Canada's leading brands bounce back, growing 49% since 2020 in BrandZ Top 40 Most Valuable Canadian Brands ranking

• RBC is Canada's most valuable brand worth USD$37.7bn
• Top brands and fastest-growing brands have maintained awareness and saliency through the pandemic
• Leading Canadian brands outpace global averages on perceptions of sustainability

TORONTO, Oct. 19, 2022 /CNW/ - Canada's biggest brands have bounced back from the pandemic, with a 49% rise in total value in the 2022 Kantar BrandZ Top 40 Most Valuable Canadian Brands report, published today. The total value of the ranking is worth USD$201 billion this year, well ahead of the pre-pandemic total value of US$144 billion in 2019.

This rapid pace of growth reflects a combination of pent-up demand and the use of savings accrued by many Canadians during lockdown. The rise in value has been deep and broad with 37 of the 40 brands showing growth, and Banks (+68%), Insurance (+60%) and Telecom Providers (+41%) leading sector growth.

RBC retained its title as Canada's most valuable brand, growing its brand value by 74% over the last two years to US$37.7 billion. RBC is the world's 57^th most valuable brand, according to Kantar BrandZ's annual global ranking, and the second most valuable bank globally. New digital initiatives over the past year have extended to the release of a new brand platform, 'Ideas Happen Here.' Sustainability initiatives, including a roadmap to support RBC and its clients achieve net zero carbon emissions have helped RBC improve its scores on a range of corporate responsibility metrics.

Mary de Paoli, EVP CMO, RBC comments, "As a purpose-driven brand, we're deeply committed to helping our clients and communities realize their goals and thrive in a rapidly changing world. There is nothing more inspiring than being part of making their great ideas happen. This is what lies at the heart of our brand's strength and the trust our clients place in us. We are incredibly grateful to our employees for the dedication and creativity they put into delivering exceptional value every day, and the steady resolve to keep reaching higher. You don't get to be one of the world's most valuable brands without having one of the world's best teams behind you."

TD (US$28.7bn) retained its position as the second-most valuable Canadian brand, up 67% and remains in the global top 10 of banks. This has been an excellent two years for Canadian banks, in which they benefited from significant macroeconomic factors, including strong government support for consumers and rising interest rates on variable rate loans.

Telecom Provider Bell also retained its place on the podium at No.3 (US$17.1bn; +25%). Since 2021, Bell has increased its commitment to corporate social responsibility, through its 'Bell for Better', initiative, which includes significant funding for community care and access, research and workplace leadership initiatives throughout the country.

The fastest-growing Canadian brand is Aritzia (No.29; US$1.4bn), with a rise of 102% on the back of its expansion in the US. It has adopted a strong social positioning in its initiatives and campaigns to empower women, and donated 4000 coats, valued at over $1 million, to help keep communities in Canada and the USA warm over the coldest months.

Going dark is a risk

The brand success stories from this year's ranking highlight the dangers for brands that have chosen to reduce marketing budgets, as the economic outlook returns to more challenging conditions in the months ahead.

While drops in household spending power might tempt some marketers to slash their advertising budgets, exposure and convenience are even more important in Canada than they are in other global markets. The Top 10 brands and the 10 fastest growing brands in this year's ranking all index highly on Saliency – a measure of mental availability.

The real challenge lies in perceptions of value. Canadian consumers rated only 13% of the top brands as great value. They saw more than 50% of the brands as either high-priced, overpriced, or at risk of being overpriced. These brands need to communicate their value better or create value-added services and experiences that justify the extra cost.

One exception that has been successful on this score is Lululemon (No.4; US$16bn). The sports apparel brand was the only brand in the ranking identified as having a justified premium, helping its brand value grow 32% since 2020.

Scott Megginson, President, Insights Division, Canada at Kantar, comments, "The post-pandemic surge in brand value demonstrates just how much protection strong brands provide from crises and economic shocks. The rapid growth strong brands typically see in the recovery phase creates huge opportunities for gains in market share as well. The power of brands will prove just as important in the current era of higher inflation if they also have strong perceptions of value. Brands that can demonstrate both premium positioning and value benefits will continue to grow their equity over the next year when supported by strong consumer messaging."

The Kantar BrandZ Top 10 Most Valuable Canadian Brands 2022

Rank 2022	Brand	Category	Brand Value 2022 ($M USD)
1	RBC	Banks	37,724
2	TD	Banks	28,703
3	Bell	Telecom Providers	17,080
4	Lululemon	Apparel	16,025
5	Telus	Telecom Providers	10,414
6	Scotiabank	Banks	10,057
7	Bank of Montreal	Banks	9,685
8	CIBC	Banks	7,291
9	Rogers	Telecom Providers	6,249
10	Tim Hortons	Fast Food	4,987

Sustainability is rising in importance
While sustainability currently only makes a small direct contribution to brand value, in Canada they are strongly correlated. The 10 most valuable Canadian brands and the 10 fastest growing brands all outpace the averages for sustainability, brand purpose and responsible behaviour towards the environment. Sustainability, which has grown 300% in importance in the past decade and accounts for nearly half of all corporate reputation, matters.

Newcomer Canada Dry (No.30, US$1.3bn) stands out because its parent company, Keurig Dr Pepper, which habitually makes lists of best employers in Canada, has adopted an ambitious sustainability plan that includes specific targets for 100% recyclable or compostable packaging, use of post-consumer recycled content, and zero waste to landfills. Such efforts contribute to Canada Dry's improved scores for environmental responsibility, fair dealing with suppliers and leading the way.

Other key trends highlighted in the Kantar BrandZ Canadian brand ranking include:

• Five new joiners to the ranking: Canada Dry, HomeSense (No.32; US$895m), iA Financial Group (No.34; US$715m), Freedom Mobile (No.38; US$615m), and Chatr (No.39, US$554m). These brands come from four different categories, reflecting the broad nature of growth seen in this year's ranking.
  
  
• Brands with purpose: Tim Hortons (No.10; US$5bn), Canadian Tire (No.23; US$1.7bn) and Shoppers Drug Mart (No.22; US$2.2bn) have topped Canadian brands for measures of trust and purpose. Tim Hortons has pledged that its menus will be free from artificial colours, flavours and preservatives and has introduced new plant-based meat items, such as the 'Impossible Sausage'. Canadian Tire's Jumpstart Charities are committed to helping children overcome barriers to sports and recreation. Shoppers Drug Mart has recently strengthened its commitment to sustainable packaging, pledging to eliminate plastic bags from stores by the start of 2023, and has launched 'Quo Beauty', an innovate vegan, cruelty-free beauty collection.

The 2022 Kantar BrandZ Top 40 Most Valuable Canadian Brands ranking, report and extensive analysis are available now at www.kantar.com/campaigns/brandz/canada  

NOTES TO EDITORS

About Kantar BrandZ: Kantar BrandZ is the global currency when assessing brand value, quantifying the contribution of brands to business' financial performance. Kantar's annual global and local brand valuation rankings combine rigorously analysed financial data, with extensive brand equity research. Since 1998, BrandZ has shared brand-building insights with business leaders based on interviews with 4.1 million consumers, for 19,250 brands in 51 markets. Discover more about Kantar BrandZ here.   

The Kantar BrandZ Top 40 Most Valuable Canadian Brands report is the most definitive and robust ranking of the country's brands available, and the brands ranked must meet these eligibility criteria:

• The brand originated in Canada
• The brand is owned by a listed company on a recognised stock exchange
• Or, the brand is privately owned, but financial statements are publicly available
• Or, unicorn brands must have their most recent valuation publicly available

About Kantar: Kantar is the world's leading marketing data and analytics company. We have a complete, unique and rounded understanding of how people think, feel and act; globally and locally in over 90 markets. By combining the deep expertise of our people, our data resources and benchmarks and our innovative analytics and technology, we help our clients understand people and inspire growth.

SOURCE Kantar Canada Inc.

Priscilla Dixon, Kantar, Mobile: [phone], Email: [email protected]; Hollis Guerra, Daddi Brand Communications, Mobile: [phone], Email: [email protected]