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Top African Brands Lose US$5.5 Billion in Brand Value in 2021

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The total value of Africa’s top 150 most valuable brands has declined by US$5.5 billion (12%) from US$45.5 billion in 2020 to US$40.0 billion in 2021, according to the latest Brand Finance Africa 150 2021 report

The COVID-19 pandemic has played a key role in the downturn in the brand value of Africa’s top brands. Lockdown measures and travel bans were implemented throughout the year and across the continent, creating uncertainty and impacting brands’ ability to do business as usual.

Jeremy Sampson, Managing Director, Brand Finance Africa, commented:

“In a year that saw most African countries go into lockdown and significant unrest across the continent, a decline in total brand value for the top African brands is unsurprising. Following the pandemic, African brands will need to search for opportunities to make up lost ground. By embracing new technologies and collaboration, the continent can propel its recovery and bounce back from the extraordinary situation the world has found itself in.”

Babatunde Odumeru, Managing Director, Brand Finance Nigeria, commented:

“Just 17 Nigerian brands feature in the Brand Finance Africa 150 2021 ranking and contribute 6% of the total brand value. As is the case with many brands across the continent, Nigeria’s top brands are not yet truly Pan-African, so although their performance may be solid on home soil, they are failing to translate this internationally. We are witnessing some brands make strides towards expanding their footprints, should they do so successfully we could see a greater uplift in brand value, as well as more Nigerian brands featuring in the ranking.”

17 Nigerian brands feature in ranking

Behind South Africa, Nigeria is the second most represented nation in the Brand Finance Africa 150 2021 ranking with 17 brands featuring and accounting for 6% of the total brand value. 33 Export (down 8% to US$292 million) is Nigeria’s most valuable brand, sitting in 43rd in the overall ranking. This brand value decrease is in line with the trend seen for alcohol brands across the continent and the rest of the world with people going out and drinking less because of the pandemic.

South African brands dominate once again, with the entire top ten hailing from the nation. In total, 81 South African brands feature with a cumulative brand value of US$29.0 billion, equating to 73% of the total brand value in the ranking – a 15% decrease from last year.

MTN and Vodacom lead the way, with First National Bank (brand value US$1.3 billion), Old Mutual (brand value US$1.3 billion) and Standard Bank (US$1.3 billion) completing the top five. In total, there are only 19 of the continent’s 54 countries with brand representation in the ranking.

Morocco is the third most represented nation in the ranking, with 10 brands featuring, which account for 6% of the total brand value. Claiming 13th spot is Maroc Telecom – the highest ranked brand from outside South Africa – jumping five spots following a modest 1% rise in brand value to US$761 million. The telecoms brand was able to capitalize on the increased reliability on its services over the previous year and a half, with both work and social lives forced to turn online, managing to increase its customer base, seeing an uptick of 10% in broadband users.

Access Bank is nation’s fastest growing

Access Bank is Nigeria’s fastest growing brand, following an 8% increase in brand value to US$262 million – growth that has bucked the global trend for the banking sector this year.

Access Bank has celebrated strong revenue growth over the previous year and has made some strides towards its expansion plans, through completing acquisitions across Zambia and Kenya. The bank shows no signs of slowing down with plans underway to enter the South African market through its investment in Grobank – a key part of the bank’s wider mission to become ‘Africa’s Gateway to the World’.

MTN peaks again

South Africa’s MTN has retained the title of Africa’s most valuable brand, despite recording a 19% drop in brand value to US$2.7 billion. The telecoms giant dominates on home soil too, this year holding onto its decade-long reign as South Africa’s most valuable brand, according to the Brand Finance South Africa 50 2021 report.

It has been a turbulent year for MTN, however, with the brand facing several scandals from its money mobile services been hacked in Uganda, to being accused of price discrimination practices alongside telecoms rival and second-ranked Vodacom (brand value down 16% to US$1.7 billion). MTN has also begun to scale down its operations, announcing its exit from the Middle East, in order to focus and build further across Africa.

Despite this, according to the Brand Finance Global Brand Equity Monitor, MTN is ranked 3rd among consumers for “Popularity with friends and family”, 4th for “Cool” and 4th for “Accessible anywhere and anytime”.

With the recent appointment of Ralph Mupita to the helm as CEO, as well as the successful launch of its 5G network across major South African cities, MTN will hope to use these developments as a springboard to capture some of its lost brand value moving forward.

Capitec Bank crowned Africa’s strongest brand

In addition to measuring brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. According to these criteria, Capitec Bank has overtaken Vodacom to be crowned Africa’s strongest brand, with a Brand Strength Index (BSI) score of 89.2 out of 100 and a corresponding AAA brand strength rating.

According to the Brand Finance Global Brand Equity Monitor, Capitec is one of the five most reputable banking brands in the world. Reputation (and the main drivers of reputation) is highly correlated with brand consideration. Banks that outperform in reputation – by excelling in meeting customer needs – also outperform in brand consideration. Capitec scores extremely highly for both.

Surpassing the 15 million client mark in December 2020, Capitec has more customers than any other South African bank, all of whom benefit from its excellent customer service and personalised banking experience. The pandemic increased the number of online shoppers to more than ever before – the banking brand responded by launching a virtual banking card, making online transactions easier and safer for its customers.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Chivita Crowned “Outstanding Juice Brand of the Decade” at MarketingEdge Excellence Awards

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Chivita Active Zest- Investors King

Chivita, Nigeria’s beloved fruit juice brand, emerged victorious as it clinched the highly sought-after title of “Outstanding Juice Brand of the Decade” at the esteemed MarketingEdge Brand and Advertising Excellence Awards.

The prestigious award ceremony, held recently, celebrated Chivita’s remarkable journey to becoming a beacon of excellence in the Nigerian fruit juice market over the past ten years.

The recognition underscores Chivita’s unwavering commitment to superior quality, innovation, strategic engagement, and unswerving dedication to consumer satisfaction.

The organizers of the MarketingEdge Brand and Advertising Excellence Award heaped praise on Chivita for its unparalleled contribution to the juice industry. In their words, this award is a testament to Chivita’s transformation into the gold standard for premium quality fruit juices in Nigeria.

“We also know that Chivita has been at the forefront of enlightening the public and promoting the benefit of daily fruit juice consumption for everyday wellness for over forty years, ensuring that everyone has a Chivita. This has not gone unnoticed,” they noted.

Mrs. Toyin Nnodi, the Marketing Director of CHI Limited, the parent company of Chivita, expressed her gratitude to the award organizers and the brand’s loyal consumers. She highlighted the relentless pursuit of innovation and the commitment to producing high-quality products as the driving force behind Chivita’s success.

“At CHI Limited, we have dedicated years of innovation and commitment to high-quality products with the ultimate goal of consumer preference and satisfaction. The ‘Outstanding Fruit Juice Brand of the Decade’ award to Chivita is proof that our efforts are appreciated by consumers,” she stated.

Chivita’s product lineup includes a wide range of fruit juices, juice nectars, and fruit-flavored drinks, such as Chivita 100%, Chi Exotic, Chivita Active, Chivita Ice Tea, Chivita Happy Hour, and Chivita Smart Malt. These offerings come in a variety of variants and different pack sizes and packaging formats, catering to the diverse desires of consumers for healthy and great-tasting juices.

As Chivita basks in the glory of this remarkable achievement, it continues to stand as a testament to the power of unwavering dedication to quality, innovation, and consumer satisfaction. The brand’s journey to becoming Nigeria’s outstanding juice brand of the decade is indeed a story of resilience, excellence, and an unyielding commitment to providing refreshing moments to every Nigerian, one Chivita at a time.

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Dangote Group Reigns Supreme as Nigeria’s Most Valuable Brand

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The Dangote Group has proudly asserted its position as Nigeria’s most valuable brand, achieving a remarkable aggregate score of 86.2 percent on the Brand Strength Measurement (BSM) Index, a meticulous evaluation conducted by Top 50 Brands Nigeria as part of its comprehensive 2023 Top Brand Perception Assessment.

During a much-anticipated media briefing held in Lagos on Wednesday to unveil the 2023 Top 50 Brands Nigeria list, the organization lauded Dangote for its unwavering commitment to excellence, which has solidified its stature as a premier brand within the nation.

The conglomerate revealed that MTN, a formidable contender in the market, secured a closely contested second place, boasting an impressive 85 BSM index score.

This year’s rankings saw Airtel Nigeria and Globacom securing the third and fourth positions, both earning significant BSM index scores of 77.9 and 77, respectively.

BUA Group made its inaugural appearance in the Top 10, capturing the attention of industry observers with a noteworthy BSM Index score of 70.8.

The illustrious list of the Top 10 brands further includes Access Bank, Zenith Bank, Coca-Cola, GTCO, and First Bank, each of which has maintained its exceptional reputation and resonance within the Nigerian market.

Commenting on the outcomes of this year’s assessment, Taiwo Oluboyede, CEO of Top 50 Brands Nigeria, said, “A brand is akin to a person, embodying all the traits that define its personality to the audience. When you hear a person’s name, you’re likely not merely recalling their appearance or attire, but rather who they genuinely are and the significance they hold for you.”

Oluboyede continued, “One may profess to be the best in the world and may even invest in extensive advertising to attract attention. However, the true perception of that individual is ultimately shaped by one’s personal experience. Likewise, the perception of a brand can evolve from favor to disfavor, or vice versa. This dynamic holds true for both individuals and brands alike.”

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SnackFix From Bühler Adds Value to Local Grains in Nigeria and Boosts Food Security

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SnackFix - Bühler

The SnackFix small-scale cereal bar production system from Swiss technology group Bühler is the ideal solution for small and medium enterprises (SMEs) to add value to locally produced grains in Nigeria and assist the country to address food security, says Manuel Murrenhoff, Managing Director, Bühler Nigeria.

On-the-go snacking consumption in Nigeria is rising steadily, presenting opportunities for SMEs to enter the market. “In terms of bars, fruit, and sweet snacks alone, this market segment is expected to exceed half a million tonnes by 2025,” says Murrenhoff. The main driver is the burgeoning population, estimated at 223.8 million in 2023, a 2.41% increase over 2022, and expected to grow to 377 million by 2050.

“The economically active part of the Nigerian population is quite sizeable and very mobile, which is boosting on-the-go snacking consumption,” says Murrenhoff. In addition, with half of the population living below the poverty line, there is more than ever the need to drive consumption of the full range of locally grown grains to keep final product prices in check.

“With the price of wheat projected to rise to record heights, Nigeria cannot possibly feed the growing population by importing wheat and other products. On the one hand, there is a shortage of forex and on the other hand, prices are escalating globally. That is where innovation, using local grains, plays an important role in food security, especially as these can be successfully incorporated into ready-to-eat foods,” says Murrenhoff.

Iyore Amadasun, Sales and Channel Business Manager at Bühler Nigeria, says that Bühler’s Snackfix, designed for food producers seeking a share from the on-the-go snack segment, promotes the processing of locally sourced grains for snacks while maintaining the highest food safety standards.

SnackFix is a multi-grain solution that allows SMEs to innovate across the spectrum of locally produced grains in Nigeria. The technology presents an entry-level, plug-and-play solution that is compact, cost-effective, and easy to commission and operate.

SnackFix includes a continuous mixer, a cooling tunnel, and a cutting system, all in one – everything needed for quality production. The combination allows SMEs to manufacture a huge variety of cereal bars at a volume of up to 130 kg per hour.

Customers benefit from Bühler’s experience in product development using a wide range of locally produced grains including, for example, sesame seeds, cashews, and peanuts. “We can help newcomers in the market achieve the best recipe to satisfy functional and indulgence consumer requirements in this segment and then supply them with a customised solution,” says Amadasun. In addition, Bühler has an innovation centre and laboratory in Switzerland to assist with different formulations and product development.

“The ready-to-eat market is of strategic importance to Nigeria, as it can adapt local grains for snacking consumption, promote healthy eating habits, and at the same time assist with Food Security,” says Amadasun.

With offices in Lagos and Kano, Bühler Nigeria is a leader in grain and food processing and offers solutions for grain drying and storage, flour milling, rice milling, cacao and chocolate processing, wafer and biscuit, pasta and noodles, feed, and aqua feed milling. Bühler Nigeria also provides support in the form of solutions for ink and coating applications and flexible packaging systems.

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