May dent more than advertising spending

Bangkok Post: BAMRUNG AMNATCHAROENRIT & SUJINTANA HEMTASILPA
Ad agencies, media companies and alcoholic beverage producers have cried foul over a new public health measure to ban the advertising of alcoholic beverages. Industry executives said the proposed law would have a sweeping impact on entertainment businesses and the economy well beyond the 2.6 billion baht spent each year on advertising alcohol.

Public Health Minister Phinij Jarusombat on Monday floated an idea to either curb TV slots for alcoholic beverage commercials to just three hours per day from seven now, or to prohibit advertising altogether. Commercials for beer, spirits and other drinks are permitted on TV only from 10 pm to 5 am. The new proposal would curb airtime to between 2 am and 5 am. A decision is expected within 45 days, with the general aim to curb underage drinking and drunk driving.

The debate over advertising alcohol comes amid a massive public campaign against plans by Thai Beverage, the largest producer of alcoholic beverages in the country, to list on the Stock Exchange of Thailand. Securities regulators earlier this week said they would delay any review of ThaiBev's listing plan until a new law is passed to regulate the sales and marketing of alcoholic beverages. ThaiBev produces market leaders Chang beer, Mekhong rum and dozens of other spirits.

Kasemsant Veerakun, a spokesman for Thai Beverage, expressed concern about the impact of tighter ad controls. "We accept that controls will happen, even though they will affect sales, so long as they are applied equally to all," he said. "But such controls will affect other industries, including entertainment and media companies."Mr Kasemsant said there were a number of laws that already existed to control alcohol sales, but they were undermined by poor enforcement.

A blanket law would impede the introduction of new brands, he added, and suggested that authorities look to other countries over how they used public education campaigns to curb consumption. Chaipranin Visudhipol, the president of the Advertising Association of Thailand and chairman of the agency TBWA/Thailand Co, agreed that an ad ban would hurt the growth of the market.

Both Chang and Singha beers, the two largest brands in the market, would face obstacles in expanding locally through new brands, which in turn could hurt efforts to grow overseas, he said.

The proposed restrictions also conflicted with the government's policy to encourage free trade. "Personally, I think the government has its reasons and will be methodical before making a decision. Any move will have to consider both the social and economic impact," Mr Chaipranin said.

According to Nielsen Media Research, alcoholic product ad spending totalled 2.6 billion baht in 2005, up from 2.2 billion the previous year. Alcoholic beverage ads accounted for 2.9% of all media spending.

TV commercials accounted for 65% of total spending by alcoholic beverage producers at 1.7 billion baht last year, followed by 382 million spent on newspaper ads, 249 million on cinema ads and the rest on outdoor, radio and magazine ads."

Will it be a matter of time before - as with cigarettes - a shop display of wine will be banned as advertising?

Dosen't Mr. Taksin's son own or work for an advertising agency specialising in posters?

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