Nestlé Tops List of Most Valuable Food Brands in 2023

Nestlé Tops List of Most Valuable Food Brands in 2023

For the seventh consecutive year, Nestlé has earned the top spot on Brand Finance’s list of the world’s most valuable food brands. Photo courtesy of Brand Finance.

Food giant Nestlé has once again claimed the top spot on the list of the world’s most valuable food brands in Brand Finance’s “Food & Drink 2023” report. The report, which delves into brand strength, revenue and royalty rates to gauge brand worth, has consistently placed the Vevey, Switzerland-based brand as the most valuable food brand ever since its inception in 2015.

To generate the report, Brand Finance conducted original market research on over 5,000 brands, covering 38 countries and 31 sectors. Now in its seventh consecutive year, it annually surveys more than 150,000 respondents.

Nestlé’s Dominance

“As an iconic global brand, Nestlé continues to raise the bar, setting new benchmarks for the industry and inspiring trust among consumers worldwide,” remarked Savio D’Souza, valuation director for Brand Finance, in the report. “With a rich heritage and a portfolio of trusted brands, Nestlé has built a legacy of success and an unmatched global reputation, enhanced by its enduring dedication to creating a healthier and more sustainable future for all.”

Related: Nestlé Introduces Sugar Reduction Technology for Various Products

Over the previous year, Nestlé’s brand value saw an eight percent surge, leaping from $20.8 billion to $22.4 billion. Factors contributing to this growth, as per Brand Finance, include robust sales throughout Nestle’s brand range and their forward-looking plant-based innovations, like whole grain cookie dough from Toll House and innovative non-dairy milks. Nestlé also recently dove deeper into dairy alternatives, experimenting with a pioneering product crafted with animal-free dairy protein from Perfect Day.

Nestlé’s coffee division also made headlines in the report. It experienced a significant boost in organic sales in the first half of fiscal 2023. After acquiring Seattle’s Best Coffee in October 2022, Nestlé also augmented its global coffee alliance with Starbucks. Brand Finance highlighted that the company’s Nespresso stands out in the most valuable food brands list, being the fastest growing non-alcoholic beverage brand with a 208 percent value surge, with a current worth of $2.9 billion.

Nestlé’s Project Tasty, initiated in 2021, has also supported its success. The program aimed to streamline its portfolio and enhance the prominence of its top-performing SKUs, especially given supply chain challenges during the pandemic. This effort helped Nestlé eliminate non-performing items from its vast 100,000 SKU catalog. 

Other Valuable Food Brands

Following Nestlé in the most valuable food brands hierarchy was Yili, a Chinese dairy giant that has clinched the second spot since surpassing Danone in 2020. Driven by strong domestic and international sales, Yili’s value catapulted by 17 percent to $12.4 billion since 2022.

“Yili’s focus on quality, innovation and environmental responsibility has contributed to its world-leading reputation in the dairy industry” Brand Finance added in the report.

The snack segment experienced significant growth, with top brands witnessing an average value growth of 40 percent. Frito-Lay, under PepsiCo, Inc., had four brands including Lays (the third most valuable food brand), Doritos, Cheetos and Tostitos dominating this space. Want Want, a Chinese rice cracker brand, also found a spot in the top five snack brands.

In the non-alcoholic beverage category, Coca-Cola retained its number one position, even with a five percent decrease in value. PepsiCo trailed in at second, experiencing an 11 percent dip.

Brand Finance not only calculates brand value, but also gauges the relative strength of brands using a comprehensive scorecard of metrics. This scorecard evaluates marketing investment, stakeholder equity and business performance. Hershey stands out as the world’s strongest food brand with its brand value increasing by 12 percent to $3.9 billion over the past year.