According to the annual ranking by Brand Finance, Moët & Chandon continues to be the strongest wine and Champagne brand in 2024, with a market value of approximately $1.39bn (circa €1.25bn). The brand’s value increased by 9%, despite a decline in Champagne sales.
However, Changyu from China, which ranked second last year, has seen a drastic devaluation, dropping from $1bn (circa €0.94bn) to $0,7bn (circa €0.6bn). Despite this decline, the brand maintained an AAA-minus score—the highest brand rating within the top ten—and a brand strength index of 81.5. Brand Finance attributes the drop in value to decreasing acceptance of high prices amid challenging market conditions and an increasing number of competing wine brands. Changyu achieved its highest ranking in 2021 with a value of $1,2bn (circa €1bn), despite the fact that China’s key domestic market was virtually paralyzed by COVID-19 lockdowns at the time.
LVMH brands and Australian wines on the rise
Other brands from the LVMH portfolio also delivered positive results. The American sparkling wine brand Chandon secured second place with a market value of approximately $1bn (circa €0.9bn). Veuve Clicquot and Dom Pérignon followed, with Dom Pérignon increasing its market value by 7% to $800bn (circa €0.7bn). Overall, LVMH dominates the top 10 most valuable wine and champagne brands with four entries, all of which—except Moët & Chandon—moved up one place.
Yellow Tail made a significant leap in market value, jumping from around $257m (circa €231m) in 2023 to approximately $613m (circa €550m). Other Australian brands such as TWE's Penfolds and Lindeman’s which is scheduled to be sold by TWE, also saw increases in value, thanks to the reopening of the Chinese market for Australian wines.
While Changyu's value fell, Yellow Tail saw significant growth
“Royalty Relief” method determines brand value
Brand Finance calculates both the value and strength of brands using the “Royalty Relief” method, which estimates the value a company would be willing to pay to license its brand if it did not own it. This approach involves forecasting the brand's future revenues and determining a royalty rate that would be charged for its use. The rate is derived from comparable licensing agreements found in Brand Finance’s database and other online sources, establishing a range of royalty fees (from X–Y%). These fees are then multiplied by the Brand Strength Index (BSI).
The BSI, which scores up to 100 points, also factors into the brand value calculation. It is based on elements such as emotional connection, financial performance, and sustainability. This score determines a brand rating of up to AAA+, similar to a credit rating. The BSI primarily draws on Brand Finance’s Global Brand Equity Research Monitor study, which surveys over 100,000 people in 37 countries regarding their perceptions of more than 4,000 brands across 25 industries.
Recent sales figures from the LVMH group demonstrate that Brand Finance’s brand value ranking often has little connection to current market performance. However, in a market where wine brands frequently change ownership, these rankings are still interesting. PD/VM
