List of top 20 brands sold during 2013 dominated by retail brands and worth US$34.1 billion
HJ Heinz, Sprint and Bausch + Lomb were the most expensive brands acquired globally last year, according to the latest Top 20 brands list from trademark database manager, Markables.
The global list is based on the value an acquirer attributes to the brand in the purchase accounting process, and as part of the price paid to gain control of the total business and its assets. Markables said it sources the figures from reported financials of listed companies worldwide.
In the lead in 2013 was HJ Heinz, which includes the Heinz Ketchup, Lea & Perrin and Master brands. The brand portfolio was valued at US$12.13 billion when acquired by a consortium including Berkshire Hathaway and 3G Capital in a US$28bn deal completed in June 2013.
US telecommunications company, Sprint, took second position on the list after being acquired by Japanese-based Softbank Group for US$22 billion last year. Its brand value was listed as US$6.45bn.
In third place was US-based eye health company, Bausch + Lomb, which operates in the pharmaceutical, vision care and surgical segments. It was acquired by Canadian-based Valeant Pharmaceuticals in August last year for US$4.5bn in cash as well as assuming $4.2bn worth of debt. The company’s brand value was US$3.46bn.
Rounding out the top five were Crown Imports (Corona), owned formerly by Grupo Modelo SAB de CV and acquired by Constellation Brands in a deal completed in June 2013 with a brand value of US$2.3bn; and Swedish retailer ICA, with a brand value of US$1.87bn. The latter was acquired by Sweden’s Hakon Invest for US$3.1bn in early 2013.
Markables said the value of the 20 brands traded in 2013 totalled US$34.1bn, down from the US$43.6bn recorded in 2012 but close to the US$36.4bn recorded in 2011.
On average, brand assets represented 34 per cent of the total value assigned to these organisations when acquired. The brand assigned the most value across the list was Italian luxury jewellery brand, Pomellato (74 per cent).
Markables also looked at the brand profit margin or brand premium of each of these companies and found that 8 per cent of revenue on avenue is profit directly attributable to the brand. The figure was lower than that recorded in 2012 but higher than 2010 and 2011, the company stated.
The highest brand premiums (20 per cent) were recorded at Italian luxury cashmere clothing group, Loro Piana, Internet metasearch engine, Kayak, and salad dressing producer, Wish-Bone. The ‘brand champions’, or those listed brands demonstrating the highest value in terms of profit contribution and value, were Loro Piana and Wish-bone.
“The economics of brands embedded within all the other assets of an enterprise is a phenomenon which is still little understood. Acquisition accounting is a good way to measure and analyse brand value and its contribution to an enterprise,” said partner and co-founder of Markables, Stefan Russli.
“We hope that the Top20 brand ranking from Markables will make an important contribution towards a better understanding of the real financial values of brands.”
Markables also pointed out the list represented brands at the premium end of the scale. Across the 6000 brands on its trademark database, brand value accounts for an average 14 per cent of enterprise value and generates a brand premium of 3.3 per cent of revenue, the company said.
Top 20 brands that changed hands in 2013
Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu
Creating a strong company culture may sound like a daunting task, but it’s actually pretty straightforward. In fact, company culture is created in exactly the same fashion as a religion or democracy. Behaviours created from the organisation’s inception are reinforced over time by leadership, attracting like-minded people and eventually reaching critical mass to become an accepted ‘truth’.
The question I get asked most regularly these days is: ‘Do I need to rebuild my company’s systems on Blockchain?’ And the answer, every time, is ‘No, you’re asking the wrong question’.
Throughout my career, I have witnessed a litany of brand names that profess to have a unique customer value proposition (CVP). In reality, however, they’ve had little more than a ‘value proposition’: A simple list of benefits applied to a general audience.
In this bonus last episode of this new podcast series, BrandHook MD, Pip Stocks, talks with former ANZ group general manager of marketing, Louise Eyres, talks about the importance of thinking like a customer and using intuition to solve customer painpoints.
We supply petroleum product such as JP54, D2, D6, JET A1, Serious buyer should contact now for SCO in order to work with seller workable ...
Vico Peißker
ACCC releases Consumer Data Right draft framework for comment
What is your opinion about chatbots serving your customers? My belief is bots are going to be the future of customer service and fulfilme...
Giridhar Prathap Reddy
NAB taps power of AI chatbots for business customer service
Thanks for writing about chatbots. Definitely bots have the exciting future when it comes to customer engagement, transactional and conve...
Giridhar Prathap Reddy
Deloitte TMT Predictions: AR and mobile crucial for marketing success in 2018
Hi there! Thanks for this interesting article! I love to read about new technology and software that makes our lives easier. I'm looking ...
Julia Summer
Wartsila overhauls Web platforms to create ‘seamless’ brand experience across all devices
RE: Sales and marketing SLAs, often the choke point isn't the teams but them getting the data into the tools they want to use with the da...
Ed Fry
Why sales and marketing alignment is more important than ever