Legislators go to work on beer ban
The Senate is set to begin work this week on legislation that would ban all forms of outdoor beer advertising.
Two weeks ago, the Sejm passed an "anti-alcoholism" draft law that prohibits outdoor advertising of non-alcoholic beer and restricts TV beer ads to an 11 p.m.-6 a.m time slot. Two Senate committees (the Family and Social Policy Committee and the Health and Physical Culture Committee) have been assigned to work on the law. The former will begin work on the bill Tuesday and the latter on March 21.
If the legislation becomes law, the outdoor ad sector will suffer and stagnate for years, according to Gustaw Zalewski, head of the Outdoor Advertising Chamber of Commerce (IGRZ), an organization of outdoor ad companies.
"If the law goes into effect, the outdoor ad sector will lose an important source of revenue," Zalewski said. "It will result in significant (internal) cost-cutting (for outdoor ad companies)." Zalewski estimated that outdoor ad firms will have to slash in-house expenses by 20-30% to offset the loss of beer advertising.
Media Watch, which monitors outdoor ad spending, said that beer companies spent zl. 70.7 million ($16.1 million) on outdoor ads last year, more than 10% of the outdoor sector's entire turnover of zl. 630.4 million ($143.3 million).
By comparison, market researcher Expert Monitor said breweries spent zl. 200 million ($46 million) not including discounts on TV, radio and press in 2000.
Zalewski said that internal cost-cutting measures by outdoor ad companies would also involve laying off staff.
Anna Nowakowska of Plakanda International, a leading outdoor ad firm, agreed.
"Plakanda, as a big and stable company, is in a different situation from all the medium and small (companies)," Nowakowska said. "A large number of people (working in those companies) will likely lose their jobs."
Zalewski said the bill could also force outdoor companies to decrease spending on subcontractors, such as printing houses and the firms responsible for operating the ad boards. "Certainly if the draft is being passed in that form, the (outdoor advertising) sector will stagnate and the companies won't make investments," Zalewski added.
"Legislation is clipping the ad sector's wings again," Plakada's Nowakowska said, referring to the ban on outdoor tobacco advertising put in place last December.
