Last orders for responses to consultation on advertising alcohol alternatives

However, it is likely that new regulation for the NoLo sector is on its way, with CAP and BCAP announcing proposals to introduce rules specifically for marketers of alcohol alternative products.  The consultation document and accompanying guidance can be found here and the consultation closes at 5pm on Thursday 5 May 2022. 

All go for NoLo

The NoLo market is booming in the UK, as an increasing number of consumers are adopting more mindful and health-conscious lifestyle habits.  According to a study published by the International Wine and Spirits Record (IWSR), sales of NoLo drinks in the UK grew by 17% in 2021, with a similar trend witnessed in other key global markets such as France, Germany and the United States.  The NoLo market is expected to continue to thrive in the coming years with the IWSR predicting global growth of more than 30% by 2024.  To meet this demand, established brands are developing and selling NoLo versions of popular alcohol products and a number of new brands are entering the NoLo market.  Against this backdrop, CAP and BCAP have been considering whether the existing rules for NoLo products are adequate and still benefit consumers. 

A quick refresher of the rules

In the UK, advertising alcoholic drinks is highly regulated to ensure that these products are marketed responsibly.  Any advert for a drink that contains more than 0.5% alcohol must comply with all of the rules in the Alcohol sections of the CAP and BCAP Code.  Low alcohol products (defined as drinks being stronger than 0.5% ABV up to and including 1.2% ABV) are caught by these rules too, although CAP and BCAP have recently removed a limitation for this category of drinks.  Previously, adverts for low alcohol drinks could not make a preferential feature of the low ABV if the advert also featured a standard strength drink (i.e. one stronger than 1.2% ABV).  However, this restriction has been eased following a public consultation. This means that marketers can now feature alcoholic and non-alcoholic drinks in the same advert and include messaging such as ‘if you like our beer but want to cut down on alcohol, try our 1% version.’ The public policy reason for the change is to help advertisers promote the benefits of reducing alcohol consumption.  

Alternative thinking

CAP and BCAP have now turned their attention to alcohol alternatives (i.e. drinks that are broadly non-alcoholic, containing just 0.5% ABV or less).  This category of drinks is not specifically addressed in the CAP or BCAP Codes currently, largely because non-alcoholic drinks were not popular or widely available when the advertising rules for alcohol products were written.  However, CAP and BCAP consider that change is necessary to ensure that these products are marketed responsibly given their adult audience and close proximity to the tropes and imagery of standard alcohol.  By adopting a clearer and more specific approach, CAP and BCAP argue in their consultation document that this will help ensure a level playing field for the industry and a more concrete safeguarding of consumer welfare. 

CAP and BCAP propose to introduce a new sub-section of rules in the Alcohol sections of the CAP and BCAP Codes to deal specifically with advertising alcohol alternatives.  CAP and BCAP define alcohol alternatives as non-alcoholic drinks (i.e. those at or under 0.5% ABV) that are intended to replace alcoholic drinks in contexts where they would normally be consumed, for example, non-alcoholic beer.  Whether a drink meets this definition will be considered on a case by case basis.  A glass of pineapple and coconut juice on its own is unlikely to be considered a direct alternative to alcohol, however if the juice is branded as a ‘virgin pina colada’ and presented in a cocktail glass, then it could fall within the scope of the new rules. 

Nanny state? 

The proposed rules can be broadly categorised as follows: 

1. Labelling requirements:  Alcohol alternatives must include a prominent statement of ABV unless they are genuinely alcohol free products (such as blends of botanical ingredients).
   
   
2. Content restrictions:  Marketing communications for alcohol alternatives must not:
   
   
   1. indirectly promote alcohol;
      
      
   2. feature alcohol alternatives being consumed in circumstances that would be inappropriate or unsafe for alcoholic drinks without making clear that the product is non-alcoholic;
      
      
   3. encourage alcohol consumption at times that are not generally considered to be appropriate (e.g. while at the gym or during a working day); or
      
      
   4. encourage excessive or problematic alcohol consumption.
      
      
3. Targeting restrictions:  Adverts for alcohol alternatives may not be likely to appeal particularly to people under 18, may not be directed at people under 18 through the selection of media or scheduled around programmes likely to appeal particularly to them, or feature people who are or seem to be under 25. 
   
    

Given that alcohol alternatives are incapable of intoxicating consumers because of their very low alcoholic strength, CAP and BCAP’s proposals seem overly cautious.  However, in practice, the majority of NoLo brands will already include a statement of ABV on their products in accordance with government guidance and will only target adults with responsible messaging, and therefore will already be compliant with the new rules should they be introduced. 

Any NoLo brand or other interested party who is concerned by the new rules and/or wishes to retain the status quo is advised to respond to the consultation by 5pm on 5 May 2022.