Annually, the financial firm Brand Finance assesses brands from various industries and countries, and they have evaluated the top 15 wine brands. For the third consecutive year, Moët & Chandon, a part of the LVMH group, maintained its leading position in value despite a 10% decrease, with a valuation of $1.27bn. A surprising climber in the ranking is the brand Changyu, which has risen from fourth to second place with a valuation of around $1.2bn and a growth of approximately 33%. The American brand Chandon narrowly missed the second position with only a 4% difference in value.
Nevertheless, Changyu managed to secure its position as the strongest wine brand, while Moët & Chandon fell to third place. Penfolds claimed the second position as the fastest-growing brand in the wine and champagne segment, experiencing a 48% increase to $659m.
The brand strength was evaluated based on various indicators, such as marketing investments, and external opinions were also considered. Over 100,000 participants from 38 countries and 31 industries were surveyed for this assessment.
Luxury conundrum
Henry Farr, Associate Director of Brand Finance, explained, "Within the wine and Champagnes sector, wines have performed better in terms of brand value growth. High-end Champagnes have taken a hit. Difficult growing conditions, reduced availability and price hikes have steered some consumers towards lower-end sparkling wines as an alternative. For those less affected by harsher financial situations, this could be due to not wanting to appear vulgar or ostentatious by indulging in luxury products when others are struggling with the rising costs of living.”
Strategic partnership
Changyu, China's oldest producer with a production volume of 100m wine bottles and 50m bottles of brandy, has evolved into a market leader in Asia. In 2015, Austrian winemaker and entrepreneur Lenz Maria Moser entered into a joint venture with Changyu. Today, the Cabernet Sauvignon-based wines are distributed in more than 40 countries. According to Moser, approximately 500,000 bottles are produced under his supervision at Changyu-Moser, with 20% of them being exported.
