01 June 2023 22:00

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BW Businessworld exclusively honors industry leaders setting new standards, generating revenues greater than INR 250 crore in a financial year in their special issue.

In the era of strenuous economic times, a whole lot of industry leaders have stepped up their game, demonstrating exceptional courage against all odds and challenges and have triumphed in their respective fields, generating an extraordinary value for their stakeholders as well as their vendors.

In the special edition of BW Businessworld, their latest issue exhibits most valuable CEOs on their cover. Led through a multi layered process along with BW Businesworld knowledge partner, TechSci Research, twenty-one outstanding leaders have been selected, paying respect to their valuable thinking and management.

Noteworthy performances of the year

HUL, TCS, Tata Steel, Wipro, SBI, IOC, HDFC Life, Dabur India, Biocon, Nestle India, among others, are part of this elite club with notable performances marching ahead with high growth numbers while discharging its social commitments.

Rajesh Gopinathan, CEO & MD, TCS stated, “Our profitability continued to be industry-leading, with the operating margin at 25.3 percent, and net margin at 20 percent. Our earnings per share was at INR 103.62, growing 16.1 percent over the prior year. Our cash conversion continued to be very strong, with a cash conversion ratio of 104.2 percent and free cash flow of INR 36,985 crore” while talking about the standout performance of TCS in the financial year 2021-22 wherein the company generated a consolidated revenue of INR 1,91,754 crore.

In the mention of notable performances, Praveen Sinha, CEO & MD of Tata Power Company said, “We made a solid progress on some of our key issues and continued to strengthen our balance sheet. Leveraging our robust operating cash flows, we brought down our net debt to underlying EBITDA to 3.92 percent”. He further added, “Our domestic as well as international credit ratings received an upgrade in FY22, with our average borrowing cost narrowing 36 bps y-o-y to 6.82 percent.

Star CEOs in the challenging economic environment

The list of twenty-one most valuable CEOs in the cover page consisted of esteemed names such as Ravi Chawla, Gulf Oil Lubricants India; Vibha Padalkar, HDFC Life; Rakesh Khanna, Orient Electric; Siddharth Mittal, Biocon; Pradip Kumar Todi, Lux Industries; Shrikant M. Vaidya, IOC; Hitesh Oberoi, Info Edge; Sanjiv Lal, Rallis India; Thierry Delaporte, Wipro; Sunil D’Souza, Tata Consumer Products; T.V. Narendran, TSLP; Murali K. Divi, Divi’s Industries; Mohit Malhotra, Dabur India; Amitava Mukherjee, NDMC; Balfour Manuel, Blue Dart; C.K. Venkataraman, Titan Company; D.K. Khara, SBI; M.R. Jyothy, Jyothy Labs; Chacko Purackal Thomas, Tata Coffee; Mithun Chittilappilly, V-Guard Industries and Suresh Narayan, Nestle India.

Indicators to the final countdown

For a detailed study, multiple factors had been taken into consideration to shortlist and come to a final conclusion. The CEOs nominated were filtered on a minimum three-year tenure with their company with a trading history of at least 700 days in a period of thirty-six months. Moreover, revenues were also taken into a major consideration, with greater than INR 250 crores for the financial year 2021-22.

All the companies shortlisted were looked upon their positive growth rate as well as their high income and market capitalisation. Nonetheless, an average growth rate was given a weightage of 75 percent wherein other parameters were looked into a weightage of 25 percent, in a collective manner. Post reviewing the parameters, eligibility criteria were rechecked for ensuring the best results. The time frame taken into analysis of the finances of each company was a period between 2018 to 2022.

At the mission with a vision

In conversation with BW Businessworld, Murali K. Divi, MD & CEO of Divi’s Laboratories stated, “The uncertain market condition, induced by the pandemic and geopolitical disorder, has resulted in business transformation for one and all. At Divi’s, we adapted and calibrated ourselves to emerge stronger from the adversity and sustain our market leadership in the API business segment”. He further added, “We strive to create brand value by adopting sustainable practices and implementing green chemistry principles”.

On the note of expanding horizons, T.V. Narendran, Chairman of Tata Steel Long Products (TSLP) mentioned, “TSLP grew its top-line by 43 percent (Y-O-Y) to INR 6,802 crore. Focus on operational and cost efficiencies led to TSLP reporting its highest ever EBITDA of INR 1,289 crore during the year compared to INR 1,154 crore in FY 2020-21. Strong capital management and deleveraging of the balance sheet also grew the bottom line (profit before tax) to INR 858 crore from INR 615 crore in FY21 (40 percent increase on Y-O-Y basis). Moreover, in keeping with the Tata ethos, we will be prioritising the promotion of inclusive social development through our CSR initiatives in health, education, sanitation and livelihood enhancement”.

In regard to the outlook and the drive for consistent growth, Pradip Kumar Todi, MD of Lux Industries spoke to BW Businessworld, stating, “Growing exports will address a widening China+1 opportunity, enhancing the company’s global footprint. At Lux, we are optimistic that the company’s take-off based on these initiatives shall translate into enhanced value for those associated with our company.

The latest issue of BW Businessworld also gives a special focus, contemplating the question of ‘multitasking’ in the ‘Last Word’ column with Bibek Debroy, Chairman, EAC-PM with his expert opinion exercising questions on time management and his take on why multitasking is a myth.

Children’s viewing habits can hold tremendous sway over their parents’ choice of streaming subscription, according to a new poll from YouGov.

In a survey of over 900 parents in the US with children aged 18 and under, roughly two in five (39%) say they consider what children’s content is available on a platform before subscribing to a streaming service.

Most of these parents are thinking about the price of a streaming service (54%) when they choose their service but many also say that factors such as whether the platform offers the specific show or content they want (43%) and a variety of shows and films (42%) are top of mind.

Digging further into the data reveals that weighing up what children’s content a platform provides tends to rival considerations of price when it comes to one specific group of parents: those with young children.

Parents of children ages 5 and under are significantly more likely than parents of children aged 18 and under to say they think about what children’s content is available before deciding on a streaming service (49% vs. 39%; 10-percentage point difference).

What’s more, parents of young children are nearly as likely to consider the children’s content available on a platform (49%) as they are to consider the price of a service (50%).

To help determine which factors are most important to parents, we asked them to rank the factors they mentioned before committing to a streaming service.

Unsurprisingly, more than half of parents of children aged 18 and under who selected the cost of a service ranked it as the most important factor to them (54%).

Among those who said they factor in children’s content, nearly half (47%) rank it as their most important factor. This further underscores that, in terms of importance, the availability of kids shows and films ranks second only to the cost of a service.

Of course, there's no one-size-fits-all streaming strategy that works across the board for every streaming provider but understanding the role of kids' content and taking advantage of these insights could unlock success in a competitive space.

To pull even more from our data, we sliced the results by the streaming platforms to which parents are currently subscribed to get a snapshot into the mindset of these consumers.

For example, we see that parents of children 18 and under who are subscribed to Netflix, Disney+, Apple TV+, HBO Max, Paramount+ or Peacock are nearly equal in their perceptions of the importance of children’s content in their streaming decisions.

There are few standouts, though, especially among those currently subscribed to Hulu and Amazon Prime Video. Parents of children 18 and under who have Hulu and say they consider children’s content in their streaming decision were significantly less likely to rank it as their most important factor (41%; z-score of –2.3). A similar observation can be made of those who subscribe to Amazon Prime Video (43%; z-score of –2.12).

Understanding and limiting subscriber churn is critical in today’s streaming landscape. We’ve written extensively before on how cost of living increases can affect how much people will spend on streaming services, but new data from YouGov shows that children’s content also plays a significant role in whether parents decide to stick with a streaming platform.

A quarter of parents of children aged 18 who cancelled a streaming service within the last three years indicate they did so because their children no longer watch the content on that service (26%). What’s more, a fifth of these parents say they turned away from a streaming service because they found the kids shows and films to be lacking on the platform (19%).

There are other important factors to subscriber churn among parents. Price, which was one of the main considerations that led people to subscribe in the first place, could also lead them to leave if the cost of a service became too expensive (44%).

Exclusivity and original content on a platform also appear to play important roles. More than a third of parents say they cancelled a service because they watch the same content elsewhere for cheaper.

Lastly, maintaining parents’ interests in a platform will be key to keeping them around. A third say they cancelled a service because they finished watching the series or movies that led them to subscribe in the first place (32%) and a near equal share say they left a platform for good because it got rid of the content they liked (29%).

 

Tesla jumps two places to become the most valuable automobiles brand, now valued at USD66.2 billion

Sokon is the fastest-growing Automobile brand, up 123%

Ferrari is the strongest Automobile brand, earning elite AAA+ rating

Tesla has the highest Sustainability Perceptions Value at USD17.8 billion

Denso is the most valuable Auto Component brand, Aptiv is the fastest-growing, and Valeo is the strongest

Michelin holds title of most valuable and strongest Tyres brand, as well as highest Sustainability Perceptions Score, Sailun is fastest-growing

Uber is the most valuable Mobility brand and has highest Sustainability Perceptions Score, Enterprise is the strongest

Tesla jumps two places to become the most valuable automobiles brand, now valued at USD66.2 billion

Tesla accelerated to the front of the pack, taking pole position as the world’s most valuable automotive brand, with its brand value surging by 44% to USD66.2 billion, according to a new report from leading brand valuation consultancy, Brand Finance. This makes it the world’s most valuable Automobiles brand for the first time, and the first time that a brand which does not manufacture internal combustion engines has topped the global rankings.

Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes over 100 reports, ranking brands across all sectors and countries. The world’s most valuable and strongest Automotive Industry brands are included in the annual Brand Finance Automotive Industry 2023 ranking.

The Tesla brand is now worth more than five-times its pre-pandemic value, overtaking last year’s leader, Mercedes-Benz (brand value down 3% to USD58.8 billion), and last year’s runner-up, Toyota (brand value down 18% to USD52.5 billion).

Alex Haigh, Valuation Director of Brand Finance, said: “This growth in brand value is a positive sign for Tesla as it indicates that consumers are recognising and valuing the brand more, which could potentially lead to increased sales and revenue in the future. The automotive industry is highly competitive, so for Tesla to achieve this level of growth in brand value is a noteworthy accomplishment and a testament to the value of the Tesla brand. Tesla must now work to protect this moving forward in order to build long-term brand strength.”

Sokon is the fastest-growing Automobile brand, up 123%

Chinese brand Sokon (brand value more than doubling to USD739 million) is the fastest growing Automobiles brand after a successful 2022 in which it sold 21% more vehicles year-on-year. The brand’s forecasts have also increased, helping further boost brand value.

Ferrari is the strongest Automobile brand, earning elite AAA+ rating

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.

Ferrari (brand value down 8% to USD7.4 billion) is again the strongest Automobile brand with a Brand Strength Index score of 90.7, and AAA+ brand rating. Despite a brand value reduction, Ferrari in fact had a strong financial performance in 2022. Its brand reduction in USD was caused by adverse foreign exchange movements and concerns about future financing requirements.

Tesla has the highest Sustainability Perceptions Value at USD17.8 billion

As part of its analysis, Brand Finance assesses the role that specific brand attributes play in driving overall brand value. One such attribute, growing rapidly in its significance, is sustainability. Brand Finance assesses how sustainable specific brands are perceived to be, represented by a ‘Sustainability Perceptions Score’. The value that is linked to sustainability perceptions, the ‘Sustainability Perceptions Value’, is then calculated for each brand.

Tesla has the highest Sustainability Perception Score (5.43 out of 10) and Value (USD17.8 billion). Tesla is well known as a pioneer of the EVs and battery technology that is aiding the transition to a lower carbon economy. This image has clearly carried across into the perceptions held by global consumers.

Denso is the most valuable Auto Component brand, Aptiv is the fastest-growing, and Valeo is the strongest

Japanese brand Denso (brand value up 6% to USD4.5 billion) retains its title as the world’s most valuable Auto Components brand for the 6th consecutive year. Denso has invested heavily in electrification as it looks towards a more electric focuses future for the automotive industry.

Aptiv (brand value up 30% to USD1.6 billion) is the fastest growing brand in the Auto Component ranking. As well as recent acquisitions of Wind River Systems, Inc and Intercable Automotive, the brand saw revenues increase in 2022 after a second year of record new business bookings. French brand Valeo (brand value up 1% to USD2.3 billion) is the strongest Automotive Component brand with a Brand Strength Index score of 69 out of 100, with AA- rating.

Michelin holds title of most valuable and strongest Tyres brand, as well as highest Sustainability Perceptions Score, Sailun is fastest-growing

There was no movement in the top three of ranking of the world’s most valuable tyre brands in 2023, with Michelin (brand value up 2% to USD7.9 billion) remaining in the top spot for the 6th consecutive year. It is followed by Bridgestone (brand value down 1% to USD7 billion) in second place, and Continental (brand value down 3% to USD4.1 billion) in third.

As well as being the most valuable Tyre brand, Michelin is also the strongest, with a Brand Strength Index score of 88.1 out of 100, with a corresponding AAA rating. Michelin’s high brand equity has partly enabled it to remain resilient to difficult macroeconomic challenges

Chinese brand Sailun is the fastest growing Tyres brand (brand value up 6% to USD7 million). In 2022 the brand released its EcoPoint3 tyres, a more sustainable and affordable solution to car manufacturers, after ten years of development. This innovation created widespread media-coverage within the industry, contributing to Sailun’s brand value growth.

As well as being the most valuable and strongest Tyres brand, Michelin also has the highest Sustainability Perception Value of any Tyres brand in the ranking at USD255 million.

Uber is the most valuable Mobility brand and has highest Sustainability Perceptions Score, Enterprise is the strongest

Uber is the most valuable Mobility brand in 2023, up 2% year-on-year to USD23.3 billion. Uber’s dominance in the sector is highlighted by the fact that its brand value is mor than three times the value of the second most valuable Mobility brand, Enterprise (brand value up 9% to USD7.7 billion).

As well as being the most valuable Mobility brand, Uber also has the highest Sustainability Perception Value in the ranking – USD2.4 billion. Enterprise is the strongest Mobility brand, with a Brand Strength Index score of 76.7 out of 100 and corresponding AA+ brand rating.

L'Oréal glows as the world’s most valuable cosmetics brand, valued at US$12 billion


Chinese beauty giant CHANDO is the fastest growing cosmetics brand of 2023

Skincare giant Vichy makes a comeback, increasing its brand value by 8% to US$677.62 million, and ranking 7th for fastest growing cosmetics brand

Natura is sitting pretty as the world’s strongest cosmetics brand, with a Brand Strength Index (BSI) of 89.1.

Behind the glam: M.A.C Cosmetics is struggling to keep up

Innisfree drops out of the game, and other South Korean beauty brands face uphill battle to maintain brand value

Beauty meets sustainability: L'Oréal claims the throne with a Sustainability Perceptions Value of US$1.24 billion.

Yves Rocher has the highest Sustainability Perceptions Score, at 5.87/10

L'Oréal glows as the world’s most valuable cosmetics brand, valued at US$12 billion

L'Oréal (brand value up 7% to US$12 billion) reigns supreme as the overall winner in the Brand Finance Cosmetics 50 ranking. As one of the world’s most popular and well-known cosmetics brands, L’Oréal operates in over 150 countries and has a global portfolio of over 30 brands. In its analysis, Brand Finance has determined that the key measures of familiarity and consideration towards L’Oréal have increased. This increase may be attributed to the company’s digital marketing strategies and enhanced online presence. By leveraging its enormous social media following, (over 10 million followers on Instagram and 438k+ followers on TikTok) the brand has enhanced its familiarity amongst younger consumers, producing visually appealing content that is often led by popular influencers. Further, L’Oréal also boasts an innovative and continually expanding product range, a key attribute identified in the investment pillar of its brand strength.

Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes over 100 reports, ranking brands across all sectors and countries. The world’s top 50 most valuable and strongest Cosmetics brands are included in the annual Brand Finance Cosmetics 50 2023 ranking.

Following the appointment of a new CEO in 2021, Nicolas Hieronimus, L’Oréal has also expanded its efforts in digital transformation and sustainability. In 2023, L'Oréal launched two new technology prototypes at CES 2023: HAPTA, a handheld computerised makeup applicator designed for people with limited hand and arm mobility, and L'Oréal Brow Magic, an electronic eyebrow makeup applicator that that enables users to achieve a personalised brow look within seconds.

Brand Finance has also ranked L’Oréal as having the highest Sustainability Perceptions Value, with an SPV of US$1.24 billion. In addition, L'Oréal has been recognised by Ethisphere as one of the world's most ethical companies for the 14th time. In recognition of his efforts to promote environmental responsibility, diversity, equity, and inclusion in the fragrance industry, the Fragrance Foundation will award Hieronimus with the Hall of Fame award in June 2023.

Annie Brown, Director of Brand Finance, commented: “L'Oréal has once again come out on top, and Hieronimus has an ambitious and strategic vision for the giant’s future. The L'Oréal brand must continue to prioritise innovation, sustainability and digital transformation as it continues to expand its influence across the globe in the coming years.”

Chinese beauty giant CHANDO is the fastest growing cosmetics brand of 2023

CHANDO (brand value up 36% to US$1.3 billion) has taken the beauty world by storm with its innovative branding and unique products. This increase may be attributed to growing Chinese and global demand for luxury products at affordable prices. The company establishes a unique brand identity by offering a diverse range of products including skincare, fragrances, and home goods. Its Himalayan-inspired branding also holds significant appeal in its local market. As a result, Brand Finance research finds that familiarity and consideration for the brand have improved in China, contributing to its increased brand value and overall ranking, at 38th in 2022 and 32nd in 2023.

CHANDO is also perceived as a leading brand in sustainable and ethical business practices. Through measures such as endorsing renewable energy sources and promoting eco-friendly packaging, CHANDO is attracting a rapidly growing crowd of ethically conscious consumers.

Maybelline New York (brand value up 30% to US$4 billion) is the second fastest growing cosmetics brand of the year. Owned by L'Oréal, Maybelline launched its global sustainability programme in 2022, ‘Conscious Together,’ to promote sustainability and reduce its environmental footprint. The initiative also aims to empower women by supporting organisations committed to their advancement. Maybelline's brand image is also associated with empowering women promoting self-expression through makeup, and the company continues to leverage social media and influencer marketing to engage with its vast audience in the digital age.

Skincare giant Vichy makes a comeback, increasing its brand value by 8% to US$677.62 million, and ranking 7th for fastest growing cosmetics brand

Also part of the L’Oréal family, Vichy (brand value up 8% to US$677.62 million) specialises in a range of high quality and innovative skincare solutions. In recent years, Vichy has also been recognised for developing a more sustainable business strategy, and for promoting eco-friendly formulae in its products.

Considering the growing importance of environmental and ethical responsibility in the market, it will be crucial for Vichy to continue prioritising sustainability efforts. This will not only enhance its Brand Value in future rankings, but also enable it to maintain a distinct identity in comparison to its competitors. Notably, La Roche-Posay (brand value up 19% to US$1 billion) shines eight spots ahead of Vichy in 39th spot, and its products continue to be perceived as innovative, high-quality, affordable, and eco-friendly.

Natura is sitting pretty as the world’s strongest cosmetics brand, with a Brand Strength Index (BSI) of 89.1.

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.

As Brazil's top cosmetics company, Natura (brand value down 18% to US$2 billion) is renowned for its commitment to ethical and sustainable practices. Brazilian consumers have a strong connection to the company's South American heritage and appreciate its efforts to preserve the Amazon Rainforest. In addition to its sustainability focus, Natura has positioned itself as a cruelty-free brand. This endeavour has further solidified the company's reputation as an industry leader in sustainability. As per Brand Finance's research, sustainability and transparency play a crucial role in shaping the reputation of cosmetics brands. Natura's unwavering commitment to these values is a driving force behind its continued success and popularity among consumers.

Behind the glam: M.A.C Cosmetics is struggling to keep up

M.A.C Cosmetics (brand value down 19% to US$2.7 billion) has dropped 5 places in the ranking since 2022 and is now ranked 17th. More alarmingly, its brand value has dropped by a total of 39% from US$4.4 billion since the beginning of the pandemic period.

Fierce competition and shifting consumer preferences may have diminished M.A.C’s brand value. The company is a subsidiary of Estée Lauder (brand value down 10% to US$7.2 billion), ranked 2nd this year. The giant has several other high-end brands under its umbrella, including Smashbox, Clinique, and Bobbi Brown, the latter two competing with M.A.C in this year’s table. Notably, Clinique (brand value down 20% to US$4.8 billion) is ranked 9 spots ahead of MAC in 8th position.

While M.A.C has built a brand of vibrant and daring makeup options, Brand Finance research finds that consumers are choosing what they perceive to be as more natural alternatives. Clinique's branding highlights simplicity and gentleness, and its vast range of skincare and makeup products are also perceived as gentle and high-quality. This more subdued aesthetic endorsed by Clinique could potentially appeal to a wider range of consumers than the bolder aesthetic favoured by M.A.C.

Innisfree drops out of the game, and other South Korean beauty brands face uphill battle to maintain brand value

The South Korean cosmetics industry is facing a setback as Innisfree has dropped out of the 2023 ranking entirely. Ranked 41st in both the 2021 and 2022 rankings, Innisfree has witnessed a decline in its brand value by almost half. The other two South Korean brands in this year's ranking, Sulwhasoo and The History of Whoo, have also struggled. Sulwhasoo's brand value has decreased by 11% to US$1.3 billion, while The History of Whoo has seen a considerable drop in brand value of 18% to US$1.2 billion.

Research suggests that the Covid-19 pandemic significantly affected the nation’s cosmetics industry. Further, in 2022, Innisfree reportedly planned to close 80% of its physical stores in mainland China. As the world’s second-largest beauty market, Chinese consumers have a growing interest in locally made products, as well as having more access to global brands. As the Chinese cosmetics industry continues to grow, it will be crucial for foreign brands to understand and adapt to these changes in order to remain competitive.

Beauty meets sustainability: L'Oréal claims the throne with a Sustainability Perceptions Value of US$1.24 billion.

As part of its analysis, Brand Finance assesses the role that specific brand attributes play in driving overall brand value. One such attribute, growing rapidly in its significance, is sustainability. Brand Finance research suggests that the importance of sustainability is extremely high in Cosmetics relative to other sectors. Brand Finance assesses how sustainable specific brands are perceived to be, represented by a ‘Sustainability Perceptions Score’. The value that is linked to sustainability perceptions, the ‘Sustainability Perceptions Value,’ is then calculated for each brand.

Given the increasing importance of sustainability in the perception of cosmetics companies, it is unsurprising that the world's largest cosmetics company has once again topped the rankings. Steps taken by the French giant towards sustainable innovation include promoting sustainable formulae in its products, producing environmentally friendly packaging, and reducing waste and carbon emissions across its operations.

It should be emphasised that the brand’s position at the top of the SPV table is not an assessment of its overall sustainability performance, but rather indicates how much brand value it has tied up in sustainability perceptions. L'Oréal’s Sustainability Perception Score was also relatively high, at 4.64/5. While L’Oréal may not be perceived as the most sustainable brand compared to those with sustainability embedded in their core mission, (e.g., Botanical cosmetics company, Yves Rocher, scoring 5.87/10, and Natura, scoring 5.29/10) the company has made, and is perceived as making, significant strides towards a greener future.

Yves Rocher has the highest Sustainability Perceptions Score, at 5.87/10

Yves Rocher (Brand value down 9% to US$2.3 billion) has achieved the highest Sustainability Perceptions Score in the Cosmetics 50 2023 report, at 5.87/10. Since its founding, Yves Rocher has remained committed to its sustainability mission. Its efforts were solidified by the establishment of the Yves Rocher Foundation in 1991, which has successfully planted more than 100 million trees worldwide in 2023.

Yves Rocher also champions a sustainable vision for the future, aiming to reduce its plastic consumption by 30% and use 100% recyclable plastics by 2030. More generally, Groupe Rocher is making strides towards a more sustainable future, aiming to reduce its greenhouse gas emissions by 75% in La Gacilly, its region of origin, by 2025. Since 2011, this process has been underway at five production sites. Thanks to a new heating system, Les Villes Geffs has been using 45% renewable energy since 2023.

Today, the botanical brand continues to use natural and organic products and promote eco-friendly packaging, leading the industry in sustainable business practices. As it does so, it also sends a message to consumers that sustainability is not just a buzzword, but an essential practice for the future.

Starbucks extends lead, remaining most valuable restaurant brand for 7th consecutive year, widening gap on McDonald’s

Texas Roadhouse is the fastest growing brand, up 56%, Jollibee follow close behind

Greggs is the strongest brand in the restaurant sector with AAA rating

Starbucks has highest Sustainability Perceptions Value of US$3.1 billion

Starbucks extends lead, remaining most valuable restaurant brand for 7th consecutive year, widening gap on McDonald’s

Starbucks (brand value up 17% to $53.4 billion) has cemented its position as the world’s most valuable restaurant brand. The American multinational coffeehouse chain has held this position for seven consecutive years and has significantly widened its lead over the second most valuable restaurants brand, McDonald’s (brand value down 7% to US$36.9 billion).

Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes over 100 reports, ranking brands across all sectors and countries. The world’s top 25 most valuable and strongest brands in the Restaurant brands are included in the annual Brand Finance Restaurant 25 2023 ranking.

Starbucks generated accelerating demand for its products throughout 2022 following a continued return to normality as pandemic-related restrictions reduced globally. Starbucks’ brand value is now 30% higher than its pre-pandemic value. This success highlights the positive impact that the brand’s US Reinvention Plan has had since its launch in 2022.

Richard Haigh, Managing Director of Brand Finance commented: “Restaurant brands have faced continued challenges throughout the last few years, from the Covid-19 pandemic induced lockdowns, to rising inflation and supply chain issues. Despite this, some of the world’s largest restaurant brands, such as Starbucks, have successfully navigated these difficulties to achieve solid brand value growth. In order to sustain success going forward, restaurant brands must increasingly cater to the higher standards for sustainability that consumers are demanding when it comes to the food they eat and drink.”

Texas Roadhouse is the fastest growing brand, up 56%, Jollibee follow close behind

Texas Roadhouse has achieved a 56% brand value increase in 2023, to a brand value of US$2.3 billion, making it the fastest growing restaurant brand in the ranking. This brand value increase comes primarily as a result of the brand’s strong expansion strategy. The brand now operates 700 restaurants and has further raised its expansion targets for the coming years, hoping to reach 900 units.

Filipino brand Jollibee (brand value up 53% to US$1.6 billion) followed closely behind as the second fastest growing brand in the ranking. The brand’s post-pandemic growth plans have seen it expand further into the US market, planning to open 500 stores in the coming years and rival other fast-food giants such as McDonald’s and KFC.

Greggs is the strongest brand in the restaurant sector with AAA rating

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 150,000 respondents in 38 countries and across 31 sectors.

British baked goods institution, Greggs (brand value up 17% to US$1 billion), is the strongest brand in the ranking with a Brand Strength Index Score of 89/100 and corresponding AAA rating. Greggs remains the strongest brand despite raising the prices of its products in the face of rising operating cost, inflation, and supply chain issues.

Starbucks has highest Sustainability Perceptions Value of US$3.1 billion

As part of its analysis, Brand Finance assesses the role that specific brand attributes play in driving overall brand value. One such attribute, growing rapidly in its significance, is sustainability. Brand Finance assesses how sustainable specific brands are perceived to be, represented by a ‘Sustainability Perceptions Score’. The value that is linked to sustainability perceptions, the ‘Sustainability Perceptions Value’, is then calculated for each brand.

As well as being the world’s most valuable restaurant brand, Starbucks also has the highest Sustainability Perception Value of US$3.1 billion. The brand’s position at the top of the Sustainability Perceptions Value table is not an assessment of its overall sustainability performance, but rather indicates how much brand value the brand has tied up in sustainability perceptions.

 

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