Thai alcohol importers impose conduct code

The five companies comprise Riche Monde, Thai Asia Pacific Brewery, Allied Domecq Wine & Spirits Bacardi, Pernod Ricard Thailand and TIS Worldwide Marketing (1997). Called React -- Responsible and Ethical Alcohol Consumption in Thailand -- the group unveiled a code of conduct for its members to follow in all marketing activities, including brand advertising, promotions, brand innovation, experiential marketing, consumer planning, relationship marketing, consumer public relations and the development and content of brand websites. Kriengsak Lohachala, chairman of the association, said, "React will do everything to support the government's policy on alcoholic beverages and to encourage a better society." The Thai Government has issued strict regulations on TV commercials and other kinds of brand communications for alcoholic beverage companies to follow. According to an industry source, the main purpose of this group is to have a single voice which can initiate an active dialogue with the Government about issues such as surrogate advertising, prevention of a complete ban on alcohol advertising and ways to jointly tackle alcohol abuse. However, for the group to be both viable and effective, it is imperative that local manufacturers have a presence. They, however, are treading cautiously on this delicate ground. Both Beer Thai and Boon Rawd said they would consider the objectives and conditions of React before contemplating joining the association. Though some in the industry suggest that the importers might want to use the association and its social campaigns to indirectly advertise and promote their brands without Government limitations, Witawat Jayapani, chief executive officer of Creative Juice\G1 and a board member of the Advertising Association of Thailand, denied this claim. "It is a joint agreement between alcoholic importers on how to effectively follow the Government's regulations and to contribute good things to society," he said. The restrictions are expected to see changes in the advertising and promotional spending patterns of the liquor companies. "With a limited message potential, limited airtime and limited area for outdoor signs, the budget for advertising is bound to be cut and shifted to below-the-line activities," said Rati Panthawi, management partner, Ogilvy & Mather Bangkok. "The new rules will also make it hard for any new brand to get into the market due to the difficulty in gaining brand awareness, etc." See Bacardi story on p6