Briefing on the Regulation of Alcohol Marketing in the UK Comprehensive regulations All drinks producer marketing in the UK is strictly regulated by the CAP/BCAP Advertising Codes overseen by the Advertising Standards Authority (ASA) and the Portman Group’s Code of Practice on the Naming, Packaging and Promotion of Alcoholic Drinks. The ASA is the one-stop shop for the regulation of advertising in the UK. The Portman Group regulates all other forms of drinks producer marketing including naming, packaging, sponsorship and websites. The CAP/BCAP and Portman Group Codes mirror each other in their requirements. For example, they prevent, among other things, any targeting of under-18s, any suggestion that drinking makes consumers socially or sexually successful, and the use of promotional models who are or look under 25. The Portman Group’s (TPG) Code is highly regarded with its effectiveness recognised by several authoritative and independent bodies. The International Harm Reduction Association includes the Code within its leading 50 global alcohol harm reduction initiatives.1 In its recent review of the industry’s social responsibility standards for the Home Office, KPMG reported that the work of the Portman Group was highly respected and had led to a considerable improvement in alcohol marketing.2 All Code complaints are heard by an Independent Complaints Panel, Chaired by Sir Richard Tilt, formerly Director General of the Prison Service. The Panel’s independence protects the decision-making from undue influence by industry, politicians or others who may be concerned about the commercial implications of the Panel’s decisions on companies or jobs. Failure to comply with the Code will result in a product being denied shelf space. Over 70 products have been completely removed from sale by retailers acting on Panel decisions. TPG is also a pro-active regulator. Confidential, pre-sale advice was given 250 times last year including advice to drinks companies on the appropriateness of various types of sponsorships. Since the Code was introduced in 1996, hundreds of companies have been advised often resulting in changes to proposed packaging and promotions. Self-regulation allows for standards to be raised in partnership with industry, avoiding the lengthy and cumbersome legislative process. The removal of logos from children’s replica sports shirts is a recent example. Additionally, 1 http://www.ihra.net/PublicationList&pageNo=7 Review of the social responsibility standards for the production and sale of alcoholic drinks, KPMG LLP, 11 April 2008 2 self-regulation is funded by industry which saves taxpayers’ money, particularly important during an economic downturn. Alcohol broadcast advertising The co-regulatory BCAP broadcast advertising Code, overseen by the ASA, prevents alcohol adverts from targeting or appealing strongly to under-18s. All alcohol advertisements on television, radio and cinema are pre-cleared before transmission. Companies cannot advertise on television during or around children’s programmes or any show that attracts a disproportionate number of under-18 viewers. These restrictions apply 24 hours a day, seven days a week. Some programmes broadcast during the early evening are allowed to carry alcohol advertising (for example, Test Match Special, Countdown and the Early Evening News) because they attract only a small percentage of under18 viewers. This system of audience profiling is a more reliable mechanism for assessing if a programme has particular appeal to children than, for example, a ban on advertising before 9pm. In any case, a watershed is less relevant in today’s tv-on-demand media environment which allows people to record and watch what they like, when they like. Non-broadcast advertising The self-regulatory CAP Code, overseen by the ASA, applies to all nonbroadcast advertising, including cinemas. This Code seeks to protect under18s from alcohol advertising. It prevents advertising from having a particular appeal to under-18s and imposes restrictions on advertisers from targeting under-18s through the choice of media. This does not mean though that alcohol advertising cannot ever be placed in media where under-18s might see it: such a restriction would effectively prevent any print or poster advertising for alcohol. Instead, the rules adopt a standard that at least 75% of the audience must be over 18. It is considered, and we agree, that this provides an appropriate balance between protection of children and advertiser freedom. Internet All paid-for advertising on the internet is regulated by the CAP Code. All other drinks producer marketing on the internet, including brand websites, is regulated by the Portman Group. There are no gaps in regulation. The Portman Group has issued digital marketing guidelines to the industry to remind companies of their responsibilities and the rules in this area. Sometimes a drink is promoted in a totally inappropriate way by a third party without the knowledge or consent of the brand owner. A company cannot, of course, be held responsible for things outside of its control. The guidelines, however, provide advice on how a company can act responsibly in respect of the areas within its control. Alcohol Sponsorship Sponsorship (excluding tv programme sponsorship) is regulated through the Portman Group’s Code. All the Code rules apply but there is also a specific rule which states: Sponsorship should only be undertaken if at least 75% of the audience or participants are aged over 18. This is a proportionate restriction and in line with the rule on placement of alcohol advertising contained in the CAP Code. Sponsorship of television programmes is regulated by OFCOM to the same high standards as alcohol advertising. Critics claim that it is a regulatory omission to allow companies to sponsor sporting and music events. There is nothing wrong, however, with alcohol sponsorship providing it is done responsibly. Sponsorship is primarily used to increase brand awareness among adult drinkers; if done responsibly, it does not cause people to drink more nor does it cause under-18s to start drinking. A brand presence at a football ground or on a shirt does not necessarily mean an association with sporting success. Many alcohol companies sponsor amateur sports teams and those in the lower leagues (Chesterfield FC, for example) not known for their success on the field. It would be an impractical and unfair restriction to prevent companies from sponsoring the more successful teams. In any case, consumers are sophisticated enough to realise that even though a team is sponsored by a company that does not mean that their players personally endorse a sponsors product. If a team is a mobile phone company, fans do not assume that the player uses one of their phones. Similarly if a team is sponsored by an alcohol brand, supporters do not assume the players drink that alcohol. The controls on music sponsorship prevent alcohol companies sponsoring concerts that are particularly popular with under-18s. It is entirely reasonable, however, and in line with the advertising controls, for alcohol companies to sponsor concerts where the vast majority of the audience is over 18. Responsible sponsorship also delivers benefits in terms of providing grass roots funding to sport. It can also be a valuable way of communicating responsibility messages to the consumer.3 The removal of alcohol branding from children’s replica sports shirts Portman Group brochure, “Setting the Responsible Drinking Agenda” http://www.portmangroup.org.uk/assets/documents/Web%20PDF%20Brochure%20Portman. pdf 3 The Portman Group’s Code prevents drinks companies from putting their logos on children’s replica shirts. Although there is no evidence to link this marketing with under-age drinking, drinks companies were concerned about the negative perception surrounding their logos appearing on children’s shirts. Despite producers having only ever been interested in marketing their drinks to adults, some critics claimed children in replica kit undermined the success of the whole of the regulatory system. Drinks companies took this decision even though it may lessen their commercial appeal as sponsors if clubs sell fewer shirts. The rule change applies to any new sponsorship signed after 1 January 2008. The Portman Group could not force clubs and companies to rip-up any preexisting contracts signed before 1 January 2008 and therefore arrangements entered into before this date are allowed to stand until the contracts expire. Sporting ambassadors for responsible drinking Many alcohol companies are going further than adhering to the strict regulations by using their sponsorships to encourage sporting celebrities to be positive role models in dedicated social responsibility campaigns. Here are some excellent examples: Motor racing driver, Michael Schumacher, is Bacardi’s global Corporate Responsibility Ambassador. Carlsberg used Martin Johnson to promote their ‘drinking sensibly’ and ‘healthy lifestyle’ campaigns to students at British universities. Football managers, Martin O’Neill and Alex McLeish, promoted responsible drinking for Molson Coors as part of its Carling sponsorship of Celtic and Rangers Football Clubs. Additionally, many companies are important supporters of arts and cultural festivals which are also used to promote responsible drinking. An excellent example is the 100 Pipers Scottish Pipe Band Championships partnership between Chivas Brothers Ltd and West Dunbartonshire Council. At this year’s event, guest complimentary alcoholic drinks were limited in line with daily recommended guidelines; responsible drinking information appeared at every table including unit calculators and measuring cups; and digital screens at the bar area reminded guests about the importance of responsible drinking. Impact of alcohol marketing A comprehensive review of the evidence on the impact of alcohol advertising, the University of Sheffield’s report,4 commissioned by the Department of Health last year, concluded that “there is some uncertainty over the mechanisms linking advertising to consumption, and thus it is unclear whether 4 Independent review of the effects of alcohol pricing and promotion, ScHARR University of Sheffield 2008 advertising restrictions can be expected to have an immediate effect on consumption.” CAP/BCAP has considered the report but is not recommending any tightening of the advertising rules as a result, pointing out that any changes to the rules must be evidence-based and proportionate. Various studies have shown that advertising is very effective in achieving brand-switching but has, at most, a marginal impact on total consumption. 5 Advertising bans are likely to be ineffective. The French banned advertising in 1991 but in 1999 a French Government report found that the ban had not reduced high-risk drinking.6 The University of Sheffield acknowledged that it could create fiercer price competition resulting in an increase in overall consumption. Marketing is crucial to a competitive economy. It brings consumer benefits because it fuels brand competitiveness, thereby informing consumer choice. It also has an essential role in funding the media and creating a dynamic, competitive and pluralistic media marketplace. Marketing can be a powerful force for good. The Drinkaware website, www.drinkaware.co.uk, is promoted on over £150million worth of alcohol advertising a year7. This widespread promotion has made Drinkaware the most popular source of consumer information on responsible drinking in the UK8. For more information call Michael Thompson, Head of Communications and External Affairs, at the Portman Group on 020 7907 3700 www.portmangroup.org.uk Tim Ambler, Simon Broadbent and Paul Fenwick, “Does Advertising Affect Market Size? Some evidence from the United Kingdom”; International Journal of Advertising, Vol 17, No 3, 1998; Tim Broadbent, “Does Advertising Create Demand?”, World Advertising Research Center Reports, 2007 6 La Loi relative a la lutte contre le tabagisme et l’alcoolisme: rapport d’evaluation, G.Berger et al., La Documentation Francaise, p106. Available at: http://lesrapports.ladocumentationfrancaise.fr/BRP/004000708/0000.pdf 7 http://www.portmangroup.org.uk/?pid=26&level=2&nid=305 8 Drinkaware Trust Audit and Audit working papers 2009 5