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Cable TV Seen Relaxing Liquor-Ad Policies
June 14, 2002

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News Summary

Several cable-television networks have begun relaxing their hard-liquor advertising policies, with some already accepting liquor commercials nationally, Advertising Age reported June 10.

In the past, cable networks would accept local hard liquor ads, but refused to air liquor advertisements nationally. But with a need for more revenue, cable networks are seen as increasingly welcoming to national liquor ads.

The first on the scene comes from Bacardi USA, which began running ads for its Bombay Sapphire Gin nationally on five cable networks. The ads are appearing on Bravo, Outdoor Life Network, and Universal Television's USA Network, Sci-Fi Channel, and Trio digital channel.

"It's just a matter of time before TV networks in general relax their national liquor-ad policies, and the cable networks will go first," said Tom Pirko, a beverage-industry analyst with BevMark in Santa Barbara, Calif. "It's inevitable because there is a great desire among liquor marketers to reach these audiences, and an equal desire for cable networks to welcome that money."

In addition to Bacardi, leading liquor marketer Diageo, which was given the okay by NBC executives to run ads on the television network before the decision was reversed, is expected to run $200 million annually in liquor ads on cable channels and local and independent broadcast stations.

According to Phil Lynch, vice president of corporate communications for Brown-Forman Corp., "We've been advertising Jack Daniel's in 40 local NBC affiliates and cable markets with significant success, and no negative pushback from consumers."

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