Cheers or boos?

Dr Nicola Scott looks at the spirit producers which might give you an ethical hangover

It's not long before alcohol for Christmas parties will be bought and gifts considered for the whisky or brandy connoisseurs in the family. But during this period of over-indulgence, it's still important to think about how our purchasing behaviour will benefit drinks' firms whose ethics may or may not be as good spirited as the products they promote.

Industry groups

When Ethical Consumer last reported on spirits back in 2004, we criticised industry organisations such as the US-based Century Council(1) and the UK-based Portman Group, which claim to promote responsible alcohol consumption. We argued then that they also lobbied for less regulation of the industry's advertising. The Portman Group's latest Code of Practice (4th Edition) discourages the promotion of alcohol to under 18s, "irresponsible" and "immoderate" consumption, and "any suggestion that drinking can lead to social success or popularity".(2)

However, the Portman Group recently voiced its opposition to a ban on adverts for alcohol before the 9pm watershed proposed by the UK organisation Alcohol Concern. In response to this call, the Group's Chief Executive stated: "The advertising rules, which were toughened two years ago, ban adverts from targeting or appealing to under-18s. Completely shielding this age group from any images of alcohol is not helping them grow up with sensible and balanced attitudes to drinking."(3)

We reviewed the websites of Portman Group member companies covered in this report.(4,5,6) While these sites included some information about responsible alcohol consumption, no mention was made of the recommended weekly amount of alcohol units to be consumed, nor of the diseases which can be caused by alcohol abuse.

Unethical promotion?

Despite government regulation on alcohol advertising to under 18s, advertising by alcohol producers is prevalent in sectors which can attract interest from this age group, such as festival sponsorship(7) and product placement in films.(8,9) Although the Portman Group's code specifies that sponsorship is only allowed where no more than a quarter of participants, the audience or spectators can be under 18,(2) such a figure is difficult to quantify in practice, especially where product placements are included in films certified to be suitable for under 18s.

Industry expansion

Spirit producers are realising their potential to exploit untapped markets in developing economies. Pernod-Ricard's Annual Report 2005/2006 identified how its sales in China had increased in 2006 by 50%, whilst its Venezuelan market grew by 20%.(10) Although this in itself is not a process which receives negative marks on the scores table, expanding the market into countries which may have fewer health and social resources to cope with potential alcohol-related problems, is a contentious issue. "Alcohol-related deaths almost doubled in the UK from 1991-2005," according to a report by the National Office of Statistics in 2006.(11)

Supply chain policy and environmental issues

The sector is dominated by a handful of multinationals, many of which operate in other markets such as clothing (Groupe Arnault, UB Group), and products for the home (Fortune Brands). So it is disappointing to see on the scoretable that only one company received a best rating for supply chain policy, while only two had good environmental reports.

With rum, for example, the principle ingredient is sugar, and if you buy ethically sourced sugar you might want to consider whether your favourite rum company states how its key ingredient is produced.

Opting for organic spirits ensures that only organic ingredients are used in the fermentation process of spirits. The UK's Soil Association has criticised non-organic production processes: "conventional vodka is made from grain produced in systems usually reliant upon multiple applications of pesticides and artificial fertilisers".(12)

A company to be merry about

At the time of writing only one company reviewed, the Organic Spirits Company (a subsidiary of London & Scottish International), had a product which was both certified Fairtrade and organic - Utkins Fairtrade Rum. All of the Organic Spirits Company products were certified organic.

Given that the annual profits of most of the companies on the table run into millions of pounds, they could spend more of this money on establishing and verifying responsible supply chain and environmental management systems.

Links

* Alcohol Concern, 64 Leman Street, London, E1 8EU 020 7264 0510
Suppliers of organic products:
* Vintage Roots 0800 980 4992
* Vinceremos 0800 107 3086

References

1 Founding companies include Bacardi, Diageo and Fortune Brands www.centurycouncil.org/ viewed 7/9/07
2 Code of Practice, www.portman-group.org.uk viewed 7/9/07
3 Press release by the Portman Group 28/8/07 www.portman-group.org.uk viewed 7/9/07
4 www.bacardi.com viewed 7/9/07
5 www.beamglobal.com part of Fortune Brands viewed 7/9/07
6 www.diageo.com viewed 7/9/07
7 For example, the Bacardi Stage at the 2007 V festival]
8 ABSOLUT's placement in 'Zoolander', certificate 12, Motion Picture Placement www.mppusa.com/ slideshow17.htm viewed 7/9/07
9 Smirnoff's placement in the latest James Bond film 'Casino Royale', certificate 12, www.sonypictures.co.uk/movies/casinoroyale/partners viewed 7/9/07
10 Pernot-Ricard Annual Report 2005/2006, p34 and p40, respectively www.pernod-ricard.com viewed 5/9/07
11 News Release 7 November 2006, www.statistics.gov.uk /pdfdir/aldeaths1106.pdf viewed 7/9/07
12 'Wine, Beer and Spirits � Common questions and answers', November 2005, www.soilassociation.org viewed 7/9/07
13 www.ratb.org.uk viewed 22/8/07
14 www.nmass.org viewed 7/9/07