Denmark is scrapping royal warrants. Will businesses miss them?

**Elham Kalhor** (0:00)
Hooray!

**Daniel Rosney** (0:04)
Hello, I'm Daniel Rosney, and on today's Business Daily, we're going to begin in 2024
It was when Denmark got a new monarch, King Frederick X. Frederick came to the throne somewhat unexpectedly because his mother, the Queen, had shocked the nation by abdicating. The new king had a new vision for the role and purpose of the monarchy, and within a few months, he surprised Danish businesses by scrapping the Royal Warrant System.

**Camilla Sommode** (0:41)
That stamp, it helped a lot.

**Baret Hertz** (0:44)
Kind of defines us, who we are as well.

**Daniel Rosney** (0:46)
It's a special classification given to companies. The Danish Palace said that the system which implies that individual companies can claim special recognition from the Royal House of Denmark for a number of years is no longer fit for the 21st century.

**Yannick Sommer** (1:02)
So there is no real alternative. The presidential seal in the United States was not really the same, that's not added on products.

**Daniel Rosney** (1:09)
Other monarchies around the world have similar systems. The United Kingdom, Belgium, the Netherlands, Spain and Thailand are just some examples. For some businesses, these warrants have helped them market themselves for centuries as suppliers to the Royal House.
But what's the value of them in the 21st century? Does it give an economic boost to these companies? Is it unfair that some have an almost badge of honour from the head of state? That's all coming up on this edition of Business Daily from the BBC World Service.
Some of the most well-known Danish brands and businesses, such as Carlsberg and Lego, have a Royal Warrant. There are 104 in total. And, as well as global brands, there are also smaller, independent companies too, which all have a warrant, like here at Sommode, in the centre of Denmark's capital, Copenhagen.

**Camilla Sommode** (2:04)
That line of production tables is at least 150 years old.
My name is Camilla Sommode, and I am the owner of an old candy factory. It is a hard-boiled candy. As far as I know, we are the only ones in the world that can make it with 100% sugar. So it is just pure sugar, natural colours, natural flavours. There is no starches or glycoses.

**Daniel Rosney** (2:30)
And what do you call this? What is this?

**SPEAKER_6** (2:32)
It's to cut the candies.

**Camilla Sommode** (2:34)
So it cuts them triangle.

**Daniel Rosney** (2:36)
This is a family-run business, and Camilla is the fifth generation to take charge.

**Camilla Sommode** (2:42)
My great-grandfather, he took over the candy factory back in 1922
Then my great-grandmother took over after my great-grandfather. They actually represent two different generations, just due to their age band and their marriage. In 85, my grandparents took over. My dad, he came along with it. But I started really taking over about five years ago.

**Daniel Rosney** (3:06)
So you still use traditional methods?

**Camilla Sommode** (3:09)
Yes. Everything in here is handmade.

**Daniel Rosney** (3:14)
Samoad has had a royal warrant since 1991, and it was actually someone from the palace who suggested that the family initially apply for it, as it was supplying candy to the royal family. Once Samoad was approved, it's something the company proudly put on its packaging.

**Camilla Sommode** (3:33)
It was a major step up. And it was also because it was a time before social media. It was a time before internet, so it was a quality stamp. That stamp, it helped a lot.

**Daniel Rosney** (3:47)
The rules of the royal warrant system here in Denmark states every five years, holders needed to reapply to continue using it, with officials having the final say.

**Camilla Sommode** (3:58)
They go through and they do a complete background check on you, that you're not a criminal, and that your company business, like your bookkeeping is up to date, and that, yeah, you pay all your taxes.

**Daniel Rosney** (4:10)
But two years ago, things changed.

**Camilla Sommode** (4:12)
His Majesty the King, he came into power. We were told, because normally then you have to reapply, and we were told you have a full year before you have to reapply, so he gets a chance to decide what he wants with it.

**SPEAKER_6** (4:25)
And that was sort of like a, ah, something is going to really change.

**Daniel Rosney** (4:32)
And will it make a difference, do you think, to you?

**Camilla Sommode** (4:36)
Yes and no.
I've spent a lot of time and a lot of energy to focus on, on the more modern approaches now, which is Google reviews and trust pilots. Because that is what the modern generation uses more so than the Royal Warrant title. But I do know that quite a few tourists, they appreciate it more and they follow that more, want to see the stores and the shops that has the title still.