Despite persistent inflation and cautious consumer spending pressuring volumes across food and beverage, a new Kantar analysis reveals a widening gap between brands investing in long-term brand equity and those relying on short-term promotions and price competition.
The firms latest BrandZ Top 100 Most Valuable Global Brands report identifies standout performers including Coca-Cola, Red Bull, Nido and Michelob Ultra. These brands are not just surviving current headwinds, they are outperforming through them to gain value, strengthen pricing power and deepen consumer loyalty, according to Ellie Thorpe, Director of Kantar BrandZ.
The economics of brand equity
Brands that win at premium pricing combine three factors, according to Thorpe. First, they must be seen as different from competitors. Second, they need meaningful connections to consumer lives, meeting functional needs and fitting easily into daily routines. Third, they build emotional resonance strong enough to justify loyalty and often premium pricing.
Red Bull exemplifies this approach. Rather than relying on traditional product marketing alone, Red Bull has spent years building consumer relationships through communities and cultural moments. The brand performs across different regions by aligning with what consumers care about in each market: speed biking in the US, music in Europe and esports in China.
Cultural connection as a moat
Coca-Cola demonstrates the same principle at a much larger scale. While soft drinks have faced recent challenges, Coca-Cola continues to win by embedding itself into daily rituals and cultural moments through personalization, local music, artistic collaboration and high-profile events like the Olympics. The brand does not rest on legacy status but continues to invest in building strong consumer connections.
Walmart also illustrates how brands can redefine value beyond pure price. Walmart is a top performer in the BrandZ report with growth upwards of 48 percent, partly thanks to reframing what value means. For Walmart, that includes speed, access, experience and relevance of product selection, along with inclusive storytelling that shows the brand's role in everyday life.
When innovation reinforces brand identity
Kantar's analysis shows that brands performing best do not simply launch new products. Instead, they solve specific consumer needs while reinforcing what already makes the brand distinctive. Sensodyne, a toothpaste brand created for sensitive teeth, expanded into protection, whitening and prevention while maintaining its core identity. Doritos delivers bold flavors while building cultural connection through TikTok challenges and creator partnerships.
Importantly, Thorpe notes these lessons apply even to smaller brands without massive marketing budgets. Strong underlying brand equity matters more than raw reach. The strategy is to create meaningful connections with a core audience first rather than chase maximum eyeballs.
What's falling short
The volatility worldwide has reached a peak in the past year, according to Kantar's consumer sentiment research. Geopolitical tensions and economic insecurity are driving a real state of uncertainty and unrest. In this environment, brands relying heavily on short-term levers such as promotion and price competition are losing ground to those building long-term emotional connections.