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Scottish Drinks Industry Pens Letter Against Possible Alcohol Merch Ban

Industry leaders in the United Kingdom are also keeping a close eye on the situation.

Adult beverage makers in Scotland are pushing back against a potential ban that would prohibit them from using branded merchandise and other advertising mediums.

The government of Scotland, a nation of 5.4 million people that’s part of the United Kingdom, has been considering a consultation paper that floats the idea of prohibiting alcohol brands from promoting through marketing vehicles that include merch/promotional products, billboard advertisements, and sports/music festival sponsorships.

whiskey glasses

The prospect of the ban has drawn concern and condemnation from the adult beverage industry and promotional products companies in the United Kingdom.

The criticism grew louder this month when a coalition of more than 100 producers and brands, including big players like Dewar’s, Budweiser and Heineken UK, penned a letter to legislators saying the possible prohibitions would do serious harm to a sector that employs about 88,700 people and that contributes $7.4 billion to Scotland’s economy annually.

“Restricting the ability to promote and market products responsibly will remove a vital route to market and go against the Scottish Government’s vision to double the turnover of the food and drink sector by 2030,” the letter read in part. “A further unintended consequence of these proposals would be the blocking of a key source of vital funds to Scotland’s sports and arts and culture sectors, at a time when they can least afford this. This will also disproportionately impact Scottish businesses, with global brands remaining able to engage with major international sport teams and events, which carry prominence in Scotland and in many cases the broadcast coverage accompanying it.”

The letter added: “Scotland has a long and proud heritage of brewing and distilling the very finest drinks in the world. Our whiskies, beers, gins and other products are enjoyed and sought after across the globe – iconic exports which in turn drive our economy here at home.”

A ban on drink-related merch could also dent business for promo companies in the United Kingdom. Several Scotland-based distributors ASI Media has spoken with have said the possible ban could affect more than just sales with alcohol brands. Cross/dual branding initiatives could be impacted and other clients that rely on business with alcohol brands could be indirectly negatively affected.

As of now, the Scottish government is essentially in a review phase on the merch/advertising ban idea. No legislation has yet been introduced.

Still, the British Promotional Merchandise Association (BPMA), an industry trade group in the United Kingdom, is keeping a close eye on the situation, participating in a consultative process to provide evidence of the important role that branded merchandise plays in all marketing communications.

The Scottish government’s consultation on the potential ban, which opened in November 2022, will not close until March 2023. Until all consultation processes have been concluded, it’s difficult to say what the outcome will be on alcohol and merch in Scotland, BPMA said.

BPMA plans to continue to stay involved with proceedings and keep promo industry companies in the U.K. informed of developments. A growing number of larger North American promotional products firms, including Top 40 outfits like Geiger (asi/202900) and BDA (asi/137616), sell in the United Kingdom.

Proponents of the prohibitions see them as a way to help curb what they describe as problematic alcohol consumption patterns in Scotland, where the government says 24 people died each week in 2021 from illnesses related to alcohol. Some 700 are hospitalized weekly due to drink.

The letter from the drink makers and brands said: “We recognize and share in the Scottish Government’s determination to reduce harmful consumption of alcohol and agree that there will be further workable steps the alcohol industry can take to help. However, these proposals will not serve to achieve this and do not address the root cause of why someone might come to have a harmful relationship with alcohol. Instead, they will needlessly hold our country back, to the detriment of Scottish jobs.”

Closer to home, a Virginia legislator had introduced a bill to prohibit state agencies from using promo products. A committee of legislators that was to consider the bill recently tabled it.