Russia cracks down on beer advertising

Russia

Following previous hearings in the State Duma (see Law Now 23 April 2002 and 1 October 2002), Russian legislators have approved proposals to restrict advertising for beer products in a move that could be seriously detrimental to the Russian brewing and advertising industries.

On 31 July 2004, the Russian State Duma, voted to pass a bill placing a complete ban on television advertising for beer between 7am and 10pm, removing beer spreads from the front and back pages of magazines and preventing brewers from advertising their products at sporting and cultural events. If this wasn't comprehensive enough the new proposal, which was accepted by the Federation Council on 8 August 2004, places further restrictions on the limited beer advertising that will still be permitted to reach the consumer. Should Vladimir Putin sign the law in its current form beer ads will not be able to use images of animal or people to sell their products nor will they be allowed to portray beer as a key attribute in the quest for sporting, social or sexual prowess. In fact, 10% of ad space will have to be given up for health warnings.

Unsurprisingly, the proposed legislation has met with widespread opposition from brewing groups and media outlets. In recent years the Russian beer market has been the fastest growing in the world, attracting large amounts of foreign investment and contributing approximately $70 million to the Russian advertising industry. In an attempt to placate their critics, shortly before the passage of the bill, Russia's leading brewers and advertisers pledged not to target minors and to avoid any references in their campaigns to the physical, sexual and social benefits of drinking beer. This offer now seems to have been rejected by the Duma and has left brewers concerned that they will soon be unable to sponsor sports tournaments and football teams. Some brewers who rely on animals for their branding are even uncertain about the future of their marques. For now, commentators and industry leaders alike can only sit and wait for the autumn session of the Federation Council during which it is thought that some significant amendments will be made, at the very least to allow brewers to sponsor the national sports teams.

For further information on the scope of these proposals please contact David Griston at

[email protected]