Corona is the most valuable brand in Latin America

04 May 2018 Consultancy.lat

According to a new ranking done by BrandZ using data from consulting firm Kantar Consulting, Corona is Latin America’s most valuable brand in 2018. The ranking takes into account how much a brand is worth in monetary value and identifies it’s growth percentage. Corona has grown over 8% in the past year to have a total brand value of over $8 billion.

The Mexican beer knocked it’s Brazilian beer counterpart Skol out of the top spot. Corona grew 8% in terms of brand value over the past year to nearly $8.3 million whilst Skol only managed 1% growth over the same period. Skol has been on top of the rankings for the past two years and is worth just over $8,2 million. 

Kantar Consulting holds the BrandZ brand valuation annually and the ranking has become a market benchmark for the most valuable brands in the world. Kantar Consulting is a subsidiary of WPP and is a strategy and marketing consultancy that harnesses the power of people, technology, data and digital advancement to create meaning and purpose for over half of the fortune 500 companies across 100 countries.

Corona a Happy Brand

Corona took the top spot this year, demonstrating it’s ability to engage with consumers all around the continent. Through innovation and creativity, Corona has managed to create a “lovemark” brand association which has given it high brand popularity. This year was a campaign about ‘desfronterízate’ (remove your orders) wherein “Corona encouraged a whole generation to rise up, chase their passion, and seize their moment.”

The brand has also become the sponsor of highly influential music events, football clubs, sports and entertainment events which shows investment in customer engagement and drives loyalty. By combining a strong Mexican heritage with campaigns like “From Where You’d Rather Be”, Corona has created a brand association that is all about relaxation, fun and music.

Corona is not the only Mexican brand featured in the top 10. Communication Providers Telcel and retailer Bodega Aurrera also featured on BrandZ’s ranking with a total combined net worth of almost $10 billion. 2018 is the fifth year in a row wherein Mexico dominated the charts, responsible for a total of 35% total brand value across the entire Latin market. 

Brand Value by Country

Brazil was not far behind, however, with 34% of market share in terms of brand value with it’s retailers and financial institutions performing strongly. Bradesco, one of Brazil’s largest banking and financial services companies grew 58% to take the third spot overall with a total brand value of just over $7 billion. Next on the list was Itaú, another Brazilian financial institution with over 5,000 branches in Latin America.

Latin America performing strong in 2018

Overall, Latin America recovered from a disaster year in the 2017 ranking when the region’s brands slumped 22% in total value. Throughout the past year, the region as a whole has seen strong growth with a 1.3% rise in GDP over the past year. The 2018 ratings tell a similar story with total brand value across Latin America growing to $130.8 billion, up 18% from last year. This growth was attributed to leading brands across the region staying relevant and adapting to the changing landscape across the continent. 

Kantar's Eduardo Tomiya stated that; "Latin American brands have an in-depth understanding of their local consumers”. As consumers in Latin America choose their products based more on a strong emotional connection to a brand rather than the more conventional criteria, brands need to construct a sense of customer pride in their brand. 

This will affect “the speed at which they can tap into local consumers' needs with good products and strong marketing campaigns has made many of them more successful and relevant in the region than their global counterparts. As a result, Latin Americans have great respect and pride in these brands," continued Tomiya. 

Brand value distribution by industry sector

Beer, food and personal care products were the most significant categories in Brazil, Mexico, Colombia and Peru. In Chile (which took 16% of total brand value), retail has emerged as the major industry in the country this year. Meanwhile, with Brazil returning from a two year economic recession, the value of brands increased by 23% over the year to 2018 and is worth a total of $65.1 billion.

"The power of strong brands to drive improved business performance can be clearly seen in this year's Latin America Ranking. While the economy may fluctuate, those brands that are strong will remain more stable in the tough times and grow faster in the good times,” said WPP's David Roth.

Top consulting firms in Brazil for restructuring and turnaround

23 January 2019 Consultancy.lat

A new analysis of surveys among clients on track record / engagement satisfaction and management consultants on reputation has identified Brazil’s top consulting firms for restructuring and turnaround services. 

Companies in Brazil facing financial and operational difficulties, including rapidly deteriorating commercial performance, liquidity concerns, loss of key management / clients or refinancing risk, can according to data sourced by Consultancy.lat best place their faith in ten consulting firms specialized in restructuring, turnaround and crisis management. These ten consultancies are: Alvarez & Marsal, FTI Consulting, G5 Evercore, Moelis & Co, Rothschild, KPMG, Laplace Financas, Pantalica Partners and RK Partners.

When companies fall in financial distress, executives need to move swiftly to stabilize the business, while working towards a more long term strategy for sustainable strategic, operational and financial change. Working alongside debtors, lenders, shareholders and other stakeholders, consultants support with solving short-term liquidity requirements and action-planning to quickly preserve value and address potential risks to stability.

With stabilization in place, broader restructuring plans are designed and executed, including activities that enable cost optimization, operational restructuring, improved cash and working capital management and asset / debt restructuring. In the case of (potential) bankruptcy, restructuring consultants work with shareholders, debtors, creditors, regulators and other insolvency stakeholders on executing the administration or bankruptcy process – the procedures differ per country.

Top consulting firms in Brazil for restructuring and turnaround

In Brazil, the bankruptcy law covers three main proceedings. The first proceeding (‘bankruptcy’) is the actual process of liquidating a company’s assets in order to pay off debts. This involves selling all property and goods to meet the debt’s requirements. The ‘court-ordered restructuring’ proceeding has been put into place to help the company restructure its debts while carrying on its day-to-day operations (only applicable for companies that have been in business for at least two years). The third bankruptcy proceeding, ‘extra-judicial restructuring’, involves a private negotiation between the debtor and the creditor. Restructuring and insolvency consultants typically team up with lawyers to mediate between the two parties – if however no consensus is reached, the judge takes over the process.

Top restructuring consulting firms

Brazil’s list of top consulting for restructuring and turnaround services includes three advisory players that operate globally. Alvarez & Marsal (A&M) is one of the most well-known names in the restructuring landscape, which it for a large part owes much for its key role on the Chapter 11 bankruptcy case of the collapsed banking giant Lehman Brothers. Globally, Alvarez & Marsal has over 3,000 professionals in 50+ offices, including a Latin American presence in Brazil (Rio de Janeiro) and Mexico (Mexico City). Rival FTI Consulting is with a headcount 4,700 employees worldwide larger than A&M. Both consultancies provide a range of management and economic consulting, financial advisory (corporate finance and restructuring) and technology advisory services.

KPMG is one of the Big Four accounting and consulting firms. Its Restructuring & Turnaround practice has over 1,200 professionals worldwide. The Brazilian team operates mainly from the firm’s national hubs in São Paulo, Rio de Janeiro, Recife, Brasília and Belo Horizonte.

Four of the industry’s top players are local Brazilian consultancies. G5 | Evercore is one of Brazil's largest independent financial advisory services firm, operating bases in São Paulo, Rio de Janeiro and Recife. Formerly known as Arion Capital, São Paulo-based Laplace Finanças provides a wide range of financial advisory services to private sector and private equity clients, including restructuring and turnaround. Pantalica Partners, also located in São Paulo, has completed more than 70 restructuring engagements in Brazil with a restructured debt value of over $25 billion since inception in 2014. RK Partners specialises exclusively on turnaround and crisis management offerings, and in recent years played a role in the turnaround of among others Bom Bril, Rossi, Bertin Energia and Property Brasil.

Completing the list of Brazil’s best consulting firms for restructuring and turnaround services are the advisory arms of three international investment banks. New York headquartered Moelis & Company was founded in 2007 and today employs over 750 employees in the Americas, Europe, the Middle East, Asia and Australasia. The company serves the Latin America region through its locales in São Paulo and Mexico City. Lazard and Rothschild rank among the globe’s most prestigious investment banks – they both provides financial advisory and asset management services to corporations, governments and non-profit institutions. Lazard was founded in 1848 in the US, while Rothschild – which is owned by the Rothschild family, one of the wealthiest families in modern world history – was established in 1838 and is currently headquartered in Paris, France.

Related: Consulting market of South America grows 4% to $2.6 billion.