Brazilian beer Skol is the most valuable brand in Latin America for the second consecutive year, according to the BrandZ™ Top 50 Most Valuable Brands in Latin America, in its fifth annual edition.
The region faced significant political changes and high inflation that affected budgets and consumer confidence in 2016, resulting in a 22% drop in the total value of the strongest brands in the region. However, the value of the Top 10 fell only 14%, indicating that investments in marketing and building a strong brand can provide protection in tough times.
The beer category dominates the Top 10, with five brands (four belonging to AB InBev) holding a combined value of $26 billion; 25% of the total value of the ranking. Skol maintains its position as the most valuable brand in Latin America, having demonstrated a clear purpose for its audience by participating in events such as music festivals, and innovating in communications, packaging, and products. The category overall fell by 2%, 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 the Mexican beer brands Tecate (No. 26) and Sol (No. 33), both growing by 31%.
“Tough times require brands to ask themselves hard questions and make tough decisions about their marketing investments and business actions. Formulating an effective strategy that balances quality, differentiation, relevance, and cost requires a granular understanding of how the brand is perceived and what will resonate with the consumer,” commented Gabriel Castellanos, CEO of Hispanic LatAm, Kantar.