As the US Image is Battered Around the World, Coca-Cola is Rebranding in Germany

Many U.S. brands are taking the flak arising from the bad reputation that the country is getting in different parts of the world. For example, Elon Musk’s backing of Donald Trump and his polarizing political opinions on how Europe should be led have caused Tesla to lose its sales volumes in countries like Germany.

In fact, many owners of Tesla vehicles have gone as far as placing stickers on their vehicles stating that they acquired those electric vehicles before the owner of the company “went mad.” The way in which Trump has upset global trade with his tariffs has also worsened the image of the U.S. around the world, especially in Europe. American brands are taking the flak from this damaged image.

In light of this backlash, many American brands are going out of their way to rebrand in the different countries where they operate. One prominent case is Coca-Cola, which is running a campaign aimed at emphasizing its connection to its local German clientele. In its campaign, the firm is drawing attention to the names of its German employees to show the company’s local ties.

The slogans highlight the employee’s name and emphasize that a given product was made in Germany by that person. The names featured include Jana and Heike, among others. According to the company, the purpose of this campaign is to draw attention to the deep roots that Coca-Cola has in Germany, spanning more than a century.

The company also aims to educate consumers that most of the products sold by the company within the country are bottled locally.

The company appears to be concerned about being adversely connected to the politics in Washington, and brands like McDonald’s have also taken painstaking steps to cement their links to Germany. For example, the fast-foods chain has been emphasizing that most of the ingredients it uses in the country are sourced locally. These include cucumbers, beef, cream, eggs, and pork. This, they say, supports local supply chains.

As consumers in many international markets call for the boycott of American-made goods, we are likely to see more companies going out of their way to distance themselves from what is happening in America in an effort to retain their market share internationally.

For companies like Berkshire Hathaway Inc. (NYSE: BRK.A) (NYSE: BRK.B) that hold significant Coca-Cola stock, the rebrand in Germany will be something they watch closely while also monitoring other markets to gauge how their holdings could be impacted by the image crisis the U.S. is facing around the world.

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