BrewDog shoots into big league
British brands defy Brexit fears with rise in value
BrewDog has made an astonishing leap into the big league
British brands are shrugging off Brexit worries and seeing a surge in their value.
Total brand value of the top 150 brands, as at 1 January 2018, increased by 3%, from $327 billion to $337 billion, despite uncertainty over the Brexit negotiations.
Anglo-Dutch oil company Shell retained its position as the most valuable brand, followed by fellow explorer BP (4th in 2017), according to the list compiled by Brand Finance.
Scottish brewer BrewDog, recently valued at more than £1bn, shot into the list from outside the top 150 to be ranked 109th most valuable UK brand.
Vodafone is third (2nd), while two banks – HSBC and Barclays – defied the subdued mood in the sector to appear 4th (3rd) and 6th (6th) on the list, with accountancy giant EY sandwiched between them in 5th (5th).
The highest placed Scottish brand is Johnnie Walker whisky in 28th place (21st), while energy company SSE is 32nd (36th). Scottish Widows is 50th (47th) and fellow Lloyds-owned institution Bank of Scotland is 84th (77th).
Diageo CEO Ivan Menezes with the Johnnie Walker striding man (pic: Terry Murden)
Royal Bank of Scotland fell from 38th to 101st, just ahead of Scottish Power in 102nd place (90th).
Aberdeen-based transport company FirstGroup, currently subject to takeover interest, has risen to 119th (137h).
William Grant & Sons scotch whisky company is 120th (142nd).
The researchers noted that by January this year all UK macro-economic indicators had significantly improved from January 2017:
· Consensus economic growth forecasts for 2018-2020 revised upwards to 1.8%.
· £:$ exchange rate recovered from its 18% fall, following the Brexit vote in June 2016.
· Inflation falling from 3% to 2.5%.
· Unemployment at an all-time low of 4.3%.
· Average wages rising, budget deficit decreasing, and interest rates rising.
Against this increasingly favourable macro-economic environment, many British brands are thriving.
David Haigh, CEO of Brand Finance, commented: “Project Fear predicted that Brexit would be the end of the world as we know it, with catastrophe for UK businesses and UK brands.
“It is becoming clear that the UK economy is far more resilient than predicted and that UK brands are responding well to the challenge posed by Brexit.”