Banned in Denmark, but Marmite still available in Harrogate, Eastbourne, Cheltenham and the UK.

For some reason this Daily Telegraph article about Marmite reminded me of a new sticker added to a poster on the London Underground which proudly stated that the film Life of Brian was banned in Harrogate, Eastbourne and Cheltenham.

Marmite is by product of brewing, and the little black jars with the yellow lids have sat on store shelves for over 100 years but how far Unilever, the makers of Marmite anticipate that the Danish Government would ban sales of their spread is open to question, but it does highlight the role governments can play in the sudden reduction of sales revenues and damage to a profit stream. National safety standards have been used as a means of limiting imports, and are cited as a form of unfair trading practice.

Sales of Marmite and other products fortified with added vitamins are prohibited in Denmark. Is this due to market failure, or is it likely to be a government failure, economists may argue if the product really is a demerit good. Has the Danish Government over estimated the health risk of this spread, and understated the benefits? Should consumers be allowed to make up their own minds about this paste?

The case outlined here may also highlight the role of the media and a good PR team in creating a climate for change to reverse the prohibition. This example could be brought into a PESTLE analysis.

The additional news coverage may raise the profile of Marmite, and offset lost sales in Denmark. Students could consider if Marmite is going to have another product life extension or whether it is going to finally decline. Which diagram would you draw?.

I wouldn’t be too surprised if there is a sudden change of heart in Copenhagen.

Funnily enough, I have just read that The Danish Ministry of Food Agriculture and Fisheries or DVKA now states that Marmite is not banned in Denmark. But The Danish Food and Veterinary Administration has not received an application for marketing in Denmark of Marmite or similar products with added vitamins or minerals, which means that it cannot be sold unless it has been approved by the DVKA.

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