Intangible Business apparently researched c. 10,000 spirit and wine brands across the globe, to assess both the financial contribution of each brand and its strength in the eyes of the consumer. To do this, they combined scores from a panel of drinks industry experts along with global sales data (see Methodology, and Panelists).
The Brand Score (out of 100) was produced by the panelists, who scored each brand for these characteristics (each a scale: 0–10):
- Share of market: a volume based measure of market share
- Future Growth: projected growth based on 10 years of historical data and future trends
- Premium Price Positioning: a measure of a brand’s ability to command a premium
- Market Scope: number of markets in which the brand has a significant presence
- Brand Awareness: a combination of prompted and spontaneous awareness
- Brand Relevancy: capacity to relate to the brand and a propensity to purchase
- Brand Heritage: a brand’s longevity and a measure of how it is embedded in local culture
- Brand Perception: loyalty and how close a strong brand image is to a desire for ownership.
Across the 10 years, 141 brands appeared at least once, although only 68 (48%) of them appeared in all 10 surveys, with another 8 appearing in 9/10 years. That is, only half of the brands had any sustained Power — these are listed at the bottom of this post. In the other cases, the brands either appeared in the early surveys only, or in the later surveys only — very few came and went from year to year (implying that they were just on the border of the top 100).
Perhaps the first thing to note about the results is that Power comes mostly from sales volume. This is illustrated in the graph, which plots Brand Score (horizontally) and Total Score (vertically). Each point represents the results for one brand in one year (ie. there are 1,000 points).
Note that Total Score increases very rapidly — indeed, this increase is greater than exponential. Those brands above the dashed line (eg. Smirnoff vodka, Johnnie Walker whisky, Bacardi rum) have their Brand Score massively enhanced by sales — this makes them consistently by far the most powerful brands. However, also note that it is only brands with a high Brand Score that have large sales volumes, and therefore a high Total Score.
To consider which types of brands make it into the lists, we can categorize them:
- Wine (Champagne, Other Sparkling, Still Light Wine, Fortified Wine)
- Whiskey / Whisky
- Spirit (Cognac, Other Brandy, Gin / Genever, Rum / Cane, Tequila, Vodka)
- Flavored (Aniseed, Bitters / Spirit Aperitifs, Light Aperitif, Liqueurs, Alcopop).
Number of brands Average no. years /10 Occur in all 10 years (%) Average rank /100 |
Wine 39 6.0 26 61.0 |
Whisky 31 8.2 65 46.6 |
Spirit 49 6.8 47 44.3 |
Flavored 22 8.0 68 53.9 |
Note that the Wine category does very poorly. There are a good number of brands, but they do not have much power, compared to the spirits categories. That is, fewer brands appeared in all 10 years, and their ranks were mostly lower than for the other categories. [Note: in the wine world, the word “brand” is often used to refer to the company, while “label” refers to what are here called brands.]
This is not necessarily unexpected, if real power comes from sales volume. There are many more wine brands on this planet than there are spirits brands, and therefore they split the market between them into much smaller segments. Competition ensures that none of these segments is very large. Making matters even more extreme, many wineries market wines from a series of different vineyards each under their own name (citing the supremacy of terroir in the wine world), even if they use the same overall brand name — this potentially fragments the market even more.
Many larger wine companies have been acquiring small independent producers with a high reputation, but this consolidation would result in brand power only if they are marketed under the same brand name. However, the plan generally seems to be to keep them as boutique brands within a large premium portfolio.
So, which wine brands did consistently made it onto the Power lists? This next table shows how many of the wine brands appeared in all 10 surveys. For example, for the Still Light Wines, 20 brands appeared at least once, and 6 of these appeared in all 10 years. The table then lists the average rank across the surveys for those brands that did make it all 10 times. So, for example, Moët fared best (had the best average rank), followed by Gallo and Concha y Toro, who all managed to crack the top 20 (out of 100).
Still Light Wine Gallo Concha y Toro Hardys Robert Mondavi Jacobs Creek Blossom Hill Champagne Moët et Chandon Veuve Clicquot Mumm Other Sparkling Freixenet Fortified Wine |
6 / 20 19.0 21.0 29.4 32.6 54.4 66.9 3 / 14 16.5 27.7 80.3 1 / 2 51.0 0 / 3 |
This list may not impress you very much. Notably, there were none of the premium wine brands included in any of the Top 100 lists, except a few from the Champagne region of France. The wines of Bordeaux, Burgundy and the Napa Valley, for example, simply do not sell enough volume to achieve any real market power. The media write about them a lot, but most consumers know little about them; and real power rests with the masses, not the media.
Conclusion
Simply put, there are more wine brands in the world than spirits brands, so that none of them can have a sufficient part of the market to achieve great market power. That is, diversity and power are inversely related. So, spirits continue to rule in the global power game.
Brands that appeared in all 10 of The Power 100 lists.
Wine Moët et Chandon Mumm Veuve Clicquot Freixenet Blossom Hill Concha y Toro Gallo Hardys Jacobs Creek Robert Mondavi |
Whisky Glenfiddich 100 Pipers Ballantine’s Bell's Chivas Regal Dewars Famous Grouse Grant’s Scotch J & B Johnnie Walker Teacher's Jameson Black Velvet Canadian Club Canadian Mist Crown Royal Jack Daniel's Jim Beam Maker's Mark Wild Turkey |
Spirit Courvoisier Hennessy Martell Rémy Martin Dreher E & J Brandy Beefeater Bombay Sapphire Gordon's Gin Seagram Gin Tanqueray Bacardi Captain Morgan Havana Club Cuervo Sauza Absolut Finlandia Grey Goose Ketel One Skyy Smirnoff Vodka Stolichnaya |
Flavored Ricard Campari Bitters Fernet-Branca Jägermeister Cinzano Vermouth Martini Vermouth Baileys Bols Liqueurs Cointreau De Kuyper Disaronno Grand Marnier Kahlua Malibu Southern Comfort |
Plain and simple. Higher alcohol has the image of a more robust consumer. On the robust scale, beer is next. Wine is a pathetic 3rd. Need some athletic celebrity endorsements to lift the image. I don't think canned wine will help. Terry Bradshaw or Tom Brady with a glass of Cab might be uplifting. Raf Nadal maybe. Adam Schiff definitely not.
ReplyDeleteShare of a brands voice (Ads/PR,face to face contact) modified by a brands tone of voice (inclusive or exclusive)equals share of mind, equals share of market over time. So wine's lack of share of voice drives the lack of brand power. So sales volumes are far less than if wine brand marketing was as good as beer or spirits.
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