China's oldest and largest winery Changyu challenges Moët & Chandon for the world's most valuable wine brand in Brand Finances' Alcoholic Drinks 2023 report.
While Moët & Chandon retained the top spot for the third year running, the company's brand value was down 10 per cent to $USD1.3 billion, only just beating the second-placed Changyu, who climbed two positions and 33 per cent in brand value to $USD1.2 billion.
Henry Farr, Associate Director at Brand Finance, said the report reflects a global trend away from high-end champagne due mainly to economic pressures.
"Within the Wine & 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 effected 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," he said.
Changyu is perfectly positioned to capture the massive growth of the Chinese wine market, making the shock challenger an extremely valuable brand with a Brand Strength Index (BSI) score of 83.2 out of 100.
The report also found Australia's Penfolds was the category's fastest-growing (up 48 per cent) and second strongest brand (behind Changyu) with a BSI of 81.6 out of 100, enjoying a 19-point increase since last year and a AAA- rating.
The report credited Penfolds' growth with the brands' adoption of new technologies and innovation, a streamlined, consumer-centric approach and a relatively high sustainability perceptions score.
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