Russia tightens beer ad regulations
advertisement of beer in the country. The rules for the previously
unregulated market are said to go even further than EU regulations,
but despite being seemingly heavy-handed analysts doubt there will
be any significant impact on the industry.
The country's Duma - represented by the Federation Council in the upper house of parliament - passed the law on 8 August, with an overwhelming majority. The new law basically means that the advertising of beer cannot be trivialized, cannot be linked to sports or good health and must carry a warning about the affects of alcohol on health.
"The fact that the restrictions place a ban on all beer advertising within sports is probably the most significant aspect of this new law," said John Band, researcher at market analysis provider Datamonitor. "This ruling actually goes one step further than the EU laws and may cause some impact on the beer industry, but will probably have even more impact on the sports sector. Banning beer ads is likely to have an impact on international football matches played in Russia, but as in Formula One, it is likely that beer companies will find ways around it."
The new regulations stipulate that beer adverts must not imply that the consumption of beer is associated with social, sporting or individual success. On top of this ads must not imply that beer can quench thirst or that it is good for the health, a ruling that Band believes is particularly pertinent to the Russian market.
"In Russia, where the drinking of vodka has traditionally been widespread and in high volumes, there is a general perception that beer is a healthier alternative. This has partly accounted for the switch from spirits to beers, which are deemed to be less harmful."
Beer advertisements will also be banned from health magazines, the environment or education, and any billboard posters must be at least 100 metres and out of sight of either educational institutions, hospitals, cultural centres or sports complexes.
Further to this any advertisement must carry a government warning about the affects of alcohol on health and the warning should take up no less than 10 per cent of the advertising space.
But despite the seemingly strict measures, Band believes that the new laws will not have any significant impact on the future growth of the beer industry. "The fact that beer is already seen as being healthier than vodka will mean that the shift from spirits will continue in the future. Currently per capita consumption stands at 51 litres per person, whereas in the UK consumptions stands at 90 litres. Considering the potential this represents and the continued perception of beer amongst Russian consumers, I don't think the limitations placed on beer advertising will have much affect on future growth of the industry."
