BAIJIU BRANDS TARGET YOUNGER CONSUMERS FOR GROWTH IN MOST VALUABLE BRANDS REPORT

Kantar has released its BrandZ Most Valuable Global Brands 2024 report, revealing that the top 20 most valuable alcohol brands saw a 5% increase in value, reaching a total of $232.7 billion. This growth is a major rebound for the alcohol industry. Interestingly, eight spirits brands made it on the list, with Moutai the baijiu spirit leading the line with a whopping $85.5 billion.

Following Moutai, the next four spots were taken by beer brands: Corona ($19 billion), Budweiser ($13.7 billion), Heineken ($12.8 billion), and Modelo ($11.3 billion). Johnnie Walker which is owned by Diageo, ranked sixth with a brand value of $10.5 billion. 

In seventh place was Wuliangye, another Chinese baijiu brand, valued at $9.1 billion, and National Cellar 1573 (also baijiu) rounded out the top ten with a value of $7 billion.

We can see from the above that baijiu brands have been attracting younger drinkers. Despite a 2% decline in Moutai’s brand value, it still outperformed expectations in its region and category. The report highlighted Moutai’s strategy of targeting younger consumers through collaborations with coffee and ice cream brands, such as its partnership with Luckin Coffee, which saw 5.4 million cups of baijiu-infused coffee sold on the first day.

Han Ye, Kantar’s lead partner in their Chinese advisory business, outlined the importance of baijiu brands building associations with new moods and occasions to win over younger generations. In turn, this has also seen more competitive pricing for products like Moutai.

In the spirits sector, there’s a growing trend towards bigger and bolder flavours. Johnnie Walker’s umami inspired Blue Label whisky is a prime example. On the other end, Jack Daniel’s Tennessee Apple has enjoyed a 50% sales growth.

On the aperitif front, Aperol emerged as the fastest-growing brand in Kantar’s Most Valuable Italian Brands 2024 ranking, increasing its value by 38% to $1.37 billion. It secured the 18th spot among Italy’s top 40 brands. There is clear growth in the Italian drinks sector, with the country’s brands seeing a remarkable 62% rise to $3.8 billion.