Study: Plain Packaging Would Wipe $400 Billion From The Sales Of Alcohol & Soft Drinks

Study: Plain Packaging Would Wipe $400 Billion From The Sales Of Alcohol & Soft Drinks

Plans to extend plain packaging (the likes you see on cigarettes) to alcohol and soft drinks could wipe out $US300 billion ($A396 billion)in sales a new study has found.

The report, by Brand Finance (which you can read in full here), analysed the potential financial impact of such a policy on food and beverage brands in four categories: alcohol, confectionery, savoury snacks, and sugary drinks.

It should be noted the report was a hypothetical one and based on the impact of brands globally. There are, as yet, no plans to introduce plain packaging to any FMCG goods and alcoholic beverages in Australia.

Eight major brand-owning companies are predicted to lose a total of $US187 billion should plain packaging be mandated for other FMCG products, with alcohol and sugary drinks brands most vulnerable.

The Coca-Cola Company and PepsiCo are among those corporations with most value at risk; $47.3 and $43 billion respectively, equal to 24 per cent and 27 per cent of their total enterprise values. 

Entire brand portfolios of companies specialising in alcoholic drinks, such as Heineken, AB InBev, and Pernod Ricard, would fall within the scope of the legislation, jeopardising future revenue streams. 

An extrapolation of the results to all major alcohol and sugary drinks brands, points towards a potential loss of $US293 billion for the beverage industry globally.

The estimates refer to the loss of value derived specifically from brands and do not account for further potential losses resulting from changes in price and volume of the products sold, or illicit trade. Therefore, the total damage to businesses affected is likely to be higher.

Commenting on the findings, David Haigh, CEO of Brand Finance, said: “To apply plain packaging in the food and drink sector would render some of the world’s most iconic brands unrecognisable, changing the look of household cupboards and supermarket shelves forever, and result in astronomical losses for the holding companies.

 “Predicted loss of brand contribution to companies at risk is only the tip of the iceberg. Plain packaging also means losses in the creative industries, including design and advertising services, which are heavily reliant on FMCG contracts.”

 




Please login with linkedin to comment

Brand Finance

Latest News

Albo Responds To Meta: “Not the Australian way”
  • Media

Albo Responds To Meta: “Not the Australian way”

Australian Prime Minister Anthony Albanese said Meta’s decision to stop paying for Australian news is “not the Australian way” and that he is “very concerned” about the announcement. Meta today confirmed it will walk away from funding Aussie journalism once the current content deals expire in what is a significant blow to Australia’s largest publishers. […]

Media Outlets Respond To Meta’s Decision To Stop Funding Australian News
  • Media
  • Technology

Media Outlets Respond To Meta’s Decision To Stop Funding Australian News

The Australian media industry has responded to Meta’s decision to walk away from funding Aussie journalism once the current content deals expire. In a blow to local media outlets, Meta said it will not enter negotiations to extend deals to pay Australian media companies for the news that appears on its platforms. Michael Miller, News […]

FIVEAA Unveils Refreshed Brand Identity
  • Media

FIVEAA Unveils Refreshed Brand Identity

NOVA Entertainment has today announced the launch of a refreshed brand identity for FIVEAA, Adelaide’s premier commercial talkback station. The forward-looking brand refresh reflects FIVEAA’s new lineup and vision while paying homage to the station’s previous logo and rich heritage. Built upon the new tagline of Always Adelaide, the new direction celebrates the ‘AA’ branding […]

Fabulate Wins Big At AiMCO Awards
  • Marketing

Fabulate Wins Big At AiMCO Awards

Australian social and content marketing workflow platform Fabulate has won big at the industry’s annual AiMCO Awards, taking out the highly competitive Best Influencer Marketing Technology Service category. Lead image: Fabulate team at Aimco Awards The win saw the start up platform, which has a team of around 50, receive the industry recognition against competitor […]

Hubbl Is Here: Newest Transformative TV Tech On Sale March 10
  • Media

Hubbl Is Here: Newest Transformative TV Tech On Sale March 10

Australia’s newest transformative TV technology, Hubbl, will be on sale from March 10 in Harvey Norman and JB Hi-Fi retail stores nationally and via Hubbl.com.au. Lead Image: Foxtel CEO Patrick Delany at Hubbl Launch. Also from March 10, Hubbl will unveil a national advertising campaign starring brand ambassadors Hamish Blake and Andy Lee. The multi-channel […]