Taiwan mulls Diageo ban

All Diageo products would be included in the ban

By Damian Grammaticas In Hong Kong

Taiwan's parliament has called for a one-year ban on all sales of drinks made by Diageo, the world's biggest maker of alcoholic drinks.

The ban is in response to a Diageo advertisement which Taiwan's parliament believes has damaged the island's image.

UK-based Diageo withdrew the posters, which were placed in the London Underground rail system in December, and has apologised.

But Taiwan's government says it is now considering the request by lawmakers to seek damages from the company.

Offensive?

The row is about a pre-Christmas advertising campaign for Smirnoff vodka which Diageo intended to be funny but which offended many Taiwanese.

The poster campaign showed a Christmas present with the label saying, "Warning. This gift will break down on Christmas morning.

Replacement parts available from Taiwan. Allow three hundred and sixty-five days for delivery."

In the 1980s, Taiwan had a reputation for poor quality manufactured goods.

Now it produces much of the world's high-tech computer equipment.

Further action

Diageo has apologised and offered to place new advertisements in the London Underground praising Taiwan's industries.

But that has not prevented the island's parliament passing a resolution calling for a one-year ban on the sale of all Diageo products.

It has also called on the government to sue Diageo to seek compensation for damage to Taiwan's reputation.

Taiwan's foreign minister, Eugene Chien, said his government is considering whether a law suit would be the right response, and whether a ban on Diageo's products would breach world trade rules.