British brands lose value after Brexit vote

BP: Britain's fourth most valuable brand. Picture Michael Gillen
BP: Britain's fourth most valuable brand. Picture Michael Gillen
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Most of Britain’s biggest brands have lost value in the wake of the Brexit vote, a report reveals today.

Shell retained its position as the most valuable brand in the UK, rising by 16 per cent to £28.5 billion as it benefited from a surge in oil prices, in the latest Brand Finance UK 150 report.

Vodafone and HSBC were second and third respectively, despite a “very difficult” year that saw them losing 22 per cent and 14 per cent of their value respectively, the figures show.

Oil and gas, telecoms and banking accounted for eight of the top 10 most valuable brands in the UK.

Accounting and professional services firm EY came top of the list of the most powerful UK brands, beating ITV and Lynx.

Unilever had a particularly positive year with eight brands in the UK 150, led by Dove whose brand value rose by 17 per cent to £3.7bn.

However, 88 of the 150 most valuable brands decreased in value over the year, with the falls in sterling making them vulnerable to takeovers, the report said.

READ MORE: Engineer Weir buoyed by jump in oil and gas orders

The UK 150 ranks brands by monetary value and also calculates the most powerful brands. Brand Finance considered marketing investment, familiarity, loyalty, staff satisfaction and corporate reputation to determine the “strength” or “power” of a brand.

Brand Finance chief executive David Haigh said: “While the impact of Brexit on the broader economy has not lived up to the doomsday scenarios espoused by remainers with the domestic performance of brands holding strong, on an international scale the majority of Britain’s biggest brands have clearly suffered.

“If foreign exchange rates stay at current levels, British companies could well be vulnerable to takeover from international buyers.

“There are a number of companies whose woes extend far beyond Brexit, including Thomas Cook which has continued to lose value following its poor handling of a number of scandals to detriment of its corporate reputation and customer loyalty.”

READ MORE: Barclays tops table for financial service complaints

The Brand Finance UK 150 top 10 most valuable brands are:

1. Shell

2. Vodafone

3. HSBC

4. BP

5. EY

6. Barclays

7. BT

8. Tesco

9. Sky

10. O2

The top 10 most powerful brands are:

1. EY

2. ITV

3. Lynx

4. Holiday Inn

5. The Body Shop

6. Dove

7. Dettol

8. Rolls Royce

9. Costa Coffee

10. British Gas