How the table was compiled

The table identifies the top 75 global brands with a value greater than $1 billion. The companies were selected according to three criteria. First, the brand must be global, generating significant earnings in the main global markets. Second, the table takes leading brands in the 25 mainstream sectors (e.g. automobiles, technology, leisure and apparel). Third, there must be sufficient marketing and financial data publicly available for preparing a reasonable valuation (since no internal company data could be used).

Certain high profile brands were excluded because of lack of appropriate public information. These include privately owned companies and non-profit brands which do not generate economic profits in the traditional sense (Visa,BBC, Red Cross).

Interbrand calculated the brand value in each case using the method it pioneered 13 years ago and has used to value over 2,500 brands worldwide. Interbrand’s proprietary method has been recognized by auditors, tax authorities and stock exchanges in many countries around the world. Interbrand starts with the economic profit generated by the brand to the underlying business, a similar concept to economic value added (EVA). The valuation process examines three areas: the future economic earnings the branded business is expected to generate, the role of the brand in generating those earnings, and the risk profile of the brand’s expected earnings.

Portfolio brands

The table includes separate valuations of leading brand portfolios that recognize that some companies create significant brand value, not from the management of a single brand, but the management of a portfolio of brands.

Prominent examples are Procter & Gamble, Unilever and Nestlé. The values of these brand portfolios were excluded from the league table in order to maintain the focus on single brands. However, some portfolio brands which met the selection criteria were included (e.g. Nescafé, Kleenex, Colgate, Pampers).

The brand value of these portfolios is significant. Having a portfolio of brands diversifies risk, since under-performance of one brand can be compensated by the performance of other brands. As such, the shareholder/stock market value is less dependent on a single brand.

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