Nestle SA continues to maintain its position as the most valuable food brand globally, reaffirming its dominance in Brand Finance’s latest report titled “Food & Drink 2023.”

By assessing metrics such as brand resilience, revenue, and royalty rates to calculate brand worth, Brand Finance’s yearly publication has persistently granted the top rank to the Switzerland-headquartered corporation in Vevey. This trend has been unbroken since the report’s inaugural edition in 2015.

“As an iconic global brand, Nestle continues to raise the bar, setting new benchmarks for the industry and inspiring trust among consumers worldwide,” said Savio D’Souza, valuation director for Brand Finance. “With a rich heritage and a portfolio of trusted brands, Nestle has built a legacy of success and an unmatched global reputation.”

Over the past year, Nestle witnessed an 8% rise in its brand value, climbing from $20.8 billion to $22.4 billion. Brand Finance credited a portion of this increase to robust sales expansion across Nestle’s assortment of brands and notable advancements in plant-based products, exemplified by creations like Toll House’s whole grain cookie dough and novel non-dairy milk offerings. In a move to explore dairy alternatives, the company delved deeper in September by creating and testing an innovative product formulated using animal-free dairy protein from Perfect Day.

The report also highlighted Nestle’s coffee enterprise, which experienced substantial single-digit growth in organic sales in the initial half of fiscal year 2023. Nestle amplified this segment and furthered its worldwide coffee partnership with Starbucks, a progression that followed the incorporation of Seattle’s Best Coffee in October. Additionally, Brand Finance pointed out that Nestle’s Nespresso holds the title of the swiftest expanding non-alcoholic beverage brand on a global scale, exhibiting a remarkable 208% surge in value, currently resting at $2.9 billion.

“Nestle’s ability to meet evolving consumer preferences, stay ahead of trends, and effectively launch new products has been a driving force behind its continued brand value growth,” Brand Finance said.

Part of the company’s accomplishment in discerning consumer preferences stems from its Project Tasty initiative, which focuses on rationalizing stock-keeping units (SKUs). Initiated by Nestle in 2021, this endeavor aimed to streamline its product offerings, alleviate complexities, and enhance the availability of its top-performing SKUs, particularly given the challenges posed by supply chain disruptions during the pandemic. By implementing this program, Nestle effectively identified and phased out underperforming items within its extensive assortment of 100,000 SKUs. Remarkably, approximately 33% of these SKUs were contributing a mere 1% to the overall sales figures. Subsequently, the initiative’s scope expanded, transitioning from assessing individual product lines to encompassing entire brands and categories. Ulf Mark Schneider, the CEO of Nestle, anticipates that this broader approach under Project Tasty will yield positive outcomes for fiscal year 2023.

“We are seeing the first expected benefits come in as planned, in particular higher service levels for the company overall and for our high rotation items, in particular,” Mr. Schneider said in a conference call on April 25.

Following Nestle, Yili secured the second position in Brand Finance’s ranking of the most valuable food brands. The Chinese dairy manufacturer has consistently maintained this spot since surpassing Danone in 2020.

Yili achieved substantial value growth, experiencing a 17% increase to reach $12.4 billion, driven by robust domestic sales and enhanced international revenue. The inauguration of its Global Smart Manufacturing Industrial Park in Hohhot, China, also contributed to the brand’s value. Notably, this facility integrates cutting-edge, large-scale technology, making it one of the world’s most advanced, as indicated in the report.

“Yili has fostered strong customer loyalty in its local market by consistently delivering products of exceptional quality and perceived health benefits,” Brand Finance said. “Yili’s focus on quality, innovation, and environmental responsibility has contributed to its world-leading reputation in the dairy industry.”

Among food brands, the snack category demonstrated remarkable expansion, witnessing an average value surge of 40% among its top five brands. Notably, four brands under Frito-Lay, a division of PepsiCo, Inc. based in Purchase, NY, attained prominent positions within the snacking domain. These include Lays (also holding the No. 3 position in the list of most valuable food brands), Doritos, Cheetos, and Tostitos. Additionally, the report’s compilation of the top five most valuable snack brands included Want Want, a Chinese rice cracker brand.

In the realm of non-alcoholic beverage brands, Atlanta-based Coca-Cola Co. retains its top position yet again. Despite a 5% decrease in value to $33.5 billion in 2023, the brand successfully maintained its lead over PepsiCo, which experienced an 11% decline, securing the second rank.

“With a rich history, iconic brand story, and a steadfast dedication to customer experience and satisfaction, Coca-Cola has remained a global leader,” Mr. D’Souza said. “The brand continues to boost its international reputation and capture the loyalty of generations across the globe through ingenious and powerful marketing campaigns, product evolutions and innovative digital strategies.”