In a significant shift within the Australian market, Commonwealth Bank has reclaimed its position as the nation’s most valuable brand, as revealed by Brand Finance Australia’s annual report.
This development follows a challenging year for supermarket giants Woolworths and Coles, whose combined brand value plummeted by an astonishing 31%.
Woolworths’ brand value took a 17% hit, dropping to $12.7 billion in 2024, while Coles saw a 14% decline, bringing its brand value to $8.4 billion.
These losses stem from allegations of false discounting practices that have sparked consumer distrust and regulatory scrutiny.
The controversy surrounding these claims has not only affected their stock performance but also shaken customer loyalty—an essential component of brand value.
Meanwhile, Commonwealth Bank has leveraged its reputation for stability and trust, reclaiming the coveted top spot as Australia’s most valuable brand.
The report highlighted negative press, a Federal Court case, and widespread consumer backlash in 2024 significantly contributed to the decline in brand value for the two supermarket giants.
Woolworths, formerly Australia’s most valuable brand, fell to second place, while Coles dropped from fourth to fifth.
Telstra and ANZ now occupy the third and fourth positions, respectively.
Meanwhile, Commonwealth Bank solidified its top spot by delivering an impressive $9.48 billion in net profits in 2024, driven by its expanding retail presence.
“Successful brands demonstrate resilience and innovation, offering consumers a sense of assurance and proving that adaptability is essential for thriving in today’s economy and ensuring sustainable growth,” said Mark Crowe, managing director of Brand Finance Australia.
The decline of Woolworths and Coles reflects the intense consumer backlash the two supermarket giants are currently facing.
The ACCC claims Woolworths and Coles misled consumers with deceptive discount pricing on hundreds of supermarket products.
These allegations emerged following a social media campaign, particularly on platforms like Reddit, which prompted the consumer watchdog’s investigation.
According to the ACCC, the supermarkets allegedly sold certain products at regular prices for at least 180 days, then raised the prices by at least 15% for a short period before featuring them in their “Prices Dropped” or “Down Down” promotions.
Meanwhile, iconic beer brand Tooheys experienced the fastest brand value growth, doubling to $452 million, fueled by its no-alcohol product range and eco-friendly packaging.
Kmart’s private label, Anko, saw a 66% increase in retail brand value, reaching $3.2 billion.
Additionally, Qantas’s brand value doubled over the year to $1.1 billion, driven by the success of Jetstar’s budget-focused operations.
