Six UK companies make it into this year's Interbrand Top 100 brands of the world.
Marketing specialist Interbrand has announced the list of the best global brands of 2006. There were no real surprises at the top with Coca-Cola
(NYSE: KO)
, Microsoft
(NYSE: MSFT)
and IBM
(NYSE: IBM)
hogging the top three places once again. Collectively, the collective value of their brands comes to a staggering £94b, which is more than the GDP of Argentina!
By and large American businesses dominate the top twenty spots, though their supremacy is broken up by the odd Asian and European company. The top non-US brand is Finland's Nokia
(LSE: NOK)
, with Toyota
(NYSE: TM)
flying the flag for Japan. The top German marque is Mercedes-Benz, which is owned by DaimlerChrysler, and Korea hangs onto twentieth place with Samsung.
However, you need to delve into the mid twenties to find the first British company in the list. HSBC
(LSE: HSBA)
, with its natty slogan "The world's local bank", is the best British brand. Its red "bowtie" logo is valued at £6b, but it has considerable ground to make up to catch Citigroup
(NYSE: C)
, whose Travelers' "umbrella" logo is estimated to be worth £11b.
Interbrand said it takes lots of factors into consideration when ranking the world's most valuable brands. For starters, a brand must derive a third of its earnings outside its home country. Additionally, parent companies that own a host of brands aren't considered. That is why Procter & Gamble
(NYSE: PG)
and Unilever
(LSE: ULVR)
, with their stable of well-known labels are not included.
But BP
(LSE: BP.)
and Royal Dutch Shell
(LSE: RDSB)
do make the grade. It seems that not even an oil explosion at BP's Texan oil refinery nor Shell's oil reserves debacle has dented Britain's two oil majors' standings. Their brand values have improved 5% and 4% respectively thanks to surging oil prices. Reuters
(LSE: RTR)
makes the list too, as it increases investments into new markets.
Interestingly, Smirnoff, which is owned by Diageo
(LSE: DGE)
is ranked as the world's 93rd biggest brand. But Interbrand cautions that in an increasingly crowded vodka market, Smirnoff may need to better define a sophisticated identity to stay ahead of the pack.
Perhaps this year's biggest surprise was the shock inclusion of Burberry
(LSE: BRBY)
. Known the world over for its edgy Nova check, and in Britain as the chav's favourite, Burberry can thank Kate Moss for propelling its brand into the top flight. It is now ranked 98th in the world's top one hundred brands. And according to Interbrand, Burberry is valued on a par with Armani, and a smidgen behind Bulgari and Prada.
While lists such as the one compiled by Interbrand make interesting reading, investors should look beyond league tables before parting with their money. Remember when you invest in a brand you have to buy all the operating assets and baggage that go with it, too. Consequently, you may better off with Small Companies With Big Brands.
