Advertising spend roars back

So says City AM today, Friday, reporting on the Advertising Association's latest figures.

Paid-for display advertising investment topped £ 17.2bn by the end of 2012, a 2.3% rise on the 2011 figure.

Now it's expected to overtake 2007's record high of £ 17.4bn this year!

Warren Buffett on Heinz

"If you own great brands and you take care of them, they're terrific assets."

(City A.M. this morning)

Kraft and Cadbury - one year on

Radio 4 have just run a programme one year on from Kraft's takeover of Cadbury.

It happened so quickly, apparently, because, by the time of the sale, only 28% of Cadbury shares were held in long term UK funds. 31% were in non-UK hedge funds.

It's interesting to read Elizabeth Fournier's piece in City A.M., about new proposals announced on Monday by the UK Takeover Panel, which oblige companies to work to stricter timetables and increase disclosure.

Apparently, under the new rules, Kraft would have been disciplined for failing to fulfil statements made during the bid, and the Somerbury factory and 400 jobs would have been saved.

It appears that Bournville is now becoming Kraft's global innovation centre/centre for chocolate! Let's hope that keeps the remaining 5,500 UK Cadbury/Kraft workers in employment.

We need more large multinationals

I make no apologies for quoting shamelessly from City a.m. editor Allister Heath's column from the 17th January. He in turn is reporting on a recent McKinsey report about the contribution to economic growth of large multinationals to the US economy; 23% of UK private-sector direct value add, 34% of private-sector value add if you include indirect value to their supply chain; 31% of growth in GDP since 1990; 41% growth in labour productivity over the same time period; 75% of private R&D spending; 50% of US exports; 33% of US imports.

The IPA, in its dealings with UK Government, particularly BIS and DCMS, has emphasised repeatedly the importance to the marketing services sector of encouraging big multinationals to make the UK their European HQ or their hub to the world outside of their immediate continent.

Our reputation globally relies on originating and managing international campaigns from the UK on behalf of multinational brands.
That's why we share Allister's worry that 'there are too few world-beating giant multi-nationals being created in the UK; and many existing ones are relocating their HQs for tax purposes out of Britain. Both these trends must be reversed.'