20200403-Brand_Finance-The_annual_report_on_the_most_valuable_and_strongest_Canadian_brands_20页_8mb

Canada 100 2020 Summary

Core Content

The Canada 100 2020 report provides an annual assessment of the most valuable and strongest Canadian brands, highlighting their financial performance, brand strength, and market position. It also includes an analysis of the impact of the COVID-19 pandemic on brand value across various sectors.

Main Points

Brand Finance Overview

• Brand Finance is the world's leading brand valuation consultancy, established in 1996.
• It bridges the gap between marketing and finance by quantifying the financial value of brands.
• Brand Finance evaluates over 5,000 global brands annually, publishing nearly 100 reports each year.
• It offers expertise in marketing, brand strategy, visual identity, tax, and accounting.
• The firm is a chartered accountancy firm and is regulated by the Institute of Chartered Accountants in England and Wales.
• It is the first brand valuation consultancy to join the International Valuation Standards Council.
• Brand Finance has developed internationally recognized standards: ISO 10668 (Brand Valuation) and ISO 20671 (Brand Evaluation), and its methodology is certified by Austrian Standards.

Brand Value and Strength Analysis

• The Brand Value at Risk due to the Coronavirus outbreak is estimated to be up to $1.5 trillion globally.

• Canadian brands are expected to lose 16% in value, equating to $45 billion.

• The Brand Value by Sector includes:

  • Banking: $95.2 billion (33% of total)
  • Telecoms: $31.9 billion (11% of total)
  • Retail: $30.9 billion (11% of total)
  • Oil & Gas: $28.0 billion (10% of total)
  • Insurance: $25.3 billion (9% of total)
  • Other sectors: $66.6 billion (23% of total)

• TD has become Canada's most valuable brand for the first time in 7 years, with a brand value of $16,149 million, up 16.3% from 2019.

• RBC has seen a 10.5% decrease in brand value, with a -2.8 change in brand strength.

• Crown Royal is the strongest brand in Canada, with a Brand Strength Index (BSI) score of 88.1 and a AAA brand rating.

• SNC-Lavalin fell out of the top 100 but is showing signs of recovery.

Key Sectors and Brands

Banking

• TD is now the top banking brand in Canada.
• RBC, BMO, Scotiabank, and CIBC all experienced declines in brand value.
• The banking sector is the most valuable in Canada, with a combined brand value of $84.5 billion.

Insurance

• Manulife and Sun Life are among the top performers in this sector.
• Canada Life saw a 687.6% increase in brand value, largely due to a rebranding strategy.

Retail

• Canadian Tire increased its brand value by 20%, with a value of $3,463 million.
• Waste Connections is the second fastest growing brand in Ontario, with a 33% increase in brand value.

Telecoms

• Bell, Telus, and Rogers are among the top telecoms brands.
• Rogers experienced the largest drop in brand value at -15.4%.

Oil & Gas

• Crown Royal is the strongest spirits brand in the world.
• The oil and gas sector is expected to lose 10% in brand value due to the pandemic.

Regional Analysis

British Columbia

• A&W is the fastest growing BC brand, with a 28.1% increase in brand value.
• Lululemon is a rising star in the athletic apparel market, showing strong growth.

Ontario

• Ontario has 35 brands in the top 100, down from 39 in 2019.
• Waste Connections is the fastest growing Ontario brand, up 33% in brand value.
• Canadian Tire is a key player in the retail sector, showing significant growth.

Brand Finance Methodology

• Royalty Relief Approach is used to calculate brand value, compliant with ISO 10668.
• The Brand Strength Index (BSI) is used to assess brand strength, ranging from 0 to 100.
• Brand value is calculated as the net economic benefit from licensing the brand in the open market.
• Brand Contribution is the uplift in shareholder value due to owning the brand.

Conclusion

The Canada 100 2020 report underscores the importance of brand value in the business world and highlights the impact of the pandemic on Canadian brands. It also emphasizes the role of Brand Finance in connecting brand value to financial performance and providing a mutually intelligible language for marketing and finance teams.