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Taiwan slur takes fizz out of drinks ad
HONG KONG, China (CNN) -- The British drinks company giant which sells Smirnoff and Johnnie Walker is trying to correct a marketing hiccup which may impact its revenues in the lucrative Taiwanese market. Diageo is apologizing for one of its advertisements in Britain which suggested goods manufactured in Taiwan are shoddy. The advertisement depicts a Chistmas gift that needs to be fixed -- with replacement parts from Taiwan, it says, implying that Taiwan's manufacturers churn out cheap unreliable goods. Although Taiwanese authorities recognize the ad is meant to be funny, they say the island is being unfairly stereotyped. "I find the ad company's idea quite creative, kind of amusing and a little bit of art," Ping Lu, of the Taiwan Government Information Office, told CNN. "But I have to point out the impression about Taiwan is not only obsolete, it involves Western-centric criticism." To make amends Diageo, the company behind the Christmas ad, is funding a new campaign on the London subway promoting businesses in Taiwan. Diageo came under intense pressure after the Taiwanese legislature voted to ban Diageo imports, including Smirnoff and Johnnie Walker. Taiwanese officials say the ruling is non-binding and consumers will be left to decide for themselves whether to boycott the firm. The issue is sensitive because Taiwan has made a big effort to replace low-cost manufacturing with companies like Acer that make high-end electronics. "Taiwan is an economic powerhouse in the Asia Pacific region," Ping says. "Products range from bicycles, sportswear to hi-tech products and merchandise." WTO memberTaiwan is home to ten automakers – mainly contractual joint ventures with Japanese firms – and became the 144th member of the World Trade Organization in January 2002. Marketing experts say the Taiwanese are working hard to hammer home that message but they have to be patient. "If you take a person like Madonna and she wants to change her image, she can do that five times in her career. For a country to change its image is a much slower process," David Ketchum of Upstream Asia told CNN. Some Taiwanese retailers say they have ample stocks of Diageo scotch and vodka so it will be a while before any potential shortages are felt. Diageo will be relieved if the latest charm offensive works - an estimated four percent of the firm's annual profits are generated in Taiwan.
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