SNP's controversial alcohol advertising curbs 'already damaging industry'

An industry taskforce, which involves organisers of the Edinburgh International Festival and Fringe, Glasgow's Hydro arena and Celtic Connections festival, the TRNSMT and Connect festivals, The Open golf championship and the Royal Highland Show, has condemned proposals aimed at reducing the exposure of young people and problem drinkers to drinks brands.

The Scottish Government is also under pressure from its own tourism agency over the proposals, with VisitScotland warning the backing of drinks brands for events and attractions is “instrumental” to the entire industry's success.

All three SNP leadership candidates have already signalled a rethink on the controversial proposals, but the industry says damage has already been done.

The government has been told the proposals put out for consultation in November have already had an adverse impact, with potential investors now "hesitant to commit funding in an environment of uncertainty."

If the proposals went ahead, it said festivals may have to be called off, scaled back or relocated elsewhere, while Scotland could also lose out with bids to host one-off events if partnerships with drinks companies are outlawed.

Concerns have been raised about a lack of research in Scotland into the negative impact of drinks brands backing events, the sector’s reliance on alcohol advertising and the impact of potential curbs.

The new concerns have emerged days after the organisers of Edinburgh’s Hogmanay celebrations backed an open letter warning that restrictions on alcohol advertising would inflict “substantial damage on the cultural life of Scotland.”

The industry taskforce has now warned the government that blanket ban would hamper the “ongoing and extremely fragile” recovery of a sector battling the impact of public funding cuts, climate change, staffing and supply chain problems, and the economic climate.

In a letter to public health minister Maree Todd, Scotland's Event Industry Advisory Group, which was set up during the pandemic, said the removal of “a core commercial revenue stream represents a huge additional challenge that will directly impact viability and capacity.”

Chair Peter Duthie, chief executive of the Scottish Event campus, which includes the Hydro, chairs the taskforce, said: “The millions of pounds of income received through partnership with the alcohol industry provides an established, significant and necessary commercial revenue stream for the event sector.

“With public sector funding being reduced, the additional removal of a core commercial revenue stream, and no credible alternative, threatens the sector’s financial viability and the associated many benefits it delivers for Scotland.

“The recovery of Scotland’s event sector following the pandemic is ongoing and extremely fragile.

“It is already challenged by disrupted supply chains, reduced funding, increased production costs, a depleted workforce, financially cautious consumers, and the action required for a successful transition to net zero.

"Removal of a core commercial revenue stream represents a huge additional challenge that will directly impact viability and capacity.”

Mr Duthie said Scotland had a reputation as a “world-class event host” after winning the right to host numerous high-profile events.

He added: "Removal of a significant commercial revenue stream will affect Scotland’s attractiveness as a potential host venue and may result in some events deciding to go elsewhere (including within the UK) to access the necessary commercial income.

“Concern within the alcohol industry around this consultation and its potential policy outcome is already impacting on Scotland’s event sector, with potential investors hesitant to commit funding in an environment of uncertainty.

“Independently-commissioned research is required to properly evidence and fully understand the value of alcohol advertising and sponsorship to the event sector in Scotland, and the likely impact of its withdrawal.

“Similarly, there is concern regarding the strength of evidence in support of an advertising ban as an effective means to reduce alcohol misuse.”

In a submission to the government’s consultation, which closed last week, VisiScotland pointed out that the country had become established as “a world-leading events destination” over the last 20 years, when it has supported more than 1000 different events.

VisitScotland told the government: “A significant part of the tourism and events sector in Scotland relies on the alcohol industry, both directly and indirectly, in their operations.

"The delivery of events will often require partnership or sponsorship including from alcohol brands. In some cases, the ability to attract sponsorship and support from this sector is what makes event delivery viable.

"Edinburgh’s festivals brought £313m economic impact, including 5,660 jobs and £14m of investment in Scottish creatives and production companies in 2019. Many of the festivals have alcohol brands as sponsors or partners.”

The Scottish Government has stressed the need to take action to tackle what it describes as “one of the most pressing public health challenges that we face in Scotland.”

A spokeswoman said: “Reducing the exposure of children to alcohol promotion is a priority as there is clear evidence which shows adverts glamorising drinking can encourage young people to drink alcohol and can also have a detrimental impact on those in recovery from problem alcohol use.”

Alison Douglas, chief executive of the charity Alcohol Focus Scotland, said: “We have a huge problem with alcohol in Scotland. It causes 1 in 15 of all deaths, which have increased by 22 per cent in the last two years. Marketing is serving to drive this problem as it helps to recruit new drinkers, reinforces heavy drinking and normalises alcohol as an everyday product.

“It’s impact on children and young people is especially concerning as exposure to alcohol marketing increases the likelihood they will start drinking, to drink more, and go on to develop an alcohol problem. There is evidence that sponsorship is a particularly powerful form of marketing for young people, perhaps not surprising as it enables brands to link to highly emotional and formative experiences like seeing your favourite band playing at a festival.

“Evidence from other countries shows that the most effective way of protecting children and young people, and adults too, from alcohol marketing is by having as comprehensive restrictions as possible.”