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Canadian Brands Bounce Back as Brands Adapt and Grow Under Pandemic Conditions

29 March 2022
  • RBC regains title as Canada’s most valuable brand
  • Scotiabank takes the crown as Canada’s strongest brand
  • Oil & Gas sector bouncing back, sector grows in value by 69%
  • Canadian Tech brands innovate through the pandemic. Shopify up 257% since 2020.
  • Canadian retail successful at home and abroad.
  • TELUS now the most valuable telecoms brand in Canada, Bell knocked off top spot for the first time in ranking history.
  • Canada Life the first insurance brand to enter Top 5.

View the full Brand Finance Canada 100 2022 report here

The aggregate value of the top 100 Canadian brands has grown by 22% this year, according to a new report by leading global brand consultancy, Brand Finance, as Canadian brands have adapted to pandemic conditions and now look towards a post-COVID-19 future. This is a significant improvement from last year’s first-ever-recorded contraction of the value of the top 100 Canadian brands.

Every year, Brand Finance puts 5,000 of the biggest brands to the test, and publishes nearly 100 reports, ranking brands across all sectors and countries. Canada’s top 100 most valuable and strongest brands are included in a dedicated national ranking – the Brand Finance Canada 100 2022.

RBC (brand value up 13% to CA$23.5 billion) has regained top spot as the most valuable brand in Canada after two years of coming second to TD (brand value up 3% to CA$21.7 billion). RBC has leapt ahead of TD this year with significant growth in brand value, while TD’s brand value increased only marginally. RBC has benefited from its operations in the USA, where RBC runs a large asset and wealth management business, while TD has needed to support a large legacy retail banking presence. Retail banking operations in Canada (and across the developed world) are coming under increasing pressure from challenger brands who are able to quickly deploy attractive new banking products without being limited by legacy systems and processes.

Charles Scarlett-Smith, Director of Brand Finance Canada, commented:

“Canadian brands have been disrupted by COVID-19, and as we look towards a post-COVID-19 world, adaptable brands will be successful brands. Tech sector brands are still missing at the top of the table, but we will likely see home-grown Canadian tech brands like Shopify and Constellation Software vying for the top 10 in the future.”

Scotiabank takes the crown as Canada’s strongest brand

In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Certified by ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 100,000 respondents in more than 35 countries and across nearly 30 sectors. According to these criteria, Scotiabank is the strongest Canadian brand, with a Brand Strength Index (BSI) score of 85.8 out of 100 and a corresponding AAA rating.

The strength of the Scotiabank brand has increased by an impressive 6.9 points since the start of the pandemic, the most of any banking brand in Canada. Scotiabank’s brand strength growth is largely due to improved perceptions from key stakeholders.

Oil & Gas sector bouncing back, sector grows in value by 69%

The Oil & Gas brands in the Canada 100 ranking have achieved a 69% increase in brand value over the past year. The top six fastest growing brands in the country all belong to the energy sector with Enerplus leading the table with very fast growth causing the value of the Enerplus brand to more than double to $508 million.

With global consumers seeking to reduce reliance on Russian hydrocarbons, Canadian brands have an opportunity to leverage their key strengths to serve customers better. While environmental concerns and regulation may limit long-term value, many engines across the domestic, commercial, industrial and public sectors will continue to require refined oil and gas. This remains a significant opportunity for Canadian oil and gas brands.

Canadian Tech brands innovate through the pandemic

Homegrown Canadian tech brands continue to increase in value this year. This year, the tech brands included in the Canada 100 report saw a doubling of aggregate brand value to $12.8 billion. As other sectors of the Canadian economy began recovering from the pandemic, tech continued its meteoric rise in Canada as it becomes an increasingly important player with impressive brand values.

Shopify continues to grow strongly, with its brand value increasing by 68% in value to $1.3 billion over the past year, representing a 257% increase in brand value over the course of the pandemic from $389 million. The Shopify brand is now worth more than three-and-a-half-times what it was prior to the pandemic, and the Canadian e-commerce company continues to post impressive financial results while maintaining their entrepreneurial spirit with collaborations and partnerships with other new and exciting brands.

Constellation Software (brand value up 39% to $4.9 billion) has achieved significant brand value growth through a deliberate strategy of merger and acquisitions. As a result, Constellation Software is now the 19th most valuable brand in Canada, up five places from last year’s ranking.

David Haigh, Chairman & CEO of Brand Finance, commented:

“Canadian tech brands continue to innovate with high quality online products and services in the face of uncertain business circumstances with new virtual models of working through the pandemic. Brands in the information technology consulting and software sector such as CGI Inc. and Constellation Software have achieved considerable growth in value.”

Canadian retail successful at home and abroad

Three years ago, Alimentation Couche-Tard began the project of rebranding their large global portfolio of brands under the Circle K global master brand. The master brand strategy was a bold, expensive, and highly effective decision. Since 2020, the Circle K brand has grown in value by $4 billion (amongst the biggest growth of any Canadian brands) and achieved a rise to become the 6th most valuable Canadian brand.

Elsewhere, Safeway has rallied an astonishing comeback, (69% brand value growth to $628 million), from almost falling completely out of the ranking in 2020. Lululemon’s athleisure offerings were a perfect fit for the pandemic lifestyle (20.5% brand value growth to $5.2 billion). Canadian Tire were impacted more by the initial lockdowns (down 20% as of March 2021) and bounced back this year with 28.4% brand value growth.

TELUS now the most valuable telecoms brand in Canada, Bell knocked off top spot for the first time in ranking history.

TELUS (brand value up 23% to $10.1 billion) is now the most valuable Canadian brand in telecoms, as a result of the brand’s focus on high-growth technology-oriented verticals. This has allowed the brand to position itself as an innovator in a market dominated by a small number of consolidated legacy players. As a result, TELUS has, for the first time, overtaken Bell (brand value up 3% to $9.9 billion) as the most valuable telecoms brand.

Canada Life the first insurance brand to enter Top 5

Established brands such as Canada Life (brand value up 42% to $13.4 billion) typically see slow and gradual changes in financial metrics and therefore brand value, but this year, Canada Life’s brand value grew extremely quickly. Canada Life is growing its business through a number of acquisitions around the world as well as strategic initiatives at home. Canada Life now sits in fourth place of this year’s table, the only non-banking brand in the top five.

View the full Brand Finance Canada 100 2022 report here

Note to Editors

Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes nearly 100 reports, ranking brands across all sectors and countries. Canada’s 100 most valuable and strongest brands are included in the Brand Finance Canada 100 ranking.

Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors.

The full ranking, additional insights, charts, more information about the methodology, and definitions of key terms are available in the Brand Finance Canada 100 report.

Media Contacts

Charles Scarlett-Smith
Director, Brand Finance Canada
T: +1 (647) 370-3167
c.scarlett-smith@brandfinance.com

Michael Josem
Associate Communications Director
T: +44 (0)7624 488 557
m.josem@brandfinance.com

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About Brand Finance          

Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance for more than 25 years, Brand Finance evaluates the strength of brands and quantifies their financial value to help organizations of all kinds make strategic decisions.

Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes nearly 100 reports which rank brands across all sectors and countries.

Brand Finance is a regulated accountancy firm, leading the standardization of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671, and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.

Disclaimer

Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organization.

The data presented in this study form part of Brand Finance's proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.

Media Contacts

Konrad Jagodzinski
Communications Director
Brand Finance
Michael Josem
Associate Communications Director
Brand Finance
T:
Shreya Hiwale
Communications Executive
Brand Finance
T:

About Brand Finance

Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance, Brand Finance evaluates the strength of brands and quantifies their financial value to help organisations of all kinds make strategic decisions.

Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes nearly 100 reports which rank brands across all sectors and countries.

Brand Finance is a regulated accountancy firm, leading the standardisation of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671, and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.

Methodology

Definition of Brand

Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.

Brand Strength

Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.

Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.

Brand Valuation Approach

Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.

The steps in this process are as follows:

1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.

2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.

3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.

4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.

5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.

6 Apply the royalty rate to the forecast revenues to derive brand revenues.

7 Discount post-tax brand revenues to a net present value which equals the brand value.

Disclaimer

Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.

The data presented in this study form part of Brand Finance's proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.

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