Right: cricket became big national and international business in the Seventies, with continuing links to alcohol sponsorship
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Arguments against phasing out alcohol sponsorship of sports and advertising during sports telecasts
1. Advertising alcohol is not intended to increase alcohol consumption or recruit new drinkers
Alcohol manufacturers claim that they do not advertise their product with the intention of increasing consumption. Rather, they maintain their aim is to cause existing drinkers to switch brands.
The Brewers Association of Australia and New Zealand states on its Internet site, 'Alcohol marketing is used solely to drive brand choice, not motivate consumption by those who would otherwise abstain. As an indicator, beer sales have actually dropped over recent years despite an increase in total promotional spending.'
Manufacturers have similarly argued that there is no conclusive evidence linking alcohol advertising with increased consumption among young people. The Brewers Association states, 'A myriad of research exists that is aimed at evaluating associations between alcohol promotion and underage drinking. The findings have generally found no effects or minimal effects. These inconsistencies have failed to establish any conclusion that alcohol promotion is a causal factor for underage drinking.'
The Brewers Association has also noted that a total prohibition on alcohol advertising does not appear to be linked to a reduction in alcohol consumption.
The Association has claimed, 'Evidence from France and New Zealand suggest that the banning of alcohol advertising and sponsorship has no impact on reducing alcohol misuse. While France opted to ban alcohol advertisements in the early 1990s and New Zealand chose to allow television advertising, the per capita consumption of alcohol continued to fall at similar rates in both countries.'
The Association has concluded, 'Furthermore, Denmark continues to rank as having one of the highest reported rates of alcohol consumption among the underage population despite their heavy restrictions on print and outdoor advertising and the ban of broadcast advertising of anything but low-alcohol products.'
2. Alcohol consumption in Australia is not excessive
Alcohol manufacturers maintain that average consumption of alcohol in Australia is not excessive.
The Brewers Association of Australia and New Zealand states on its Internet site 'The overwhelming majority of Australians consume beer in a positive and responsible way. Over recent decades, the consumption of beer has moderated in Australia.'
The Association further claims, 'There is no evidence that alcohol consumption patterns have changed and created a crisis. The Federal Government's own Preventative Health Taskforce report noted that "overall levels of alcohol consumption and drinking patterns have not changed markedly over the past decade".'
The Association has also observed that Australian consumption rates are in decline. 'Statistics show that millions of Australians drink beer in a moderate and healthy way. Our per capital alcohol consumption rates in Australia have been on consistent decline over the past three decades.
Australia's per capita alcohol consumption peaked in the 1970's, and now sits at around 20 per cent below that peak. It has remained steady or in decline for the past three decades. Latest statistics on pure alcohol available for consumption indicate a decrease of 0.8% in 2011-12 from 2010-11.'
The Association has further noted that consumption among high risk groups, such as youth, is also declining. 'A higher proportion of 12-17 year olds abstained from alcohol (61.6%) than those who had consumed any within the last 12 months (38.4%). The proportion of 12-15 year olds who abstained from alcohol increased in 2010 (from 69.9% in 2007 to 77.2% in 2010). Similar increases occurred for 16-17 year olds, rising from 24.4% in 2007 to 31.6% in 2010.'
3. Strict regulations govern the advertising of alcohol products on television
Alcohol manufacturers and advertisers stress that their behaviour is strictly controlled via a number of regulations.
The Brewers Association of Australia and New Zealand has stated, 'The key system is the Alcohol Beverages Advertising Code (ABAC) which covers acceptable content for all alcohol promotion, including television, print, billboard advertisements, digital marketing, sports sponsorship and the naming and packaging of products.'
The Association explains, 'Key elements of the Alcohol Beverages Advertising Code include that the promotion of alcohol; must present a mature, balanced and responsible approach to the consumption of alcohol beverages must not encourage excessive consumption or abuse of alcohol; must not encourage under-age drinking; not have a strong or evident appeal to children or adolescents.'
The Association also notes, 'Complaints about alcohol advertisements can be lodged with ABAC. An independent complaints panel headed by Chief Adjudicator, The Hon Michael Lavarch AO, determines the complaint.
The ABAC system also provides a pre-vetting process whereby advertisements are independently reviewed against the code before they are made public.
Alcohol beverage advertising must also be consistent with other applicable laws and codes, including the Trade Practices Act, the Australian Association of National Advertisers (AANA) Code of Ethics, the Commercial Television Industry Code of Practice, the Commercial Radio Codes of Practice and the Outdoor Media Association Code of Ethics.'
4. Sponsorship from alcohol manufacturers assists the sporting codes involved
Some sporting codes and alcohol manufacturers have argued that if there were a ban on alcohol brands sponsoring sports events, that would leave a significant gap in funding for sports associations and fixtures that would need to come from elsewhere.
In 2009, when the federal government was considering acting against alcohol sponsorship of and advertising through sporting codes and fixtures, it was estimated this would cost the codes some $300 million annually.
The then chief executive officer of the AFL, Andrew Demetriou, claimed, 'It would cripple football.'
Cricket Australia's then spokesperson, Peter Young, similarly claimed, 'The danger with a simplistic approach like "let's ban alcohol sponsorship of sport" is that all you do is significantly damage sport.'
Diageo, the makers of Bundaberg Rum and Johnnie Walker, claimed via a spokesperson, 'We use our sports sponsorships to deliver responsible drinking campaigns that help drive better behaviours.'
More recently, in 2013, the head of corporate relations for Diageo, Ailish Hanley, stated, 'Any investment that goes into sports codes has a benefit to the wider community so that's a factor that needs to be considered.'
Both these announcement from Diageo stress the community benefits that the company supports via its sporting sponsorship.
In 2009, the NRL chief executive David Gallop made related claims. Mr Gallop stated, 'Our sponsors do a great deal of work promoting positive messages about responsible drinking and anyone who suggests sports could simply replace their support without substantial financial hardship is mistaken.'
By 2012, even the then federal government which had actively campaigned against alcohol sponsorship of sport had shied away from imposing a total ban.
The then health minister, Tanya Plibersek, stated, 'We're not interested in, you know, over the top policing in this area. We know that a lot of sports depend on alcohol sponsorship.'
5. Advertising from alcohol manufacturers makes an important contribution to free-to-air channels' revenues
Conventional free-to-air television channels are facing unprecedented competition from other types of service all vying for viewer attention.
In addition to satellite TV, digital technology now makes available a range of other subscriber services. Apple TV, Netflix and Quickflix, for example, all give subscribers access to a wide range of streamed films and made-for-television series. Smart TVs and various casting devices will allow viewers to access these programs for discretionary audience viewing.
David Knox, an analyst who writes for the industry blog TV Tonight, has stated, 'We're all still drawn to content but the way we watch has changed dramatically and the power has shifted back towards the viewer. Yes, we still watch live in big numbers but we also timeshift, use catch-up, watch DVDs, use second screens and there are big numbers illegally downloading shows that are not fast-tracked.'
The average prime-time live audience in metropolitan areas for Channel Nine dropped by a third between 2005 and 2013, excluding Easter and the Summer Olympics, according to media analyst Fusion Strategy. Channel Seven shed 23 per cent over that time. While the live audience on Ten fell by more than 50 per cent. Such a decline in audience has a large impact on the rates these channels can charge advertisers and so their very existence is at risk.
Sport, especially live-to-air sport remains prime content for these stations. Nine's revenue, for example, was boosted by coverage of the London Olympic Games and two Ashes cricket series. It is in this context that the link between alcohol and sport becomes vitally important for the free-to-air channels. Sport attracts viewers and alcohol manufacturers see promotional advantages in advertising during sport telecasts.
It is therefore not surprising that Free TV has proposed allowing alcohol advertising during all weekend sports telecasts, not, as is currently the case, only during those that are live to air. It is also to be expected that the channels have sought to increase their advertising revenue by increasing by an hour a day the time given to 'adult' programming. This will allow a further hour a day during which alcohol advertising can be telecast.