Editor's Comment: Brace for Eurozone Brand Impact

Marketing, December 7, 2011 | Go to article overview

Editor's Comment: Brace for Eurozone Brand Impact


Are UK brands ready for a threatened eurozone implosion? If your portfolio is exposed to the volatility of the so-called 'basket-case' economies of Europe, you are probably drawing up contingency plans, preparing for the worst.

Small wonder. For those brands with interests in Europe, it is hard to overstate the potential impact of a single-currency break-up. Not least because if countries leave the euro, a huge devaluation of their national currencies will follow, making imported brands in those countries very expensive indeed.

That's the fear for big exporters such as Diageo, which revealed last week that it is preparing for such an outcome.

The drinks company, and its chief marketing officer, Andy Fennell, have long hailed the value of deflecting the brand owner's energies away from Europe toward the emerging markets. Fennell took this admiration further last week, observing a drift of creativity away from the West toward newer economies (see page 14).

Other multinationals have, to paraphrase Unilever chief executive Paul Polman, switched their thinking away from New York to New Delhi.

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