Clamping down on alcohol advertising for real?

A ban on alcohol advertising has been in the political pipeline for so many years now that many wondered if it would ever become law. But in September the

South African cabinet approved that a draft bill should be gazetted for public comment. The bill is aimed at curbing alcohol-related harm which makes advertising a natural target as a major driver of drinking behaviour

While South African Breweries (SAB), the country’s dominant brewer, does not appear all that worried by the prospect of a ban, the vintners are up in arms.

Given SAB’s near-monopolistic position in the South African beer market, it might actually enjoy an advantage if the government went ahead with a ban on alcohol advertising. “If there’s an advertising ban, and the market goes dark, in theory the established players do better,” Alan Clark, CEO of SABMiller told South African media on 25 September 2013.

Mr Clark pointed out that the only countries where there is a ban on alcohol advertising are India, Russia and Turkey. In Russia and Turkey alcohol consumption has dropped since the introduction of the ban, but it is unclear whether this is attributable to the change in law or to other adverse developments in those markets.

The wine industry, on the other hand, fears that the bill could do it serious harm by prohibiting important marketing channels such as wine festivals and competitions. Wine businesses expect it will hit the sector, which employs about 275,000 people in South Africa, really hard, especially if festivals were outlawed.

At present there is still some confusion around wine festivals and online platforms: what are wine events, online wine retailers and rating platforms on the internet? Will they be considered legitimate sales channels or will they be classified as promotional activities?

Of South Africa’s 7000 wine brands, only about 2500 are distributed by retailers with the rest relying on mail orders and online sales. Communication and tasting opportunities are keys for smaller producers.