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Top Swiss Brands Could Lose Over CHF 15 Billion from COVID-19

06 August 2020
  • Top 50 most valuable Swiss brands from Brand Finance Switzerland 50 2020 ranking stand to lose over CHF 15 billion of cumulative brand value following devastating COVID-19 pandemic
  • Nestlé retains title of nation’s most valuable brand, valued at CHF 20.2 billion
  • Sika is Switzerland’s fastest growing brand, up 64% and climbing 10 spots in ranking
  • Rolex is nation’s strongest brand, Brand Strength Index (BSI) score 89.8 out of 100

View the full Brand Finance Switzerland 50 2020 report here

Top Swiss brands could lose over CHF 15 billion from COVID-19

As the COVID-19 pandemic wreaks havoc on the global and national economy, Switzerland’s top 50 most valuable brands could lose up to 11% of brand value cumulatively, a drop of over CHF 15 billion compared to the original valuation date of 1st January 2020, according to the latest Brand Finance Switzerland 50 2020 report.

Looking beyond Switzerland, the value of the 500 most valuable brands in the world, ranked in the Brand Finance Global 500 2020 league table, could fall by an estimated CHF 1 trillion as a result of the Coronavirus outbreak.

Brand Finance has assessed the impact of COVID-19 based on the effect of the outbreak on enterprise value, compared to what it was on 1st January 2020. Based on this impact on enterprise value, Brand Finance estimated the likely impact on brand value for each sector. The industries have been classified into three categories – limited impact (minimal brand value loss or potential brand value growth), moderate impact (up to 10% brand value loss), and heavy impact (up to 20% brand value loss) – based on the level of brand value loss observed for each sector in the first quarter of 2020.

Nestlé retains top spot

Nestlé has retained the title of Switzerland’s most valuable brand following a 6% brand value increase to CHF 20.2 billion. The global food giant is by far the most valuable brand in the nation, with second-placed UBS valued at CHF 9.1 billion.

For another year, Nestlé has celebrated strong organic growth, following a solid performance in its key US market. The brand prides itself on its market-leading, high-speed innovation and has recently successfully rolled out its premium Starbucks products. Furthermore, Nestlé has capitalised on the ever-growing vegan and vegetarian movement through the development of its plant-based offering.

Hungry for growth, Nestlé has got a pipeline of expansion projects in its sights, including its Purina Australia arm, further investment in Purina US, as well as in its Romont production centre in Switzerland.

Alex Haigh, Valuation Director, Brand Finance commented:

“Nestlé’s response and resilience to the COVID-19 outbreak has demonstrated why the brand is truly a leader both on home soil and globally. Posting solid growth in a time of turmoil is testament to the agility and strength of the brand. With Brand Finance calculating that the food industry is one of the few sectors that should see limited impact from the pandemic, Nestlé certainly seems to be in a strong position to weather the storm.”

Sika up 64%

Sika is the fastest growing brand in the Brand Finance Switzerland 50 2020 ranking, following an impressive 64% brand value increase to CHF 1.4 billion, simultaneously jumping 10 places from 39th to 29th.

Celebrating an impressive performance last year, Sika posted a new sales record, bolstered by the completion of the Parax acquisition - further solidifying its position as one of the world’s leading construction chemical brands. With further acquisitions completed over the previous few months, more in the pipeline, and plants being opened across several nations globally, Sika shows no signs of slowing down its expansion programme.

The brand has defied the predominantly gloomy outlook amid the coronavirus pandemic, recording a continued growth trajectory. The future is looking even more bright as lockdown measures are beginning to be lifted in Sika’s key markets, business activities have started to return to normal and thus the industry has begun to pick up again.

Timeless quality: Rolex is nation’s strongest

In addition to measuring overall brand value, Brand Finance also evaluates the relative strength of brands, based on factors such as marketing investment, customer familiarity, staff satisfaction, and corporate reputation. According to these criteria, Rolex (brand value CHF 7.8 billion) is the strongest brand in Switzerland with a Brand Strength Index (BSI) score of 89.8 out of 100 and a corresponding elite AAA+ brand strength rating.

Synonymous with true luxury and reliability, Rolex has performed strongly across key metrics in Brand Finance’s global brand monitor study, including familiarity and recommendation. The brand continues to place itself at the forefront of consumers’ minds through high profile sponsorships of sportspeople and global sporting events watched by millions, including Wimbledon and Formula 1.

Rolex was forced to shut its factories for 60 days amid the pandemic, which resulted in the loss of approximately 160,000 of its watches in the market this year.

View the full Brand Finance Switzerland 50 2020 report here

Note to Editors

Every year, Brand Finance values 5,000 of the world’s biggest brands. The 50 most valuable Swiss brands are included in the Brand Finance Switzerland 50 2020 report.

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 Switzerland 50 2020 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.

Media Contacts

Konrad Jagodzinski
Konrad Jagodzinski
Communications Director
Brand Finance
Florina Cormack-Loyd
Florina Cormack-Loyd
Senior Communications Manager
Brand Finance

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