Supermarket chain Coles has overtaken BHP as the No. 4 most valuable Australian brand, according to the latest report from Brand Finance Australia.
The only mining brand in the top 10, BHP dropped to fifth position this year following a 17 per cent decrease in brand value to about $7 billion, the brand valuation consultancy group said.
It put this down to a greater economic risk across the market, which had impacted the discount rate applied to the valuation. Although revenue forecasts remained stable overall, a movement of revenues into less highly branded segments had reduced the royalty rate applied to the model, further reducing brand value, it said.
Rio Tinto dropped from ninth place to 11th on the Brand Finance list of most valuable brands in Australia, while retailer Woolworths maintained its crown at No.1 followed by Telstra and the Commonwealth Bank in second and third place.
“Despite the precarious financial conditions created by the pandemic, the Australian retail sector has benefitted considerably from the boom in spending on essential items such as food, medicine, and other household goods,” Brand Finance Australia managing director Mark Crowe said.
“While strong Australian supermarket brands such as Woolworths and Coles have been instrumental in driving up this brand value, the sector is not void of vulnerability to disruption, especially from tech-led challengers.”
Officeworks was this year’s fastest-growing Australian brand, recording 63 per cent growth in brand value to $476 million.
In the fallout from the COVID-19 pandemic, all leisure and tourism brands on the Brand Finance Australia 100 2021 ranking dropped in brand value, with Flight Centre and The Star as the fastest-falling brands on the ranking.