Highlights & Key Findings

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 (+14%).

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 2013 ranking.

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 overseas.

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).

BrandZ LatAm Top 50 2014

BrandZ LATAM 2014 Report Top 50 Report

Top 50 Chart

Methodology and valuation by Kantar Millward Brown

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