Restrictions on advertising will not reduce alcohol problems

Underage alcohol consumption, excessive drinking and other alcohol-related problems should be addressed. The methods used should be efficient and aimed at the right people. Restricting the image advertising of mild alcoholic drinks would have the exact opposite effect.

In Finland, no connection has been found between the use of alcohol by young people, the advertising of mild alcoholic drinks and the increase in consumption. Studies have shown, however, that young people’s drinking habits are affected in particular by family and friends.
“If political decision-makers really wish to find solutions that would improve Finnish drinking culture, the issue should be looked at from a wider perspective than just from the point of view of advertising,” stresses Mika Seitovirta, the new Director of the Federation of the Brewing and Soft Drinks Industry.

No restrictions needed for image advertising
Alcohol problems resulting from increased consumption should be tackled, according to Mika Seitovirta. “The brewing industry is fully aware of its responsibility, and attention must be paid to underage alcohol consumption and excessive drinking in particular. The methods used should be efficient and aimed at the right people. The proposal for restricting the image advertising of mild alcoholic drinks considered by the Ministry of Social Affairs and Health would have the exact opposite effect. It would leave price as the only way of competing, which in turn would increase reduced-price campaigns for beer and thus its consumption. The proposal would also prevent the development of Finnish brands and make it much more difficult to release new Finnish brands on the market.”

The brewing and soft drinks industry’s responsibility extends to other products apart from alcohol. The industry has independently approved common operating guidelines for the marketing of soft drinks and created a clear and uniform course of action with regards to, in particular, marketing targeted at children, commercial activities at schools and information presented to consumers.

Taxes on mild alcoholic drinks should be lowered
The Federation of the Brewing and Soft Drinks Industry’s operating environment has seen significant changes in the past few years. “The new alcohol taxation rules that came into force almost two years ago and Estonia’s EU membership had a profound effect on the operating fundamentals of Finnish breweries. Current government proposals are not helping the situation – on the contrary. In a time of change, the importance of the Federation of the Brewing and Soft Drinks Industry as a caretaker and lobbyist of the industry is growing. We wish to actively make a stand on issues concerning our operating fundamentals,” states Mika Seitovirta.

The lowering of alcohol tax is still on the Federation of the Brewing and Soft Drinks Industry’s agenda. “Alcohol tax was lowered under the pressure of Estonia’s EU membership, with the greatest tax cut taking place in spirits. As anticipated, Finns began to consume more alcohol and most of the growth was in the consumption of spirits. The next stage is to press on with the reform of alcohol taxation by lowering taxes on mild alcoholic drinks, which would restore the old tax correlation between the two groups of drinks.”

The Federation elects a new board
Mika Seitovirta, Managing Director of Hartwall Ltd, was elected as the new Chairman of the Board of the Federation of the Brewing and Soft Drinks Industry at its meeting held on 10 January 2006.

In 2006, the Federation’s Board of Directors included, in addition to the Chairman, Managing Director Lasse Aho of Olvi plc, Managing Director Mikael Aro of Oy Sinebrychoff Ab and Managing Director Marcus Kanerva of Nokian Panimo Oy.