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Views and experiences in fighting of piracy and counterfeiting Malta, October 15 2009

Views and experiences in fighting of piracy and counterfeiting Malta, October 15 2009. Three billion times a day, Procter & Gamble (P&G) brands touch the lives of people around the world. Procter & Gamble is one of the largest FMCG Companies in the world

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Views and experiences in fighting of piracy and counterfeiting Malta, October 15 2009

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  1. Views and experiences in fighting of piracy and counterfeiting Malta, October 15 2009

  2. Three billion times a day, Procter & Gamble (P&G) brands touch the lives of people around the world.

  3. Procter & Gamble is one of the largest FMCG Companies in the world • It has operations in more than 70 countries worldwide • Approximately 300 brands are sold worldwide in more than 140 countries • Annual net sales of €60 billion (2008) • Around 110,000 employees

  4. Procter & Gamble markets 23 – billion dollar brands. You may be familiar with some of them: Ariel, Lenor, Always, Duracell, Braun, Pampers, Gillette, Head & Shoulders, Pantene, Olay, Oral-B, Pringles, Wella… P&G brands are inspired by the passion for understanding the needs, desires and aspirations of consumers and by their commitment to R&D. Counterfeit works completely against these very principles and ultimately against the consumer. This is why awareness is key to safeguarding the consumer.

  5. Procter & Gamble Spends €5 million per year to combat counterfeit globally • Associated losses are higher due to : • Customer dissatisfaction – both brand-related (e.g. Ariel Powder) and complimentary product (e.g. washing machine) • loss of sales

  6. EU Commission: Bolkenstein Report – Dec. 2000 • The issue does not concern just luxury products • E.g. perfumes (1%), watches (5%), designer labels (7%), spare parts, medicines or, cigarettes • ‘Other’ products (61%) have increased nine fold over the last decade alone • Counterfeit is therefore spreading to retail products

  7. EU Commission: Report – Dec. 2003 states: “The trend observed in recent years continues. Rather than targeting articles with high value-added, counterfeiters and pirates are instead opting to produce a variety of common household objects on a commercial scale. Increasingly the victims of this trade are small and medium-sized industries and enterprises.”

  8. The Issue is growing • Loss of €2 billion/yr in the EU due to counterfeit • From 1999-2005 increase of 190% in number of cases where customs took action • In 1999 - 25 million counterfeit goods were intercepted • In 2000 – 67 million were registered • In 2001 – 100 million articles were intercepted • From 2000 – 2008, the situation has worsened according to EU statistics.

  9. The issue has broader consequences • SOCIAL: • an est. 200,000 jobs lost • With an expected added loss of 17,000 per year • HEALTH: • Lethal fake antibiotics in 2000 • Today, 7% of global pharmaceutical trade is counterfeit • ORGANISED CRIME: • Child labour, money laundering, tax evasion, terrorist funding

  10. Dash Counterfeit Case 2003 - Malta • In 2003 VJSM was receiving reports from the trade that Dash powder was being sold at less than 50% of current market prices • VJSM investigated the product and sent abroad for testing and verification. • Very suspicious packing of outer ‘cases’ • In the meantime we started receiving consumer complaints on the performance of the ‘new’ Dash vs. the ‘old’ Dashpowder

  11. Dash Counterfeit Case 2003 - Malta • Once verified, we passed on the case to the police • Police confiscated close to 5,000 packs • Police prosecuted based on the evidence collected

  12. Pantene Counterfeit Case 2003 - Russia • Pantene Shampoo found to cause serious health effects after use • After investigation…..

  13. Counterfeits safety testing results • Counterfeited Shampoo tested. • Found: Hr. Fecalis. • Human excrements.

  14. Other Cases – experienced in Malta • Gillette: • Fusion Blades • Mach 3 Blades • Oral-B Toothbrushes • Ariel Powder • Pantene Shampoo • Head & Shoulders Shampoo

  15. Key Learnings • Expect the ‘Impossible’ – always bear in mind the possibility of counterfeit products • Use all resources available to track the source of counterfeit products: • Collaboration with legal, police, customs • Use all necessary means to protect your trademark.

  16. Thank you Gordon Grima Baldacchino Sales Manager V.J. Salomone Marketing Ltd. Malta

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