Experts Matter. Find Yours.
Connect for media, speaking, professional opportunities & more.
Two glasses of wine might add more sugar to your diet than eating a doughnut
Soft drinks have been the focus of the UK government’s attempts to curb people’s sugar intake in recent years, but the same approach has not yet been applied to the sugar content in alcoholic drinks. The government introduced “sugar taxes” on soft drinks in 2018, meaning manufacturers are charged a levy of up to 24p per litre of drink if it contains eight grams of sugar per 100 millilitres. This was done in order to attempt to reduce the public’s sugar intake in light of increases in childhood obesity. But a new report from Alcohol Health Alliance UK has suggested that just two glasses of wine contains enough sugar to meet the maximum recommended daily intake level – even more than a glazed doughnut. The report found that some bottles of wine contain as much as 59 grams of sugar per bottle. A standard bottle of wine contains 750 millilitres, which is equivalent to three large glasses of wine. This means in some cases a single large glass of wine can contain just under 20 grams of sugar, almost twice the sugar content of that glazed doughnut. So, when it comes to alcoholic drinks, how much sugar do they contain? Consumption of sugar-sweetened drinks has been linked to an increased risk of weight gain and obesity, and associated conditions such as type 2 diabetes. Most research into sugary drinks has focused on soft drinks, such as colas. Alcohol, or ethanol to give it it’s proper name, is itself calorific. Alcohol is second only to fats in terms of its calorie content per gram. On top of this potentially significant calorie content is the sugar that is contained in many alcoholic drinks. This includes the non-fermented starches and sugars found in beers and wines, or sugars added to some drinks such as cocktails or mixers to add flavour. It is unsurprising therefore that alcohol consumption has been associated with weight gain. Sugar levels in cocktails Surveys have reported that alcoholic drinks account for 10% of daily intake of added sugar in the UK for 29 to 64-year-olds, and 6% for the over 65s. This difference may be explained by the alcoholic drinks chosen by these different age groups. Near the top of the list of sugary drinks is likely to be the recent phenomenon of pre-made cocktails in a can, with some containing a staggering 49 grams of sugar per serving. Other more traditional cocktails also fare poorly when scrutinised for sugar content, a summer fruit cup cocktail, for example, may contain more than 25g of sugar per serving. This figure could be higher at home, depending on who makes the drink, and what is considered a serving. Having several of these cocktails won’t just make you merry, but will also provide more sugar than eating several chocolate bars. Wine can vary dramatically in sugar content, with the seemingly healthier lower strength alcohol wines often having more sugar and therefore not necessarily being healthier. In general, dry wines or red wines generally have lower sugar levels. For those of us who enjoy beers and ciders, these drinks can contain even more sugar per serving than wine. A pint of cider, for example, contains more than 25g of sugar, with some ciders containing an eye watering 46g of sugar per serving. Because spirits such as gin, vodka, whisky and rum are highly distilled their sugar content should be negligible. Without mixers, these drinks are clearly the healthiest in terms of both sugar and calorie content. The mixers they come with can however be sugar-sweetened so if you want to avoid sugar, having your gin neat or on the rocks is the best way forward. Better labelling It is clear that more can be done to alert people to the sugar content of alcoholic drinks. The first step would be to mandate that alcohol producers accurately label their products, not just with alcohol content by volume, but also sugar and calorie content, so consumers can make informed choices. Equally, altering the sugar levy to target alcoholic drinks more specifically would likely cause drinks manufacturers to alter their recipes to have less sugar content. The levy on soft drinks has shown this can work, with significant reductions in consumption of sugar-sweetened non-alcoholic drinks since 2018. The government claimed that the tax on soft drinks resulted in more than 50% of manufacturers reducing sugar content in drinks between March 2016, when it was announced, and its introduction in 2018. In the UK more than 20% of people regularly drink alcohol at levels that increase their health risk. People should also be aware of the less obvious risks posed by drinking alcohol, including the sugar content, and take this into account when choosing their tipple, especially if they are trying to lose weight.
An Opening Day Predicament—Will Baseball Fans Side with Billionaire Owners or Millionaire Players?
A percolating labor showdown between well-heeled Major League Baseball team owners and well-paid baseball players threatens spring training and Opening Day. For the time being, it is an amicable negotiation to carve a new Collective Bargaining Agreement in time for the 2022 season, but it could turn sour, as these things tend to do. As usual, the fans are in that empty, helpless space between billionaire owners and millionaire players. “There’s still a little bit of time here before panic and pressure set in,” said Mike Lewis, Goizueta professor of marketing and a national expert on fandom who also serves as the faculty director of the Emory Marketing Analytics Center (EmoryMAC). “If we get to Opening Day and there is no baseball that is going to be a major shock to the system, and it is going to have major ramifications.” Lewis explains, “Fandom is built by the epic moment, the walk-off home run and the spectacular catch, but fandom is also hurt by the epic failure, such as canceling Opening Day. You might not see it in the data for this season, but it is going to be a hit on the fans’ long-term appreciation for their team.” So, whose side should fandom be on? The billionaire owners or the many millionaire players? The Baseball Collective Bargaining Agreement, Explained Lewis spells out the current baseball dilemma. Players want to reduce the time they have to wait to enter full free agency, which is currently six seasons. The players also want teams to be able to spend at least $245 million a season, per team, on salaries before MLB hits the clubs with a luxury tax, which is a way to keep rich teams from buying all the talent. The luxury tax ceiling is currently $210 million. Players are not happy with the luxury tax because it resembles a “soft” salary cap, or a limit on their pay. “A lot of what the players are looking for is the freedom for the owners to spend,” Lewis says. “And more freedom for the owners to spend is going to make the competitive balance issues in Major League Baseball worse.” Do the fans really want that the players to win this labor fight? Major League Baseball instituted a luxury tax system in 2002 with a new Collective Bargaining Agreement that charged a fee to teams whose payrolls passed a certain threshold. It was done to keep clubs like the Yankees, Red Sox, Dodgers, and Cubs with their massive local television revenues from stockpiling all the stars, Lewis explains. He goes on to say that the luxury tax penalty has slowly lost its effectiveness because revenues have grown in MLB. The rich teams shrug at the tax and the results have been awful for competitive balance in the game. Fans of less wealthy teams despair in this state of oligopoly in baseball. There have been as many 100-loss teams in the past three full seasons (2018, 2019, 2021) as there were from 2007-2017 combined (11). Good players flee the less wealthy teams, losses pile up, and fans are put off. If we move back to the wild west with the market it is going to be harder to keep the franchise superstar in town. “We know what the system’s going to look like with a more open market. It’s going to look like the New York Yankees dominating, as they did in the late 90s and early 2000s. It’s going to look like Alabama in college football.” If the players have their way in this latest bargaining, they will be “stuck” for just three or four years with the team that drafts them, not six, before they hit free agency. Morgan Ward, Goizueta assistant professor of marketing with a research focus on consumer behavior, said the labor tussle between wealthy owners and wealthy players is a “rich people problem” that threatens the “folklore” of the game. “I think it could have a really alienating effect overall on the general public just because it changes the focus of the game, it takes something very communal and familial and makes it very transactional,” Ward says. “It can be very distancing for the fans and, if anything, illustrates the schism between the fans and these players. These are not your friends or neighbors. They are in a very different place in life.” So, Will Fans Side with the Owners? It’s more complicated than that. “The fans have an emotional attachment with the players and no real emotional attachment with the owners,” Ward says. What the Major League Baseball Players Association, or the union, better not count on, Ward notes, is the fandom rallying to the players just because we have seen a national shift toward worker’s rights that arrived with the COVID-19 pandemic. One of those shifts was college athletes, at last, being able to make money off their name, image, and likeness. Labor has been humanized on a certain level, but even though the baseball players are “labor” and in a “union,” Ward says there is no comparison between the fight for college athletes against the majordomo NCAA, the governing body of college athletics, and baseball players against baseball owners. “The public is sympathetic with people in low-wage, high-service industries that finally have the ability to negotiate,” Ward says. “But it’s hard for me to see the same victimization of baseball players that happened with college athletes.” The last time there was a prolonged labor dispute between the owners and players, which was in 1994, it was disastrous for baseball. The players went on strike in August that season, which canceled the World Series. Average attendance per game that season was a then-record of 31,256. It took 10 years for baseball to average more than 30,000 fans to a game because fans became disgusted with the owners and players. “How much should we expect fans to endure this time?” Lewis asks. “They just came off Covid when there were restrictions on attendance and a shortened season,” Lewis said. “This stuff adds up. The fan is going to say, ‘Why am I loyal to these guys?’” If you're a reporter looking to know more - then let us help. Professor Mike Lewis is an Associate Professor of Marketing at Emory University’s Goizueta Business School and is an expert in sports analytics and marketing. Morgan Ward is an Assistant Professor of Marketing at Emory University’s Goizueta Business School and is an expert in consumer behavior. Both experts are available to speak with media - simply click on an icon to arrange a discussion today.
How to protect yourself against financial fraud as a newcomer in Canada
As a newcomer in Canada, your financial security is of prime importance. However, fraudsters and scammers recognize that newcomers can be easy targets, as they don’t necessarily have the information needed to protect themselves against fraud. Being in a new country, you may not be aware of the ways in which financial fraud occurs, how to identify fraudulent situations, or where to report fraud. This article gives you an overview of the various types of financial fraud and scams that occur in Canada and provides valuable tips to help protect you against financial fraud as a newcomer. Recognizing common financial fraud and scams in Canada Phishing emails or text messages Phishing emails or text messages are often designed to look like they are from a source or website you trust, like your bank or an online store. The sender will ask you to click on a link or download a file, or will try to create a sense of urgency, such as saying there has been some suspicious activity from your account or that you need to update your payment information to keep your account active. Be sure to check the email address the email originated from. If the domain name doesn’t match the organization’s name, it’s likely a phishing attempt. Other red flags can be bad grammar, a generic greeting, or unsolicited attachments in the message. If you suspect that an email or text is fraudulent, call the organization to verify before clicking on any links or sharing any personal information. Generally, Canadian banks will never ask you to share personal information, such as account numbers or Social Insurance Number (SIN), over email or text message. Debit or credit card fraud Debit or credit card fraud happens when someone steals your credit card, PIN, or bank card information and uses it to make purchases or withdrawals from your account. Fraudsters can use different ways to get your credit card information, including stealing bank statements from your mailbox or garbage, hacking into company databases to steal information, prompting you to use your credit card on a fake website, or through phishing emails. You can prevent debit and credit card fraud by keeping your credit card and personal information safe. Check your bank statements or banking app regularly to ensure that you can identify all the transactions. If you think you have been a victim of credit card fraud, call the phone number on the back of your credit card immediately to get in touch with your bank and lock your card to avoid additional fraud. Immigration and citizenship fraud There are several private immigration consulting organizations that specialize in helping newcomers come to Canada. However, if you come across a website that asks you to pay for immigration or application forms or guides that are otherwise available for free on the Immigration, Refugees, and Citizenship Canada (IRCC) website, it might be fraudulent. You may also receive fraudulent phone calls or emails from someone posing as an immigration or citizenship service provider, claiming that they can guarantee entry into Canada, provide jobs, or fast-track your immigration processing for a fee. Never share your financial details with such organizations without contacting the website owner and checking online reviews to confirm the legitimacy of the business. Also, learn about the immigration and citizenship process so you can identify fake claims. Employment fraud While looking for a job as a newcomer in Canada, be on your guard against fake “employment agencies” who ask you to pay for “training” in order to get a job or promise you a guaranteed job if you pay a large upfront fee. Legitimate recruiters or agencies in Canada will never guarantee job placements or force you to undergo mandatory training. Typically, when employers use external recruiters or agencies to find candidates, the organization, not the candidate, pays the agency’s fee. Fake phone calls from “CRA” or tax fraud Many newcomers receive fraudulent phone calls from someone claiming to be from the Canada Revenue Agency (CRA) or Service Canada. Typically, the caller (or recorded message) will state that you have unpaid tax liabilities or that your Social Insurance Number (SIN) has been compromised. In some instances, scammers may even claim there is a warrant out for your arrest, which can be quite alarming. They may ask you to share your SIN number or make a payment through wire transfer, bitcoin, or prepaid gift cards. These callers are often aggressive and use threatening language to scare the recipient. In a variation of this type of fraud, the caller (supposedly the CRA) will claim that you’re entitled to a tax refund and will need to share your banking information to get it. The CRA typically contacts individuals by message in their secure online portal, so if there is an issue with your tax return, you will see a message about it there. If you’re unsure about the legitimacy of a call, hang up and call the agency to verify its authenticity. Educate yourself on the ways legitimate government agencies can contact you and the questions they may ask. Pyramid or Ponzi schemes A pyramid scheme is a business model where you’ll be offered payment or commission for enrolling other members, rather than for selling actual products or services. You’ll be asked to pay an upfront “membership fee,” with promises of being able to turn a profit once you start bringing in more members. A Ponzi scheme is a type of fraud where you’re lured into investing money with the promise of very attractive dividends. In reality, your money is not being invested anywhere and is instead being used to pay “dividends” to other investors. Investors may receive lucrative dividends for some time until the pool of new investors dries up. If the promised returns seem too good to be true, it may be a Ponzi scheme. Be sure to carefully vet investment opportunities or speak to your financial advisor before making any investments. Catphishing or romance fraud If you’re active on dating sites or apps, keep an eye out for romance fraud. Catphishing, or catfishing, is when a person pretends to be someone else online, using a fake name, photograph, or story. A fraudster may spend time talking to you online, and once they’ve established a romantic connection, they’ll ask you for money, claiming that they need it to help a sick relative or get over a bad stretch. In some cases, the scammer may even meet you in person to make the relationship seem more legitimate. Fake computer virus or ransomware In this type of scan, the victim gets a call or email claiming that their computer has been infected with a virus. The scammer may ask for money to remove the virus or could try to access personal information and passwords through their device. Be sure to install an anti-virus to protect your laptop and mobile device. Fake prizes If you receive a message, email, or phone call saying you’ve won a prize for something you don’t remember participating in, it’s probably a scam. Fraudsters may use this opportunity to collect your personal information or verify your contact details, so avoid responding to such messages or sharing any information. If you’re unsure about the legitimacy of the prize, check the organization’s website to confirm whether the contest or offer is real. Tips to protect yourself against financial fraud as a newcomer Financial fraud can impact your financial stability and, as a newcomer, it’s important to safeguard yourself against potential threats and fraudulent activities. Here are some key things you should keep in mind to protect yourself against financial fraud: Keep close track of finances. Review your bank account, credit card statements, and credit report regularly and report any inconsistencies early. If you’re unsure about what to look for, speak to a financial advisor for more information. Protect your personal and financial information. Change your banking passwords often and don’t write them down. Keep your credit card and credit card information safe, and don’t use your credit card on untrustworthy websites. Don’t share your personal or financial information, including your SIN, unless you know why it’s needed and how it will be used. Educate yourself on who can ask for your SIN or credit history, and only share this information if it’s absolutely necessary. Learn to identify fraud. If an offer seems too good to be true, it’s likely fraudulent. Always review the terms and conditions of the service or financial product you’re purchasing before making any payments. Borrow only from trustworthy financial institutions. Credit is an essential part of Canada’s financial ecosystem. Financial institutions like banks, credit unions, mortgage providers can provide you with credit to cover your expenses. Avoid going to illegitimate local lenders or payday loan providers as they could misuse your financial information or lead you into debt. Verify suspicious phone calls or emails and report fraud. If you’re unsure about the legitimacy of an email or call you received, check for signs of phishing or contact the organization or agency to verify whether the information is accurate. Don’t share your financial or personal information with anyone or click on any links until you’ve verified the authenticity of the message. If you suspect that you’ve received a fraudulent phone call or email, report it to the Canadian Anti-Fraud Centre by telephone at 1-888-495-8501, through their website, or by email (info@antifraudcentre.ca). If your SIN has been stolen, report it to Service Canada at 1-866-274-6627 as soon as possible. Keep your laptop and mobile devices safe. Never give physical or virtual access to your devices to someone who isn’t an authorized service professional or someone you didn’t contact for service or repair. Your devices may contain saved passwords, login details, or other personal information that fraudsters can extract and misuse. Always wipe your devices by restoring factory settings before selling or scrapping used laptops or mobile phones. As a newcomer in Canada, receiving phone calls from someone posing as a CRA official can be alarming. By learning to recognize common financial scams and verifying potentially fraudulent claims, you can safeguard yourself against fraud. Remember, by reporting fraudsters, you are protecting not just yourself but also countless others who may otherwise be targeted by financial scams. Original article located here, published by Arrive. About Arrive Arrive is powered by RBC Ventures Inc, a subsidiary of Royal Bank of Canada. In collaboration with RBC, Arrive is dedicated to helping newcomers achieve their life, career, and financial goals in Canada. An important part of establishing your financial life in Canada is finding the right partner to invest in your financial success. RBC is the largest bank in Canada* and here to be your partner in all of your financial needs. RBC supports Arrive, and with a 150-year commitment to newcomer success in Canada, RBC goes the extra mile in support and funding to ensure that the Arrive newcomer platform is FREE to all. Working with RBC, Arrive can help you get your financial life in Canada started – right now. Learn about your banking options in Canada and be prepared.
American Rescue Plan Act can do more to address racial wealth inequality
While the American Rescue Plan Act provided a major infusion of economic aid to low-income and middle-class Americans, more should be done to tackle racial wealth inequality and the structural issues in the tax code that allow those at the top of the income distribution to benefit disproportionately from tax subsidies, an Indiana University professor wrote. Goldburn P. Maynard Jr., assistant professor of business law and ethics at the IU Kelley School of Business, analyzed the American Rescue Plan Act's major provisions to determine their potential impact on racial equity, presenting his findings in Yale Law Journal. The article, "Biden's Gambit: Advancing Racial Equity While Relying on a Race-Neutral Tax Code," was published Jan. 9 and is part of a series that examines the novel tax implications of the American Rescue Plan Act through the lens of fiscal impoverishment, race, unemployment insurance, and state and local responses to economic crises. "While analysis reveals that the Biden Administration made some progress on (racial equity) through ARPA, in the months since its passage, federal courts have undermined some of this progress by halting race-conscious equity programs in ARPA," wrote Maynard, who worked as an estate tax attorney for the Internal Revenue Service before entering academia. His essay argues that "race consciousness is central to achieving" racial equity and "requires more than traditional policies that target financial need." The bulk of the stimulus measure focused on redistribution through the tax system, which does not incorporate racism and other dimensions of social inequity into its notions of fairness, Maynard wrote. To this day, the IRS does not collect racial data on taxpayers. He also noted that several policies targeted people or groups based on need. For example, the Department of Housing and Urban Development in November provided $14 million in American Rescue Plan funds to support fair housing organizations. But few new policies under the plan have addressed systemic discrimination, and most were designed to be temporary, such as the child tax credit. "Where these policies fall short is their lack of focus on historic systemic discrimination," Maynard wrote. "ARPA does not tackle the central issues that lead to racial inequity in the first place. Because RE requires the consideration social hierarchy and historical injustices, these provisions of ARPA are not as impactful as others." Several core policies in the American Rescue Plan Act target individuals or groups based on need, particularly racial minorities, he said. But several courts with conservative judges have treated race-based policies designed to counteract racial inequities as discriminatory in their interpretations of the Constitution. "Today, many courts equate efforts to promote RE with efforts to promote racial segregation. The odds of having all three branches in perfect alignment are slim," Maynard wrote. "ARPA also illustrates weaknesses in our current understanding of the Constitution as limiting the government's ability to redress historic wrongs. The status quo limitations are so strong that it is hard to imagine any large pro-equality advancements in the foreseeable future. "At our current pace, achieving RE will be a centuries-long project. This is discouraging, but highlights the importance of continuing the fight for wealth taxation and other levies on capital. It also underscores the smallness of the tax system when tackling a problem as embedded as RE. There are many decisions, regulations and laws that have embedded racism structurally and systematically. The tax system serves as an efficient compensator of harm, but this is not always what the victims of harm want. Instead of after-the-fact compensation for discrimination, victims of inequities often prefer to have the discrimination eliminated. That is the purpose of RE. The tax system can play an important role in promoting RE, even if it is not the leading one."
Rochester's David Primo on how the wealth tax proposal will (or won't) work
“The ‘wealth tax’ that’s being proposed in the current budget is really a tax on unrealized capital gains, so the stock that you have not sold yet but which has seen gains would be taxed before it is sold,” says David Primo, the Ani and Mark Gabrellian Professor and an associate professor of political science and business administration at the University of Rochester. “It applies only to the ‘richest of the rich’ and many questions remain as to how the operational and Constitutional concerns of it will be addressed. This proposal is much different from traditional wealth taxes where the idea has been to assess the wealth of tax payers every year and have the wealthiest individuals pay a tax on their net worth.” Primo is available for interviews and can discuss the precedent that this current wealth tax would establish with regard to taxing stock investments; if this is the best approach to taxing the wealthiest Americans; if it would even generate enough tax dollars to make a difference with the federal government’s current spending obligations; and more.
Timpson CEO joins Aston University as visiting professor
• James Timpson OBE has been the chief executive of Timpson since 2011 • He will work within Aston University’s College of Business and Social Sciences to develop connections in personal financial wellbeing and tax • Professor Timpson will engage with students about values in leadership and will deliver a public lecture on corporate kindness. The CEO of retail chain Timpson has joined Aston University as a visiting professor within the College of Business and Social Sciences. James Timpson will work closely with Aston University’s head of accounting to develop connections between Aston Business School and the tax and financial wellbeing industry over the next three years. In his first 12 months he will engage with both first year and pre-University students about University life, running a business and values in leadership and corporate kindness, delivering a public lecture around the latter reflecting Timpson’s work with ex offenders. He will also have the opportunity to talk to Masters students who have interests in corporate cultural development alongside Aston University’s Work and Organizations and Strategy departments and its MBA programme. Professor Timpson will also work with colleagues at Aston Business School to develop connections on his interests related to the University’s research agenda, such as TaxWatch, and connect Timpson with the student placements team to explore possible opportunities for student third year placements on MSc and MBA project work. Professor Timpson said: “I am excited to join Aston University as a visiting professor and to pass on some of the knowledge and connections I have built over the last 27 years in business. “I am looking forward to discussing the mechanisms of business with the business leaders of tomorrow at Aston University and about culture and corporate kindness at the University and its activity and plans in this area. “The Timpson Foundation specialises in the recruitment of marginalised groups within society as well as supporting numerous other socially minded projects. Approximately 10 per cent of our workforce is made up of people who have criminal convictions. We believe in giving people a second chance.” Professor Andy Lymer, head of accounting at Aston Business School, said: “I am really looking forward to working with James. “This well-deserved award recognises the distinguished contribution that he has made and continues to make to the business community. We are privileged to have a business leader of James' stature join our faculty. “As a university that values highly practical experience, his wide and varied track record at boardroom level will provide invaluable stimulus and advice for our students and staff alike.”
Aston Business School to host hybrid conference on tax
• The Tax Research Network (TRN) annual conference will run from 8 – 10 September both in person and online • The focus of the three-day event will be on tax research and education • Over 80 speakers and delegates from across Europe, USA, India, New Zealand and South Africa will take part in the event with around half livestreamed on YouTube Aston Business School (ABS) will host the prestigious Tax Research Network (TRN) annual conference this week. The TRN is one of the main global groupings of those interested in tax research and education with around 500 members worldwide. The event, which is sponsored by the Chartered Institute of Tax (CIOT) and the ICAEW Charitable Funds, will run from 8 – 10 September both in person and online. Two days (8-9 September) will focus on tax research and the third day (10 September) on tax education which will be a series of workshops looking at different current issues in teaching tax. Over 100 speakers and delegates from across Europe, USA, India, New Zealand and South Africa will take part in face-to-face keynote speeches and panel discussions in Aston Business School with around half live-streamed on YouTube. Professor Andy Lymer, who is head of accounting at Aston University and chairing the event, said: “I am delighted that Aston Business School is hosting the Tax Research Network’s (TRN) annual conference. “This is their annual conference which is usually a face-to-face event but was virtual last year and this year hybrid. “Our hybrid approach is a first for ABS with a mix of face-to-face lectures and live-streamed parts interlaced with pre-recorded paper and keynote and panellist contributions. “Aston University will be represented by various academics including Dr Carlene Wynter who is chairing a session on tax and housing linked to the work she did last year with others at the university on social housing and tax as well as presenting a paper.” The schedule includes Dyfed Alsop, CEO of the Welsh Revenue Authority and Stephanie Gray, head of income tax and reserved tax unit in the Scottish Government and various workshops from speakers including Phyllis Alexander (Bournemouth University) on developing international tax teaching in light of current trends in this area towards developing fairer tax systems and Nicky Thomas (University of Exeter) and Terry Filer (Swansea University) on innovations in teaching tax including making use of VR and Lego. You can book your place(s) here. The full schedule for the conference is available here. Full details of the parallel sessions are available here.
When it comes to marketing, the endgame is almost always to increase brand awareness, strengthen relationships between companies and consumers, and boost market share. But counter-marketing efforts are often employed to reduce consumption of “vice” goods such as cigarettes, sugary sodas, and fast food. Earlier this year, Michael “Mike” Lewis, professor of marketing, faculty director, Emory Marketing Analytics Center, published “Investigating the Effects of Excise Taxes, Public Usage Restrictions, and Anti-Smoking Ads across Cigarette Brands.” in the Journal of Marketing. Mike, along with co-authors, Yanwen Wang PhD14, associate professor of marketing and Canada research chair in Marketing Analytics at the University British Columbia, and Vishal Singh, professor of marketing, Leonard N. Stern School of Business, New York University, took a closer look at the role counter-marketing plays in the consumption of “vice” goods. Given that many “vice” categories are dominated by high-equity brands such as Marlboro, McDonald’s, and The Coca-Cola Company, the authors wanted to explore whether or not strong brands “might also affect the efforts of advocacy groups and regulators to disrupt these relationships and reduce consumption,” they note in their paper. The research focused specifically on the interplay between branding and counter-marketing with respect to cigarette consumption. By focusing on brand manufacturers rather than on regulators and consumers, the authors believe they’ve closed a gap. “The literature on smoking cessation has largely ignored the impact of branding on efforts to reduce cigarette consumption,” they write. “This is an oversight given that marketing researchers have found that brand-consumers’ relationships have significant effects on consumer decision-making.” A full article on the research is attached and is well worth the read. In that piece, readers will learn more about how the researchers expected that strong brands would take advantage of their increased customer loyalty and diminished price sensitivity to protect them from counter-marketing tactics. And while it might be counter-intuitive, the author’s research suggests that market leading cigarette brands would be better off pushing for excise taxes on cigarettes (versus smoking restrictions), as such tax increases would be attractive to government agencies (by increasing government revenue), and big brand cigarette companies would capture more market share. In other words, when it comes to combating counter-marketing efforts, “brand managers may devise strategies or lobbying efforts based on their category position,” suggest the researchers. “This isn’t a clear-cut battle of good versus evil. It’s more a matter of a brand’s people advocating for one position,” said Lewis. “A position that’s going to make them more resilient to some of these tactics.” In addition to big brand cigarette companies, the paper’s findings have implications for brands that anchor other vice categories, such as McDonald’s and The Coca-Cola Company, entities that have been the target of counter-marketing campaigns by various anti-obesity groups. According to Lewis, Wang, and Singh’s research, much of the response by these brands to the counter-marketing attempts has been centered around public relations, but the authors see opportunities to employ “different tactics” that are “appropriate for different brands,” they write. "Relationships between consumers and relatively weak brands may be disrupted using taxes, while for strong brands, the appropriate tactic seems to be usage restriction that limit public consumption. Our results suggest that brand building is the correct response to taxes, whereas usage restrictions would call for other responses, such as lobbying.” If you are a reporter looking to know more about this subject or if you have questions, then let our experts help. Professor Michael Lewis is an Associate Professor of Marketing at Emory University’s Goizueta Business School. In addition to exploring trends in the overall marketing landscape, Lewis is an expert in sports analytics and marketing. He is available for interview - simply click on his icon to arrange a discussion today.
Early-stage entrepreneurial activity in 2020 had fallen sharply from its pre-pandemic high in the UK as the economy was essentially shut down for long periods due to COVID-19 This decline was due to fewer nascent entrepreneurs than normal – that is, individuals in the first three months of starting their new business venture Nevertheless, around two-thirds of working-age adults looking to set up a business within three years said the pandemic had influenced their decision to re-assess their future engagement with the labour market As in previous economic downturns it is the small business community that drives the recovery across all sectors of the economy. UK entrepreneurs once again stand ready to rise to the challenges and opportunities created by the Coronavirus pandemic and the economic fallout from Brexit, a new report says. The latest Global Entrepreneurship Team (GEM) UK report found that although around of half budding entrepreneurs said that the UK government had so far dealt effectively with the economic consequences of the pandemic, there must be improved programmes, financial support and advice to start-ups and scale-ups through different stages of the business life cycle. GEM is the world’s largest survey of entrepreneurship and is the only global research source that collects data on entrepreneurship directly from individual entrepreneurs. It measures various rates of entrepreneurship in 43 countries in 2020. GEM’s UK team – which is led by Professor Mark Hart of Aston University – compared attitudes, activity and aspirations in the UK, Germany and the United States as well as the four home nations of the UK. Access to finance remained one of the major obstacles to entrepreneurial activity in the UK. Enhanced tax benefits for entrepreneurs, such as tax breaks for start-ups and businesses in difficulty to reduce early exits and better tax incentives for recruitment, investment in managerial and digital practices and skills were also highlighted1. The report also called for more entrepreneurial education, especially at school age as well as improved technical education and improved links between the educational system and industry to boost growth post-COVID and post-Brexit. It found that the UK still lags behind many comparable economies in this respect. Mark Hart, professor of small business and entrepreneurship at Aston Business School and deputy director of the UK’s Enterprise Research Centre, said: “The GEM survey undertaken in the last few months of 2020 showed a sharp fall in the number of individuals in the early stages of setting up a new business compared to the pre-pandemic high in 2019. “This is hardly surprising, but the analysis has also shown that the entrepreneurial foundations of the economy and society are still strong and these will be crucial for the recovery after the pandemic and in dealing with the ongoing economic fallout from Brexit. “Those ethnic-minority communities that have borne the brunt of the pandemic in terms of infection, hospitalisation and sadly deaths demonstrated their resilience by maintaining their previous levels of early-stage entrepreneurial activity (TEA rate) which were significantly higher than for the non-ethnic minority population. “Clearly, the pandemic has had no damaging impact on the level of entrepreneurial activity by immigrants and ethnic-minorities although it has depressed it for life-long residents and the non-ethnic population. “There is undoubtedly an appetite for people to start their own businesses in the next three years and many report new opportunities because of the pandemic but they are delaying the actual decision to get the business operational.” The full GEM UK impact report, sponsored by NatWest, is available for download here.
Brexit: UK services are losing out to EU rivals – but Asia could be big winner
"Seven months after Britain’s exit from the EU, the chilly effects on UK trade are being felt. Total exports of UK goods and services were down by 13% (£36 billion) and imports down 22% (£66 billion) for January to May 2021 compared to the same period in 2019." Professor Jun Du, Aston Business School Singapore looks like one of the big winners from Brexit. joyfull In a separate new ONS report into UK services, exports and imports fell 12% and 24% in the first quarter of 2021 compared to the same period in 2019. To some extent this is due to the pandemic, but the decline with EU countries was more severe (exports down 15% and imports by 39%), which suggests Brexit was relevant too. The difference between services exports to EU and non-EU countries was particularly marked in sectors like construction (-43% vs +24%), maintenance and repair (-62% vs +11%), and manufacturing services (-40% vs -12%). It seems to confirm that the UK’s services offering has been made less competitive by the EU-UK Trade and Cooperation Agreement hardly covering such business. This has left EU members free to decide whether to allow different UK providers into their markets. But as we shall see, other services exporting countries outside the EU may also benefit as a result. In our recent paper, Ireland looked like the big winner. It has probably benefited from firms relocating and business being re-routed from the UK, not to mention low corporation tax and a young well-educated workforce. Between 2016 and 2019, Ireland’s services exports rose 24% (that’s €144 billion or £123 billion), driven by financial services, IT and transport. Speculation still abounds about which other EU cities will benefit in the medium term. Amsterdam surpassed London as Europe’s largest share-trading centre in January by absorbing much trade in euro-denominated assets, though London has been back on top recently. Other potential winners include Frankfurt (banking), Luxembourg (banking and asset management) and Paris (financial, professional and business services). Even a less serious contender like Berlin can attract tech talents thanks to its culture clusters and affordability. On the other hand, most financial traders have so far remained in London. The city is still strong in hosting stock market flotations and other forms of capital raising. And the flow of financial jobs out of London has been a fraction of what remainers predicted. A four-year regulatory transition period for areas like data protection and electronic trade will undoubtedly be helping. London vs EU rivals is only half the story. James Padolsey/Unsplash, CC BY-SA Yet all this misses a bigger picture, namely that Europe’s ability to provide services may have been weakened overall. Imagine a group of US investors wants to invest £1 billion in European shares and other financial assets. In the past it might have set up a fund in London, making use of the city’s network of lawyers, accountants, bankers and other finance professionals, while filtering some of the work to specialists in, say, Paris and Frankfurt for issues related to France and Germany. But now Brexit means the fund can’t invest in certain EU securities from London. The investors would have to set up a second fund in, say, Dublin to get exposure to all the EU assets they want. The additional expense and time involved makes them decide it will be more lucrative to set up an Asia-focused fund in Singapore instead. When you multiply this effect across every sector, it is potentially huge. Certainly some investors will decide to either switch attention from the UK to EU countries, or to live with the extra cost of doing business across both the UK and EU. But others are deciding that an opportunity somewhere else in the world now looks more attractive. The danger is that this adds up to a global shift in economic weight over time. In fact, we could be seeing signs of this already. Winners and losers In follow-on research that we have yet to publish, we have been analysing the services exports of the major service providers in Europe and globally, using trade data jointly collected by the World Trade Organization (WTO) and the Organisation for Economic Cooperation and Development (OECD). The data shows the UK was and is the biggest services exporter in Europe and second only to the US worldwide, but appears to have been losing ground since Brexit. Ireland and the Netherlands are the major growth stories in Europe, while China, India and Singapore are leading the way elsewhere. Services exports by country, 2019 vs 2015 Trends in services exports. Left: 2015 data in solid coloured bars; 2019 change in yellow markers. Right: Green bars represent accelerating service growth; red bars represent decelerating growth. BaTIS The UK’s services growth trend fell 11% in the 2016-2019 period compared to 2010-15. This backs up our recent published research finding that the UK’s global share of exported services fell from 8.9% in 2005 to 7% in 2019. Meanwhile, France, Spain, Italy and Belgium’s growth has also been declining, while Germany, the Netherlands, Switzerland, Luxembourg, Austria and also the US were static. Ireland was the fastest growing services exporter among all, but Singapore and India gained momentum too. Strikingly, we see increasing growth in Asia between 2016 and 2019 in sectors like travel, financial, IT and creative services. This includes extraordinary growth in Singapore in finance, business, insurance and pension provision, and also in China in numerous segments. It looks like nothing short of a boom. Shanghai has been on the up and up. Krzystsztof Kotkowicz, CC BY-SA This may partly reflect the industrial transformation taking place in the Asian developing world from manufacturing to services. It may also capture a long-term shift of services centres from the west to the east – a reshuffle on a truly global scale. But at the same time, it’s evidence that Brexit has weakened the UK as the European centre for services. Yes, business shifted to Ireland (and Luxembourg) to some extent, but that could be hiding a wider collective setback. The question for the years ahead, for the UK and its European services peers, is whether they can come up with arrangements that help maintain their collective strengths – and to what extent they can exploit opportunities elsewhere, particularly on developing countries, where US services providers have traditionally been far ahead. This article was co-written by Professor Jun Du and Dr Oleksandr Shepotylo.
