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Annual Report 2010 - Baltika Breweries

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44<br />

<strong>Baltika</strong> <strong>Breweries</strong> | <strong>Annual</strong> report <strong>2010</strong><br />

Marketing<br />

Communication<br />

The Company undertakes<br />

different efforts to promote<br />

responsible consumption and<br />

voluntarily assumes self-regulation<br />

responsibilities from the Union<br />

of Russian Brewers.<br />

Code of Business<br />

Communication for<br />

Russian Brewers<br />

On March 30 th , <strong>2010</strong>, at the<br />

<strong>Annual</strong> General Meeting<br />

of the Union of Russian Brewers,<br />

representatives from small-,<br />

medium- and large-sized<br />

Russian breweries approved the<br />

Code of Business Communication,<br />

a document that stated existing<br />

and future brewers’ approaches<br />

to advertising. <strong>Baltika</strong> was one<br />

of the initiators of the Code.<br />

The Code both emphasizes<br />

the strict observance of the<br />

applicable Law on Advertising and<br />

proposes additional and voluntary<br />

restrictions for promoting brewery<br />

products. For example, brewers<br />

shall not use any slang directed<br />

at minors, position the alcoholic<br />

strength of a beer as an advantage<br />

for any beer brand, state that low<br />

alcohol beers help avoid the abuse<br />

of beer and shall prohibit the sale<br />

of beer to minors at public events.<br />

The Special Supervisory Board<br />

consisting of independent<br />

experts shall monitor compliance<br />

with provisions of the Code<br />

of Business Communication. The<br />

Supervisory Board is headed by<br />

Natalia Fonareva, Chairman of the<br />

Russian Chamber of Commerce<br />

and Industry on business<br />

regulation and one of the authors<br />

of the Russian Law on Advertising.<br />

Warning Notice on Packing<br />

Subject to applicable Russian laws, all beer<br />

advertising and promotional materials shall carry<br />

warning notices of the risks associated with abusing<br />

beer. President Dmitry Medvedev in his Instructions<br />

to the Russian Government proposed extending<br />

legal requirements to include consumer packaging<br />

of alcohol products and low-alcohol beverages,<br />

beer and beer-based beverages. The Union<br />

of Russian Brewers proposed that brewing<br />

companies voluntarily put warning notices on beer<br />

packaging without waiting for the relevant legal<br />

requirement.<br />

The brewery companies, members of the Union<br />

of Russian Brewers, including <strong>Baltika</strong> <strong>Breweries</strong>,<br />

which had approved the above decision started<br />

to distribute products carrying the warning notice<br />

for risks associated with abusing beer on packaging<br />

as of June 1 st , <strong>2010</strong>. The notice must cover at<br />

least 10 % of a bottle label or the surface-side<br />

of a can and carry warnings of the harm from<br />

beer abuse, as well as a sign “18 — Selling beer<br />

to minors is prohibited” designed and approved by<br />

the Union of Russian Brewers.

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