PlainPackaging 2019 Brand impact analysisSeptember 2019 About Brand Finance4Get in Touch4Brand Finance Network5Executive Summary7Background8Findings10Definitions24Brand Valuation Methodology26Consulting Services28Brand Evaluation Services29Brand Finance Group30 About Brand Finance. Brand Finance Network. Brand Finance is the world’s leading independent Brand Finance was set up in 1996 with the aim of‘bridging the gap between marketing and finance’. Formore than 20 years, we have helped companies and We pride ourselves on four key strengths:+Independence+Transparency We put thousands of the world’s biggest brands to thetest every year, evaluating which are the strongest and Brand Finance helped craft the internationallyrecognised standard on Brand Valuation – ISO10668, and the recently approved standard on Brand Get in Touch. For business enquiries, please contact:Alex HaighValuation Directora.haigh@brandfinance.com Executive Summary. Following the introduction of plainpackaging for tobacco products andrepeated calls to extend the legislationto other sectors, Brand Finance has onceagain analysed the potential impact of Finance Plain Packaging report builds on Brand Finance’s valuation methodologyhas been adapted to consider the impacton brand and enterprise value of theremoval of branding elements for eightmajor brand-owning companies: AB +US$234.0 billion of enterprise value stands to be lostif plain packaging legislation was implemented for theseeight companies, nearly US$50 billion more than in 2017 +The implied loss across the entire beverage industry isUS$430.8 billion,almost 50% more than in 2017, as +Alcohol companies:AB InBev, Heineken, and PernodRicard,would see100% of their revenue exposed +Pernod Ricardhas the largest proportion of enterprisevalue at stake – 36.2% +AB InBev is set to lose the most enterprise valuein absolute terms –US$64.6 billion +The Coca-Cola Company and PepsiCocould eachsee over25% of their enterprise value at risk +Nestlé and Mondelēz, FMCG companies with diverseportfolios, are less exposed than those in the drinksindustry, butDanone is the only companyin the Background. We have therefore felt it pertinent to examine thepotential financial impact of such a policy and updatedour 2017 study to model the brand and business value fat, saturated fat, sugar, and salt. It is therefore notsurprising that these products are now in the limelight. Governments globally have started the crackdown onthese types of products through the combination ofmarketing restrictions and the introduction of sugartaxes. Denmark has had a tax on sugary drinks sincethe 1930s and since then, Ireland, France, South Africa, No logos, colours, brand images or promotional information A comprehensive examination of every affected brandat a global level would of course be impractical.However, a look at just a handful of the world’s biggest Reduce attractivness of tobacco packagingEliminate tobacco advertising and promotionLimit deceptive tobacco packagingIncrease effectivness of tobacco health warnings The World Health Organisation’sconvention on tobacco control offersa potential template for similar The introduction of sugar taxes has led to somecompanies reducing the overall sugar levels in theirproducts. In the UK, for example, where a sugar taxwas introduced in 2018, AG Barr, which owns the Despite the ongoing disagreement, it appears asthough plain packaging in the tobacco sector mayhave set legislators on a slippery slope that could seemore products subject to similar measures. Alcohol,confectionery, salty snacks, and sugary drinks can all Plain packaging is often referred to as a brandingban or brand censorship. By imposing strict rules andregulations, the legislator requires producers to remove Dr Judith MackayAdvisor to the WHO – May 2017 In 2012, Australia became the first country in the worldto implement plain packaging for tobacco products.Since then, France, the UK, Ireland, Norway, and NewZealand have all implemented the policy. Several other The Chilean Government introduced a new food lawtwo years ago, banning the use of cartoon characterson sugary children’s cereal, in an attempt to tackle thesoaring obesity rates in the country, where currentlyover half of six-year-olds are overweight or obese. It is time to end the pro-obesitysupermarkets by putting fruit and vegon a level playing field with crisps andconfectionery. Plain packaging would The controversy and debate surrounding plainpackaging is rife. Supporters claim that plain packagingremoves the visual cues that prompt existing users topurchase the product and that it prevents potential new In 2016, Public Health England released a reportcalling for plain packaging to be considered foralcohol. Other countries have started to implementmeasures in the face of rising alcohol consumption andmisuse. Ireland passed the Public Health (Alcohol) Act Tom Kibasi IPPR director – June 2019 Opposers argue that pl