CATALYST: Taiwan is considering suspending sales of Diageo’s brands.
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An apparently tongue-in-cheek advert has landed Diageo in hot water by offending the government of Taiwan. Political pressure may yet save Diageo’s revenues, if not its blushes, but the lesson is clear. In an increasingly interconnected world, companies must consider the implications of their actions more carefully than ever before.
The Taiwanese parliament has passed a resolution calling for the government to suspend sales of brands owned by UK beverages giant Diageo for one year. The country’s lawmakers have been offended by a supposedly humorous advert that appeared in London’s underground rail network over Christmas.
The ad for Smirnoff Ice featured a Taiwanese made Christmas present bearing a label warning that it would break virtually instantly. Taiwan, which now makes some of the world’s most hi-tech goods, is trying hard to shake its former image as a maker of low quality products and is extremely sensitive on the issue.
Diageo has already apologised for the advertisements, which have been withdrawn. Furthermore, in a goodwill gesture, Diageo Taiwan chairman Lee Chi-ying announced that the company would place advertisements in London’s subways that will promote a positive image of the country.
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By GlobalDataWhilst the Taiwanese government has not yet decided whether to punish Diageo, which sells the popular Jonnie Walker whisky in Taiwan among other brands, it seems the company will be spared any further embarrassment and loss of revenue by political pressures. Taiwan is officially recognized by only 30 countries, making it unlikely to upset the UK at a time when it is seeking universal international status.
But the furore surrounding the ads highlights the fact that marketers and advertisers today walk a tightrope between humor and good taste. In the days of global business, and more saliently global media, there are simply more people to offend.
Ads for Smirnoff Ice in the UK often make a virtue of their irreverent humor, but this one has clearly overstepped the mark. Although Diageo looks likely to suffer little worse than a red faced apology, the episode is a timely reminder of the pitfalls that await the unwary advertiser in today’s global market.
Related Research:
Datamonitor, “The Future of Alcohol Advertising.”
