Plain Packaging Brand Impact Analysis December 2017 2017 淘宝店铺 “Vivian研报” 首次收集整理 获取最新报告及后续更新服务请在淘宝搜索店铺 “Vivian研报” 或直接用手机淘宝扫描下方二维码 Brand Finance Plain Packaging December 2017 3.Brand Finance Plain Packaging December 20172. Executive Summary 3 Background 4 Findings 6 Definitions 18 Methodology 20 How we can help 22 About Brand Finance the UK and Ireland have legislation set to come into force in 2018. Scotland will become the first country in the world to introduce minimum unit pricing on alcohol from next May. Activists are increasingly advocating more intrusive measures than taxation, minimum pricing, and regulation of advertising, and the prospect of further applications of plain packaging looks increasingly likely. Already in 2015, the WHO-backed Tobacco Atlas, called for extending plain packaging to alcohol and some food and drink products in a bid to prevent non-communicable diseases. The Ontario Medical Association has mocked up images of plain packaging on food and drink products, and, in 2016, Public Health England released a report calling for plain packaging to be considered for alcohol, a topic which was raised again only last month in medical journal, The Lancet. In March this year, Cambridge academic Wolfram Schultz, winner of the 1 million Brain Prize for the understanding of decision-making, made a widely publicised call for plain packaging to be applied to fatty, salty foods to improve public health. In June, ahead of their annual conference, the British Medical Association called for cigarette-style labels on sweets “to help wean children off sugar.” In the same week, a lobby group in Australia, the Obesity Policy Coalition, suggested that cartoon characters be removed from cereal boxes, yet another example of brand censorship. Now, Canadas Yukon has become the first territory in the world to introduce sizeable health warning labels on all alcohol products, cautioning against the risk of breast and colon cancer. To apply plain packaging to alcohol, confectionery, savoury snacks, and sugary drinks would render some of the worlds most iconic brands unrecognisable, changing the look of household cupboards and supermarket shelves forever. We have therefore felt it pertinent to examine the potential financial impact of such a policy and conducted a study to model the brand and business value impact of a broader application of plain packaging legislation. A comprehensive examination of every affected brand at a global level would of course be impractical. However, a look at just a handful of the worlds biggest and most iconic brands reveals the profound potential impact of plain packaging to corporate stock values. Advertisement from Ontario Medical Association “It is not unimaginable that bottles of Chteau Mouton Rothschild, which once bore the artwork of Salvador Dal and Pablo Picasso, might one day be required to have plain packaging and images of oesophageal cancer or a cirrhotic liver.” The Lancet, November 2017 Brand Finance Plain Packaging December 2017 7.Brand Finance Plain Packaging December 20176. Findings Brand Finances latest research points to potential losses of $186.7 billion for eight major food and drink brand-owning companies, if plain packaging legislation were to be applied to alcohol, confectionery, savoury snacks, and sugary drinks (Fig.1). Due to concerns over the health impacts of smoking, plain packaging for cigarettes has already been introduced or legislated for in over half a dozen countries. Arguments continue over the efficacy of such policies, yet there are increasing calls for plain packaging legislation to be extended to other sectors to combat diabetes, obesity, heart disease, and alcoholism (see Background, pp.4-5). This has the potential to affect some of the worlds biggest brands and brand-owning businesses. Brand Finance has analysed the potential effects of the global adoption of such a policy on eight major brand owners: AB InBev, The Coca-Cola Company, Danone, Heineken, Mondelez International, Nestl, PepsiCo, and Pernod Ricard. Between them, these firms control 1,242 brands, 907 of which are used to market alcohol, confectionery, savoury snacks, and sugary drinks. Plain packaging would severely limit the effectiveness of these brands as marketing tools, preventing firms from differentiating their products. A before and after analysis of the brand strength of each of the 907 brands owned by these eight firms indicates a loss to enterprise value of $186.7 billion. The contribution of the analysed brands to their parent companies would fall 33.9% from $551.0 billion to $364.3 billion, seeing overall enterprise value fall 16.5% from $1.133 trillion to $946.6 billion (Fig.1). To put this into context, this loss, from just a handful of companies, is equivalent to the GDP of countries such as Kuwait, Vietnam or Romania. It is more than the market capitalisation of vast companies that are household names or underpin many peoples daily lives such as Disney,