As in 2020, baiju brands claim the top five positions of the 2021 most valuable spirits list. Moutai retains the number one spot thanks to a 15% year-on-year brand value increase to US$45.3bn.
Wuliangye follows Moutai with a 24% year-on-year increase and Yanghe retains its position in third, despite an 8% slide in the same period. In fact, Yanghe is the only brand in the top five to record a brand value drop for 2021, as Luzhou Laojiao and fifth place Gujing Gong Jiu recorded lifts of 25% and 22% respectively.
Go deeper with GlobalData
The latter’s success pushes a 17%-down Jack Daniel’s into sixth place with a $3.4bn valuation.
Elsewhere in the top ten, Diageo’s Johnnie Walker Scotch whisky slides four spots to tenth while its Smirnoff vodka brand remains unchanged on last year.
Methodology
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData1. Review brands’ existing royalty agreements and analyse how brands impact profitability in the sector versus generic brands, resulting in a range of possible royalties that could be charged for them in the sector (for example a range of 0% to 2% of sales).
2. Examine three of the brand’s metrics to establish a strength score out of 100 which contributes to total brand value:
- ‘Inputs’ - activities supporting the future strength of the brand
- ‘Equity’ - feedback from market research and other data partners
- ‘Output’ - performance measures such as market share
3. The strength score (point 2) is then applied to the royalty range (point 1) to give a royalty rate. For example, if the royalty range in a sector is 0%-to-5% and a brand has a Brand Strength Index score of 80 out of 100, then the royalty rate of this brand will be 4%.
4. Determine brand-specific revenues estimating a proportion of parent company revenues attributable to a specific brand.
5. Determine forecast brand-specific revenues using a function of historic revenues, equity analyst forecasts and economic growth rates.
6. Apply the royalty rate to the forecast revenues to derive brand revenues.
7. Brand revenues are discounted post-tax to a net present value which equals the brand value.
Why Ranch Water could ride to Tequila’s rescue outside the US - Click here for a Just Drinks comment
