• by Sarah Mahoney  @mahoney_sarah, June 14, 2023

McDonald's is the ranking's top non-tech brand

The latest Kantar BrandZ Most Valuable Global Brands Report is out, and in news that will shock no one, Apple retains its No. 1 status, and Google comes in second. More surprising is Microsoft scooting past Amazon. And overall, the value of these brands sank 20% to $6.9 trillion for 2023. And while the companies are still worth a hefty 47% more than their pre-COVID valuation in 2019, the decline is a sign that brands have plenty to worry about in the current economy.

Apple is valued this year at $880 billion, compared to $947 billion in last year's report. Google's value fell to $577.7 billion from $819.6 billion. And Microsoft dipped to $501.9 billion, compared to $611.5 billion in 2022. Next comes Amazon, valued at $468.7 billion. McDonald's ranks No. 5, the largest non-tech brand, valued at $191.1 billion. Visa, Tencent, Louis Vuitton, MasterCard and Coca-Cola round out the top 10.

Overall, luxury, fast food and food and beverage companies proved the most resilient.

Given the rocky global economy of the last 12 to 18 months, "that 20% decline isn't much of a surprise," says Martin Guerrieria, head of Kantar BrandZ. He tells Marketing Daily the valuations are based on both the market perspective, with stocks down sharply in the last year, and the consumer perspective, drawing from a database of four million consumer interviews.

"The global economy has slowed for various reasons, including war in Ukraine and inflation. What has surprised me this year is that brand equity for most of our global top 100 has been really stable," he adds.

Marketing investments have led to strong relationships with consumers. Companies are using "the power of brand to help them be resilient in this volatile external environment," says Guerrieria.

Coke making its way back into the top 10 after a seven-year absence is a good example. "Its CEO has been quite vocal about the company’s commitment to marketing investment as a lever they are actively pulling at this difficult time."

The soft drink giant is helping consumers who feel pinched by reducing pack sizes, while using premium strategies in other areas, he adds.

"With the right brand-building efforts, brands can still find growth in any region and category," Guerrieria says.

Pepsi (No. 91) is also noteworthy, one of this year's two fastest-growing brands, up 17%. The other is Airtel (No. 76), the Indian telecom company, up 24%.

The consulting company's analysis reveals these most-valued brands do better than others in terms of stock-market performance, posting 93% growth for the BrandZ portfolio versus 69% for the S&P 500.