Thursday 19 September 2019

Brexit 'threatens to disrupt value' of food brands


Kerrygold butter
Kerrygold butter

Michael Cogley

The value of Irish food brands could face significant disruption in the wake of a no-deal Brexit, the chief executive of Brand Finance has warned.

Brand Finance claims to have the world's largest brand-value database and in its most recent publication, cited Guinness, AIB and Penneys as Ireland's strongest brands.

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Speaking to the Sunday Independent, valuation chief David Haigh said the effect Brexit will have on Irish brands was very "sector-dependent". "For some companies, like Smurfit Kappa and CRH, which are very global, it's unlikely to make a whole lot of difference," he said.

"However, some of the more food-related brands like Kerrygold might be affected one way or another.

"It may not necessarily be badly affected either. Until we know exactly what Brexit will look like, nobody really knows what will happen."

Haigh said that protecting a company's brand had become more complex in recent years, citing the emissions scandal at Volkswagen and the significant problems faced by Boeing over its 737 Max.

"The impact of negative coverage can spread much more quickly than before and it means that it is much more necessary to have a CEO that has a full grip of what's going on at the company, in order to mitigate any potential brand damage," Haigh said.

He was speaking after the Institute of Advertising Practitioners in Ireland conference in Dublin last week.

Sunday Indo Business

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