Michael Farr holds the title Head of Reputation and Corporate Communications at SABMiller, a position created for him in the first quarter of 2007, and one which helps to illustrate just how seriously the global brewer takes its reputation.
That is perhaps not surprising, considering that SABMiller operates in a highly — and increasingly — regulated market, where a negative perception could encourage a government to ban, say, alcohol advertising.
But Farr, who spent three years as the head of communications for the South African Breweries Limited, and has also seen his share of politics as South Africa’s Consul General in Hong Kong, doesn’t think selling a product that makes for close scrutiny is a problem in and of itself — or that it is limited to those who sell alcohol.
“For a company like ours, which brews, markets and distributes beer and other alcoholic beverages as well as soft drinks, it is very different to selling insurance services, and the nature of the product is relevant,” he says.
“The inclination of people is to examine companies that are in the business of, say, alcohol, but the same can also be said of companies in the gambling business….
There is an expectation of proper behaviour if you are selling a product that, if abused, can cause harm, and there are lots of things for which that is true, such as fast food.
Society correctly has expectations of such businesses that they should make sure they are communicating openly and honestly about their products, and are also responsible for making sure consumers are aware that, if used irresponsibly, they can cause harm.”
SABMiller prides itself on promoting its brands responsibly through advertising and marketing, and sees no problem with doing so. “What advertising essentially does is inform people of what their brand choices are,” Farr says.
“There can be a misunderstanding if people think that advertising encourages people to start drinking because they see an ad for beer or wine. Motorcar advertising is not about saying you should drive, it is about saying that you should choose the following car because of the following value proposition. There is no compelling evidence anywhere in the world that says if you restrict or curb advertising it will result in a reduction of the harmful consumption of alcohol.”
South African consumers apparently agree with that sentiment, because SABMiller’s reputation ranking showed no damage from perceptions that it markets a harmful intoxicant that is linked to road accidents and domestic violence. Instead, it seems to reflect the success of the company’s efforts to ensure that not only its individual products, but the company as a whole, is considered a good citizen.
“Over the last two decades consumers have become much more interested in the company behind the product,” says Farr.
“They are still choosing a brand based on the brand proposition, price is still relevant, but increasingly we see that they will not buy brands from companies that they don’t respect or trust. The relationship with the consumer has evolved over time to become one in which who you are, and how you go about your business, is much more important than it used to be.”