Alcohol Industry News and Analysis for October 2007
Underage Alcopop Consumption: Cost Data for 27 States
Here in California, Marin Institute estimated the enormous costs of underage alcopop consumption; we used this data to educate policymakers, the media, and others. Now we've made similar estimates for the other 27 states where current law indicates that alcopops should be classified as distilled spirits. Doing so would make these products less available to youth (depending on the state law), either by removing them from grocery and convenience stores, raising the taxes (and hence prices), or both. Look up your state here.
Shining a Light on Alcopops in Two More States
| Ads like the above, for Mike's Hard Lemonade depict young women empowering themselves while drinking alcopops. |
Utah, a state already known for strong alcohol policies, could be the next to make alcopops less accessible to youth. The state's Alcoholic Beverage Control Commission recently voted unanimously to consider limiting the sales of all alcopops or "flavored malt beverages" to state liquor stores. The decision could mean removing the products from hundreds of grocery stores and convenience stores. The state's attorney general, Mark Shurtleff, was a strong voice in support of the decision. He said in a statement: "These drinks are not beer and should not be sold like beer.'' Final regulations are expected in early 2008.
Meanwhile, Illinois has become the first state to pass a law prohibiting alcohol companies from advertising, promoting, or marketing alcopops to youth. State policymakers likened the marketing of alcopops to using the cartoon character Joe Camel to sell cigarettes. State Representative Greg Harris explained: "Alcopop advertisers use the lure of youth and popularity to attract teenagers, especially the females, to their alcoholic products. We must protect children from the dangers of underage drinking by putting a stop to ads that make it look 'cool'."
Sources:
Alcoholic Drinks May Be Pulled From Utah Stores
Associated Press October 3, 2007
Legislation Prohibits Marketing of Flavored Alcoholic Beverages to Minors
Illinois Department of Health Services, September 19, 2007
Fewer Beer Giants Bring More Layoffs, Bigger Profits
When the second and third largest brewers, (behind Anheuser-Busch) SABMiller and Molson Coors, announced their intent to combine their U.S. operations last week, the motivation was clear: to better compete with the King of Beer. The new "MillerCoors" is expected to sell 69 million U.S. barrels annually, cut as much as $500 million in costs, and bring their net revenue to approximately $6.6 billion.
Isn't it funny how beer companies complain that raising taxes will result in job losses, but won't hesitate to lay off workers just to boost profits?
Source:
SABMiller and Molson Coors to Merge U.S. Units
International Tribune Herald, October 10, 2007
Budweiser Contaminated With Science Experiment
Did you know that Anheuser-Busch is the largest buyer of rice in this country, purchasing between six and ten percent of the entire annual U.S. rice harvest? The company uses rice in the beer manufacturing process, they say, for flavor.
Recently, Greenpeace International conducted a series of independent laboratory tests at an Arkansas-based Anheuser-Busch rice mill that showed the presence of an experimental genetically-engineered (GE) strain of rice. Back in 2006, this same strain was the source of a major contamination of at least 30 percent of the rice stocks in the United States. The contamination had a massive negative economic impact on the U.S. rice industry as many countries subsequently stopped or significantly restricted the import of U.S. rice.
Send a letter to Anheuser-Busch demanding that the company commit to
barring all GE ingredients from their products
Source: Budweiser Rice Contamination Exposed
Greenpeace International, October 8, 2007
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