Editorial - Pushing 'Alcopops' A bad bill in Annapolis would promote teen drinking.
March 21, 2008 pg. A16
LIKE THE fruity-flavored, alcohol-laced beverages that appeal so much to the under-21 set, a bill making its way through the Maryland legislature this week may seem non-threatening but could lure more illegal novice drinkers to dangerous habits. As it is, teens are getting their hands on "alcopops" -- also called "flavored malt beverages" and "malternatives" -- thanks in large part to a current practice, which treats these drinks for sales distribution and tax purposes as beer rather than distilled spirits. The result is lower prices and easier access for underage drinkers.
That's the way the industry likes it, but Maryland Attorney General Douglas F. Gansler has issued an opinion that, under state law, these drinks are distilled spirits and should be taxed and distributed as such. The action has prompted an end-around by state lawmakers cozy with the beer and liquor industry, including Democratic Senate President Thomas V. Mike Miller Jr. (D-Calvert). Their bill, passed by the Senate yesterday and now before the House, would formally define the drinks as beer, which would keep the drinks teen-friendly.
The proposed definition is blatantly dishonest. Findings by the U.S. Alcohol and Tobacco Tax and Trade Bureau show that most of the alcohol in these flavored drinks is derived from distilled spirits. As for taxes, which generally get passed along to the buyers, the Maryland tax rate for beer is 9 cents a gallon; for distilled spirits it's $1.50 a gallon. For a six-pack, the beer tax is a nickel, but the distilled spirits tax would be 84 cents. It's well established that entry-level drinkers are sensitive to such price differences. Then there's the loss of tax revenue in a bad year for the state budget.
Ease of access to these sweet but loaded beverages -- which are cutely disguised as cola, lemonade, iced tea or fruit punch -- also depends on how they are classified. Distilled spirits can be sold only by holders of retail liquor licenses. When classified as beer, the alcohol-flavored beverages can be sold by any location holding a beer license -- convenience stores and other spots more likely to be frequented by young people. True, underage consumption of any alcohol is already against the law, and, yes, kids can find older buyers to get any drink. But why increase the ease of access? Maryland lawmakers should reflect on that question before the final vote on this bad bill.
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