food and drink companies could lose billions

Cans of Coca-Cola, bottles of Budweiser and packets of Oreos are actually instantly recognizable for their distinctive packaging and logos, which have helped them become billion-dollar brands.

But their value could be sorely dented if food and beverage firms are forced to introduce plain packaging on alcohol, sugary drinks and snack items, which has already been the case for cigarette brands in some countries.

A report shows that $186.7 billion could be wiped off the combined enterprise value of firms such as PepsiCo, Mondelez and AB InBev if indeed they were prevented from using logos, familiar brand shades and images.

Marketing consultancy Brand Finance analyzed 907 makes from eight large food and beverage firms, including PepsiCo, Nestle, Heineken and Danone, because of its “Simple Packaging 2017” report published Thursday.

It found that The Coca-Cola Enterprise could lose $47.3 billion from the worthiness of its makes if it had been forced to set sugary beverages such as Coke and Powerade in basic bottles, while rival PepsiCo could lose $43 billion.

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