Friboi, a
JBS brand that has been making strong investment in its
communications, with the goal of building a quality brand
Even in this competitive scenario, in categories with low
differentiation, the strategy of Meaningful and Different
brands offers potential for success. In the acquisition
process, it’s crucial to also consider the value of each
brand. Acquisitions that consider strategies primarily
based on financial and business indicators could be a
recipe for poor performance.