Leveraging brand equity in the plant-based sector

How to build, measure, and profit from brand value

By Simon Middleton, Senior Writer, ProVeg International

In a market where consumers face a growing range of choices, brand equity can be the deciding factor that sets your brand apart. Brand equity refers to the value that consumers attach to your brand beyond the product’s functional benefits. Built through positive experiences, brand recognition, and trust, strong equity leads to loyalty, resilience against competitors, and even the ability to charge a premium.

Moreover, brand equity holds tangible financial value, making it a potentially lucrative asset in its own right. Major corporations, like Coca-Cola, recognise this by including brand equity valuations in their financial statements. For example, Coca-Cola’s brand alone was valued at approximately $106.45 billion in 2024, reflecting its significant contribution to the company’s overall worth.¹ This valuation not only influences market perceptions but also plays a crucial role in mergers, acquisitions, and investment decisions. A well-established brand with strong equity can be sold or licensed at a premium, offering owners substantial returns on their investment.

For plant-based companies, this means that building brand equity isn’t just about consumer loyalty; it’s about creating a valuable asset that can yield financial rewards if sold, licensed, or used as collateral.

In this article, we’ll explore how plant-based brands can build, maintain, and measure equity over time, drawing on insights from branding experts like Byron Sharp and Mark Ritson, and my own book, Build A Brand In 30 Days.

What is brand equity?

Brand equity encompasses the awareness, perceived quality, associations, and loyalty that a brand fosters in the minds of consumers. Marty Neumeier describes it in The Brand Gap as a brand’s ‘added value’ based on emotional resonance and reputation. For plant-based brands, building equity means creating strong, positive associations – such as commitments to sustainability, health, or ethics – that go beyond taste and price, making your brand a preferred choice again and again.

But ‘brand’ also has measurable financial implications, particularly in mergers and acquisitions, where a brand’s equity can significantly influence the purchase price. When established brands are valued or sold, brand equity itself often accounts for a large share of the transaction. This can be especially advantageous if a business wants to sell an underperforming brand with growth potential or attract investment by showcasing brand strength.

What it contributes to your business

Higher consumer loyalty

In a sector driven by values like environmental sustainability and health, strong equity leads to higher loyalty. When a brand consistently aligns with consumers’ beliefs, it builds trust, reducing the risk of brand-switching.

Premium pricing and brand advocacy

Brands with high value often find that consumers are willing to pay more for their products. Byron Sharp argues that brand salience is essential for building equity, emphasising that if consumers recognise and remember your brand, they’re more likely to choose it – even if it costs more. High brand equity can also inspire brand advocacy, turning loyal customers into brand ambassadors who amplify the brand’s reach through word-of-mouth and social sharing.

Protecting market position

Brand equity acts as a barrier to competition, safeguarding a brand’s market position. Mark Ritson points out that well-developed brand equity shields your brand from the growing influx of competitors. For plant-based brands, creating positive associations – such as with sustainability or superior taste – helps establish a trusted, respected brand identity that is difficult for newer brands to compete with.

How to measure brand equity

Consumer perception surveys

Regular surveys can gauge consumer perceptions, tracking factors like brand awareness, perceived quality, and emotional connections. These insights help plant-based brands assess their standing and make data-driven adjustments.

Brand loyalty and retention rates

Loyalty and retention metrics – such as repeat purchase rates and customer lifetime value – offer concrete data on brand equity. Higher retention rates suggest a strong, valuable brand.

Social media and community engagement

Social media engagement reflects the strength of consumer relationships. High engagement indicates a positive connection with the brand. Tracking metrics like brand mentions, sentiment analysis, and user-generated content provides insight into brand resonance.

Financial valuation models

Models like Interbrand’s Brand Valuation and Brand Finance offer structured methods to assess brand value, considering financial performance, brand strength, and market impact. For larger plant-based brands, a formal valuation can inform financial planning, investor pitches, or potential sales.

Practical action points for brand leaders

Case studies: real-world examples

Beyond Meat: quality and innovation as brand equity drivers

Beyond Meat has developed strong brand equity through consistent quality and a commitment to innovation. By delivering a plant-based product that closely resembles the taste and texture of meat, Beyond Meat has created a brand synonymous with quality and innovation. This strong association has allowed the brand to command a premium price and build loyalty even as more plant-based competitors enter the market.

Oatly: building equity through salience and activism

Oatly has leveraged its bold, memorable packaging and distinctive tone to build high brand salience. Coupled with its strong stance on environmental advocacy, Oatly’s narrative has resonated with environmentally conscious consumers, building brand value through both visibility and positive associations.

Heura Foods: community and activism

Heura Foods has built itself by creating a community-driven brand identity focused on activism. Their commitment to food system transformation and sustainability attracts consumers who want to be part of a larger cause. By fostering a sense of belonging, Heura has developed a loyal consumer base, strengthening its brand equity over time.

Tenzing: natural energy and sustainability

Tenzing, a plant-based energy drink, has developed solid brand equity by promoting natural energy derived from plant-based ingredients. Its commitment to sustainability and adventurous branding resonates with health-conscious consumers, helping the brand stand out in a competitive energy drink market.

Equity is a vital asset in the plant-based sector, helping brands build loyalty, command premium prices, and withstand competition, plus being able to cultivate greater long-term value. 

For more support on your plant-based strategy, contact our ProVeg experts at [email protected]. Stay tuned for my next article!

1. Coca-Cola brand valuation. Statista, 2024. Retrieved from https://www.statista.com/statistics/326065/coca-cola-brand-value/