World: Heineken becomes world’s most profitable beer brand

Heineken has become the world’s most profitable beer brand, surpassing last year’s winner, Corona Extra.

Valued at $7.6-billion in the latest Brand Finance report, Heineken is also ranked second in terms of brand strength.

Nipping at Heineken’s heels are China’s Tsingtao and Zhujiang, which are rapidly growing in brand value.

Last year, the Dutch beer brand launched Heineken Silver, a 4% light lager brewed with an ice-cold lagering process at -1°C.

Europe’s best-selling beer brand saw improved revenues and organic growth because of price hikes across the past year.

Brand Finance associate director, Henry Farr, explained: “It seems like beer drinkers are not necessarily drinking more, but instead are drinking better.

“Visits to bars and restaurants are becoming less regular and less spontaneous, meaning many consumers are looking to trade up on their beer of choice, prioritising taste and quality over price. Beer brands that are delivering on high-quality premium lagers seem to be doing well.”

On July 31, the brewing giant revealed that its H1 operating profit was down 8.8% (compared with the expected 4.8% decline) after an economic slowdown in Vietnam and price hikes flattened sales volumes, but it looked forward to a stronger second half of 2023.

The annual Brand Finance report ranks the world’s top, most valuable and strongest alcoholic drink brands, including three alcoholic drink categories: beer, spirits and champagne/wine.

Japanese beer brand Asahi (brand value up 11% to $2.8-billion) is the world’s strongest beer brand title with a AAA+ rating and the highest Sustainability Perceptions Score. Close behind is another Japan-based brand, Kirin (ranked 7th with a brand value of $3.2-billion).

Brand Finance determines the relative strength of brands by measuring marketing investment, stakeholder equity and business performance. Its assessment of stakeholder equity incorporates market research data drawn from more than 100,000 respondents in 38 countries and across 31 sectors.

Zhujiang (brand value up 44% to $680-million) grew this past year, in part due to its improved standing with younger, more price-sensitive consumers, said the report. Unlike most competitors who have opted for price hikes, Zhujiang has maintained stable beer prices, offering a quality, mid-price alternative.

One of the most famous beer brands in the world, Tsingtao’s brand value growth (up 39% to $2.1-billion) is linked to last year’s launch of more than 250 taverns and a new and immersive customer-centric strategy.

Tequila is on the rise, with 1800 and Casamigos as the two fastest-growing spirit brands, both more than doubling in value.

1800 Tequila is a super-premium Mexican brand owned by the Beckmann family, who also own Jose Cuervo.

Moutai is the world’s most valuable spirit brand.

Jack Daniel’s (brand value up 21% to $3.5-billion) is the world’s most valuable whiskey brand in the ranking. Last year, the brand launched a popular limited edition whiskey for the year, along with adding two new super-premium whiskeys to its line.

Towards the end of 2022, “Jack” also announced its official partnership with McLaren’s 2023 Formula 1 team. Scotch whisky Johnnie Walker (brand value up 16% to $3.05-billion) is the second most valuable brand.

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