Look-alikes 2003

Presentation from Philip SheppardPublic Affairs ManagerAIM - European Brands Association

Ice- cream look-alikes Italy

Ice- cream look-alikes Italy

Ice- cream look-alikes Italy

Ice- cream look-alikes Italy

Italy - 2002 survey

59 responses, 19 (32%) cited problems

Most categories – especially dry food and beverages

16 retailers –especially Metro, Carrefour and Esselunga

Italy - what did companies do?

113 incidents, action taken in 74 (65%)

Negotiation in 49 casesLitigation in 25 casesMost cases pending

Wherever action taken and concluded, 100% success!

Italy - reasons for no action

1. Fear of retributive action2. Insufficient legal framework3. Low economic impact

Italian equal top rating:Retribution & weak law

Italy - trends

Slightly more responses than in 2000 – up from 48 to 59

Higher rate reporting problems – from 21% to 32%.

Incidents doubled to 113 from 55 But action also grown from 18% to

65%!

Italy - conclusion

Look-alike problem is getting worse

But manufacturers are more willing to take action to protect their rights and when they do, it works!

European survey 2002 - more replies, bigger problem

0 50 100 150 200 250 300 350

1990-94

1995-96

1997-98

2000-01

Look-alike responses and replies

Problem

No problem

European survey 2002 - more cases

Look-alike Incidents

0 100 200 300 400 500

1990-94

1995-96

1997-98

2000-01

Incidents

European survey 2002- look-alikes in most sectors

2000-01 sector shares

0%2%4%6%8%

10%12%14%16%18%20%

European survey 2002- what did companies do?

In top 12 countries, from 432 incidents, 48% of the time action was taken

80% negotiation, 20% litigation

86% of the time a positive result!

European survey 2002- results of taking action

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Gre

ece

UK

Sw

eden

Ital

y

Sw

itzer

land

Cze

ch R

,

Bel

gium

Pol

and

Spa

in

Den

mar

k

Net

herla

nds

Did action work - 86% YES

Action taken

Positive outcome

European survey 2002- why 52% did nothing

Reasons for NOT taking action

Negative to relationship

42%

Legal insufficiency33%

Low economic impact

25%

European survey 2002- worst offenders

0

5

10

15

20

25

30

35

40

Aho

ld

Ald

i

Auc

han

Car

refo

urP

rom

odes

Dun

nes

Kru

idva

t

Inte

rmar

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Laur

us Lidl

Met

ro

Tes

co

Retailers believed to have look-alikes strategy in more than one country 2000-01

Incidents

Countries

European survey 2002- is there a link to private label?

0

5

10

15

20

25

30

35

40

45

Responses / %

Ger

man

y

Ital

y

Spa

in

Bel

gium

Sw

itzer

land

Net

herla

nds

Gre

ece

Pol

and

UK

Den

mar

k

Sw

eden

Cze

ch R

,

Look-alike responses v. private label share 2001

Responses

Private label share

European survey - conclusions

Action worksAs a result of increasing like-alikes,

more companies are taking action and getting successful outcomes.

Legislative initiatives

EC proposed directive on unfair marketing defines unfair to consumers: “taking account of all features”… “including overall presentation”...

and if deception as to:“the identity ...of the trader”

Legislative initiatives - unfair marketing directive

First internal draft April 2003Next draft June 2003Then, Commission adoption,

Parliament 1st reading, member states adoption, Parliament 2nd reading, final adoption 2004?