Universal Containers uses a custom picklist field Account Region on the account record.

Create a picklist field called 'Account Region' on Contact object > Create a workflow rule to update this picklist field if the Account Region field on the Account is changed.

Create a formula field on the Contact object > Set the value of the formula to ISPICKVAL(Account.Account_Region__c).

Create a formula field on the Contact object > Set the value of the formula to TEXT(Account.Account_Region__c).

Create a text field called 'Account Region' on Contact object > Create a workflow ruleto update this picklist field if the Account Region field on the Account is changed.