Changyu, China’s top wine brand, saw its brand value plummet by 33% in 2024, slipping from second to fifth place in the latest global ranking of wine and champagne brands, according to the Brand Finance Alcoholic Drinks 2024 report.
The report, released on August 16, highlighted the dominance of lxuury giant LVMH, which secured the top four spots with its champagne brands in the top 10 most valuable Champagne and Wine Brands. Moët & Chandon led the list with a brand value of US$1.39 billion, followed by Chandon at US$1 billion, Veuve Clicquot at US$959 million, and Dom Pérignon at US$799 million.
Changyu, which had ranked second in 2023, fell to fifth this year with a brand value of US$706.8 million. In 2023, Changyu not only ranked second in value but was also named the “world’s strongest wine & champagne brand,” scoring 83.2 points in Brand Finance’s evaluation.
Changyu is a major player in China’s wine industry and a publicly traded company. The company reported revenue of RMB 4.385 billion (US$614.3 million) in 2023, making it the largest wine producer in China. Its portfolio includes popular labels like Changyu Noble Dragon and premium wineries such as Longyu and Château Changyu–Moser XV in Ningxia. Changyu has also expanded globally, acquiring or investing in properties like Kilikanoon in Australia, Indomita in Chile, Château Mirefleurs in France, and Marqués del Atrio in Spain. The company’s import arm, Yantai Changyu Pioneer International Wine Co., Ltd., is among China’s top 50 wine importers.
Brand Finance evaluates brand value based on ISO 20671 standards, considering marketing investment, stakeholder equity, and business performance. Changyu’s recent performance has shown signs of decline across these areas. Despite maintaining a visible presence in the industry—participating in events like the China Food and Drinks Fair in Chengdu, holding distributor conferences, and appearing at ProWein—Changyu’s sales have suffered. The company’s first-quarter report for 2024 revealed a 28.34% year-on-year drop in revenue to RMB 811 million (US$113.7 million), with net profit falling 42.57% to RMB 159 million (US$22.2 million).
Additionally, Changyu’s stock price has decreased over the past year, dropping from over RMB 30 per share in August 2023 to around RMB 21 in August 2024. These declines are closely tied to the broader downturn in China’s wine market.
Following Changyu in the global rankings are well-known wine brands Penfolds, Yellow Tail, Beringer, Jacob’s Creek, and Lindeman’s.
Despite the decline in value, Changyu retained its position as the strongest wine and champagne brand in the 2024 ranking, with a Brand Strength Index (BSI) score of 81.5, down 1.8 points from last year. According to Brand Finance, Changyu continues to excel in brand awareness and consideration in China, where it enjoys high recognition and deep market penetration, even in rural areas.
Speaking of the 2024 report and the outlook for the wine industry, Brand Finance China President Chen Yideng emphasized that sustainability will be crucial for building brand recognition in the coming years. “Brand Finance’s research shows that sustainability now plays a significant role in consumers’ purchasing decisions, accounting for 11% of the factors they consider when choosing wine and champagne brands. Companies that adopt sustainable practices, such as reducing pesticide use, recycling water, and ensuring fair treatment for vineyard workers, are increasingly favored by consumers. In the coming years, transparently communicating these efforts will be key to earning consumer trust and preference,” Chen said.
Discover more from Vino Joy News
Subscribe to get the latest posts sent to your email.
