Even though the BrandZ™ Top 50 Most Valuable Latin American Brands 2014 decreased 4.5%,
certain categories showed a very good performance, including Beer (+13%), Food (+21%) and Retail
One of the reasons for this growth is that some brands have implemented successful
strategies to address the growing middle class need. A good example is Brahma, which created
Brahma Fresh for the market in northeast Brazil, to compete against low price beers.
The bad news came from the Financial institutions (-3%), B2B (-19%) and Services (-4%) categories –
each for different reasons, which are explored here.
Key Findings and Future Trends
Local icons that remained relevant to consumers became more valuable
Latin America has several local icons and BrandZTM
results showed that these brands are very strong.
Examples are Telcel, Skol, Águila, Sodimac, and Inca
Kola, among others. What the study shows is that
all these brands have taken action to improve their
offer to retain their relevance to consumers, which
consequently increased their brand equity. Bradesco
in Brazil is a very good example of this; traditionally
a bank for the middle class, it has improved its
offer for low-end consumers, with activity such as
sponsorship of the Olympic Games.
Internationalization of brands – there are very few genuine Latin American brands
Latin America is a region composed of several
countries, cultures and languages and this creates a
barrier for geographic expansion of local brands. The
beer industry is a clear example of this. Even though
the brands belong to international groups, in general
they have kept local brands local, for example, Águila,
Skol, Cristal, among others. But internationalization
of local brands can offer great potential for growth, as
proved by the likes of Falabella and Corona. In these
organizations, they take the view that geographic
expansion is worth the commercial risk. Exposing their
brands to compete in different markets, with different
cultures is a big challenge but at the same time, it’s
an opportunity for learning and an important step
in creating sustainable growth for the corporation.
Colombian brands such as Bancolombia, Avianca,
Grupo Sura are moving in this direction to create Latin
American brands; Brazilian brands such as Itaú, Sadia,
Natura and Vale are also starting to do so.
Brand consolidation following Mergers & Acquisitions creates a big "house of brands"
Over the last few years, we have seen some
important mergers such as in the beer market
(AB Inbev, SABMiller), BR Foods (Sadia,
Perdigão), LatAm (Lan and Tam), Avianca
(Avianca and Taca), ItaúUnibanco (Itaú and
Unibanco) among others. Last year these
consolidations started to generate results. AB
Inbev is a clear example of this; consolidated,
brands that belong to AB Inbev represent 19%
of the total BrandZ™ Top 50 LatAm 2014 and
SABMiller consolidated represents 7%.
At The Top Of The Table
In 2014, Beer, Retail, Communication Providers and
Financial Institutions categories dominate the top
five positions, a repetition of what we saw in the
First and foremost – and once again – Corona,
the Mexican beer brand, heads the BrandZ™ Top
50 Most Valuable Latin American Brands 2014.
This achievement demonstrates the strength of
the brand’s solid positioning and its high regard
amongst consumers in both Latin America and
A Good Year For Beer All Round
2014 sees a real predominance of the beer category
overall, owning five of the top ten positions.
Corona had a 21% growth, to US$ 8 billion. This was
followed by Skol, Brazil’s most valuable brand, with
a value of US$ 7 billion, an 8% growth in comparison
to 2013. All these brands helped to hold the fall in
value of the BrandZ™ Top 50 LatAm 2014.
The other three beer category brands that made it
into the overall top ten were Brahma (Brazil), Águila
(Colombia) and Modelo (Mexico).