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Skol most valuable brand in Latin America

Staff Writer |
Brazilian beer Skol is the most valuable brand in Latin America for the second year running.

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Tjis is according to the fifth annual BrandZ Top 50 Most Valuable Latin American Brands announced by WPP and Kantar Millward Brown.

The report also shows that, in a challenging economic and political environment, the retail sector was the only category that did not decline in value, growing its contribution to the total value of the region's brands from 16% in the previous report to 20% in 2017.

Latin America saw major political changes and high inflation that hit consumers' budgets and confidence in 2016, resulting in a 22% decrease in the total value of the region's strongest brands.

However, the value of the Top 10 declined by just 14%, indicating that investment in marketing and building a strong brand can provide protection in tough times.

The downward turn was largely driven by banking brands, which as a category has declined 56% in value since 2015. This was a consequence of an increased perception of risk that affected both exchange rates and stock market valuations.

FMCG brands (the beer, food and personal care categories) continue to play the most important role in the BrandZ Top 50 LatAm ranking, contributing 42% of the total brand value in 2017 (35% in 2015).

This indicates that householders are still buying their favorite brands, albeit less often.

The retail sector was static at USD$20.96 billion but, as a consequence of the decline in value of other categories, retail brands made up an increased proportion of the region's most valuable brands.

The third and fourth fastest growing brands in the overall Top 50 were retail brands Liverpool (no.10; 28%) and Bodega Aurrera (no.7; 16%) both of which broke into the Top 10 for the first time.

Key to their success was their ability to be more innovative in attracting consumers and encouraging long-term loyalty in the face of increasing competition.

Beer dominates the Top 10, with five brands (four owned by AB InBev) holding a combined value of USD$26 billion; 25% of the ranking's total value. Skol retains its position as Latin America's most valuable brand, having demonstrated clear purpose to its audience with participation at events such as music festivals, and innovation in communications, packaging and products.

The category declined 2% overall, but the impact was softened by beer brands in Mexico, where the younger generation has expanded and access to credit is growing.

The fastest risers in this year's Top 50 were Mexican beer brands Tecate (no.26) and Sol (no.33), which both grew 31%.

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