Thailand eases up on alcohol ad legislation

Thailand's Public Health Ministry has relented from a blanket prohibition on alcohol advertising, with certain corporate image ads now exempt from the ban.

Corporate image ads promoting culture, tourism or sport, will now be allowed by liquor companies as long as two conditions are met: the relevant corporate name is not similar to an alcohol brand name, and the ads do not contain alcohol-related words such as liquor, winery or brewery. If the new rules come into play as is, companies such as Boon Rawd and Thai Beverage, with no alcohol-related words in their company name, are expected to benefit. Heineken, on the other hand, will face problems. "This was a grey area that has finally been addressed," said Rati Panthawi, management partner, Ogilvy & Mather. "Why should water and soda brands lose out just because they share the same brand name?"

According to industry sources, the latest twist in saga came as various alcohol majors considered withdrawing from various sports sponsorship deals if the ban was implemented.

The Government is, however, considering imposing a two per cent 'sin tax' on alcohol products, raising the duty charged to four per cent.

Witawat Jayapani, newly-elected president of the Advertising Association of Thailand, said that the association would support any regulation as long as it was fair to all players. "If any rules favour one or a few companies, they should be eliminated," he said.