Amul among world’s strongest food brands

Indian dairy brand Amul has emerged as the world’s strongest food brand with an AAA+ rating, according to consultant Brand Finance’s Food & Drink 2024 report.

Amul, which held the second position last year, saw its brand value increase by 11% to $3.3 billion this year, the report said.

“Amul’s BSI (Brand Strength Index) improvement was most visible in terms of the familiarity, consideration and recommendation metrics measured through Brand Finance’s research, which in turn is attributed to the brand’s unique branding strategies,” Brand Finance’s annual report on the most valuable and strongest food, dairy and non-alcoholic drinks brands said.

Amul’s brand strength rating has also been maintained at AAA+, with the only other brand having the same rating being Hershey’s, which was last year’s strongest but is behind Amul this year.

With a Brand Strength Index (BSI) score of 91.0 out of 100 and the AAA+ rating, Amul stands out among the list of top 50 global food brands, ranking 22nd, while also being the only Indian entry in that list.

“With an 85% share in the Indian butter market and 66% market share in cheese, Amul’s branding efforts have successfully resonated with consumers,” the report said. “Amul’s unique branding strategy, rooted in its cooperative structure and impactful marketing campaigns, has solidified its position as a household name in India.”

While the Indian brand continued to reign supreme, the report highlighted Nestle and Lay’s as leaders in brand value.

Nestle, despite a 7% decline in brand value to $20.8 billion, retained its top position as the most valuable food brand globally.

The company’s ability to adapt to evolving consumer preferences and maintain a diverse product portfolio has been instrumental in its sustained success, despite the limitations, Brand Finance said in the report.

“Due to supply chain pressures from the pandemic and Russia’s invasion of Ukraine, the packaged goods industry has witnessed a rise in prices. Nestlé has also been raising its own prices in response,” the report added.

Lay’s, on the other hand, saw a significant 9% increase in brand value, reaching $12 billion and securing the second spot.

The food and beverage sector as a whole saw a 4% decline in brand value, now totaling around $268 billion.

“This decline is mainly because more consumers are choosing smaller, private label brands over big names to cater for more unique and personalized products,” according to the report.

However, convenience foods have bucked the trend, seeing an increase in brand value owing to increasing consumer demand for quick and easy meal options.

Sustainability remains a key factor for brands.

Nestle led the food sector in sustainability perceptions with a value of $1.4 billion, while Coca-Cola topped the non-alcoholic drinks sector on sustainability perceptions with a value of $5.2 billion.