Alcoholic beverage brands, e-commerce platforms pledge to create responsible environment for online sale of alcoholic beverages
SINCE the onset of the Covid-19 pandemic in 2020, e-commerce has been gaining weight in a traditionally off-premise-weighted drinks market in the Philippines. Globally, more people are growing accustomed to buying alcohol online, with forecasts projecting that online alcohol sales will grow by over 74 percent in 20 key markets by next year.
With the ease and convenience of online shopping in the post-covid context, putting in place safeguards to prevent minors from buying drinks on online platforms and having them delivered, deserves unprecedented attention and action.
What can be done so that sellers and e-commerce businesses can ensure success while preventing minors from underage drinking?
In response to the rising challenge of preventing alcohol sales to minors and intoxicated individuals, the world’s leading alcohol producers and major e-commerce platforms signed a joint initiative by the International Alliance for Responsible Drinking (IARD) in 2020 to commit to implementing global standards for online alcohol sales and delivery. These include ensuring that safeguards are in place to prevent minors and harmful drinkers from buying alcohol online.
International wine and spirits producers in the Alcoholic Beverages Alliance of the Philippines (ABAPI), together with local e-commerce platforms in the Philippines followed suit by signing a local pledge in 2021.
This year, alcohol producers and e-commerce platforms in the country reinforced their commitment to prevent alcohol from ending up in the hands of underaged drinkers. In a seminar co-organized by the Asia Pacific International Spirits & Wines Alliance (APISWA) and ABAPI on May 25, 2023, stakeholders from the private sector and government agencies shared best practices on how they can work together to promote responsible online alcohol sales and delivery, further a supportive legal framework around e-commerce sales, and additionally, tackle challenges such as the proliferation of illicit alcohol on online platforms.
In a panel discussion on the current alcohol e-commerce landscape and the development of a responsible sales environment, representatives from the Department of Trade and Industry (DTI) and the Intellectual Property Office of the Philippines (IPOPHL) provided perspectives contributing to a holistic view on tackling both underage drinking and counterfeit alcohol sold online. DTI Assistant Secretary Mary Jean Pacheco presented DTI’S outlook towards fostering a responsible e-commerce environment and consumer protection in the digital economy.
Beyond the commitment by alcohol producers, the seminar shed light on the role e-commerce platforms can play in the fight to prevent minors from accessing alcohol.
At the event, IPOPHL invited ABAPI to sign the IPOPHL Memorandum of Understanding (MOU) between IP owners, brand owners and e-commerce players to strengthen the fight against the sale of counterfeit goods over the internet. The IPOPHL also established the local guidelines among the online marketplaces to intensify the fight against the sale of counterfeit goods on the internet.
Unrecorded alcohol is an effect of the growing problem of illicit alcohol trade around Southeast Asia. It refers to alcoholic products not accounted for in a country’s official sales. This is because those products are either produced, distributed, or sold outside government-licensed channels. Overall alcohol consumption in ASEAN is expected to grow by 16 to 18 percent by 2025.
If the illicit trade in alcohol is left unchecked and unregulated by governments, the challenge and risk to consumer health and safety will continue to grow in tandem with trends of increased alcohol consumption in markets.
In a statement, APISWA Chairman Sanjit Randhawa elaborated on the need for concerted efforts across sectors to combat harmful consumption of alcohol and curb the illicit alcohol trade, highlighting the renewed call on industry players to act now.
“Producers and retailers of the world’s leading alcohol brands across the world have committed to work in solidarity to protect minors from online alcohol sales and deliveries. The re-launch of our pledge originally signed in 2020 is our way of showing the world that the Philippines continues to be in step towards the goal of creating a responsible e-retailing environment for alcohol,” said Randhawa.
“Improper sale and distribution of alcohol brings a wide range of negative impacts. It poses significant health risks and undermines the rule of law. To improve how alcoholic products are sold and enjoyed across the country, we look forward to working with the government and other relevant stakeholders to eliminate the sale of alcoholic products to minors and to combat the harmful use of alcohol in all its forms.”