Alcohol is not dangerous if we took it in the right way, says Minister as Alcohol Association unveils responsible code of business conduct.
The Minister of State for Trade, Harriet Ntabazi has called on Ugandans who enjoy alcohol to always drink responsibly, noting that “Alcohol is not dangerous as we think if we took it in the right way and the right quantities.”
The minister was speaking at the launch of the alcoholic beverages Responsible Code of business conduct 2023 by formal alcoholic beverages players under their umbrella Organization Uganda Alcohol Industry Association (UAIA).
Launched at Kampala Serena Hotel on Wednesday morning, the Code is intended to ease engagement and have collective engagements with government agencies on issues of mutual interests, honesty, and truth in the way formal players in the alcoholic beverages sector produce and market their different products.
Ms. Juliana Kagwa, the Vice Chairperson, Uganda Alcohol Industry Association said that this will help them ensure best ways to advertise, promote, sell and contain the consumption of alcohol to people who are the right age (18 and above).
“So this code is intended for alcoholic beverages that are recognized by Uganda National Bureau of Standards that are registered with Uganda Revenue Authority, and essentially people who have come to the table. This association is about 40 members strong, but we know there’s a lot more alcohol out there. So the intention is to onboard as many people as possible in the foreseeable future.”
“We go ahead to talk about compliance and what the rewards for complying with this code. We also have included the penalties with every regulatory framework. They’re always errant members of society. So the spirit of the code obviously, is to garner as much compliance and as many ambassadorships as possible,” she added.
She noted that the Code is intended to ease engagement, have collective engagements with government agencies on issues of mutual interests, being legal, decent, honest and truthful in the way they produce, market and sale their brands so that, as an industry, they can help address social issues such as drinking and driving underage drinking and heavy episodic drinking all aimed at promoting responsible use of alcoholic beverages.
Mr Onapito Ekomoloit, UAIA Chairman said, “With this code in place, we can address social issues such as drinking & driving, underage drinking, and heavy episodic drinking all aimed at promoting responsible use of alcoholic beverages.”
According to him, the code does not serve to summarize or substitute national laws, and policies, which must always be upheld but rather explain UAIA’s approach to self-regulation.
“The Code will create safeguards for our consumers by regulating distributorship, marketing, purchase, supply, sale, and consumption of alcoholic beverages in a bid to protect the alcohol industry’s reputation and freedom of expression in consumer-facing, brand activities across all our alcohol brands,”
The Code covers all sorts of marketing, supply, and distribution channels, the most common being: packaging, point of sale, signage, trade promotions, sponsorships, advertising, digital and social media, as well as any new channels and technologies that might be created, use, and co-opted from time to time.
According to Euromonitor Illicit Alcohol Trade Report 2021, from 2017- 2020, the value market size of illicit alcoholic drinks increased at 18.3% Compound Growth Rate (CAGR) from USD577.8 million in 2017 to USD956.8 million in 2020.
The report shows that there was a USD 458 million total fiscal loss in 2020. The highest value growth was observed in smuggling due to the increasing average unit prices for premium spirits.
Illicit alcohol, accounting for 64.5% of the alcohol market share is neither registered nor certified nor does it pay taxes. It has harmful impacts on the health of consumers and as well as undermining the economic development of Uganda.
Minister Ntabazi commended the leadership of the association for the act of self-regulation which she says will safeguard the sector.
She noted that Uganda has gained a lot in alcohol, being one of the biggest tax contributors.
“The alcohol industry is generating over shs800 billion in terms of taxes annually….and I want to tell you even if they say you, you put more taxes on these, people will continue taking because it is a need. For some people, it is medicine while for others it is stress therapy.”
On the other hand, the minister commended the sector noting that it employs more than 60,000 people directly and many more others indirectly.
“If we could really use this chance to shape this industry, it will directly give us a lot of employment more than it has given before. So it is something that is reducing the burden of employment,” she noted.
UNBS Executive Director, Mr. David Livingstone Ebiru asked all manufacturers to meet the standards so that their products can freely trade across the region.
“As we talk now, once the UNBS has certified the commodity in Uganda, it should be exported or sold across East African Community because we have a harmonized standard to allow you access the market.”
“So if you don’t want to comply with rules, you may not make the money you wish here unless you get out of our border. So embedding our standards in your businesses and production facilities is key because the opportunity is now enormous to access other markets,” he encouraged.
He noted that since Uganda is a member of the African regional standards organization, manufacturers from member states have an opportunity to trade in the continent so long as they are certified back home.
“So, we must focus on having a presence in these global markets. And as you know, now, no country will give you free market access unless you meet their standards.”
Former minister of trade, Amelia Kyambadde asked the public to stop demystifying alcohol consumption since it will change the perspective.
“I normally go to some functions and they wait for some guests especially the religious leaders to leave and then you see alcohol coming from all angles. So why do we call it a mystery? Why are we hiding it? So this code of conduct is going to build competence in your industry,” she said.
“I’ve heard people who are talking about abolishing alcohol but they forget that they’re actually shooting themselves. We are hurting our economy, the workers because this is employment, and revenue generation because when you look at the revenue generation the sector pays about 4.9% of the GDP,” she added.
The UAIA Responsible Marketing code will be governed by principles such as adult appeal, good taste and decency, and health messages among others.
In compliance with UNBS and URA standards, it is imperative that members do not deal in illicit. Members shall not purchase or supply illicit alcoholic beverages.
The subscribers to this code, their respective producers, distributors, and all other traders in alcoholic beverages must abide by the practices such as promoting a responsible attitude to the consumption of their products.
