Further concerns over the potentially large number of jobs that could be lost as a result of government’s proposed booze advertising ban, have been aired. Government is still mulling over its draft bill – which has been labelled draconian – but either way, the health department is determined to clamp down on the industry.

The department has been working on the Control of Marketing of Alcoholic Beverages Bill for a while, and acknowledged it still had many processes to cover before any implementation would come into effect.

Reports have stated that Health Minister, Dr Aaron Motsoaledi, wants an outright ban on the liquor industry advertising at and sponsoring events.

Motsoaledi is already on record as being “at war” with the booze industry.

Fidel Hadebe, a spokesperson for Motsoaledi, simply stated that the advertising and marketing of alcohol was “just one of the many avenues that are being considered as part of addressing this challenge.”

The proposed bill has been labelled as short-sighted, misguided and devastating to jobs.

Distell’s director for corporate affairs, Vernon de Vries, said that they were opposed to a total ban on booze advertising:

An advertising ban will favour those products which are already well established and will prejudice new entrants, thus impeding free market competition.

As has been emphasised repeatedly by the president and the National Planning Commission, the creation of jobs remains South Africa’s single biggest challenge. Various economic commentators and the advertising industry have made a strong case regarding the job losses and unfavourable economic impact that will inevitably follow a total ban such as the draft bill proposes.

Distell is constantly engaging with the government about this issue and several others regarding the liquor beverages industry and we remain hopeful of an outcome that will achieve the nine steps set out in the National Planning Commission’s Vision 2030.

SAB, who yesterday announced plans to invest up to $2,5 billion in expansion projects across Africa over the next five years, said the bill had been drafted without input from the industry:

SAB is profoundly disappointed and concerned by the decision taken by both the ministers of Health and Social Development to consistently refuse to engage with the alcohol industry, despite the fact that we agree that alcohol abuse is at unacceptable levels in South Africa.

Both the ministries of Health and Social Development appear to be increasingly taking a prohibitionist view on alcohol, which has had disastrous consequences in those parts of the world that have gone this route.

Local alcohol brands can account for as much as R1 billion of total direct spend in sponsorship in South Africa, and David Sidenberg, a partner at BMI Sports Info, said sponsorship spend in total in the country, including leveraging rights, came to R7 billion.

The alcohol industry was one of the biggest sponsors of sporting events, and their exit would be noticed and would be difficult to fill, Sidenberg added.

Brandhouse, who works closely with the government to improve the effectiveness of responsible marketing codes like the Drive Dry Campaign, also voiced their opposition at the proposed legislation.

Sibani Mngadi, public policy and sustainability manager at Brandhouse, said:

The proposed ban will not reduce alcohol misuse and will have an adverse economic impact.

Business Day quoted a leaked copy of the draft bill on Monday, saying it sought to:

• Totally prohibit advertising of alcoholic products.

• Permit only notices “describing the price, brand name, type, strength, origin and composition of the product” to be displayed inside licensed and registered premises.

• Prohibit the display of names and logos of alcoholic beverages on delivery vehicles.

• Prohibit linking sports sponsorship to alcoholic brands.

• Prohibit the promotion of alcoholic beverages through donations and discounts at events.

Motsoaledi said the bill will be available for public commentary, and the DA was today going to request a copy of the proposed bill.

[Source: IOL]