The Woolworths Group Ltd (ASX: WOW) share price is in the green today and the supermarket giant is Australia's most valuable brand, according to a study.
Brand Finance Australia has ranked Woolworths first in its annual Australia 100 report for 2023.
Brand Finance is one of the world's leading independent brand valuation consultancies. The company values the Woolworths brand at $16.2 billion in 2023, which is 18% higher than last year.
This is the fourth consecutive year that Woolworths has taken out the top place for value.
Brand Finance explains that brand value refers "to the present value of earnings specifically related to brand reputation".
Image source: Getty Images
Why is Woolworths Australia's top brand?
According to the report:
Woolworths has continued its focus on customer experience, including the roll out of curated ranges tailored to local communities, and offering more inclusive experiences to a wider range of consumers.
Woolworths also continued to manage the impacts of climate change, working to reduce emissions from its own operations through green electricity and electric vehicle trials, as well as the phasing out of some plastic use.
These factors continued to maintain the brand's strong reputation and loyalty amongst Australian consumers …
Which other ASX shares made the top 10 brands?
Woolworths' closest competitor, Coles Group Ltd (ASX: COL) held onto fourth place, with its brand value up 10% to $10.9 billion.
The report said: "Over the last year, Coles has continued to demonstrate flexibility and innovation, with improved scores for quality and value for money."
Here are the top 10 ASX-listed brands by value.
| Ranking | Company name |
| 1 | Woolworths Group Ltd (ASX: WOW) |
| 2 | Telstra Group Ltd (ASX: TLS) |
| 3 | Commonwealth Bank of Australia (ASX: CBA) |
| 4 | Coles Group Ltd (ASX: COL) |
| 5 | National Australia Bank Ltd (ASX: NAB) |
| 6 | BHP Group Ltd (ASX: BHP) |
| 7 | ANZ Group Holdings Ltd (ASX: ANZ) |
| 8 | Bunnings (owned by Wesfarmers Ltd (ASX: WES)) |
| 9 | Westpac Banking Corp (ASX: WBC) |
| 10 | Rio Tinto Limited (ASX: RIO) |
Out of the 100 companies listed, 74 experienced an increase in brand value, while 21 saw a fall over the year.
The companies that saw a decline in their brand value included Optus, which is owned by Singapore Telecommunications Limited (SGX: Z74).
Optus experienced a 19% fall in brand value to $3.3 billion due to the cyberattack.
What does this mean for Woolworths shares?
Mark Crowe Managing Director, Brand Finance Australia, said quantifying brand value helped businesses attract investors, secure financing, and influence mergers and acquisitions.
Crowe said:
A strong brand can lead to improved business returns in several ways. First, a brand can help a business differentiate itself from its competitors and establish a unique identity in the market, which can lead to increased customer loyalty and retention. This, in turn, can drive higher sales and revenue.
A strong brand can command a higher price or premium for products or services, as consumers are willing to pay more for a brand they perceive as high-quality, value for money and trustworthy.
Finally, a strong brand can provide a competitive advantage and help insulate a business from economic downturns or industry disruptions.
Crowe said brand value also helped businesses understand where brand fitted into their earnings.
In FY22, Woolworths' revenue was $60.84 billion, indicating its brand power contributed 26% to earnings.
According to the ASX, Woolworths shares have a market capitalisation of $42.28 billion.
