Greggs named UK's second strongest brand outgunning bigger consumer companies

Bakery chain Greggs has been identified as one of the country's strongest brands, outperforming many larger businesses such as Tesco and Rolls Royce.

The Newcastle-based bakery chain is said to have seen a 6% rise in the value of its brand value to £899m this year and is only second to accountancy giant EY in the top table of British Brands. The findings are according to brand valuation consultancy Brand Finance, which annually tests the strength of 6,000 names.

Greggs' high scoring comes from several criteria measured by the researchers, including value for money, consideration and familiarity. Its performance comes amid a continuing reputation for clever marketing fuelled by a string of stunts and campaigns that have earned it attention - including its most recent partnership with fellow Tyneside business Fenwick, in which it launched a pop-up bistro-style eatery at the department store chain's Newcastle branch.

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The company's efforts have also extended to selling of a clothing line with high street major Primark and its 'Tasty by Greggs' concept consisting of in-store cafes serving Greggs products and fitted out with photogenic furnishings to encourage customers to share pictures to social media platforms such as TikTok and Instagram.

In 2023 the FTSE250 retailer continued a run of strong results, booking a 20% rise in sales to £1.8bn as pre-tax profits grew from £148.3m to £188.3m and a record 220 stores were opened. Bosses have said the firm is on track to meet ambitions first set out in 2021 to double sales.

In the UK rankings, Greggs rubs shoulders with PwC in third place. Meanwhile a group of so called "underdog" brands, which includes Greggs as well as drinks brand Robinsons and cleaning label Fairy, occupy spots in the top 10.

Brand Finance also ranks according to brand value with Shell continuing to occupy the top spot at a value of £40.3bn. Researchers said Shell's 1% increase in revenue was notable given its falling revenues and a decline in enterprise value, as well as a drop from AA+ brand strength rating to AA.

Annie Brown, general manager of UK Consulting, Brand Finance, said: "In the 2024 UK 250 ranking, the UK’s top 10 most valuable brands have remained largely stable, with BP and Vodafone being the only two brands to swap positions. BP’s brand value increased by 7% to £14.9bn, while Vodafone’s dropped by 17% to £11.7bn. Notably, three of the top 10 brands hail from the commercial services sector and two from banking, underscoring the service-oriented nature of the brand powerhouses propelling the UK’s economy."