Market data analyst Kantar has revealed the world’s 20 most valuable alcohol brands in its Kantar BrandZ Most Valuable Global Brands 2024 report, totaling a combined brand value of $232.743 billion.
China’s Moutai, often referred to as the national liquor, led the rankings with a brand value of $85.565 billion. Beer brands dominated the top five, with Corona in second place, Budweiser third, Heineken fourth, and Modelo fifth.
The rest of the top 20 included a mix of beers and spirits, with Moët & Chandon being the only wine brand to make the list, ranking 20th with a brand value of $3.290 billion.
Kantar highlighted premium products, particularly spirits, as key drivers for brand value. For spirits, 21% of brand equity was driven by superior quality, compared to 18% for beer and 16% for the overall alcohol category.
Beer Leads Category Growth
Kantar reported that beer brands were the only ones in the alcohol category to see growth over the past year, accounting for 11 of the 20 most valuable brands. Corona, a new entrant, secured second place.
Following the top five were Brahma (#11), Michelob Ultra (#12), Bud Light (#13), Skol (#14), Guinness (#15), Stella Artois (#16), and Tecate (#17).
Many of these beer brands have increased exposure through unique marketing strategies, such as Corona Cero’s sponsorship of the Olympics and Budweiser’s focus on Chinese and Indian markets. The success of these top beer brands is largely attributed to their strong value propositions.
The report noted, “In much of the world, 2023 was a year when consumer sentiment lagged behind headline economic data, with food prices remaining particularly stubborn in terms of inflation. As a result, consumers looked for ways to cut back on more expensive beverages, turning to beer as a more economical option.”
Category Extensions and Collaborations
Chinese baijiu spirits also ranked highly, with Moutai taking the top spot, followed by Wu Liang Ye (#7), National Cellar 1573 (#10), and Luzhou Laojiao (#19). However, these premium spirits saw sales decline in China as budget-conscious consumers opted for beer.
To attract younger consumers, baijiu brands have ventured into new sectors. Moutai’s collaboration with Luckin Coffee, which sold 5.4 million cups of baijiu-infused coffee on its first day, is a prime example.
Han Ye, Lead Partner at Kantar China Advisory Business, stated, “Baijiu brands are working to appeal to younger generations by associating with new moods and occasions. Moutai’s forays into ice cream and collaborations with popular coffee and milk tea brands have made it more accessible to Gen Z while maintaining its premium image.”
Impact on the RTD Market
The success of Moutai’s category extensions highlights the potential for beverage producers to attract new audiences. In the UK, Absolut vodka gained viral success with its Heinz vodka pasta sauces, while in the US, SunnyD launched a popular RTD Vodka Seltzer.
Australia saw significant success with Hard Rated’s alcoholic versions of popular soft drinks, generating $157 million in 2023, making it the top revenue-generating alcoholic brand in the country.
As the RTD market continues to grow, brands like Heineken are investing in RTD companies, such as Served and Stëlz. Additionally, innovative twists on traditional beer, like the rise of Micheladas in Mexico, are gaining popularity.
Kantar’s report stated, “Traditionalists may question the need to alter beer, but with Gen Z drinkers prioritizing flavor exploration and lighter formats, brands must continue to innovate.”
The competition between beer and RTDs extends to drinking occasions, with RTD cocktails becoming increasingly popular for daytime drinking, challenging beer’s convenience reputation. Kantar Analytics identified nearly 30 new drinking occasions for RTDs, such as train journeys and post-exercise enjoyment.
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