Greggs, Costa, and KitKat have been named in the Top 10 Strongest British Brands 2024, recently published by value consultancy Brand Finance.

The annual list sees UK companies ranked on their brand strength, which is based on the efficacy of performance on intangible measures relative to competitors.

Brand Finace said it uses a balanced scorecard of metrics to assess marketing investment, stakeholder equity, and business performance, with equity carrying double the weight of the other two. Calculations are then expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.

With a BSI of 88.2, Greggs was deemed strongest among the bakery brands and took second spot in the UK behind accounting firm Ernst & Young (EY), which scored 88.4. Both brands improved their rankings from last year.

Brand Finance said its data showed that Greggs’ brand strength stems from high scores in key areas such as value for money, consideration, and familiarity. It noted this ’underscores Greggs’ solid brand identity, deeply rooted in consumers’ minds through consistent presence, fostering enduring loyalty’.

Coffee shop chain Costa also rose up in the list this year to place seventh with a BSI of 84.3, while Nestlé-owned chocolate wafer brand KitKat (83.0) slipped down to tenth spot.

In a format similar to a credit rating, each brand is also assigned a corresponding Brand Rating based on their score, which go up to AAA+. Greggs achieved an AAA rating, while Costa and KitKat got AAA- ratings.

Brand Finance general manager Annie Brown noted the company’s data reveals that brands like Greggs, Costa, and KitKat share a common characteristic: they all have exceptionally high scores for perceived familiarity and consideration among customers.

”In the UK, in particular, these brands have achieved a level of brand identity which is deeply ingrained through their consistent presence, which facilitates familiarity and usage,” Brown told British Baker. ”This, coupled with consistent and quality products and services, also facilitates brand loyalty.”

Brown noted a cult-like following in the UK of brands like Greggs, which last year saw Primark selling Greggs-branded clothing. “On the other hand, Costa’s brand strength drives its ability to command a price premium. Our research suggests customers are willing to pay a bit more for its convenience and popular products,” she added.

“KitKat’s enduring brand strength is supported by its iconic “take a break” formula which continues to be of relevance in the latest “Tech Frustrations” campaign run last year.” 

London-headquartered Brand Finance said it conducts more than 5,000 brand valuations every year, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.

The Royalty Relief approach is used to conduct valuations, a method said to be compliant with industry standards set in ISO 10668. This involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use. The ‘brand value’ it arrives at is understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.

Greggs was given a brand value of £899m by Brand Finance, up 6% from last year’s valuation. In its latest preliminary results posted last month, the food-to-go giant reported revenue of £1.8bn for its 2023 financial year, representing 19.6% growth from the previous period.

Brand Finance highlighted that several small but highly focussed brands were ‘punching above their weight’ this year and ‘outshining the nation’s bigger brands’ when looking at value.

Greggs, Costa, and KitKat were all well outside of the Top 10 Most Valuable British Brands 2024 list, in which EY retained its runners-up spot with a calculated brand value of £24.7bn. British multinational oil and gas company Shell was top with £40.3bn, while broadcaster and telecom firm Sky was tenth on £6.7bn.