Diageo SA, producers of household liquor brands such as Johnnie Walker, vodkas like Smirnoff and Ciroc, Tanqueray gin, has paused all paid-for advertising on major social media platforms – Facebook, Instagram and Twitter – both locally and abroad, due to concerns about racist content.
Diageo joins the likes of Unilever, Coca-Cola and many other big companies who have suspended their advertising on social media platforms amid criticism that Facebook and Twitter aren’t doing enough to protect users from hate speech.
Sibani Mngadi, Corporate Affairs Director at Diageo SA, said the company also makes an effort to ensure responsible marketing of its brands on digital platforms.
“Internet and digital platforms that our brands use have an age verification mechanism to control access for people below the legal drinking age of 18 years. Direct communication may not be levelled at persons under the legal drinking age and it is aligned to global and local requirements for consumers’ privacy, data protection and opportunity to opt out,” said Mngadi.
Meawhile, Mngadi added that the company will this month honour its tax obligations following the first month of trade since the prohibition of formal alcohol sales was lifted at Level 3 of the lockdown.
Excise tax obligation of the industry was deferred as part of government package of economic and financial relief to the business sector since the implementation of the national lockdown level 5 on 27 March 2020. Formal sale of alcohol was prohibited for 65 days until level 3 lockdown regulations were implemented from June allowing for sale of alcohol for home consumption.
“As Diageo, we had more than R200 million tax obligation that was deferred in May as part of the tax relief interventions by the Minister of Finance. We will be honouring that obligation during this month. Other future tax obligations will flow as per normal after the reopening of alcohol sales from June,” said Mngadi.
