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Alcohol ads to be banned from Russian media

Russia's chief sanitary officer Gennady Onishchenko has proposed a complete ban 
on alcohol advertising in the Russian media, starting with removing all beer 
ads from TV. Advertisers, along with alcohol producers and brewers are 
unanimous that the policy is more likely to inflict losses on their business 
than to reduce alcohol consumption.

"Let's ban alcohol advertising entirely, beer included," Onishchenko urged, 
commenting on the Moscow city hall decision to limit alcohol retail early in 
the morning and late at night, to be enforced from September 1. He described 
the Moscow government's decision as wise and useful, but said comprehensive 
policies were needed to actually reduce alcohol consumption in Russia. He 
primarily insisted on banning beer advertising during prime time.

Onishchencko's initiatives seriously affect the interests of alcohol producers 
and advertisers, as well as the media. "From a free market perspective, 
restrictions and limitations on products that are allowed for sale, look 
strange," said Sergei Veselov, market research director at the Video 
International analytical center.

In the first six months of this year, the revenues from beer advertising 
totaled 2.4 billion rubles (with VAT), and from spirits, 500mn rubles. The 2.4 
billion rubles paid for beer ads included 1.9 billion for commercial videos 
shown on TV, which account for 4 percent of TV advertising budgets. Therefore, 
beer ads contribute some 4-5 billion rubles a year, and TV companies are 
unlikely to secure this income elsewhere, he said.

Beer accounts for 2-2.5 percent of all billboard, poster and other outdoor 
advertising media, and for 3 percent of printed media's advertising budgets. 
The shortfall may be quite painful for newspapers and magazines. As for 
advertisers and advertising agencies, Veselov said they have experience in 
adapting to government restrictions. He believes these agencies will survive by 
finding new niches and expanding their methods of conveying information.

Maksim Klyagin, an analyst with Finam Management, said a complete ban on any 
alcohol advertising is not the most probable scenario at this point. Yet, 
hypothetically, some restrictions may be imposed by amending the federal law on 
advertising and other regulatory acts.

Sources in the Brewers' Union have failed to predict the kind of restrictions 
the sector can expect. The parliament is due to consider a series of 
legislative initiatives, all of them affecting beer production and marketing in 
one way or another; more than 30 bills are awaiting consideration.



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