BRITAIN’S TOP BRANDS LOST £30 BILLION TO THE PANDEMIC
Leading global brand valuation consultancy, Brand Finance, has released its annual report looking at the UK’s strongest and most valuable brands. The value of Britain’s 150 biggest brands has fallen by £30 billion in the last year, equivalent to an 8% loss.
Two thirds of brands in Brand Finance UK 150 have lost value, including all of the top ten brands. Businesses that had efficient delivery services or a direct relation health and hygiene were most successful.
Airlines and hotels are among the worst affected sectors, with British airways being the fastest falling airline down by -43% and aero-engine maker Rolls Royce suffering huge loses of -45%. House building firm Taylor Wimpey is also down by -32% due to workforce disruptions during lockdowns last year. Easyjet, Burberry and Premier Inn all saw losses between -24% and -29%.
Richard Haigh, managing director of Brand Finance, says some of the brand value changes this year will be the temporary due to disruptions to the operating environment, but others will be longer lasting. “For example, the decline of airline brand values is not simply the result of temporary restrictions in the airlines’ ability to monetise their brands. British Airways and EasyJet have seen both their brand values and also their brand strength scores decline, indicating more fundamental damage to brand assets,” adds Haigh.
National lockdowns meant that delivery based businesses thrived, with Deliveroo up by +52%, Asos up by +38% and Ocado up by +28%. As hospitality reopens there is likely to be some correction in this space but the brands have built a solid foundation for continued growth.
Due to its involvement in the development of Covid-19 vaccines, AstraZeneca saw increases of +17%. Likewise, home cleaning brands such as Finish, Dettol, Airwick and Lysol have all seen increases of around +20% as a direct result of Covid-19. Brands focused on personal hygiene also increased, with The Body Shop up +21% and Boots up +18%.
Shell remains the UK’s most valuable brand with a value of £32.4 billion, despite a -12% decline through the pandemic. EY also remains the nation’s strongest brand with an elite AAA+ brand strength rating.