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ALCOHOL ADVERTISING IN NEW ZEALAND
 Adapted from a web page by NZ Drug Foundation with later additions.
Superscript notes refer to references at the bottom of the page

Click here for our fact sheet (pdf format) (Updated Jan 2007)
 

History

Prior to 1992 only sponsorship advertising was permitted on the broadcast media.  In that year, as part of the process of deregulation, brand name alcohol advertising was given the go-ahead by Cabinet decision. There was no discussion in Parliament. Regulation of advertising was vested in the Advertising standards Authority (ASA), an industry body. It is termed self-regulation, and is practised in other English speaking countries. Rules called advertising codes were set in place and were controlled by the Advertising Standards Complaints Board, a body set up by the ASA.

Rules for sponsorship and incidental advertising  rest with the Broadcasting Standards Authority (BSA).

Breaches of the Advertising Codes

Any individual or organization is entitled to complain if they think the advertising codes have not been adhered to.  Complaints about brand name advertisements are made in writing to the Advertising Standards complaints Board (ASCB). If not satisfied with their ruling, a further complaint can be made to the ASCB Appeal Board. Complaints about sponsorship and incidental advertising are made initially in writing to the broadcaster concerned (ie TV channel or radio station). They are obliged to respond within 21 working days. If not satisfied with their response, a further complaint can be made to the BSA.

Permitted times of advertising

On TV, sponsorship advertisements are permitted at any time, but are not usually placed around children's programmes. Brand name advertisements are only permitted after 9 pm.  On radio both sponsorship and brand name advertisements are permitted at all hours.

Current Situation

In 1994 the Advertising Standards Authority,  was required by law to undertake a review of brand alcohol advertising. This became known as the Potter Review, which rejected a call for ban on alcohol advertising and instead chose to strengthen the Code of Practice that related to alcohol advertising. 

Even though 93% of the 1282 submissions to the Potter Review on brand alcohol advertising called for a ban and a further five percent were clearly concerned with alcohol advertising, the review recommended that alcohol advertising should not be banned.1
 

In 1998 the Advertising Standards Authority conducted a second review of alcohol advertising in the broadcast media.The report, tabled in July 1998, supported the findings of the Potter Review, with some minor changes to the advertising codes. They again rejected a ban on broadcast alcohol advertising.
 
In 1999 when the Sale of Liquor Amendment Bill was passed, an amendment to ban TV alcohol advertising was proposed by MP Lianne Dalziel. It was defeated. A second amendment recommending health and safety warnings on alcohol containers was proposed by MP Dianne Yates. This was also defeated (by 1 vote).

 

Suggested Recommendations
1.Ban brand alcohol advertising from the broadcast media. The banning of alcohol advertising from television and radio is an important public health initiative.
 
2.An alternative fund to replace liquor sponsorship be established by increasing the tax on alcohol.
 
3.Health and safety warnings should be mandatory on all alcohol containers. 

4.Standard drinks labelling should be on all alcohol containers.

 

New Zealand Research
New Zealand research has found that advertisements do appeal to young children and young people. Most found the advertisements strongly appealing. Young people often felt that drinking the product would result in them having more fun, being stronger, or having other qualities portrayed in the advertisement. Not only did young people say that they found the advertisements appealing, many were also saying they felt encouraged to drink after watching the ads.2

A longitudinal study in Dunedin investigating the recall of alcohol advertising and alcohol consumption at a later age, found that males who could recall more alcohol advertising at age 13 reported drinking larger quantities of alcohol at 18 years of age.3

Alcohol advertisers spent over $40 million in 1995,4 while the liquor industry itself estimates it spends a further $35 million on sponsorship.5  Therefore over $75 million is spent annually on advertising alcohol or an estimated $205,000 a day. Expenditure on alcohol advertising is tax deductible.

The average 5-14 year old saw almost 300 alcohol advertisements on TV per year and the average 10-17 year old saw almost 400. Two thirds of the alcohol advertisements that 5-14 year olds saw, were on after 9 pm the rest being sponsorship adverts that can be shown at any time.6  Thus the average child will see almost 5000 alcohol advertisements before reaching legal drinking age.

Among 10 to 13 year old boys, half said that they knew more about drinking from watching alcohol ads. The 14 to 17 year olds who liked the ads best were more likely to be already drinking. Part of this effect was because liking the ads was linked to feeling that 'drinking makes life more fun and exciting' and 'people get on better together when they has a few drinks' 7, 8

Teenagers from 14 to 17 years spend about $1 million on alcohol per week in NZ 9

Recent research has shown that New Zealand teenagers from 14 to 17 years have doubled their alcohol intake, in an average drinking session. In 1990 the average number of drinks was 2 to 3. In 1999 it was 5 to 6. 14

The Center for Science in the Public Interest in Washington, USA, published evidence in 1995 of the lessened teenage drinking, fewer accidents, and falling consumption following less advertising. It also shows many initiatives on the present serious teen binge problem in the USA.15 www.cspinet.org/booze/ddip.html

Comment: This coincides with the introduction of broadcast alcohol advertising. (added Nov 01)

 

Overseas Research

An econometric study published in 1997 showed that alcohol advertising was found to be a contributing factor in the high level of motor vehicle fatalities in the United States. The data indicated that a ban on broadcast advertising might result in a reduction of between 200 to 3000 deaths annually from vehicle fatalities. The data also indicates that the elimination of the tax deductibility of alcohol advertising could reduce alcohol advertising by about 15%, reduce motor vehicle fatalities by about 1300 deaths per year, and raise about $300 million a year in new tax revenue. 10

Research into the impact of alcohol advertising bans which compared data from 17 countries over a 14 years period found that countries that introduce bans had significantly lowered consumption and alcohol-related motor vehicle crashes. 11

Exposure to advertising increases the frequency and number of occasions alcohol is consumed and reinforces pro-drinking attitudes. Research has found a significant relationship between exposure to alcohol advertising and higher levels of self reported use. 12

A United States survey of 10 and 11 year old children found that those who could identify more beer advertisements tended to drink more frequently as adults. 13

 

Comments
Alcohol advertising glamorises and normalises the consumption of alcohol and acts as a powerful recruiter of young drinkers. It links the 'rites of passage' for young people to the consumption of alcohol and inevitably creates enormous peer pressure to drink. 

Submissions to the Potter Review overwhelmingly supported a ban on brand alcohol advertising. Nevertheless the Potter Review and the subsequent 1998 advertising Standards Review did not support a ban. Ultimately, the issue of a ban on alcohol advertising must be decided in parliament.

 

References
1 Alcohol Healthwatch, Independent Audit, News & Views, November No 7, 1994.

2 Alcohol and Public Health Research Unit, Response of children and young persons to alcohol and host responsibility advertising on television. April 1994.

3 Connolly G.M, Casswell S, Zhang J.F., and Silva P.A. Alcohol in the mass media and drinking by adolescents : a longitudinal study Addiction 89 1994.

4 AGB McNair, 1995.

5 Quay Group, Key Issues, Auckland, 1995.

6 Wyllie A, Waa, A and Zhang J. Alcohol and Moderation Advertising Expenditure and Exposure: 1996. Alcohol and Public Health Research Unit, 1996.

7 Wyllie A, Zhang J.F. and Casswell S. Response of 10 to 17 year olds to alcohol and host responsibility advertising on television: Survey data. Alcohol and Public Health Research Unit, 1994.

8 Holibar F, Wyllie A, Barnes H, Fuamatu N, Aioluputea K and Casswell S. Response of children and young persons to alcohol and host responsibility advertising on television: A qualitative investigation. Alcohol and Public Health Research Unit, 1994.

9. Calculation made by GALA from information from Statisitcs NZ and Alcohol and Public Health Research Unit . 1998

10 Saffer H, Alcohol Advertising and Motor Vehicle Fatalities. Review of Economics and Statistics, Vol. 79, No. 3, 1997.

11 Saffer H, Alcohol advertising and alcohol abuse an international perspective. J Health Econ 10,1991.

12 Aitken and Brock, Television Socialisation and Risky Drinking by Teenagers, Alcohol Drugs and Driving. 5 (1) 1989.

13 Grube and Wallack, Television beer advertising and drinking knowledge, beliefs and intentions among school children. American Journal of Public Health, 1984.

14  Casswell, S. and Bhatta K. "A Decade of Drinking" Alcohol and Public Health Reasearch Unit, 2001.

15. The Center for Science in the Public Interest in Washington, USA "The Simultaneous Decline of Alcohol Advertising and Alcohol Problems in the United States" George Hacker and Laura Anne Stuart, June 1995.

Click here for our fact sheet (pdf format) (Updated Jan 2007)

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