FTC Report: Brewers Doing a Responsible Job

The latest Federal Trade Commission report on alcohol beverage advertising underscores brewers' longstanding commitment to self-regulation and highlights recent revisions to our industry's advertising and marketing code, according to Jeff Becker, President of the Washington, DC-based Beer Institute. "We are encouraged that the FTC recognizes that brewers plan and execute their advertising and marketing campaigns in a responsible manner," says Becker. "FTC officials have always been vigilant in reviewing beer industry advertising practices, and our members have taken their inquiries and guidance seriously."

The FTC report summarizes an extensive review of brewer advertising and marketing activities including details of ad campaigns and actual placements in various advertising media. The report also noted that brewers have revised their industry advertising code to address several recommendations made in a 1999 FTC report to Congress dealing with industry self-regulation.

"The Beer Institute Advertising and Marketing Code, is a central component of our industry's commitment to social responsibility," continues Becker. "Our members are careful about compliance with the code, not only to accommodate regulatory agencies, but to make sure that there is no misperception about the focus of our members' advertising, which is to adults of legal drinking age." Changes in the beer industry code include a formal commitment to place broadcast and magazine advertisements where at least 70 percent of the audience or subscribers are expected to be above the age of 21, which is the federally mandated minimum purchase age for alcohol beverages. This standard reflects the age demographics of the United States, which show that approximately 70 percent of the public is age 21 or older.

"Most current beer advertising placements are already in compliance with this 70 percent target," notes Becker.

In addition to these changes, the Beer Institute also expanded provisions applicable to advertising and marketing on or near college and university campuses. Finally, current industry practices were also incorporated into the Code in the areas of billboard advertising placement and product placement in movies and other media.

The first voluntary brewing industry code was adopted shortly after the repeal of Prohibition in 1934. That first code addressed broad commitments to ethical business practices including truthful advertising. A decade later, the industry adopted its first code exclusively devoted to advertising practices. While the underlying purpose and themes of the code have been the same for almost 60 years, it has evolved to address issues including TV, the Internet, marketing on college campuses, and product placement in movies.

The Beer Institute Advertising and Marketing Code is available at www.beerinstitute.org. A copy can also be obtained by calling 800-379-2739.

The Beer Institute, established in 1986, is the national trade association for the brewing industry, representing both large and small brewers, as well as importers and industry suppliers. The Institute is committed to development of sound public policy and to the values of civic duty and personal responsibility.