Sunday, October 10, 2010

Potential EU Ban of Tobacco Branding

I just read this article on Ad Age talking about how the European Union is considering banning the branding of cigarettes.

What does banning the "branding" really mean?

They are considering forcing tobacco companies to only label their products with the warning label and a plainly printed name. Camels will no longer feature the customary camel mascot, pall mall (though I don't know if they have those in Europe) couldn't have the "In Hoc Signo Vinces" trademarked down the side. Even the fonts of every single tobacco company will become standardized.

I find this fascinating. Cigarettes in Europe are still pretty standard. There isn't as big of a movement over there to end smoking as there is in the United States. And why wouldn't the tobacco companies challenge this? They definitely have the money to spend on legal fees, and I'm sure their sales, relatively speaking on a per company basis, would drop. If the law takes about five years to come into effect if they start trying to challenge it, the bonus cash flow during those five years would more than cover the fees spend fighting the legislation - especially for bigger companies like Marlboro.

If it does pass, I wonder how long it will take until that legislation jumps the pond?

Yes, sir!

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