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Tue, November 28, 2006 : Last updated 16:47 pm (Thai local time)



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Home > Business > Local wine-makers say ban on advertisements will kill their industry





Local wine-makers say ban on advertisements will kill their industry

The Thai Wine Association will ask the prime minister to review the total ban on advertising alcoholic drinks, which it claims will destroy the Bt400-million domestic wine industry.

The ban on advertising of beer, wine and spirits becomes effective on December 3.

"The Thai wine industry is quite young, and has been in existence for only 10 years. Many Thai wine brands are not established in the market and are not well recognised by either local or foreign customers," association president Visooth Lohitnavy said yesterday.

"Thai wine-makers need advertising and other marketing activities to build their brands, to compete with imported wine products. The total advertising ban will block all information between Thai wine producers and their customers. It will even lead Thai customers to rely only on imported wines, which are better established in the market place."

Key members of the Thai Wine Association are major local brands Chateau de Loei, Mae Chan Valley, Shala One, Chateau Des Brumes, Granmonte and PB Valley.

Visooth is chief executive of Granmonte, which has a vineyard covering almost 16 hectares and a wine production facility in Khao Yai in the Northeast, and employs more than 50 people. It produces about 60,000 bottles of wine per year and plans to increase output to 120,000-150,000 bottles within three years.

Total production by the association's seven or eight biggest members amounts to about 860,000 bottles per year, worth about Bt400 million in sales. This compares with sales of more than 10 million bottles of imported wines per year, with a value of more than Bt5 billion.

"The Thai wine industry generates further income for Thailand and for Thai farmers by elevating the country's farming industry from primary agricultural products to high-end value-added products and by promoting agricultural tourism," Visooth said.

He said the wine association supported the government's desire to reduce social illnesses. However, some of its measures - particularly the total ban on advertising, marketing communications, public relations, promotions, displays, booths and wine-tastings - will create an immense negative affect on Thai wine producers, while existing imported brands will garner benefits and continue to reach consumers.

Visooth said the government should postpone the ban for at least six months, and in that time make all regulations and measures related to alcoholic drinks more practical and clearer on what businesses can and cannot do.

"Any inappropriate measures that are unfair and will hurt the overall economy should be revised. The ban will not only severely hurt the Bt400-million Thai wine industry, but also related industries such as tourism and grape plantation, which means it will also hit a lot of farmers," he said. More than 1,200 people are directly employed in wine production.

Visooth said the ban on alcohol advertising should not be a priority for the interim government. It should concern itself with suppression of corruption and social reconciliation.

The Thai Wine Association believes there are a variety of positive alternatives to the advertising ban, including public education to make people aware of the dangers of excessive and irresponsible drinking, as well as the importance of the family institution.

Visooth said fairness in taxation should also play a key role in the industry.

Meanwhile, an initiative has been announced to control under-age drinking in the community around the University of the Thai Chamber of Commerce (UTCC). It involves the university, its surrounding community, nearby pubs and restaurants, the Federation on Alcohol Control of Thailand, the "Cares for Friends Club" under the Thammasat Foundation, and students from 60 institutions.

They will today sign a code of "self regulation in the community surrounding UTCC" to help prevent under-age drinking.

Kwanchai Rungfapaisarn, The Nation







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