Food &Drink2018 Foreword. What is the purpose of a strong brand: to attract customers, to build loyalty, to motivatestaff? All true, but for a commercial brand at least, the first answer must always be ‘to Huge investments are made in the design, launch, and ongoing promotion of brands.Given their potential financial value, this makes sense. Unfortunately, mostorganisations fail to go beyond that, missing huge opportunities to effectively makeuse of what are often their most important assets. Monitoring of brand performance As a result, marketing teams struggle to communicate the value of their work andboards then underestimate the significance of their brands to the business. Scepticalfinance teams, unconvinced by what they perceive as marketing mumbo jumbo, mayfail to agree necessary investments. What marketing spend there is, can end up poorlydirected as marketers are left to operate with insufficient financial guidance or David HaighCEO, Brand Finance Brand Finance bridges the gap between marketing and finance. Our teams haveexperience across a wide range of disciplines from market research and visual identityto tax and accounting. We understand the importance of design, advertising, and By valuing brands, we provide a mutually intelligible language for marketing andfinance teams. Marketers then have the ability to communicate the significance of whatthey do, and boards can use the information to chart a course that maximises profits.Without knowing the precise, financial value of an asset, how can you know if you aremaximising your returns? If you are intending to license a brand, how can you knowyou are getting a fair price? If you are intending to sell, how do you know what the right Brand Finance’s research revealed the compelling link between strong brands andstock market performance. It was found that investing in highly-branded companies Acknowledging and managing a company’s intangible assets taps into the hiddenvalue that lies within it. The following report is a first step to understanding more about The team and I look forward to continuing the conversation with you. Foreword3About Brand Finance4Contact Details4Definitions6Executive Summary8Full Table14Methodology16Understand Your Brand’s Value17Consulting Services18Communications Services19 Brand Finance is the world’s leading independent Brand Finance was set up in 1996 with the aim of‘bridging the gap between marketing and finance’.For more than 20 years, we have helped companies We pride ourselves on four key strengths: •Independence•Technical Credibility•Transparency•Expertise. Brand Finance puts thousands of the world’s biggestbrands to the test every year, evaluating which are the For more information, please visit our website:www.brandfinance.com Contact Details. For further information on Brand Finance®’s services and valuation experience, For business enquiries,please contact:Richard HaighManaging Directorrd.haigh@brandfinance.com For media enquiries,please contact:Konrad JagodzinskiCommunications Director For all other enquiries,please contact:enquiries@brandfinance.com+44 (0)207 389 9400 Definitions. Brand Strength Brand Strength is the efficacy of a brand’sperformance on intangible measures, relative to its Each brand is assigned a Brand Strength Index (BSI)score out of 100, which feeds into the brand valuecalculation. Based on the score, each brand is assigned a In order to determine the strength of a brand, we look atMarketing Investment, Stakeholder Equity, and the impact Analysing the three brand strength measures helps informmanagers of a brand’s potential for future success. Widely recognised factors deployed by marketers to create brand loyalty and Perceptions of the brand among different stakeholder groups, with customers Brand Strength Index Marketing Investment •A brand that has high Marketing Investment but low Stakeholder Equity may be on apath to growth. This high investment is likely to lead to future performance in StakeholderEquity which would in turn lead to better Business Performance in the future.•However, high Marketing Investment over an extended period with little improvement in Stakeholder Equity •The same is true for Stakeholder Equity. If a company has high Stakeholder Equity, it islikely that Business Performance will improve in the future.•However, if the brand’s poor Business Performance persists, it would suggest that thebrand is inefficient compared to its competitors in transferring stakeholder sentiment Business Performance •Finally, if a brand has a strong Business Performance but scores poorly on StakeholderEquity, it would imply that, in the future, the brand’s ability to drive value will diminish.•However, if it is able to sustain these higher outputs, it shows that the brand isparticularly efficient at creating value from sentiment compared to its competitors. Executive Summary. With producers and analystsused to the lack of change amongthe food and drin