China’s biggest winery Changyu Pioneer Wine Company has emerged as a major player in the global wine brand ranking, posing a strong challenge to the long-standing champion, Moët & Chandon.
According to the latest Brand Finance Alcoholic Drinks 2023 report, an annual report on the most valuable and strongest alcoholic drinks brands, Moët & Chandon retains its title as the world’s most valuable wine brand, with a brand valuation of US$ 1.3 billion, despite experiencing a 10% decrease in value.
However, the biggest revelation came with Changyu’s impressive rise in the rankings. The Chinese wine brand, one of the biggest wine producers by volume, leaped two positions to secure the second spot with a brand value of US$1.2 billion, marking a remarkable 33% growth.
Founded in 1892, Changyu dominates China’d domestic wine market with close to 50% market share. Changyu’s unexpected surge is attributed to the massive and rapidly growing market for domestically produced Chinese wine, which has significantly boosted the brand’s value. Consumption of domestic wines in China is projected to reach US$19.5 billion in 2022, compared with US$16.5 billion, based on a 2021 IWSR/Vinexpo report.
Following Changyu, US Chandon came in third at US$1 billion valuation, ahead of Veuve Clicquot, Dom Perignon, Barefoot Wine, Penfolds, Beringer, Concha y Toro and Jacob’s Creek.
Henry Farr, Associate Director at Brand Finance, noted that high-end Champagne this year have taken a hit in ranking. “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 explained.
Aside from ranking as second most valuable wine brand, Changyu was named “the strongest wine brand in 2023” by Brand Finance after it earned an impressive BSI score of 83.2 out of 100, securing a AAA- rating. This distinction is attributed to the brand’s consistent growth in brand strength over three consecutive years.
The scoring was reached after evaluating a set of metrics including marketing investment, stakeholder equity, and business performance. Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 100,000 respondents in 38 countries and across 31 sectors.
Despite its rise in valuation, China’s biggest wine producer pales in comparison with the country’s most known Baijiu producer Kweichow Moutai, whose market valuation stands over US$2.3 trillion.
Meanwhile, Penfolds, an Australian-based brand, emerged as the fastest-growing Wine & Champagne brand this year, experiencing a remarkable 48% increase in brand value, reaching US$ 659 million. The brand also earned the second-highest strength rating in the category, with a BSI of 81.6 out of 100, and an AAA- rating.
Penfolds‘ success can be attributed to its consumer-centric approach, driven by embracing new technologies and innovation. The brand’s 2022 wine collection, which expanded beyond Australian-made wines to include French and Californian wines, played a pivotal role in enhancing global brand awareness and market share. This strategic move led to significant improvements in brand value and strength.
Additionally, Penfolds’ commitment to sustainability was recognized, as the collection aimed to alleviate pressures on regions with harsher climates and reduced crop yields. This earned the brand a Sustainability Perceptions Score of 4.59 out of 10, positioning it third in the ranking based on this metric.