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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (63209)	10/27/2004 2:59:01 PM
From: SiouxPal	Respond to of 89467

Remember there's an eclipse of the moon tonight (during the game) I think. Sioux

To: Jim Willie CB who wrote (63209)	10/27/2004 4:15:31 PM
From: Wharf Rat	Read Replies (1) \| Respond to of 89467

US brand giants suffer a sales slump in ‘old Europe’ By Dan Roberts in New York Many of the best-known US brands are suffering a sales slump in “old Europe”, raising questions about whether anti-Americanism is adding to local difficulties caused by slow economic growth. Coca-Cola, McDonald's, Marlboro and General Motors have revealed problems in Germany or France that echo those already faced by Disney, Wal-Mart and Gap. The companies blame their poor performance on a mixture of economic factors also reported by some non-US rivals: high unemployment, taxes and regulation. But the coincidence of problems in two countries famously described as “old Europe” by Donald Rumsfeld, US defence secretary, is proving a noticeable drag on the third-quarter results of many quintessentially American companies. McDonald's said last week that a sudden deterioration in the German appetite for some of its menu items had all but eliminated its sales growth in Europe. Coca-Cola, which makes 80 per cent of its profits outside North America, also had a sharp decline, selling 16 per cent less to Germans than this time last year. It is writing off $392m (£214m) to reflect impaired business assets there. Companies play down any political link, pointing to more immediate issues such as changes to recycling laws and a cool European summer. Neville Isdell, Coke's chairman and chief executive, said: “I'm sure you will find some consumers who say they have made a political vote, but in terms of impact overall, no [it's not an issue].” But the timing of the decline lends credence to warnings after the Abu-Ghraib prison scandal that US brands could face trouble. “My sense is we are seeing a transfer of anger and resentment from foreign policies to things American,” said Keith Reinhard, chairman of DDB Worldwide, an advertising agency. John Zogby, a US opinion pollster, reports similar trends. “I would not be surprised if we were seeing growing hostility towards American products,” he said. One brand suffering big falls is Marlboro. Tobacco sales by Altria, its parent company, are down 24.5 per cent in France and 18.7 per cent in Germany. Much of this is explained by tax rises and health campaigns, but Marlboro was hit particularly hard. Starbucks has cited some resistance to American brands in Europe though it said this was concentrated in certain groups such as older French coffee drinkers. In Germany, political hostility spilled over into business last week when General Motors was forced to lay off staff. The cover of Stern magazine depicted a GM-emblazoned cowboy boot, complete with stars and stripes, stamping on a crowd of German workers. Additional reporting by Gary Silverman in London, John Thornhill in Paris and Bertrand Benoit in Berlin news.ft.com