Banks lead list of Canada's most valuable brands
Shareholders leave the Royal Bank of Canada annual meeting in Calgary, on Feb. 28, 2013. (THE CANADIAN PRESS/Jeff McIntosh)
Linda Nguyen, The Canadian Press
Published Friday, February 27, 2015 8:25AM EST
TORONTO -- Canadian banks continue their domination among the country's most valuable corporate brands, taking four of the five top spots on the latest list from business consultancy Brand Finance.
This years list, compiled in partnership with the Globe and Mail's Report on Business Magazine, ranks Royal Bank of Canada (TSX:RY) No. 1 for the second year in a row. It estimates that the country's largest bank has a brand value of US$12.5 billion, up from just over US$11 billion in 2014.
Brand Finance says it was the biggest increase in brand value among all Canadian companies this year.
RBC's rival, Toronto-Dominion Bank (TSX:TD), came in second with a brand value of US$11.1 billion, followed by telecommunications giant Bell (TSX:BCE) with a brand value of US$7.6 billion, Scotiabank (TSX:BNS) at US$7.03 billion and Bank of Montreal (TSX:BMO) at US$6.9 billion.
Collectively, Canada's top 100 brands gained 4.2 per cent in value year over year, which Brand Finance says was the lowest growth since the 2009 financial crisis.
"Canadian brands are at a crossroads in 2015," said Edgar Baum, managing director of Brand Finance North America.
"Many Canadian companies have not put enough investment behind brand, marketing and communications efforts to maintain the hearts and minds of their customers be it consumers or other corporations. Consequently, Canadian brands are increasingly at risk from a diversifying international economy."
Brand Finance says 63 brands increased in value year over year, with the majority of them based in the global resource sector, which puts them at risk of falling in value due to volatility in the energy and resource sectors.
The list says Canada has 45 companies with a brand value of more than $1 billion, down from 48 last year.
The retail sector saw the largest overall gain in brand value, with companies like Canadian Tire (TSX:CTC.A) gaining in value by five per cent, Loblaw Companies Ltd. (TSX:L) jumping by nine per cent and Real Canadian Superstore increasing by 45 per cent.
It predicted that this sector will continue to climb, with the recent announcement that Target Corp. is pulling out of Canada.
The list noted that some Canadian companies continue to lose brand value, including yoga wear retailer Lululemon, which declined by 26 per cent; tech firm BlackBerry (TSX:BB), which fell by 34 per cent, and oil and gas company Penn West Petroleum (TSX:PWT), which was down by 43 per cent.
Top 10 Most Valuable Brands in Canada in 2015, according to Brand Finance Canada
1. Royal Bank of Canada (US$12.5 billion)
2. Toronto-Dominion Bank (US$11.1 billion)
3. Bell (US$7.6 billion)
4. Scotiabank (US$7.03 billion)
5. Bank of Montreal (US$6.9 billion)
6. Rogers Communications (US$4.87 billion)
7. CIBC (US$4.86 billion)
8. Telus (US$4.8 billion)
9. Enbridge (US$4.3 billion)
10. McCain Foods (US$3.9 billion)
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