FRIDAY 2 JUL 2021 2:11 PM


Brand valuation consultancy, Brand Finance, has estimated that the proposed increase in communications restrictions across alcohol, confectionary, savoury snacks and sugary drinks industries could result in up to $521bn loss to businesses.

The Brand Finance Marketing Restrictions 2021 report examined the impact that changing marketing restrictions would have on brand’s communications strategy. It follows the change to marketing and comms restrictions on tobacco products, which has led to repeated calls to extend the legislation to other sectors.

The report looks at nine of the world’s biggest food and drink brands, alongside the industry as a whole. The nine major brands could see a combined total loss of $267bn, should marketing restrictions be implemented. It predicts that PepsiCo would see a loss of nearly $62bn, which is highest amount at company level. However, Coca-Cola could see the single largest loss of $43bn.

David Haigh, Chairman and CEO of Brand Finance, says, “Well-managed, innovative, and reputable brands are what the global economy turns to in the hour of need. Severe marketing restrictions are catastrophic, not only for brands, but for all stakeholders, from consumers and society, to investors and governments.”

The report includes research conducted via surveys of over 6,000 consumers across twelve countries worldwide to understand external opinions of the marketing industry. Respondents reported little desire for the change to marketing restrictions, with fewer than 10% of consumers opting for a ban on TV advertising, billboards, in-store demonstrations or distinctive packaging.

Changes to the legislation could also impact businesses on an internal level, effecting reputation management and employer brand. Jane Reeve, chief communication officer at Ferrari, says, “Strong brands support stronger economies which support employment.”

Consumers want brands to demonstrate its positive impact on society, and this can only be done through effective communications strategy. The consumer research found that 79% of respondents expect brands to provide superior product safety and production standards, 74% expect brands to undertake ethical sourcing and supply chains, and 73% expect big brands to have better employment practices than smaller businesses.

“Whether it's environmental concerns, labour practices, renewable energy, we should leave the world in a better place as a result of our brand, not worse,” says Doug Place, CMO of Nando's - Africa, Middle East, South Asia.

The full Brand Finance Maketing Restrictions 2021 report can be found here.