Skol now Latin America’s most valuable brand

Brazil’s Skol has overtaken Mexico’s Corona to become Latin America’s most valuable brand for the first time, according to the latest research by brand research agency Millward Brown.

Skol is now the most valuable brand in Latin America

According to the fourth annual Brandz Top 50 Most Valuable Latin American Brands, published by WPP and Millward Brown, the AB InBev-owned beer brand increased in value by 20% in 2015 to $8.5 billion, knocking Corona off the top spot which moves to second position with growth of 6% to $8.47bn. Brahma, Agila and Modelo also featured in the top 10, each achieving 17%, 3% and 4% value growth respectively.

For the third year in a row, the beer sector dominated taking five of the top 10 positions, with four of those belonging to AB InBev. Furthermore, the fastest-growing brand in the Top 50 was Antarctica, a Brazilian beer brand that has expanded across the region growing its value in the past year by 62% to $1.9bn.

Millward Brown’s report determines brand value by combining financial data from Bloomberg and Kantar Worldpanel with consumer opinions gathered from 1,000 interviews with over 54,000 Latin American consumers in 34 categories.

Brazil’s Antarctica is Latin America’s fastest-growing beer brand, according to the Brandz top 50

“What we are seeing in this year’s Brandz listing is the power of a strong brand proposition that delivers meaningful difference to consumers”, said Gonzalo Fuentes, CEO LatAm for Millward Brown. “Given the economic circumstances in many markets that means creating strong emotional connections that resonate with the growing middle class as well as low income families. Such an approach is essential if companies want to grow great brands.”

Skol was created in 1960 when a number of breweries were licensed to brew Skol International to a standard formula. Today the brand is marketed and brewed by three different companies; AB InBev in South America, by Unibra in Africa and by Carlsberg in all other countries. Despite Carlsberg holding the rights to the brand in the largest number of territories, Brazil overwhelmingly leads global sales of Skol where AB InBev controls its distribution. The brand was originally produced by Caracu in Brazil, which was later bought by Brahma in 1980, which later went on to become part of AB InBev.

Last week SABMiller confirmed that it had been approached by AB In Bev about a possible takeover. If Ab InBev were to takeover SABMiller, market analysts estimate it could create a company worth US$250 billion (£162.2bn), making it the largest drinks company in the world, ahead of Diageo.

SABMiller said it would confirm by mid-October if it would be moving forward with a deal.