Alcopops: State by State Battle to End Corporate Tax Fraud


Alcopops are a relatively new product category in the United States. The alcohol industry labels the youth-friendly products “flavored malt beverages” to take advantage of more favorable tax rates for beer. Beer is taxed at much lower rates than are distilled spirits in the U.S. and is often sold in grocery and convenience stores, making it more widely available. Interestingly, in other countries, manufacturers do not call alcopops “malt beverages,” and indeed some companies proudly market their products as containing spirits. For example, while Smirnoff Ice is touted for containing vodka in the United Kingdom, the exact same brand in the U.S. is labeled as a malt beverage. No matter where they are sold, alcopops are sweetened, often bubbly and fruit-flavored, and designed to resemble soda pop or other soft drinks. Alcopops fuel the underage drinking epidemic by serving as a transition for young people from soft drinks to alcohol.
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