How to sell unhealthy sugary drinks in South Africa? Advertise!
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A new study shows that energy drinks have achieved the highest recent sales volume growth in SA.
South Africa’s planned sugary beverage tax is still under scrutiny - the questions they’re grappling with are whether the country needs a tax and how effective it will be.
The reality is that the move to introduce this tax; also known as a health promotion levy - is necessary, as diets and lifestyles are changing in South Africa and non-communicable diseases and obesity are on the rise. The tax tries to reduce consumption of harmful products through increasing price but there are other drivers which also need attention – advertising in particular.
A new study published by PRICELESS at the Wits School of Public Health and the Economics of Tobacco Control Project at UCT shows that advertising and sales of sugary drinks are on the rise. Lead author, Nick Stacey, said results of this study have established that across beverage categories, energy drinks have achieved the highest recent sales volume growth in SA. Between 2009 and 2014, the annual volume of sports and energy drinks rose from about 98 million litres to 168 million litres, rising from approximately two to three litres per capita in only five years.
The primary health risk posed by the consumption of these drinks is the high caffeine and sugar content which in excess, have dire consequences.
Marketing
A key factor influencing consumption of processed food and drinks is how they are marketed to potential consumers, and this is especially true of newer entrants like energy drinks.
Preference for food and beverage products is shaped by brand image through tactical marketing and advertising strategies.
According to PRICELESS SA Director, Professor Karen Hofman, results of this study have unveiled that the majority of energy drink advertising expenditure has been on television advertising – focused generally on channels with a younger and more male audience below the age of 45 who are relatively wealthy. The study further finds that individuals who watch channels high in energy drink advertising are more likely to consume energy drinks.
Legislation
The reintroduction of South Africa to the global economy following the onset of democracy in 1994 has seen the entrance of large multinational food companies and a rapidly changing food environment, with increased consumption of ultra-processed foods.
Despite the significant risks posed by energy drink consumption, the SA government has taken little action to regulate the production or marketing of energy drinks to consumers.
The legislation is in place requiring manufacturers to label caffeine content in energy drinks, however, there are no colour- or type-setting restrictions, allowing producers to obscure this warning from potential buyers through careful package design.
Regulation of advertising of energy drinks has a potential role as a means to discourage consumption, alongside other concurrent measures such as transparent and clearer front-of pack labelling; which in turn, will decrease risks associated with high consumption of caffeine and sugar.