March 09, 2023
UK Promo Trade Group Denounces Possible Alcohol Merch Ban in Scotland
The British Promotional Merchandise Association says the potential prohibition on merch and other forms of marketing/advertising will damage the Scottish economy without achieving the desired aim of reducing alcohol consumption harms.
A trade body representing promotional products companies in the United Kingdom has joined forces with other British business organizations to denounce a potential ban that would prohibit alcohol brands in Scotland from using branded merchandise and engaging in other forms of advertising and marketing.
In what executives described as an unprecedented coordinated joint move, the British Promotional Merchandise Association (BPMA) teamed up with the Society of British Advertisers, The Advertising Association, the Marketing Society, the Scottish Newspaper Society and other trade organizations to issue a statement panning the possible bans that Scotland’s government is considering in the nation of 5.4 million people.
“We stand together and publicly reject the Scottish Government’s proposals to introduce … alcohol advertising and marketing bans,” the statement said. “Whilst we understand the government’s desire to reduce alcohol consumption harms in Scotland, there is no evidence that advertising bans will achieve that aim.”
Instead, according to the statement, the bans would be harmful to the “Scottish economy – including local communities – to Scotland’s advertising and creative industries, and to the Scottish media, including publishers, broadcasters and cinemas, as well as the outdoor advertising sector. At the end of the day, we are talking about an impact on Scottish businesses, Scottish jobs and Scottish communities for no discernible benefit.”
The trade groups urged the government to undertake a “fundamental re-think” of the proposals that would facilitate behavior change in Scottish society with regard to alcohol without “damaging the Scottish economy and the advertising and creative industries that are important to the entrepreneurial Scotland that the Scottish Government wants to see.”
Government: ‘No Decisions Have Been Taken’
The statement came as the Scottish government on March 9 concluded consideration of what’s known as a consultation paper that puts forward the idea of the marketing/advertising prohibitions. Whether the Scottish government will press forward with the paper’s ban proposals is an open question.
A Scottish government spokesperson said in a statement: “We are consulting on views on the most appropriate next steps in reducing alcohol-related harm” and so far “no decisions have been taken.” The spokesperson added that the government has met with stakeholders that include drinks makers, advertising entities (including BPMA) and media professionals to “hear directly from them and will further engage with stakeholders around any next steps.”
“At the end of the day, we are talking about an impact on Scottish businesses, Scottish jobs and Scottish communities for no discernible benefit.” BPMA and other trade groups
‘A Disproportionate Impact on Scottish Businesses’
Beyond preventing alcohol brands from using merch, the restrictions could also prohibit the drinks purveyors from promoting through marketing vehicles that include billboard advertisements and sports/music festival sponsorships, among other measures.
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 government says.
“By restricting alcohol marketing in Scotland, we hope to reduce the appeal of alcohol to our young people,” Maree Todd, minister for public health, women’s health and sport, has said. “This will support a reduction in consumption of alcohol and subsequently improve their health and health prospects as adults.”
In February, a coalition of more than 100 adult-beverage producers and brands in Scotland, including big players like Dewar’s 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 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,” that 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.”
A ban on drink-related merch could also dent business for promo companies in the UK. Several Scotland-based distributors ASI Media spoke with 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. Events could also feel negative effects, which could inhibit investment in merch by event organizers.
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 UK.