The Alcohol Beverage Federation Ireland (ABFI) has today warned that new proposals to restrict advertising and sponsorship will decrease the volume and value of cultural sponsorship by drinks companies. The ABFI claims this is putting these partnerships and local cultural events around the country in jeopardy.
The drinks industry provides almost €8.5 million in sponsorship to over 50 arts and cultural events around the country. Almost €6 in every €10 of the wider spend in this space is spent on activity in the greater Dublin area, the remainder is invested in regionally based activities. The ABFI say that in addition to their immense contribution to Irish cultural life, festivals and cultural events have multiple economic dividends including job creation, tourism, regional development in addition to enhancing Ireland’s reputation abroad.
The group warns that new advertising restrictions proposed in the Public Health Alcohol Bill (PHAB) would effectively mean a ban on sponsorship by decreasing the volume and value of sponsorship partnerships for drinks companies. The ABFI claim the unintended consequences of the Public Health (Alcohol) Bill will only serve to jeopardise the partnerships that make cultural events possible.
The ABFI believe a much more workable solution is to place the existing codes on a statutory footing, with significant penalties for breaches. The group claim this could be implemented within a much shorter short timeframe with a regulatory authority already in place to police the system.
Speaking this week, Director of ABFI Patricia Callan said, "Advertising is a crucial part of the sponsorship package and brands “activate” sponsorship through advertisements. Typically, a multiple of 3-5 times the value of the original sponsorship is spent activating a sponsorship through advertising. If advertising a sponsorship becomes problematic or restricted, then the value of the original sponsorship agreement (for both the sponsor and the event) becomes significantly devalued. Due to a limited pool of sponsorship opportunities, private partnerships are hugely important to cultural activity in Ireland, and the contribution it makes to society."
Source: www.businessworld.ie
