Actions speak louder than words

Social responsibility in the alcohol industry:
Emma Cooke, Gerard Hastings and Susan Anderson
Centre for Social Marketing, University of Strathclyde, Glasgow

Introduction

The alcohol industry is an enormously successful global operation, including some of the world's biggest corporations. It is a huge employer, generating extensive profits for itself and, through taxation, revenues for government. It also has a great interest in corporate social responsibility (CSR), laying claim to ethical marketing practices, a commitment to the promotion of responsible product use and the protection of vulnerable groups, such as the young.

However, alcohol is a controversial product, and the industry's marketing – and especially its advertising - face scrutiny and criticism. For example, a recent Ministerial conference in Stockholm (WHO 2001), jointly organised by the European Union and the World Health Organisation, recorded trenchant complaints about business methods that were felt to be promoting harmful consumption practices, such as binge drinking, especially amongst the young. This is set against an alarming epidemiological back-drop of as many as one in four deaths amongst Europe's under thirty year olds being directly attributable to alcohol (Bruntland 2001).

This paper attempts to reconcile the pubic pronouncements about corporate responsibility made by the alcohol industry on the one hand, with the public health concerns on the other. It reaches the conclusion that CSR is of limited value on its own, and needs to be backed by statutory controls.

Corporate Social Responsibility

Corporate social responsibility is an extremely broad idea which attempts to control the impact that business has on society, and ensure that this is at least benign, if not actually beneficial. It encompasses ethical marketing practices, ecological considerations and respect for both the individual and society.

"While there is no single, commonly accepted definition of corporate social responsibility, or CSR, it generally refers to business decision-making linked to ethical values, compliance with legal requirements, and respect for people, communities and the environment."

(Business for Social Responsibility website: (http://www.bsr.org/))

The same website goes on to emphasise that CSR involves much more than tinkering with the business process, or clever public relations. Like the marketing function itself, it has to go to the core of the organisation:

"CSR is seen by leadership companies as more than a collection of discrete practices or occasional gestures, or initiatives motivated by marketing, public relations or other business benefits. Rather, it is viewed as a comprehensive set of policies, practices and programs that are integrated throughout business operations, and decision-making processes that are supported and rewarded by top management." (ibid)

CSR also creates win wins – satisfying the needs of customers, stakeholders and the business itself. It is good for business, as well as society. In theory, then, it should be self propelled, without need for external or statutory drivers. This volunteerism is a crucial aspect of CSR, making it akin to the Christian concept of individual conscience as a control measure on the citizen's anti social behaviour - and, potentially, equally valuable.

The question for this paper is whether such a voluntary mechanism is working for a product like alcohol, which, whilst it has many benefits to offer, also has enormous potential for harm (Anderson 1997, Harkin et al 1997, Alcohol Concern 2000). And can it work in an industry as competitive as this, where market expansion opportunities, at least in the developed world, are so few (Jernigan 1997, Datamonitor 2000)?

CSR in the Alcohol Industry

Interest in CSR is growing among alcohol companies. Several of the key players are actively involved in setting up their own strategies and becoming members of organisations whose goal is to promote and encourage CSR. See, for example: Business in the Community http://www.bitc.org.uk/; The International Business Leaders Forum http://www.iblf.org/ and the corporate sites of DIAGEO (http://www.diageo.com/), Allied Domecq (http://www.allieddomecq.co.uk/) and Carlsberg (http://www.carlsberg.com/info/).

Beyond specialist corporate social responsibility organisations which cater for all industry sectors, the alcohol industry has established its own specialised groups on a national, continental and even global scale. Examples include the International Center for Alcohol Policies (ICAP), The Amsterdam Group (Europe wide), The Century Council (U.S.) and The Portman Group (U.K.). These bodies have a number of functions, with the most pertinent being to reduce the misuse of alcohol in society and promote responsible drinking behaviours.

Many of the organisations run campaigns aimed at preventing underage drinking and some, like the Portman Group, have specific codes of practice to which all members have to sign up (http://www.portman-group.org.uk/code/). Other activities include the development and provision of major projects aimed at educating youth or providing services for those with alcohol problems. Descriptions of such schemes carried out in the developing world on behalf of the International Center for Alcohol Policies (which is funded by the majority of key corporations in this sector) can be found on their website (http://www.icap.org/abouticap/countryprojects.html).

On a number of levels therefore, the alcohol industry appears to be acknowledging the implications of its products on society, and voluntarily investing heavily in initiatives to reduce and prevent negative outcomes. These are strong indicators of social responsibility. However, it is necessary to look further at the industry's wider marketing effort to determine whether this is genuine CSR, or just bolt on public relations of the type implicitly condemned by the Business for Social Responsibility website (op cit). Specifically, the impact of this marketing effort on drinking knowledge, attitudes and behaviour, particularly among vulnerable groups, needs to be examined.

The Impact of Alcohol Marketing

The alcohol industry undertakes a great deal of research into the effects of its marketing, but much of this is either commercially confidential or available only at great expense. This research, it argues, demonstrates that the sole purpose and effect of its marketing is to influence brand switching among adult drinkers; it does not increase overall levels of drinking, influence vulnerable groups such as the young to drink or encourage problem drinking among adults (Advertising Association 2000).

This position can be challenged logically. Market expansion may be difficult in sated western markets, but is a plausible and realisable objective in countries and among populations (such as women on the Indian sub-continent) which currently have low levels of alcohol consumption. Similarly, it could be argued that marketing targeted at adults is also likely to reach children, particularly if the target is young adults. However, hard research examining the link, if any, between alcohol marketing and social harm is more difficult to come by. Nonetheless some is now accumulating to suggest that there are problems in the following areas:

• Advertising

• New product development

• The use of 'new media'

• In developing and transitional countries

Advertising

This is probably the best researched area of alcohol marketing. A recent literature review conducted for the World Health Organisation (Cooke et al 2002) discussed the two principle types of research that have been done: econometric studies, which examine the relationship between overall levels of alcohol consumption (typically in terms of sales) and overall levels of advertising (typically in terms of expenditure) and consumer studies which look at the effects of alcohol advertising on the individual.

The majority of the former have found little or no effect. However, there are significant flaws in much of this work, including missing data on advertising spend, naïve models of advertising effect and overly simplistic impact data which are almost exclusively limited to crude consumption levels (ibid). Also, and importantly for any discussion of CSR, because they deal in aggregates, these studies provide no insight into the impact of alcohol advertising on specific sub groups, such as young people.

Consumer studies, on the other hand, have focussed on the young and are, therefore, of greater interest here. Many of these studies, in particular more recent work involving sophisticated methodologies, point to a link between advertising and young people's drinking behaviours. In essence, the more aware, familiar and appreciative young people are of alcohol advertising, the more likely they are to drink both now and in the future. Importantly, however, these studies also begin to reveal the complexity of the issue, with the interaction of consumer choice, advertising effect and marketing opportunism creating powerful dynamics. It is probable that a two-way relationship exists between advertising and drinking: advertising will encourage targeted consumers to drink, and drinking will encourage attention to advertising by those consumers (ibid).

Researchers (Jackson et al 2000) have also looked beyond simple advertising to the impact of branding. This adds emotional and symbolic value to the core product. The researchers use a case study of Bacardi Breezer, and discuss how evocative and often sexually explicit advertising (see Figure 1) is used to reinforce the proposition of illicit, but adult fun.

Bacardi Breezer: The Brand in the Hand

Bacardi Breezer was launched in the UK in 1994 and is a brand extension of the world's most popular spirit, Bacardi Rum. Bacardi has an 85% share of the UK market for white rum, the most dominant share of any alcohol brand (Keynote 1999). Four years after its launch Bacardi Breezer became the leading pre-mixed spirit brand in the UK (The Grocer 1998). It is available in sweet, fruity flavours such as tropical lime, peach, lemon and watermelon, has an ABV concentration of 5.4%, and is sold in 275ml bottles. The bottle is cylindrical with a long neck, very similar to the design of bottled lagers, and a 'crown-cap' design requires removal with a bottle opener and cannot be resealed. The glass is clear and the brightly coloured product reflects the flavour. The label is colour/flavour co-ordinated, displays the Bacardi Breezer name and 'bat' logo, and carries the advertising slogan, "There's Latin spirit in everyone".

Bacardi Breezer's commercial success stems from extending the brand's core values from the 'adult' spirits market to give the product credibility with younger drinkers seeking a more mature image. It is sold through on-trade retail outlets such as pubs and clubs, as well as off-trade, and is supported by heavy weight, aspirational advertising and sponsorship deals to position the product as "outwardly innocent and inwardly naughty" (Off-License News 2000). It also introduces the young drinker to the spirits market in the hope that brand loyalty will endure as consumers graduate from pre-mix drinks (Keynote 1997).
(adapted from Jackson et al 2000)

This, they point out, is in clear breach of the UK voluntary code on advertising practice which outlaws any claims that alcohol consumption may be linked to sexual success. Figure 2 describes how the resulting branding fits into the overall marketing plan.

These appeals to the young, and breaches of voluntary codes seem to contradict the industry's public commitment to CSR. The accumulating evidence that such advertising may also be having at least a reciprocal effect on behaviour strengthens this contradiction.

New Product Development

Advertising and branding are linked to more basic marketing functions, including new product development. Questions have also emerged here, with a variety of new products emerging that have clear appeal to under age drinkers.

In the UK for example, during the late 1980's, strong white ciders, such as Diamond White and White Lightening, and a new range of fortified fruit wines, such as MD 20/20 began to appear. Dubbed 'designer drinks', this product category was characterised by brightly coloured and innovative packaging (likely to be attractive to youths), and delivered the product benefits of strength, sweet or bland flavours and portability which met the needs of young and underage consumers (Hughes et al 1997, MacKintosh et al 1997). Hughes et al (ibid) also reported that attitudes towards, and consumption of, designer drinks varied with age, with popularity peaking before the age of 16. The study also found consumption of these products to be disproportionately associated with drunkenness and hazardous behaviour.

McKeganey et al (1996) surveyed schoolchildren in Dundee aged between 12 and 15 years and found that by the age of 14, more than 50% of the sample had been drunk at least once. 'Designer drinks' were again the products most likely to be linked to intoxication.

The introduction of products with particular appeal to underage consumers has not been restricted to the UK market. In Germany mixed and flavoured beers have become popular, with the introduction of brands such as Mixery (beer and cola).

Mixing the beer with a sweeter substance removes the bitterness, with the obvious risk of increasing its attractiveness to younger palates, and the pack design is lively and trendy, reinforcing its apparently youthful appeal (Cooke et al 2001). Similarly, sweet ciders have been marketed in Sweden, Finland and Norway, with brands such as Halmstad and Kopparbergets, and are gaining ready sales among young drinkers who find the sweet taste makes the products easier to consume (Cooke et al 2001). Romanus (2000) studied the impact of alcopops and sweet ciders on the Swedish youth market. From two surveys of young Swedes he found that the new products rapidly penetrated the youth market and partly accounted for an increase in consumption amongst 16 to 24 year olds. In addition, the surveys suggest that alcopops and sweet ciders had a considerable impact on younger children. They accounted for between a half and two thirds of the recorded increase in alcohol consumption by 15 to 16 year olds from 1996 to 1999, and contributed to an earlier age of onset of drinking amongst the youngest age groups surveyed (12-13 year olds).

Other new products may not target children, but do seem to be promoting unsafe drinking behaviours among young adults. Jackson et al (2000) chart the development of product innovations in the UK alcohol market that exploit the trend towards illicit drugs and mix alcohol with stimulants such as caffeine. Brain (2000) also demonstrates how the alcohol industry has adapted rapidly to changes in youth culture, introducing heavily branded products that provide a ready 'hit'. The websites of two such products (Lava in the US: www.lavashots.com and Aftershock in the UK www.shockingtimes.com) dramatically illustrate the point. The slogan for Lava is "Some shots have an afterglow. This one's got an aftermath."

Focus group research with 15-24 year-olds (MacAskill et al 2001) indicated that these products - full strength spirits consumed in one mouthful from small 'shot' glasses - are becoming increasingly popular and are chosen by young drinkers because their strength gives an immediate hit, and their strong (and often unpleasant) flavours, method of consumption and brand names have created associations with daring behaviour.

These examples do suggest industry double standards; proclaiming their desire to prevent underage consumption and promote responsible drinking on the one hand, but simultaneously developing products that are likely to have the opposite effects on the other.

The Internet

The rapid rise of information technology and, in particular, the Internet has given manufacturers a new and interactive promotional opportunity. Sophisticated web sites have been created by drinks companies all over the world for their popular brands; including Bacardi, Guinness, Budweiser, Castle, Amstel and Smirnoff. These use the latest technology to produce interactive arenas with impressive graphics and eye-catching animation. Their content seems to be designed to tap into key aspects of youth culture. Computer games; competitions; profiles of forthcoming sponsored events such as parties, fashion shows and sporting contests and e-cards are all common features. Visitors to sites can also sign up for newsletters (which give details of competitions, promotions and updated features on the web sites, such as new games) allowing the companies to amass databases of those who visit their sites.

The Center for Media Education (1998), a US non-profit organisation, has monitored and analysed the content of corporate alcohol sites on the Internet. Of the 77 sites examined, 62% contained content which the researchers believed would be appealing to youth - including cartoons, interactive games and chat rooms. The authors of the report point out that high volumes and combinations of such content can encourage children and young people to stay on a site for long periods of time and to return frequently. This, combined with the databases mentioned above, provide the basis for relationship marketing campaigns with young people. Cooke et al (2002) show how Budweiser combined this approach with mobile phone technology to turn their mass media 'Whassup' campaign into an extremely effective exercise in viral marketing. The campaign was a great success with the catchphrase entering the popular slang of many languages (Chowdri 2001).

There is no direct evidence that underage groups are participating in, or being deliberately targeted by this 'new media' marketing. Equally, however, it is known that, in the developed world at least, children and young people are the main users of the internet, with many having access at home or at school (Marketing Week 1998). In addition, they are well aware of the latest developments and are attracted to the new and innovative (New Media Age 1998). Website controls are also virtually non-existent, and although most declare that the user must be of legal drinking age, it is unlikely to be a serious deterrent (Cooke et al 2001).

Developing and Transitional Nations

Aitken (1989) draws attention to increasing alcohol consumption in a number of developing countries, coupled with the key concern that sectors of the population who previously did not drink (in particular women and young people) are beginning to do so. Research on the causes of these increases, and the extent to which the alcohol industry is implicated, is limited, but does suggest that the problematic marketing techniques discussed above are also being used in these countries.

In Africa, breweries tend to be extremely powerful, controlling considerable wealth and influence. These resources have been used to target advertising campaigns at the youth market, some of which contain false information, such as claims about the health benefits of alcohol (Gureje 2000). Gureje points out that, although the effects of drinking by young Africans have not yet been adequately studied, there is little doubt that drinking is a significant contributor to the high incidence of accidental death. Jernigan (1997) also draws attention to advertising for a particular brand of beer in Zimbabwe which subtly highlights the strength of the product.

In Russia, spirits advertising is banned, but beer (not considered by law to be an alcoholic drink) is advertised freely in all media (Rybak and Temkin 2000). The Russian beer market continues to grow rapidly, and global companies are ensuring that they gain a foothold. Heineken, for example, has just acquired Russia's fourth largest brewer, Bravo International (www.just-drinks.com 2002). Sponsorship is also in evidence, with the country's biggest beer brand Baltika (www.baltika.ru) sponsoring a wide range of sporting activities, as well as having a long standing relationship with the popular radio station – Radio Baltika.

In Poland, all advertising of alcohol was banned in 1985, however, since 1989 alcohol advertisements have been prolific both in the streets and in the press (_wiatkiewicz 1997). More encouragingly, Kompania Piworska (one of the largest corporations in the Polish beer industry) has initiated a campaign entitled "Don't sell alcohol to teenagers" collaborating with the local police and local government in Poznan, arguing that a key problem in Poland is the lack of rigorous control of young people's access to alcohol. At the same time, however, they are sponsors of the Polish National Olympic Team (for Sydney 2000), the Polish National Football Team and Ice-hockey events (www.kp.pl), all of which are likely to appeal to the young.

In Asia, the industry exploits traditional festivals, makes blatant use of sexual overtones in alcohol advertising by turning women into sex objects, and in some cases actively promotes heavy drinking (Assunta 2000).

"A Tuborg beer print advert had a man boasting how in one night he had 7 gins, 6 brandys, one AK-47, one Tombstone and two shots of whisky."

(Assunta 2000, p22)

Sponsorship is also a common means of introducing brand names to young people, with sports, films and rock concerts all being targets (Assunta 2000).

New media are also being used in this part of the world, with colourful websites such as Bacardi's "Bat Club" in India and Carlsberg Malaysia's site (Jernigan 1997) which encourages users to sign up and become 'Carlsberg Clubbers'. The latter promotion clearly aims to increase consumption:

"You'll be treated to nights of surprises and mystery gifts. Come up to our parties as we move around the coolest, hippest hangouts in town.

Heaps of goodies await you at each party especially if you are a Carlsberg Clubber. Privileges include an opportunity to top up Carlsberg points with every beer purchase when you party with us. The more Carlsberg you enjoy, the more points you get. Membership does have its privileges!

At the same time, the Carlsberg Glam Girls will be moving around in our parties to take photos of you and your mates chilling out. These photos will be posted for our Challenge where you'll stand a chance to be our weekly winners and be rewarded with more Carlsberg points!

So what are you waiting for? Let's get rolling with the happening people who will show you a good time!"

(http://www.carlsberg.com.my/promotion/ glamslam/default.cfm)

Finally, in Latin America, Costa Rica is one of only two countries to regulate alcohol advertising, but such advertising dominates its mass media (Dixon 2000) and in Mexico around 11% of the urban population aged 12-18 years consume new products such as wine coolers, prepared cocktails and canned mixtures of rum and coca-cola (Medina-Mora et al 2001).

Conclusions

CSR is a welcome and important development in business practice.

However, in the case of the alcohol industry, public claims to social responsibility do not seem to be borne out in practice. Advertising is breaking voluntary codes and reaching and influencing children; new products are appealing to children and are disproportionately associated with problem drinking; and new technology, which again appeals particularly to the young, is being energetically and imaginatively exploited. Furthermore, there is increasing, if patchy, evidence that these sophisticated marketing techniques are being used in developing and transitional countries, where regulation is limited and whose typically young populations are vulnerable to the appeal of western imagery.

This suggests that in the case of the alcohol industry at least, CSR provides insufficient controls, and that such voluntary approaches must be backed by statutory regulation.

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