· Marlboro top of league, brand value up 10% to US$33.6 billion
· Indonesia’s Sampoerna moves up a notch, brand value US$3.2 billion
· Grizzly new entrant from British American Tobacco slides in at US$2.7 billion
· L&M is world’s strongest tobacco brand, registers Brand Strength Index (BSI) score 77.40 out of 100 and AAA brand rating
Marlboro is the world’s most valuable tobacco brand, with a brand value of US$33.6 billion, according to the latest report by Brand Finance, the world’s leading independent brand valuation consultancy.
As cigarette use declines in developed markets, tobacco brands are racing to develop next-generation products to fuel growth. Marlboro has seen success with its iQOS tobacco heating system which uses sophisticated electronics to heat specially designed heated tobacco units up to 350°C, without combustion, fire, ash, or smoke. This generates a flavourful nicotine-containing vapor, releasing the taste of heated tobacco. Marlboro, owned by Phillip Morris International, has an impressive brand presence through its sporting sponsorships, such as its longstanding commitment to Formula 1 and Ferrari.
David Haigh, CEO of Brand Finance, commented:
“As smoking habits continue to evolve and we see more smokers opting for vapes or e-cigarettes, the tobacco brands have not seen drastic improvements in their brand values since last year. There is now such a huge variety of alternative products that mean less smokers are purchasing packs of cigarettes and instead buying e-cigarettes which are widely available in local supermarkets, online, and in specialist vape shops.”
PMI’s Indonesian perfection
Flying the flag for Indonesia, Philip Morris International-owned Sampoerna moves up a notch, its brand value at US$3.2 billion. Popular in its domestic market, Liem Seeng Tee was the founder of PT HM Sampoerna Tbk, one of the largest tobacco companies in Indonesia. In the 1930s, Liem Seeng Tee adopted the Indonesian name Sampoerna meaning "perfection" as his family name, thus becoming the company's namesake.
Grizzly new entrant from BAT slides in at US$2.7 billion
The sole new entry to this year’s Brand Finance Tobacco 10 2019 league table is a British American Tobacco brand called Grizzly (brand value US$2.7 billion), making it the world’s 9th most valuable tobacco brand. Grizzly is an American brand of dipping tobacco or moist snuff that was introduced in 2001 and is currently only sold in the US market. It is made by the American Snuff Company and is available in pouches, with a variety of Fine Cut, Long Cut, Wide Cut, and Extra Long Cut.
L&M sparks up as world’s strongest
Aside from calculating overall 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. Along with the level of revenues, brand strength is a crucial driver of brand value.
The strongest brand in the sector belongs to US brand L&M with a Brand Strength Index (BSI) score of 77.40 out of 100 and a corresponding AAA brand rating. In the brand strength stakes, L&M is followed by Marlboro (77.40 out of 100) and Chesterfield (74.66 out of 100).
Note to Editors
Every year, Brand Finance values 5,000 of the world’s biggest brands. The 10 most valuable tobacco brands are included in the Brand Finance Tobacco 10 2019 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.
Additional insights, charts, and more information about the methodology, as well as definitions of key terms are available in the Brand Finance Tobacco 10 2019 report.
Data compiled for the Brand Finance rankings and reports are provided for the benefit of the media and are not to be used for any commercial or technical purpose without written permission from Brand Finance.