Why do certain wine brands achieve more traction than others in our 2020 Global Wine Brand Power Index?
With third edition of the Wine Intelligence Global Wine Brand Power Index, some experienced readers may be growing familiar with some of the recurring themes in terms of how brands achieve success using the component measures of the index.
To achieve ‘brand power’ at a national market level, the main engine appears to be widespread awareness. Perhaps not surprisingly, there is a fairly strong correlation between awareness levels and recalled purchase incidence & purchase consideration, so a strong score in one is likely to yield a strong score in the other. There is also a detectable link between awareness and connection, though the correlation here is weaker. Some high awareness brands may yield indifference amongst their aware base; more niche brands may outperform because their connection scores are very high, making up for lack of awareness.
To achieve success at the global level, the equation is less complex. As Woody Allen once said, ‘90% of success is showing up,’ and this aphorism appears to have substance within the Global Brand Power Index. The key driver of success is presence in most, if not all, markets within the scope of the Index. As the Index is weighted by size of wine drinking population, having a particularly strong score in large markets will make up for lower scores in smaller ones. On the other hand, consistently good (but not leading) performances in many markets can also produce a top 5 global result.
The 2020 Index builds on feedback from over 20,000 wine consumers in 21 markets – representing 380 million wine drinkers globally. It’s important to note that our Index does not take account of sales volumes or value, sales trends over time, and opinions of those in the supply chain and / or influencers / media. Experienced brand owners tell us they use the Global Wine Brand Power Index score in conjunction with such other measures of brand success such as sales and trade sentiment to form a more holistic view of their brand’s ‘power’.
There are some broader trends in our data that may give the industry some sleepless nights. One key trend is the continuing decrease in brand awareness levels among consumers in many markets, albeit at a smaller rate than the previous edition of the report. This appears to have had a knock on effect with purchase incidence: the very top brands in a market seem to be doing broadly OK, but the second tier brands are suffering reduced purchase rates.
To calculate the Global Wine Brand Power Index 2020, we incorporate consumer feedback from six key brand health measures and an index is calculated at a global level as well as at a country level across 21 key wine markets. This year we have swapped out some markets – Chile, Denmark and Switzerland — and included Colombia, Finland, Hong Kong and Mexico, because we had more up to date brand data available for the latter group. Markets are weighted in the index by the size of their wine drinking populations, so the number 1 brand in Finland (JP Chenet) will carry less weight in the global index compared with the number 1 in the USA (Barefoot).
In 2020, Yellow Tail and Casillero del Diablo once again top the Global Wine Brand Power Index. In general, Australian and Chilean brands perform very well in the index relative to the size of wine production in these countries. In addition, a third of the top 15 is comprised of US brands – notably Gallo and Barefoot, rounding out the top five places – which is a result of the large proportion of US wine drinking population in the global index weighting, as well as the loyalty of Americans to domestic wines.
Other notable movers on the Global Wine Brand Power Index include Barefoot, which has jumped 8 places to make it into the top 5, and Frontera, which has climbed seven places to make 8th in the index. Santa Carolina has also climbed seven places to tie for 12th with Beringer. Meanwhile, Mouton Cadet has fallen 5 places to 10th and Robert Mondavis has fallen 7 places to sit at 14th. Torres has also climbed two places to make it into the top 15 this year.
Brands outside of the top 15 most powerful wine brands by market are also seeing major movement due to varying combinations of individual variable index differences – these will be the brands to watch for in the Global Wine Brand Power 2021 report.