Pepsi & Coca Cola at risk of making $90bn loss to its brands

Photo credit – Archilos

First ciggies, now sugar. The smokers amongst you will have noticed that this year in the UK saw a significant change to cigarette packaging laws. From May 2017, cigarette companies were not permitted to use their logos or brand colours on their packaging – all cigarette and tobacco product packets must be a uniform green colour, uniform typeface and size, with a uniformly unpleasant health warning.

Briffa called it earlier this year and it looks like unhealthy food and drinks are the next target for plain packaging regulation.

Food and beverage brand names and logos are hugely valuable. Building up a good food and beverage brand distinguishes products in an incredibly competitive market and has a major influence on a consumers buying decisions. A recent report has estimated that banning the use of brand logos, artwork and colours on unhealthy food and drinks will deliver a $300billion blow to value of the food and beverage industry. Of that amount, it is estimated that PepsiCo and Coca-Cola alone will suffer a $90billion hit from the loss of its iconic brands.

The proposal is gathering traction with health professionals championing the benefit to public health. This is of course coming up against strong opposition based on the undoubtedly huge detrimental effect to a massive industry, not forgetting the ripple effect it may have on branding, advertising, design and manufacturing businesses.

For advice on the proposal and general advice on brand creation and protection, contact Briffa.