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Booze ad ban: SA will lose out on R5.7bn

By admin
17 September 2013

A proposed ban on alcohol advertising will result in a loss of R4.3bn for sports development and cost the broadcast media R1.4bn, said the Industry Association for Responsible Alcohol Use.

It charged on Monday that the health department made it impossible for the alcohol industry to make input on a proposed ban on alcohol advertising.

"We have made numerous efforts to meet with the department to present our proposals to no avail," said the Industry Association for Responsible Alcohol Use.

It said it recognised the harm caused by alcohol abuse, but urged the government to consider the economic implications of the control of marketing of alcohol bill.

In its current form, the bill bans all forms of alcohol advertising and sponsorship.

The legislation would result a loss of R4.3bn for sports development and would cost the broadcast media R1.4bn in lost revenue if it was adopted in its current form, it said.

Harmful

Restricting marketing on liquor will not only harm the industry, but will also have a ripple effect on the economy, the SA Chamber of Commerce and Industry said in August.

"Restrictions on marketing will not only have negative consequences for an important South African industry, but will also have a ripple effect on businesses in other areas such as the advertising, retail and hospitality industries," Sacci CEO Neren Rau said in a statement.

In June, Econometrix senior economist Rob Jeffrey told The Times that the ban would make little difference in the fight against alcohol abuse.

Jeffrey said his research revealed that there was no statistical relationship in South Africa linking advertising spending and alcohol consumption.