Corona takes top spot in BrandZ Top 50 Most Valuable Latin American Brands 2018
27 April, 2018
- Strong brands rebound impressively with 18% total brand value growth after sharp decline in 2017 ranking
- Brazil’s TV giant Globo is the highest new entry at No. 8 with a value of $4.3 billion
- Mexico is home to more of the most valuable brands than any other Latin American country, contributing 35% to the total ranking value
April 2018 – Mexico City – Mexican beer Corona is the most valuable brand in Latin America, overtaking Brazil’s Skol, which
has held the title for the past two years, according to the sixth-annual BrandZ™ Top 50 Most
Valuable Latin American Brands announced today by WPP with data prepared by Kantar.
Corona took the top spot in the ranking after seeing an 8% brand value growth to $8.3 billion,
edging out Skol, which grew by just 1%. The brand is sold in more than 180 countries and its
success and global growth have been helped by Corona’s ability to generate an affiliation with
the “fun-loving” attributes associated with Mexican and Latin culture.
The 2017 BrandZ LatAm ranking reflected the difficult time faced by many brands in the region
with a 22% decline in total brand value. In the 2018 ranking, total brand value increased by 18%
to $130.8 billion, boosted by an impressive performance from the strongest and healthiest brands,
those that believed in their purpose and stayed relevant to the consumers.
Chilean retail giant Falabella, for example, has grown its brand value by 26% to $5.4 billion, by,
among other initiatives, being the first in the category to develop an online platform with full range
of products, as well as offering a valuable experience that is continuously reviewed and combined
with a clear purpose of knowing and satisfying increasingly demanding consumers.
“The power of strong brands to drive improved business performance can be clearly seen in this
year’s Latin America Ranking. While the economy may fluctuate, those brands that are strong will
remain more stable in the tough times and grow faster in the good times. The success of Falabella
building its retail empire across the region is ample demonstration of the value of a strong brand,”
said WPP’s David Roth.
|The BrandZ™ Top 10 Most Valuable Latin American Brands 2018
||Brand value 2018 (USD $ million)
While the economy has undoubtedly contributed to this year’s more positive ranking – GDP
growth of 1.3% across the continent -- it is only part of the story. Latin American brands have also
benefited from a strong affinity and pride among local consumers for brands from the region, as
they believe they better understand their emotional needs.
This bodes well for the growth of own-label in a region where it has struggled. Currently just 1%
of FMCG goods sold in LatAm are retailer own-brands compared to 30% in Europe. However,
with 70% of modern trade channels owned by local Latin American retailers rather than global
names, modern chains such as Falabella, as well as the rapidly growing discounter sector, should
push this figure higher.
The rise of local giants with strong brands that are capable of challenging global competitors is a
trend that’s also been observed in other BrandZ rankings from China to Indonesia.
This year’s BrandZ Latin American ranking, for example, shows a strong performance for local
financial institutions (up 46%) and the four beer brands in the Top 10 – Corona, Skol, Brahma
and Aguila – all controlled by global giant AB InBev, have maintained and invested in their local
characteristics enabling them to boost brand value.
“Latin American brands have an in-depth understanding of their local consumers; the speed at
which they can tap into local consumers’ needs with good products and strong marketing
campaigns has made many of them more successful and relevant in the region than their global
counterparts. As a result, Latin Americans have great respect and pride in these brands,” said
Kantar’s Eduardo Tomiya.
Other key trends identified in the BrandZ™ LatAm Top 50 study include:
- There were eight new entries in the Top 50 this year: Globo (no. 8), Ypé (no. 33), Azteca
(no. 37), Embratel (no. 40), Lojas Americanas (no. 46), Net (no. 48) and Porto Seguro (no.
50). All are from Brazil, except Azteca which is based in Mexico. Communications provider
Tigo Une was formed from the merger of Tigo and Une in Colombia, which were previously
listed separately, and is now No 27.
- Mexico dominates but Brazil is catching up: For the fifth year the ranking was dominated
by Mexico, which contributed 35% of the total brand value of the ranking. Brazil however
was close behind at 34%, with strong performances by its retail and financial players. Chile
was in third position at 16%, followed by Colombia at 7%.
- FinTechs threaten established financial players: In Brazil, Nubank started this revolution
and became the first billion-dollar startup in the country, followed by Banco Original and
Banco Neon. Well-positioned brands such as the Brazilian banks Bradesco and Itaú and the
Chilean bank Banco de Chile are still strong brands in the consumers’ minds and are using
these attributes aligned with local needs to fight back by launching their own digital platforms.
- E-commerce is a real threat to established retail: Rising internet usage and mobile
access in many markets, up 14% every year across the region since 2010, represents a real
threat to bricks and mortar stores. While the Retail category saw growth of 2% in this year’s
ranking, the transition to a mixed retail economy is still in progress.
“Disruption has already spawned a new wave of brands across Latin America and while they have
not yet displaced some of the more established names, rising internet access and mobile uptake
is giving them greater market access. The power of a strong brand combined with its own digital
platform will be required to future proof many of today’s big players,” said Kantar’s Gabriel
To download a copy of The BrandZ™ Top 50 Most Valuable Latin American Brands 2018 report,
charts and photography, visit: www.brandz.com
. The mobile app can be downloaded via
NOTES TO EDITORS:
The BrandZ™ Top 50 Most Valuable Latin American Brands – now in its sixth year – is part of
the suite of BrandZ valuation rankings which also includes a global ranking and country
rankings for China, France, Germany, Indonesia, India, Italy, Saudi Arabia, Spain, the UK and
Background and methodology
The research behind the BrandZ Latin American Top 50 was conducted by WPP’s data
investment management group Kantar. The methodology mirrors that used to calculate the
annual BrandZ Top 100 Most Valuable Global Brands ranking, which is now in its twelfth year.
The BrandZ™ Top 50 Most Valuable Latin American Brands is the most robust ranking of Latin
American brands available combining financial data with consumer opinions gathered from
1,000 interviews with over 54,000 Latin American consumers in 34 categories from Kantar
The main criteria for one brand to be included in the ranking was that the brand must be
characterized as a local Latin American brand (either originating from Latin America or a
relevant proportion of its business is located there).
This year, besides the brands owned by publicly traded companies (Source: Bloomberg),
BrandZ started to evaluate brands owned by private companies considering the market multiples approach (Enterprise Value vs Revenues or EBITDA), since these private companies
release their financial information in their websites.
The BrandZ rankings are the only valuations in the world that take into account what people
think about the brands they buy, alongside rigorous analysis of financial data, market valuations,
analyst reports and risk profiles. Consumer perception of a brand is a key input in determining
brand value, because brands are a combination of business performance, product delivery,
clarity of positioning and leadership.
Consumer perception is used to determine the Brand Contribution, which measures the
influence of brand alone on financial value on a scale of 1 to 5 (with 5 being highest). It is an
assessment of brand associations in consumers’ minds to deliver sales by predisposing
consumers to choose the brand or pay more for it.
WPP is the world leader in communications services with global billings of US$72 billion and
revenues of almost US$20 billion. The group provides a comprehensive range of services
including advertising & media investment management; data investment management; public
relations & public affairs; branding & identity; healthcare communications; digital, eCommerce
and shopper marketing; and specialist communications. WPP employs over 200,000 people
(including associates and investments) across 112 countries. For more information,
WPP was named Holding Company of the Year at the 2017 Cannes Lions International Festival
of Creativity for the seventh year running. It was also named, for the sixth consecutive year, the
World’s Most Effective Holding Company in the 2017 Effie Index, which recognizes the
effectiveness of marketing communications.
Kantar is the world's leading data, insight and consultancy company. We know more about how
people live, feel, shop, vote, watch and post worldwide than any other company. Working
across the entire sales and marketing lifecycle, we help brands uncover growth in an
extraordinary world. Kantar is part of WPP and its services are employed by over half of the
Fortune 500 companies in 100 countries.
Managing Director, Kantar Consulting - Latin America Region
Tel: +55 11 3069-6920