Indian firm blacklisted in Russia

By Vladimir Radyuhin

MOSCOW, NOV. 18. A leading Indian company has been blacklisted in Russia for unethical behaviour. The Sun Interbrew, an upstream Indo-Belgium beer producer, was excluded from the Russian Union of Beer Breweries for an aggressive advertising campaign that targeted underage youngsters.

Earlier this year Russia's Chief Sanitary Doctor, Mr. Gennady Onischenko, accused beer manufacturers of deliberately encouraging beer drinking among teenagers. Sun Interbrew was the main culprit as it is the only major beer manufacturer in Russia to produce TV advertisements that invariably feature teenagers extolling the advantages of Klinskoye beer, the company's best selling brand.

The charge sparked a debate in Russia, where heavy drinking is a truly national scourge. According to the Russian Health Ministry, one in four Russian fifth-graders (11-year-olds) tasted beer during the month prior to the survey and one in 50 tried vodka. By the time they turn 15, the number of beer- drinkers grows to 71 per cent and those familiar with vodka exceeds 30 per cent. The Chief Sanitary Doctor called for extending the existing ban on TV advertising of strong alcoholic beverages to beer and for clamping higher excise taxes on strong beers. The beer union, which unites over 80 Russian breweries, urged Sun Interbrew to change its advertising policy, but the company refused.

In its newsletter circulated to the media last week the Union of Beer Breweries said that aggressive advertising of the Klinskoye beer evoked public resentment and made further membership of Sun Interbrew in the union impossible.

``One should not think of profits only, we must think of the younger generation as well,'' said Mr. Alexei Kochetov, chairman of the union.

The Sun Interbrews blamed its exclusion from the brewery union on competition inside the industry. ``We're getting stronger and competitors do not like it,'' said an employee of Sun Interbrews, which is the second biggest beer producer in Russia.

The incident is bound to cast a shadow on Indian business in Russia. This is the first time an Indian company has been formally censured in Russia. The Sun group is the biggest among the few Indian investors in Russia and its Indian co-owner, Dr. Shiv Vikram Hemka, is president of the Indian Business Association here.

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Section  : International
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