Johnnie Walker brand valued at $4.37bn

IN THE LATEST BrandFinance? Drinks 50 study, Johnnie Walker maintains its lead, moving up from $400m to $2 billion. In 2013, its brand value skyrocketed by 80% to $4.37 billion. When Diageo was formed in 1997, Johnnie Walker was valued at $1 billion. Through the years, the brand has outshined others through innovation and advertising. The variants, Blue Label and Double Black, saw phenomenal growth as well, adding to the brand’s success in 2013.

Ciroc, highest climber Ciroc moved 16 places up to 19th notch. An 82% increase takes its brand value to $550 million. Promotion by celebrity Sean ‘Diddy’ Combs, who is also part owner, positioned the brand as the “celebration” drink. In 2012, case sales reached 2.1 million, versus 400,000 in 2008. In case sales and brand value, Ciroc is the second-largest super premium vodka, behind Grey Goose.

Emerging markets The East contribute to significant growth in consumption of spirits. The brands Moutai, Wuliangye and LuzhouLaojiao, for example, have become three of this year’s fastest risers. Strong demand from China made Moutai the second most valuable drinks brand. But sales have been affected by the Chinese government’s campaign against corruption and wanton spending, particularly in the Q1 2013. The remedy for Chinese brands is to expand overseas.

The India bid McDowell’s brand value rose by 34% to $533 million. Total case sales of McDowell’s variants (rum, whisky and brandy) increased by 12% to 53.4 million. But local companies are in for strong competition from multinationals eyeing the huge potential of India’s spirits market. Following in Pernod Ricard’s footsteps, Diageo hasn’t stopped wooing United Spirits Ltd for the past three years. (See related report on page 35)

Champagnes lose appeal Champagne brands in the table have witnessed a decline in case sales, due to the fact that the market, led by France, is reeling from economic instability. Gallo has found a way to beat the stagnant market by launching new variants such as Summer Red and a Merlot Rose. Its brand value rose by 14% to $900 million. But in this sector, Mo?t & Chandon remains the leader with a brand value of $1.26 billion – a far $361 million clear of its nearest rival. Meanwhile, the biggest mover is Concha y Toro which has seen its brand value increase by 35% to $663 million following the acquisition of Californian winemaker, Fetzer Vineyards.

The BrandFinance? Drinks 50 is released annually by Brand Finance, a brand valuation agency, which ranks the world’s biggest drinks brands by their brand value. (Photos of Johnnie Walker and Gallo courtesy of PRNewswire)