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€8.5m alcohol sponsorship ‘at risk’ in Ireland
Proposed restrictions to advertising and sponsorship for arts and cultural events will deter drinks companies, and put more than €8.5 million at risk, the Alcohol Beverage Federation Ireland (ABFI) has said.
The drinks industry provides almost €8.5 million in sponsorship to more than 50 events
If actioned, the Public Health Alcohol Bill (PHAB) – introduced by former minister for health, Leo Varadkar, in December 2015 – would place limits on advertising, prohibiting any stylish depiction of alcoholic beverages in settings, such as pubs or concerts, or in the presence of people.
According to the director of the ABFI, Patricia Callan, the drinks industry provides almost €8.5 million in sponsorship to more than 50 arts and cultural events around the country – a boost that is “essential to their viability and sustainability”.
“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,” she said.
“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 “punitive” new advertising restrictions proposed in the PHAB, she added, would “effectively mean a ban on sponsorship” by decreasing the volume and value of sponsorship partnerships for drinks companies.
“The severity of the content restrictions means that that images of conviviality (such as a scene in an Irish pub), images of a person consuming alcohol or indeed images of people will be banned,” she said.
A recent study carried out by UK-based BOP consultants commissioned by MCD, Fáilte Ireland and the IMRO into the economic impact of live events in Ireland (including all major Ticketmaster events) showed that a total of €81 million was spent on food and drink.
The ABFI says that firms sponsoring cultural and sporting events spend three to five times the sponsorship sum on advertising their involvement.
“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,” added Callan. “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.”