The world’s most powerful drinks brands ranked and rated

2012’s Power Brands Report highlights the impact of China’s thirst for luxury drinks and a fragile US comeback on the largest and best-known wine and spirits brands.

Although the US is the biggest market for international spirits, the growth is coming from China and, without demand from this single country, last year’s volume increase in the global alcoholic drinks industry would fall by a third.

But how has this affected the scores of the world’s most powerful brands?

Over the following pages we look at the top ten most influential from our annual list of the world’s 100 most powerful wines and spirits.

To make it into the top ten, as the methodology is designed to detect, a brand must have both scale and growth, as well as widespread recognition and heritage.

Then there’s the need for a consistent and premium-price positioning and global distribution, as well as a taste and look that’s relevant to today’s consumer.

For a full report on the world’s 100 most powerful, including a methodology, see May’s issue of the drinks business.

We have run this report in conjunction with brand valuation company Intangible Business since May 2006.

1. SMIRNOFF

The world’s most powerful brand has held the top place in this survey since it was launched seven years ago. Its leading position is understandable when one considers its shifts 24 million cases and sells in 130 countries, even if around 80% of its volume is derived from 10% of the world’s nations.

It scores highly in terms of heritage too: founder Piotr Smirnov began distilling the spirit in 1860. As for awareness, the brand is known worldwide due to advertising and celebrity associations; for example, it was 007’s vodka of choice in Casino Royale. It also remains relevant as a mixable white spirit with an ever-expanding number of flavours and RTD variants. In terms of growth, Smirnoff has stemmed a recession-induced decline and increased sales by 230,000 cases to 24m during the course of 2011.

However, it is still short of its record-breaking total of 26.2m in 2008. It has also seen a slight slip in score this year due to its dependence on the highly competitive US white spirits market and its mid-priced positioning. The brand is undoubtedly feeling the strain from the aggressively priced Svedka below it and growing presence of Absolut above.

Total volume sales 2011: 24m cases.

2. JOHNNIE WALKER

This famous Scotch only comes second to Smirnoff due to its smaller scale – it amounts to 15.8m cases versus the vodka’s 24m. Notably, Johnnie Walker has managed to ally its immense size to a strong image through clear product tiering. Using different colour labels from red to blue it has created an aspirational top end and accessible entry-point. This brand is also far from dependent on a single market, and can be considered truly global, with a presence in Europe, the US and Asia.

In terms of marketing, Johnnie  Walker has also been highly effective due to its creation of a globally consistent image, but applied in a manner that’s relevant to wherever it’s sold. Using the “Keep Walking” tagline, Johnnie Walker employs the same message of progress, but uses imagery that’s adapted to suit the local culture.

Investment, innovation and adaptation have also kept the brand relevant, and it’s interesting to add that Johnnie Walker has just embarked on a major range revision, including the withdrawal of its current Gold and Green Labels and the addition of a Platinum one. In terms of 2011’s sales performance – the basis for this survey – the brand exhibited phenomenal growth, having added 1.5m cases to its total in 2011, or 18m bottles.

Driving such expansion has been demand in China, where it’s catching up with Chivas Regal, the leading Scotch in this market, as well as growth in Brazil, where favourable tax changes have brought Johnnie Walker Black within reach of what was previously a Red Label market.

Total volume sales 2011: 15.8m cases.

3. BACARDI

Founded in the 1830s when Spanish wine merchant Facundo Bacardí emigrated to Cuba and decided to make a more mellow rum, Bacardi has a rich heritage. Today however there’s little doubt that Bacardi is highly relevant to the spirits consumer. Aside from being one of the world’s most mixable spirits, this bat-emblazoned brand appears to cover every base, coming in myriad formats and flavours, with seemingly ceaseless innovations. Indeed, so dominant is Bacardi in rum, it has the power to dictate the entire direction of the category.

Nevertheless, the brand has slipped slightly in total score in this year’s survey, and hence fallen behind Johnnie Walker to third place.

In fact, Bacardi has not stopped growing in volume, and reached a record-breaking 19.6m cases in 2011, but its dependence on the fragile US and European markets and lack of significant presence in Asia, the driver of growth over the past year, has affected its ratings.

Total volume sales 2011: 19.6m cases.

4. MARTINI

Lending its name to the world’s most famous cocktail, there is barely a back bar without a bottle of this brand of Italian vermouth.

The product actually takes its name from the Martini & Rossi Distillery in Turin using a recipe that can be traced to 1786 when Antonio Benedetto Carpano invented modern vermouth.

Moving to this year’s results, the brand has seen a rise in its score since last year’s survey, driven both by volume gains – it now shifts 16.3m cases up from 15.9m in 2010 – and also its increasingly strong image. It benefits from both the ongoing cocktail craze in the US, boosted by hit television shows such as Sex and the City and more recently Mad Men, as well as Bacardi-Martini’s might and distribution.

Total volume sales 2011: 16.3m cases.

5. HENNESSY

Leader in the Cognac category, Hennessy has added another 300,000 cases to reach 4.5m in 2011, dwarfing its nearest rival Martell with 1.8m (up 220,000 cases). The Hennessy brand, owned by LVMH, is also the largest international spirits brand in China, explaining its rise up the chart by two places this year – it is Asian demand that is driving growth at the moment.

Like Johnnie Walker, this Cognac brand has a range of variants allowing consumers to climb a price ladder, although its sales in the Far East are centred on the more expensive, aged styles. It has retained its international relevance through the addition of special editions at both ends of the price spectrum, including “Black” to entice the club-going crowd in more mature Cognac markets, particularly the US.

In terms of history, the brand is more than 200 years old, and the Hennessy distillery was founded in Cognac by Irishman Richard Hennessy in 1765.

Total volume sales 2011: 4.5m cases.

6. ABSOLUT

Absolut has expanded its sales volumes significantly during 2011, but has slipped down one place this year because it can’t rival Far East favourite Hennessy for brand power. In fact, the vodka leapt from 10.4m cases in 2010 to 11.2m in 2011, despite the extremely competitive nature of the white spirits category. Such a rise is attributed to aggressive pricing in the key US market as well as expanded distribution in Asia, where brand owner Pernod Ricard is active with Martell and Chivas Regal. Absolut vodka was launched in Sweden in 1879 but only introduced to an international audience 100 years later in 1979.

The brand is famed for its flavour extensions, starting with Pepper launched in 1986. It also has a “cities” collection, comprising New Orleans, Los Angeles, Boston, Brooklyn and “San Fran”, as well as London, which was added this year as the first European city in the range.

Pernod Ricard bought the brand from the Swedish state in 2008 for €5.63 billion (HK$56.2bn) and, although some believed Pernod had overpaid for the vodka, considering its growth in the last year, it has proved a savvy acquisition.

Total volume sales 2011:11.2m cases.

7. JACK DANIEL’S

Jack Daniel’s continued its impressive growth trajectory over the course of 2011, up almost 400,000 cases to reach the 10m case mark for the first time. Such a performance is reflected in its score this year, which is up 17%, although it is pushed down a place by the superior performance of Hennessy Cognac. Indeed, holding this brand at the lower end of the top 10 is, unlike Hennessy, Jack Daniel’s limited presence in the Far East.

Nevertheless, the Tennessee whiskey is continuing to grow in its key US market, helped by its launch last year of Jack Daniel’s Tennessee Honey, dubbed The Bee. Its strong image is upheld by its powerful advertising centred on the crafting of the product and its founder, Jasper Newton “Jack” Daniel, who was born in September 1846. Its upmarket positioning is helped by the range topping Gentleman Jack, although the majority of sales centre on the Old No.7 label, commonly sold in bars and clubs mixed with coke.

Total volume sales 2011: 10m cases.

8. CHIVAS REGAL

Chivas Regal, like Johnnie Walker, has benefitted from China’s growing call for high-quality Scotch, following its first love: Cognac. As a result, Chivas Regal has enjoyed an impressive 350,000 case sales increase during 2011 and a 22% score increase in the survey. It now totals 4.6m cases worldwide. The brand is in fact China’s leading Scotch, and is owned by Pernod Ricard, which has also successfully positioned Martell Cognac behind Hennessy as the second largest international spirits brand in China.

The Chivas success is centred on its 12 year-old expression, and the brand scores highly in terms of image, boosted by its successful “Live with Chivalry” advertising  campaign, and wealth of history – Chivas Brothers was first established in 1801.

Total volume sales 2011: 4.6m cases

9. CAPTAIN MORGAN

Like Jack Daniel’s, this distinctive rum brand, owned by Diageo, highlights the possibilities of creating a strong image in the vast US spirits market. The spiced rum derives the majority of its sales from this market and almost hit the 9m case mark in 2011, having increased its volume sales by 300,000 cases.

The product is named after the 17th century, Welsh privateer of the Caribbean, Sir Henry Morgan, and the brand image has been recently augmented by staging parties featuring Captain Morgan and the newly introduced “Morganettes” – beautiful woman used to promote the drink, particularly in cocktails. Since last year the label has used the slogan, “To Life, Love and Loot”.

Total volume sales 2011: 9m cases

10. BALLANTINE’S

Third most powerful Scotch in this survey, and number 10 overall, Ballantine’s put in a phenomenal performance in 2011. The brand grew by 500,000 cases and saw its score move up 6%. The product now sells 6.3m cases worldwide and appears to sit well in the same portfolio as Chivas Regal – both brands are owned by Pernod Ricard.

And like the latter label, Ballantine’s has a strong following in the Far East, particularly Korea and Japan, where its 17-year-old expression has carved out a niche and a strong presence in duty-free.

Meanwhile, its three-year-old expression has managed to sustain its position in the troubled Eurozone, even in the large Spanish market for Scotch. The heritage of this blended Scotch can be traced back to 1827, when George Ballantine opened a whisky shop in Edinburgh.

Total volume sales 2011: 6.3m cases.