E-Malt.com News article: 3144

RUSSIA: Restrictions on beer ads in Russia will threaten the existence of many national and regional beer brands, brewing and advertising industry experts said.

"We don't understand what will happen with the advertising of brewing companies that use the images of people and animals in their names, logos and labels. It is unclear whether the law restricting beer ads will apply to the sponsorship or financial support of a given sporting or cultural even," said Vyacheslav Mamontov, the head of the Union of Russian Brewers' executive. "It is obvious that no one has any clear legal answers to the above questions yet," he added.

The head of St. Petersburg's Stepan Razin brewery, Giya Gvichiya said "there will be no point for beer producers to sponsor popular cultural events" if they cannot advertise their products. This could also threaten the existence of sports teams that are financed by leading brewing companies, he said.

The ban on the use of images of people and animals, as well as the use of animation in ads has not been thought through properly, he said. Stepan Razin's logo uses the image of the eponymous historical figure. "This is a registered trademark and it is impossible to change it," he said.

The bill was quickly passed almost unanimously in the key second reading, but there was no consultation with the market players whom it directly affects - brewers, television companies and advertising agencies, said Andrei Rukavishnikov, market director at the Baltika Brewing Company.

"Legislative regulation of the activities of brewing companies could lead to unpredictable results. In particular, producers will be forced to look for ways around [the restrictions] to promote their products, as alcohol producers do," he said.

"The civilized way of solving the problem is self-restraint at the level of the Brewers' Union. Business is quite capable of independently controlling itself. For example, a code of honor among brewers has existed for two years already, and on July 29 the Brewery's Union and the Association of Communications Agencies signed an agreement under which brewers will voluntary restrain themselves in the area of production and distribution of beer ads," Rukavishnikov said.

Yarpivo general director Anatoly Arzimanov said "the law is the law, it must be observed."

"I am for the introduction of reasonable restrictions, including in the area of advertising. But it's a shame that in our country such good undertakings as propaganda of the culture of drinking and a healthy lifestyle are not supported at the legislative level," he said.

Advertising companies also criticized the bill. "I am sure that these restrictions will not help make the national healthier as the bill's authors expect. This has already been proven by the experience of European countries, and confirmed by many studies," BBDO Moscow co-president and creative director Igor Luts said.

The bill is also unfair to existing brands with images of people and animals, he said. "Laws are as a rule written for some kind of time period, but there are brands with more than a 100-year history that were created before today's legislators were born," Luts said, adding that lawyers should look into this, as "it is difficult to imagine that a brand that has existed for decades will suddenly change."

He also said the restrictions could lead to more press and outdoor advertising, as well as advertising through new channels such as the Internet and mobile phones. "However, the field of television remains fairly large, so for now this is the most effective way of communicating with consumers," Luts said.


27 August, 2004