Global BV News: Valuation impact of plain packaging

BVWireIssue #183-2
December 13, 2017

Following the introduction of plain packaging rules for tobacco products in some countries and calls to extend the legislation to other sectors, Brand Finance has analyzed the potential financial impact of such a policy on food and beverage brands in four categories: alcohol, confectionery, savory snacks, and sugary drinks. Eight major brand-owning companies are predicted to lose a total of $187 billion if plain packaging mandated for other fast-moving consumer goods (FMCG) products, with alcohol and sugary drinks brands most vulnerable. An extrapolation of the results to all major alcohol and sugary drinks brands points toward a potential loss of $293 billion for the beverage industry globally. The analysis is included in the report, “Brand Finance Plain Packaging 2017.”
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