UK Government Cancels Promotional Merchandise Framework...but the private sector responds!

In another major blow for the promotional products industry, the government's marketing and communications agency has announce that it is suspending all activity through its Merchandise and Promotional Items Framework.

Unveiled in December 2009, the current Merchandising and Promotional Items Framework was planned to be used for a maximum of four years. A total of 58 suppliers from across the UK secured a place on one or more of the five lots.

The Central Office of Information (COI) says that the suspension, which takes place with immediate effect, is being implemented to align its services with government priorities.

The COI says that all existing orders and individual contractual obligations will be honoured but no new orders will be placed through the framework. However it is understood that government departments may continue to commission orders on an individual basis although there is a government wide marketing freeze.

The suspension of a major conduit for promotional merchandise is expected to hit some companies hard. It commissioned merchandising orders worth around £3m a year on behalf of government departments and other public sector bodies, ranging from small orders to major campaigns such as Change 4 Life.

Ian Feingold, Director of Code Promotional Merchandise, an online distributor for promotional merchandise, business gifts and corporate clothing, commented that “coming as it does a week after the news of the new code of conduct announced by the British pharmaceutical industry, which effectively prohibits the use of most promotional products within the sector, it is a blow to the companies involved and the industry. However, we are seeing very positive signs from the private sector that they are again seeing the benefits of using promotional merchandise extensively as part of their marketing mix due it its flexibility, cost-effectiveness and long term awareness opportunities.”