Penfolds is the fastest-growing Wine and Champagne brand, with a brand value that has grown to US$659m in the last year, up 48 per cent, according to the Brand Finance Alcoholic Drinks 2023 report.
This week we have already highlighted Moutai as the strongest and most valuable spirits brand, Heineken as the most valuable beer brand, and finally we show what leading brand valuation consultancy Brand Finance has to say about the wine category.
Speaking about the growth of Penfolds, Brand Finance said: “By embracing new technologies and innovation, Penfolds has streamlined its consumer-centric approach. This includes the brand’s launch of its 2022 wine collection which, for the first time, expanded beyond Australian-made wines.
“The collection included French and Californian wines as part of the brand’s efforts to enhance global brand awareness and market share, resulting in improved brand value and strength.”
Moët & Chandon has been named the most valuable wine and Champagne brand for the third consecutive year, despite a 10 per cent fall in brand value to $1.3bn. Despite the decline in brand value, the Champagne champion stays just ahead of the ranking’s second most valuable brand Chinese wine brand, Changyu which has brand value of $1.2bn, up 33 per cent, which sees the brand climb two positions in this year’s ranking.
Brand Finance said that while Changyu’s position as the second most valuable wine brand might be a surprise for many, the massive and growing size of the Chinese wine market means that the brand is extremely valuable.
Henry Farr, Associate Director at Brand Finance said: “Within the wine and Champagne sector, wines have performed better in terms of brand value growth. High-end Champagnes have taken a hit. Difficult growing conditions, reduced availability and price hikes have steered some consumers towards lower-end sparkling wines as an alternative.
“For those less effected by harsher financial situations, this could be due to not wanting to appear vulgar or ostentatious by indulging in luxury products when others are struggling with the rising costs of living.”
In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 100,000 respondents in 38 countries and across 31 sectors.
Changyu is the strongest wine and Champagne brand with a brand strength index (BSI) score of 83.2 out of 100, earning it a AAA- rating. The China-based brand boasts three consecutive years of brand strength growth.
As well as being the fastest-growing wine and Champagne brand, Penfolds is the second-strongest brand in the wine category, with a BSI of 81.6 out of 100.
The list of the top five most valuable wine and Champagne brands is completed by US-based Chandon in third at $1bn, Veuve Clicquot at $942m and Dom Pérignon at $750m.
The top 10 contains three Australian brands with Penfolds seventh with a brand value of $659m, Beringer is eighth at $461m and Jacob’s Creek rounds out the top 10 with its brand value f $313m.
Brand Finance compiles the lists using what it calls its ‘Royalty Relief approach’, which involves estimating the likely future sales that are attributable to a brand and calculating a royalty rate that would be charged for the use of that brand. The overall brand value also includes a brand strength index and estimated brand revenues.