It’s now easier than ever for a brand’s value to be tarnished thanks to security scares, lookalike products and counterfeit goods – but there are ways to stop this.
With more and more products jockeying for consumers’ attention on the shelves, it’s absolutely vital that brands can both stand out and be trusted by consumers.
The recent takeover of Cadbury by Kraft illustrated the importance of a trusted brand, with many UK consumers expressing their fears that the familiar names and lines will be in some way affected. Even if these fears turn out to be groundless, it’s testament to the connection consumers have with leading products.
Conversely, brands that become embroiled in controversy can become permanently damaged. Coca-Cola’s water brand Dasani was fatally wounded in its UK launch by bad press and, while the food giant claimed its sales were simply being suspended, several years on it has yet to make it back onto the shelves. In the past, sales of particular brands of baby food and, famously, eggs slumped due to high profile food scares and took a long time to return to their previous heights. Nowadays it’s much easier for rumours about the quality, or otherwise, of products to spread – even if they’re completely inaccurate.
Brand protection, therefore, has never been more important. Manufacturers are now compelled to ensure absolute product integrity at every point in the supply chain to avoid the embarrassment and expense of a recall. Increasingly this involves the use of ever more complex anti-tampering devices on packaging – which can in themselves become a major selling point. A growing number of drinks, for example, are sold in packaging featuring thermochromic inks that change to a certain colour when the product is at what the manufacturers feel are its optimum conditions. Not only is this a way to stand out on the shelves, it also reassures consumers that the product they are buying is at its best.
With this in mind, it’s not surprising that many companies are investing in quality standards as absolute proof that their goods meet various criteria. For example, Zeina Foods, who supply Middle Eastern foodstuffs in the UK, place particular value on the British Retail Consortium accreditation grade A standard which they have just attained for the sixth successive year. This standard is recognised worldwide as a benchmark in best practice, and the company had to go through a series of rigorous audits, covering all aspects of the business including operational procedures, sales, production and overall factory environment standards. The annual audits become more scrupulous each year as technology changes.
Similar schemes operate across the world, all with criteria that commands a commitment to best practice. It’s particularly valuable for companies that work across international boundaries to ensure they can offer evidence of their high standards, and to this end many look towards obtaining Authorised Economic Operator status. Being classed as an AEO validates that companies work according to EU criteria, having an appropriate record of compliance with customs requirements, a satisfactory system of managing commercial and transport records, and appropriate security and safety standards – all vital requirements when attempting to import goods around Europe.
Dole, the fruit and vegetable company, has recently seen its European import business achieve AEO status, and has also gone above and beyond requirements when it comes to other standards – such as its environmental prowess. The company has recently joined the international Water Footprint Network and developed programmes to reduce water use and to recycle water, and has also signed an agreement with the Ministry of Environment of Costa Rica to work together on a project aimed at establishing a carbon neutral product supply chain for bananas and pineapples, from their production to their various international markets. These measures to promote sustainability and emphasise Dole’s commitment to good practice are a valuable way to ensure the brand has a good reputation.
Despite these good intentions, however, manufacturers can often fall foul with consumers for reasons beyond their control – thanks to rival manufacturers producing lookalike products. Time and money spent on research and development can come to nothing if rivals lift the idea, sometimes before the original product is even on the shelves in a particular region. In recent years, too, retailers have come under the spotlight for producing private label items where the branding seems to mimic that of an existing product, with the intention of causing confusion among consumers.
Sadly many manufacturers experience great difficulties, especially when importing their products overseas, as a trade mark registered is one country gives no protection in other nations. It’s therefore imperative that businesses with global aspirations register their trade marks internationally if they want to ensure their brands are protected in these markets. Trade Mark Direct point out that a trade mark can be registered for under £500 including all registry fees, and with internet retailers making it easier than ever to purchase products from abroad, trade marks have taken on increased importance. Whoever owns the trade mark has the legal right to ask a competitor with a similar name to cease trading with almost immediate effect.
Even more worrying for manufacturers is the rise of counterfeit products, which can cause untold damage to a brand. As Christine Lancaster of the security division of Sun Chemical points out, “Brand owners have to police their product in the market place to get the right return on investment from brand protection. Simply putting a hologram on packaging or labels and thinking that will do the trick and hoping for the best is tailing off in favour of applying covert features that a trained inspector can authenticate in the field. The huge advantage with this approach is that it can result in the identification and possible arrest of those who are passing on counterfeit products.”
The global counterfeit goods market is estimated to be worth nearly $545 billion annually, so it’s clear that those who specialise in fraud are prepared to go the extra mile to create convincing replicas. Fortunately, the option certainly exists to introduce innovative covert, machine readable authentication products such as inks or coatings. In these instances, products yield a distinct “signature” and are detected by a small reading device – but these devices remain invisible to the naked eye and therefore unlikely to be noticed by a counterfeiter.
The internet has ensured that any product recall or food scare can become world news within a matter of minutes. It’s therefore vital that brand owners can provide absolute assurance that their products meet the highest standards, and the introduction of new printing techniques, the continued assertion of trademarks and the quest for higher standards should all help create peace of mind for manufacturers, retailers and consumers alike.
Steve Williams, Food & Drink International, 05 March 2010
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