The European Forum for Responsible DrinkingThe European Forum

for Responsible Drinking

Self RegulationAn Advertisers View

- The Alcohol Industry -

Helmut B. WagnerVienna, 16 May 2003

The European Forum for Responsible DrinkingThe European Forum

for Responsible Drinking

TAG Members

• ALLIED DOMECQ

• BACARDI-MARTINI

• COORS

• DIAGEO

• PERNOD-RICARD

• HEINEKEN

• INTERBREW

• MOET HENNESSY

• REMY COINTREAU

• SCOTTISH & NEWCASTLE

• GERMAN BREWERS (Affiliated Member)

• Moët Hennessy

The European Forum for Responsible DrinkingThe European Forum

for Responsible Drinking

Board of Directors (CEOs)

Executive Committee

Self-Regulation

Chair:

P. Mouton

Pernod Ricard

TAG Support:

H. B. Wagner

Young People

Chair:

J. Blood

S & N

TAG Support

C. Brigaudeau

Drink & Driving

Chair:

G. de Guitaut

Moët Hennessy

TAG Support

C. Brigaudeau

Scientific

Chair:

J. Buckingham

Allied Domecq

TAG Support

M. Manciu

TAG Structure

Task Forces

The European Forum for Responsible DrinkingThe European Forum

for Responsible Drinking

The European Forum for Responsible DrinkingThe European Forum

for Responsible Drinking

Drinks industry’s environment

• (The Drinks) Industry’s ‘license to operate’ is under threat from different players and from several directions

The European Forum for Responsible DrinkingThe European Forum

for Responsible Drinking

Drinks industry’s environment

Increasing appreciation of and data on the social and financial cost of abuse

The Nordic influence in EU decision-making EU consumer sensitisation to consumption/

health problems Commission makes public health/consumer

protection a political priority-especially regarding “consumables”

Increased visibility of negative consequences (e.g. violence at sporting events)

The European Forum for Responsible DrinkingThe European Forum

for Responsible Drinking

Drinks industry’s environment

“Children have the right to grow up in an environment which is protected against promotion of alcoholic beverages”

“Promotion should not target young people, e.g. through the combination of sports and alcohol”

WHO, The European Charter on Alcohol

The European Forum for Responsible DrinkingThe European Forum

for Responsible Drinking

Drinks industry’s environment

“Until 2005 … in all EU states measures to be put in place to protect children and young people against promotion for alcohol ”

“Promotion of alcohol should be limited to product information and to adult (print) media”

Restrictions for sponsoring WHO, The European Alcohol Action Plan, 2000 - 2005

The European Forum for Responsible DrinkingThe European Forum

for Responsible Drinking

Drinks industry’s environment

“Restrictions on advertising are reducing alcohol consumption … young people are a key target audience for promotional activities from industry”

Objective until 2006: reduction of the pressure on young people to drink, especially through promotions, sampling, sponsoring accessibility especially at events

WHO Conference Stockholm, February 2001

The European Forum for Responsible DrinkingThe European Forum

for Responsible Drinking

Drinks industry’s environment

“Increasing advertising pressure on young people”

“Industry self regulation has failed”

“Legislation and regulation are needed to better protect young people”

WHO experts meeting on “Marketing & Promotion of Alcohol to Young People”, May 2002, Valencia (where industry was not invited)

The European Forum for Responsible DrinkingThe European Forum

for Responsible Drinking

Drinks industry’s environment

Recommendation on Alcohol and Young People adopted by the EU Council in June 2001, calling for

… better self regulation of advertising, marketing and promotions

… more efficient mechanisms for self regulation

Progress Report 2005, Interim Report 2003

Other EU legislation influencing the issue: amendment of TV without frontiers-Directive, draft legislation on Sales Promotion

The European Forum for Responsible DrinkingThe European Forum

for Responsible Drinking

Drinks industry’s environment Commissioner Byrne asking drinks industry for

evidence of effective self regulation

Increasing single-handed initiatives from EU Member States

France: Loi Evin

Spain: Action Plan against Alcohol

Netherlands: proposal from the Health Ministry

Greece: draft legislation

Ireland: high pressure to introduce restrictions

Next Meeting to review industry progress with DG SANCO on June 11, 2003

The European Forum for Responsible DrinkingThe European Forum

for Responsible Drinking

Drinks industry’s environment

“Self regulation has to be seen to work otherwise other solutions have to be looked at. I am still interested in Self Regulation but it has to work”

Commissioner Byrne, 16 October, 2002

The European Forum for Responsible DrinkingThe European Forum

for Responsible Drinking

To summarize

Threats are coming from different sources and from different – partially high profile - drivers

Threat directions Restricting the consumer base

Restricting drinking opportunities

Restricting promotional possibilities

Increased regulation instead of self regulation

The European Forum for Responsible DrinkingThe European Forum

for Responsible Drinking

Industry Challenge

Self Regulation has to become a more effective mechanism, i.e. legislation or regulation is not needed

Higher level of responsibility in marketing and promotion of drinks to young people

The European Forum for Responsible DrinkingThe European Forum

for Responsible Drinking

Reality check

Self Regulation is a well established system in the drinks industry ….

The European Forum for Responsible DrinkingThe European Forum

for Responsible Drinking

COUNTRY SELFREGULATION COVERED IMPLICITY SPECIFIC CODE SPECIFIC LEGISLATION

  SYSTEM BY GENERAL CODE OR HEADING RULE ON ALCOHOL

EU MEMBER STATES        

AUSTRIA YES / YES YES (ban on advertising on TV and radio)

BELGIUM YES / YES (code in Wallonia) YES

DENMARK YES YES YES YES

FINLAND YES YES YES YES

FRANCE YES / YES YES (very restrictive)

GERMANY YES / YES YES

GREECE NO YES / YES

IRELAND YES / YES /

ITALY YES / YES /

LUXEMBOURG YES / YES /

NETHERLANDS YES / YES YES

PORTUGAL YES YES / /

SPAIN YES / YES YES

SWEDEN YES / YES YES

EU ACCESSION COUNTRIES        

CZECH REPUBLIC YES / YES YES

BULGARIA        

CYPRUS        

ESTONIA        

HUNGARY YES YES / /

LATVIA        

LITHUANIA / / / YES

MALTA        

POLAND / YES / YES (ban on alcohol advertising)

ROMANIA / / / YES (ban on alcohol advertising)

SLOVAKIA YES / YES YES (very restrictive)

Self Regulation in the drinks industry

The European Forum for Responsible DrinkingThe European Forum

for Responsible Drinking

0

5.000

10.000

15.000

20.000

25.000

30.000

1996 1997 1998 1999 2000 2001

Total complaints

Alcohol relatedcomplaints

*Austria, Belgium, Germany, Ireland , Italy, Netherlands, Spain, UK

Alcohol related complaints vs. total number

The European Forum for Responsible DrinkingThe European Forum

for Responsible Drinking

Codes of conduct

Self-regulatory framework

Launch

consumers

competitors

civil society

Feed

ing

into

Company Media

Pre-Launch Advice

Agency

Complaint not upheld Complaint upheld

Voluntary withdrawal or modification

No Voluntary action

Withdrawal through media & retailers co-operation

Advertising Standards Body

& Drinks Industry Organisation

Complaints Mechanism

The European Forum for Responsible DrinkingThe European Forum

for Responsible Drinking

rejecterejectedd

accepteacceptedd

Example : a modified campaign Example : a modified campaign to ensure compliance with codesto ensure compliance with codes

The European Forum for Responsible DrinkingThe European Forum

for Responsible Drinking

Drinks Industry Program Drinks Industry Program 2001-20052001-2005

Refine and resource the network of national complaints mechanisms, covering the whole EU

Ensure availability of alcohol-specific, pre-launch advice system and encourage industry to take advantage of it

Systematic monitoring system for drinks industry commercial communications & sharing

Regular reports by National SRO assessing the overall quality of drinks industry advertising

Awareness-raising program targeting the industry supply chain

Awareness-raising media campaigns targeted at consumers

The European Forum for Responsible DrinkingThe European Forum

for Responsible Drinking

Conclusions

The storm clouds have gathered, and these coulds lead to specific restrictions

Threats are industry-wide. No sector escapes the condemnation of the “alcohol industry”

Industry needs to show better compliance with codes

Supply chain for commercial communications needs to be better involved

The European Forum for Responsible DrinkingThe European Forum

for Responsible Drinking

THANK YOU FOR YOUR INTEREST AND ATTENTION