Briefing note on the regulation of alcohol marketing

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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
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