Pernod – Ricard Alcool and publicity. Introduction, Alcohol effects Economics significance ...

SOCIETAL RESPONSIBILITY

Pernod – RicardAlcool and publicity

SUMMARY

Introduction, Alcohol effects Economics significance

Reactions and answers from European countries,

Ways to promote alcohol, Abuse, myths and belief, Ethical Marketing.

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INTRODUCTION

• In today’s Europe, alcohol is a part of events as diverse as everyday meals, religious services and celebrations.

• Models of alcohol consum:

Alimentary Sociability symbol Celebration symbol Cultural tradition Alcoholism: the pathologic drinking

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Apollo Group - Helene Brie - Paola Martin - Manuel Aiple - Luigi de Menorval - Vincent Fiaccabrino - Baudouin de Marsac - Clément Hochart

EFFECTS

HEALTH

Short-term: Central nerve system depressor Sociability Drunkness

Long-term: Alcoholism Neurological and digestive damage Cardio vasculair impact Risk during pregnancy Cancer

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EFFECTS

SOCIALAccidents

• Mortal road accidents:30 to 40 %• Work accidents:10 to 20 % • Domestic accidents: 20 %

Mortality• 3 % of female deceases &14 % of masculine deceases• Premature mortality:

• age group 45-54: 20,3% of female deceases & 22% of masculine

• age group 45-64 : 40,8% of female deceases & 48,2% of masculine

• cirrhosis and psychoses: 6% premature deceases

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ECONOMIC SIGNIFICANCE

Well-established place in the global economy• 3 million jobs, or 2% of total EU civilian employment• In the USA; 1.78 million job, $54 billion in wages and

benefits

Employment in EU :• The spirits sector: directly about 50,000 job; indirectly

250,000 people.• The brewing side: 2,800 European breweries;164,000

employees ;indirectly 2.6 million jobs• Industries serving the beverage alcohol sector

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TAXATION• In the EU:

• € 24bn per year in excise duties• Breweries, beer consumers and employees: € 38bn a year, € 19bn in VATand

10.5 B€ in excise duties.

• In the U.S.:• $30 billion in business, personal and consumption taxes (incl. $9.2 billion in

excise taxes)

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SALES• Global volume sales 182.9 billion L in

2004 • Stable 1-2% annual increase over the

1999-2004 period

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SOCIAL COST• Total tangible cost of alcohol to the EU: €125bn

in 2003 (1.3% of GDP)• Intangible cost: €152bn-€764bn

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REACTIONS AND ANSWERS FROM EUROPEAN COUNTRIES

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THE STATES ANSWERS TO ALCOHOL: FRANCE

The Evin Law (1991) regulates the alcoholism in limitating the right to advertise alcohilized beverages in view to protect the youth of marketing operations

It’s clearly forbidden to :

• advertize in the children dedicated press and make radio adverts neither on Wednesday nor on the oter days beetween 5pm to midnight.

• deliver leaflets or things showing any benefit of an alcoholized drinks

• sell wildely any alcohol without permission

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THE STATES ANSWERS TO ALCOHOL: POLAND POLAND FRANCE

Beer Wine Spirit Beer Wine Spiri

t

Definition of alcohol (vol. %) 0.5 1.2

Maximum Blood Alcohol Concentration (BAC) level

0.2 0.5

Restrictions on advertising

National TV Partial Ban Ban Ban Ban Ban

National Radio Partial Ban Ban Partia

lPartia

lPartia

l

Printed Medias Partial Ban Ban Partia

lPartia

lPartia

l

Tax as % of retail price 22 14 57 8.8 3.1 33.2

Restrictions on alcoholic beverage consumption in public domains

Health care establishments

Ban Partially

Educational buildings Ban Partially

Government offices Ban Partially

Public transport Ban Partially

Parks, streets, etc. Ban Ban

Sporting events Ban Partially

Workplaces Ban Partially2004 Global Status Report: Alcohol Policy (World Health Organization)

Polish government is more severe on alcohol market than France :


CONSUMPTION OF PURE ALCOHOL PER CAPITA

Country 20041 2007

France 11.43 13.0 [2]

Italy 8.02

Sweden 5.96 9.8 [3]

Poland 8.09

Adult

eximprodC N

VVVV

1: WHO database2: INSEE 20063: Gouvernement office of Sweden

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SWEDISH ANSWER TO ALCOHOL CONSUMPTION

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HISTORY

Bratt system 1914 abolished in 1955

Prohibition failed to be introduced in 1922

1995 Sweden entered the EU

Swedish National Institute of Public Healthfundinguniverse.comWikipedia Payroll eve

Vote YES!15


SYSTEMBOLAGET AND LEGISLATION

Monopoly for selling all beverage with alcohol content higher than 3.5%

Restricted opening time Restricted age: 18 High taxes Authorized import for personal

consumption Definition of alcohol beverage 2.25% Complete ban of advertising

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LEGISLATION IN ITALY

More liberal Definition of Alcohol beverage 0.1% Taxes from 0 (wine) up to 40% of retail

price Limited ban in advertising License to sell and produce

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WAYS TO PROMOTE ALCOHOL


PROMOTION OF ALCOHOL

Advertisement

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Sponsoring

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Franchising

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Cultural

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Self-Restriction

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ABUSE, MYTHS AND BELIEF,


ABUSE

“Cosmopolitan readers drank 21,794,000 glasses of beer in the last week ... Isn't it time you gave Cosmopolitan a shot?”

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6 MYTHES AND BELIEFS CONVEYED BY ADVERTISING ON ALCOHOL:

1. Drinking is a risk-free activity.

2. You can't survive without drinking.

3. Problem-drinking behaviors are normal.

4. Alcohol is a magic potion that can transform you.

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5. Sports and alcohol go together.

6. If these products were truly dangerous, the media would tell us.

7. Alcoholic beverage companies promote moderation in drinking.

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6 MYTHES AND BELIEFS CONVEYED BY ADVERTISING ON ALCOHOL:

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ETHICAL MARKETING


PERNOD RICARD COLLECTION


WHAT’S A CSR?

Corporate Social Responsibility Integration of Sustainable Development Stands out from pure capitalism

Economical considerations but also: Environmental Social

Voluntary approach that becomes compulsory

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aspects

It’s about self-regulation


ALCOHOL: A “RESPONSIBLE CONSUMPTION”

About changing mentalities Various actions to promote a reasonable use

Partnership with awareness campaigns Educ’Alcool -> Quebec, national alcohol

companies SAM the party’s captain,

Financed education campaigns “pull the problem out by the roots”

≠ ways depending on the countries Governmental (and even some NGOs)

recognition

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ETHICAL BEHAVIORS

Taking initiatives

“Good practices” : Pregnancy logo for all countries Doesn’t emphasize on the positive

aspects Youth -> takes preventive actions

(road safety)

“Behavior Code” for all employees32

Example of Pernod-Ricard


HAVE YOU ANY QUESTIONS ?!Thank you for your attention…

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