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Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

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Page 1: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia
Page 2: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Alcohol ControlWhere Are We Headed?

Wednesday, March 12th, 2008

Arlington, Virginia

Page 3: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Alcohol ControlWhere Are We Headed?

Isn’t That A Mighty Fine Question!

Wednesday, March 12th, 2008

Arlington, Virginia

Page 4: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

OutcomeWhen This Panel Discussion Is Over………

• Reviewed and discussed “alcohol regulation – emerging trends”

• Focused particularly on both legal and structural changes, what do these changes mean?

• Asked ourselves, do the totality of the changes suggest that we are moving toward complete deregulation or some new form of prohibition?

• Debated what should be done in reaction to these trends? Fight? Embrace? Accelerate?

Page 5: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Format

• 75m = Total Session

• 15m = “Teeing Up” The Issue

• 40m = Panelist Presentations

• 10m = Moderator Questions

• 10m = Audience Questions

Page 6: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Panelists

• We are delighted to welcome a powerful and diverse panel, containing industry experts with very distinct views on where we are headed or more importantly where we should be headed!

- Craig Purser, President, NBWA, CAE- Tom Wark, Executive Director, SWRA- Dr. Peter Anderson, MD, PhD, MPH

Page 7: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Craig Purser, CAEPresident, NBWA

• Craig A. Purser, CAE is President of the National Beer Wholesalers Association. 

• During his more than ten years with NBWA, he has led a number of successful association initiatives and has been instrumental in the strategic positioning of the association to meet today's challenges by promoting competition and leading the effort to strengthen the three-tier system and state-based regulation. 

• A veteran of Capitol Hill and numerous statewide political campaigns, Purser served on the staff of former U.S. Senator and Assistant Majority Leader Don Nickles (R-OK) for nearly five years. 

Page 8: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Tom WarkExecutive Director, SWRA

• Tom Wark is Executive Director of the Specialty Wine Retailers Association, a national organization of progressive wine merchants who liberalize shipping laws for wine retailers and consumers.

• Tom began his tenure in the wine industry in 1990 at the marketing firm of Gracelyn and Burns in Sonoma County, California.

• Tom founded his own communications and marketing firm in 1993 that focused on wine-related communications and marketing.

• Tom has worked on various wine related political issues through his associations with Matanzas Creek Winery, Coalition for Free Trade, and Family Winemakers of California.

• He received his masters degree in Diplomatic History from San Francisco State University. 

Page 9: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Dr. Peter Anderson, MD, PhD, MPH

• Dr. Anderson is trained as a general practitioner and specialist in public health medicine at the University of Oxford and the London School of Hygiene and Tropical Medicine. His PhD was on the risk of alcohol, and he is currently a consultant in alcohol policy. He was the regional advisor for both alcohol and tobacco with the European Office of the World Health Organization from 1992 to 2000.

• Since 2001, he has been working as an independent consultant, and has been an adviser in the field of addictions to the European Commission, the World Health Organization and several governments. He was the author of a 400 page report for the European Commission on Alcohol in Europe, translating the evidence base and experience of alcohol policy and prevention programmes for policy makers, programme implementers and researchers.

• He has an extensive research background in alcohol epidemiology, intervention research, randomized trials, prevention projects and meta-analytical techniques. He has over 120 publications in peer reviewed journals and is the author or editor of 15 books.

Page 10: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Teeing Up The Issue

Page 11: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

What Do We Know About Where We Are Today?

Page 12: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

From a public health perspective, the global burden related to alcohol consumption,both in terms of morbidity and mortality, is considerable in most parts of the world. Alcohol

consumption has health and social consequences via intoxication (drunkenness), alcoholdependence, and other biochemical effects of alcohol. In addition to chronic diseases that mayaffect drinkers after many years of heavy use, alcohol contributes to traumatic outcomes that

kill or disable at a relatively young age, resulting in the loss of many years of life due to deathor disability. There is increasing evidence that besides volume of alcohol, the pattern of the

drinking is relevant for the health outcomes. Overall there is a causal relationship betweenalcohol consumption and more than 60 types of disease and injury. Alcohol is estimated to

cause about 20–30% of oesophageal cancer, liver cancer, cirrhosis of the liver, homicide,epileptic seizures, and motor vehicle accidents worldwide (WHO, 2002).

Alcohol causes 1.8 million deaths (3.2% of total) and a loss of 58.3 million (4% of total) ofDisability-Adjusted Life Years (DALY) (WHO, 2002). Unintentional injuries alone account

for about one third of the 1.8 million deaths, while neuro-psychiatric conditions account forclose to 40% of the 58.3 million DALYs. The burden is not equally distributed among the

countries. Alcohol consumption is the leading risk factor for disease burden in low mortalitydeveloping countries and the third largest risk factor in developed countries. In Europe alone,alcohol consumption was responsible for over 55 000 deaths among young people aged 15–29

years in 1999 (Rehm & Eschmann, 2002).

Excerpt From 2004 WHO Report On Alcohol

Alcohol In Society

Page 13: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

“The cost of alcohol to society does not outweigh the benefit to society,

nor can / does it pay for itself through taxation”

“In short, society would be better off without alcohol”

Page 14: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Let’s Ban It

Section 1.

After one year from the ratific

ation of this article the

manufacture, sale, or transportation of intoxicating liquors

within, the importation thereof into, or the exportation thereof

from the United States and all territo

ry subject to the

jurisdiction thereof for beverage purposes is hereby prohibited.

Page 16: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Let’s Tax It To Death!Russia: Sweet smell of excess

16/06/2006 12:00Written by: Iain O'Neil

The Russian government is taking steps to cut the number of drink-related deaths in the country - by restricting the sale of perfume.

Apparently Russian men have taken to buying cheap perfume as an alternative to drinking more expensive alcoholic spirits - like vodka.

Perfume, brake fluid, de-icer and methylated spirits make up 20% of alcohol consumed in Russia and are a major factor in many of the 40,000 deaths a year from alcohol poisoning.

Moscow cosmetics shop owner Nadezhda Ivanova told the Telegraph: "Just because my husband is fool enough to drink brake fluid, why should I be deprived of the pleasure of wearing Chanel?"

Page 17: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

A Serious Problem……..Alcohol deaths prompt state of emergency in Siberia

06 Dec 2006 16:35:00 GMTSource: Reuters

MOSCOW, Dec 6 (Reuters) - Russia's eastern Siberian region of Irkutsk declared a state of emergency on Wednesday after 10 people died in a 24-hour period from alcohol poisoning, in some cases after drinking household cleaning products.

The deaths were the latest in a wave of fatalities from alcohol poisoning to sweep Russia this winter.

Alcohol-related illness is common in Russia, the world's biggest consumer of vodka, but the outbreaks of mass poisoning this year have been of an intensity not seen for years.

"In total 3,357 people have been diagnosed with toxic hepatitis of various degrees of severity (since mid-October)," he said, citing figures for the Irkutsk region.

Some experts have blamed an unusually lethal strain of fake alcohol which has appeared on sale after changes in tax rules made legal drink more expensive.

Page 18: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Not Just Russia……India: Spurious liquor claims 23 lives in Orissa

Wednesday, March 22, 2006 (Ganjam ):

Twenty three people in Ganjam district in Orissa and ten in the Icchapuram area in Andhra Pradesh have died after consuming spurious liquor over the last five days.

According to reports the spurious liquor which was mix of methyl alcohol and urea fertilizer is consumed quite regularly by many people in Ganjam district.

200 people had died in the Cuttack hooch tragedy of 1992 and since thenanother 100 people have died in similar tragedies in other districts.

But the reports of the judicial probes on these tragedies have notresulted in any concrete action by the government.

That also explains why the Opposition has described the announcement fora judicial probe into the Ganjam tragedy only an eyewash.

Page 19: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

On Other Continents Too….In Paraguay 14 die after drinking doctored liquor

02 Dec 2006 18:12:43 GMTSource: Reuters

ASUNCION, Paraguay, Dec 2 (Reuters) - Sugar-cane liquor tainted with methanol killed 14 people in a Paraguayan town, the country's health minister said on Saturday.

Health Minister Oscar Martinez said laboratory tests confirmed the presence of the toxic chemical, often used industrially, in the hooch, which investigators suspect was sold on the black market.

Nicaragua: Authorities hunt moonshiners as poison liquor toll hits 30Source: CNN / Sep 9th 2006

LEON, Nicaragua (Reuters) -- Nicaraguan police stepped up moonshine raids Saturday, bursting into seedy bars and liquor stores selling an adulterated cane liquor that the government said has killed at least 30 people.

Overnight, about 100 people were admitted to the already overflowing and rundown public hospital in Leon, about 55 miles northwest of the capital, Managua, and the center of the epidemic, raising fears of more deaths.

Page 20: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

But Also Closer To Home…• United Kingdom: Potentially fatal vodka on sale

Source: BBCSept 12th, 2006

Bottles of potentially fatal vodka have been discovered on sale in Lancashire, trading standards officers say.

The "Kremlin" spirit contains illegal levels of methanol - 16 times higher than the recommended maximum. It was found in a shop in Burnley.

Deemed unfit for human consumption, drinking the vodka in "moderate" amounts could cause blindness or even death, experts warn.

Lancashire County Councillor Jean Battle, cabinet member for community planning and partnerships, said: "This problem has been highlighted thanks to the vigilance of a trading standards officer who saw the vodka on sale at an off-licence and was suspicious of its origins.

Page 21: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

And About To Get Worse?United Kingdom: Treasury haunted by spectre of fake spiritsBy: Vanessa Houlder, Financial Times

Published: Dec 27, 2006

Criminal gangs are turning to counterfeit alcohol as it becomes harder to smuggle genuine bottles of spirits, according to the Treasury.

The "emerging threat" of fake spirits is a sign that fraudsters are adopting new tactics to thwart the crackdown on the alcohol black market, it said.

All but the smallest bottles of spirits will have to carry a pink oval duty stamp, unless the retailer has records to show that duty was paid before last October. The industry is concerned that counterfeiters will not only produce fake bottles of spirits but also attach fake duty stamps.

Revenue & Customs, which has made several seizures of counterfeit spirits and packaging materials in recent months, fears that such a move could jeopardise the success of its drive against excise fraud. Criminals often recycle genuine bottles to make them appear genuine.

Revenue & Customs reported steady progress on reducing levels of spirit fraud since 2000-01, when it was as high as 28 per cent, leading to revenue losses of £1.2bn. Its latest estimate was that the market share of illicit spirits was up to 8 per cent, leading to revenue losses of £300m in 2004-05.

Page 22: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

On The Other Hand…..Let’s Deregulate It…..

(United Kingdom example)

Page 23: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

United Kingdom Deregulation

• Shops and bars can sell alcohol 7 / 24

• Virtually any outlet can get a license

• Available on every corner

• Little to no enforcement of underage purchasing

• Internet sales account for 10.0% of sales

• Selling below cost is routine and large scale

• Manufacturers and retailers not separated

Page 24: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

A Little Deregulation

Atmosphere of Deregulation

More Deregulation

Complete Deregulation

Unintended Consequences

Knee-jerk Reaction

Re-Regulation Higher Taxes

Worse Than Present

Page 25: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

United Kingdom: Supermarkets under fire as child alcohol abuse surges

By Sam CoatesSource: The Times

Supermarkets and off-licences have been identified as serial offenders, with 48 per cent of supermarkets found selling alcohol to under-18s in an undercover operation conducted before the licensing laws changed. The heads of Tesco and Sainsbury have been called to see Charles Clarke, the Home Secretary, to explain their approach to the problem.

Page 26: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

United Kingdom: Supermarkets under fire as child alcohol abuse surges

By Sam Coates

Source: The Times

SHOPS that sell alcohol to young people will be targeted by the Government

after a record number of children were admitted to hospital with drink-related

problems, The Times has learnt.

A 20-year restriction on sting operations is being lifted to help to catch retailers

selling alcohol to under-18s after the introduction of round-the-clock opening.

Page 27: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

United Kingdom: Alcohol deaths soaring, new figures show

Saturday July 1, 2006The Guardian

A sharp increase in the number of people drinking themselves to death in England was revealed in official figures yesterday.

The Salvation Army said: "We are not surprised, as alcohol has never been more easily available in the UK.

"The government's failure to adequately address binge drinking, and the ill-thought-through 24-hour licensing policy, will do nothing to help the situation."

Page 28: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

United Kingdom: Police chief blames drinks industry for Binge Britain by selling alcohol 'cheaper than water‘

Source: Daily MailFeb 14th, 2008

A police chief lashed out at the drinks industry last night for selling beer 'cheaper than water' and leaving hospitals to pick up the bill in injuries and bloodshed.

Danger: Supermarkets stocking up cheap booze have fuelled street violence, anti-crime campaigners say

"Why is it we have got huge entertainment and drinks companies marketing alcohol to children?"

In the past supermarkets stocked a handful of drinks targeted at youngsters, but "now we have gondolas of them", he said - the term used to describe large display units.

He accused parts of the drinks industry of not taking the problems seriously, adding: "We can't allow them to continue to export their negative costs on to the streets, hospitals and into the criminal justice system. It's got to stop."

Supermarkets are targeting children with cheap booze, according to claims.

Last week the Home Office announced a review of supermarket and off-licence drink sales, with ministers threatening legislation to outlaw ' lossleader' sales at below cost price unless shops heed the warnings and fall into line.

Page 29: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

The Most Recent Headlines• United Kingdom: Irresponsible alcohol packaging to be

identified

• United Kingdom: 'Government to unleash alcohol hit squads to cut booze abuse‘

• Metal detectors will be installed at the entrances to pubs and clubs in a bid to clamp down on knife and gun violence

• Clubs switch exclusively to plastic cups

• United Kingdom: Call for alcohol ban in supermarkets

• United Kingdom: Ban sale of cheap alcohol, Tesco urges Brown

• Increase taxes, so on and so on……

Page 30: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

A Little Deregulation

Atmosphere of Deregulation

More Deregulation

Complete Deregulation

Unintended Consequences

Knee-jerk Reaction

Re-Regulation Higher Taxes

Worse Than Present

Page 31: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

What Might One Conclude?

Page 32: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

What Might One Conclude?• We are not in the milk or chips business

• Banning it does not work

• Over taxing it does not work

• Lack of access does not work

• Deregulating it does not work

• Under taxing it is not smart

• Easy access is not the answer

• Tight control over the supply chain is important

• Regulation – legal and structural – is important; makes a difference

• Changes in regulations has an impact on alcohol / society and the quality of our lives!

• Appropriate regulation and market structure is a very difficult business, “it just ain’t easy”

• Expedient, knee jerk politically driven solutions won’t work

• Need to seek out and maintain a balance

Page 33: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

So, In The United States, Where Are We Today? More Importantly Where Are We Headed?

Page 34: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Regulatory & Structural Trends

• Costco ruling• Dry votes• Product bans• Advertising bans• DUI enforcement• Ignition interlocks• Allergen labeling• Ingredient labeling• State based labeling requirements• Local labeling initiatives• State taxation increases• Local tax initiatives• Smoking bans• Restaurants - menu calories• WHO• Health Advocates• Attorneys General• Governor spouses• Merging ABCs with DEAs

• Erosion of the three tier system• Direct Shipping• Retailers shipping across state lines• International internet retailing• eBay• Micro distilleries• Availability• Chain power ON & OFF• Sunday sales• Wet votes• Advertising proliferation• My Space / You Tube• Enforcement capabilities• Illegal importation• Refilling and counterfeiting• Gang activity• Rising tide of health claims• Nutritional labeling• Ingredient labeling• Healthy “alcohol” products • “Edgy” products• Lowering of the drinking age• Global pricing

Page 35: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Direct Shipping• Texas' "Bizzaro" Landmark Decision

January 16, 2008

Source: Beer Business Daily

A fascinating Federal District Court decision handed down by the United States District Court for the Northern District of Texas (in Dallas) on Monday by Judge Sidney Fitzwater (Quick bio: 55 years old, a graduate of Texas Baylor Law [in a dry county] appointed by Reagan in 1986), is considered so bizarre that it has been declared by both wholesalers and out-of-state retailer direct shippers as a great victory.

Most importantly, this case was the first that applies the Granholm case to interstate retailers (as opposed to wineries), and was perhaps the most methodically thought out decision for any federal Judge, though perhaps with a gaping hole (more on that later). And it was a mixed decision, to be sure.

Does direct shipping, shipping across state lines, increasing access and availability of alcohol and the erosion of the three tier system expose our society to new perils and dangers from alcohol?

Page 36: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia
Page 37: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia
Page 38: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

International Internet Retailers

Does the specter of offshore retailing who do not pay US tax nor comply with US regulation pose a health threat? Unfair competition? Provide youth access?

Page 39: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

EBay Retailing

Does the arrival of professional, organized retailing on eBay deprive states of tax revenue? Constitute a new threat to underage consumption? Amazon.com?

Page 40: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Counterfeiting

United Kingdom: Fake vodka could blind you

Source: Watford ObserverJan 30th, 2008

Trading Standards chiefs in Hertfordshire are warning residents to be wary of buying counterfeit Glen's Vodka which could cause blindness.

Cheap "knock-off" 70cl bottles of the spirit, which has not been through the company's strict distilling process, has been found at five locations in neighbouring Buckinghamshire.

It has sparked a national investigation.

As regulations affecting the structure of the market change, loosening controls on the supply chain. What impact will all this have on the safety and security enjoyed today?

Page 41: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Enforcement CapabilityWINE AND SPIRITS TRADE GROUP URGES IOWA ACTION IN UNDERAGE ALCOHOL SHIPPING CASE

Source: WSWA

March 23rd, 2007

Washington, D.C. (March 23, 2007)-The Wine and Spirits Wholesalers of America, Inc. (WSWA) today requested that the Iowa Alcoholic Beverages Division investigate and take enforcement action against an online retailer who shipped alcohol illegally into Iowa recently.

A UPS spokesman was quoted in the article saying that the giant carrier was not a "police" agency. "We don't expect to be, and we don't want to be." He further claimed that UPS was not responsible for enforcing the law. READ: I want the profits but the not the responsibility. "It is hard to understand how UPS can be entrusted to deliver alcohol in Iowa-or anywhere else for that matter-when it disavows any legal responsibility to ensure its deliveries are in compliance with the law," Wolf said. "We hope the Iowa ABC looks into the conduct of UPS in this case as well."

As a practical matter, what enforcement capability do we really have? If none, why have the regulations? New Hampshire thinks differently?

Page 42: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Supreme Court Agrees!WSWA: SUPREME COURT REJECTION OF CARRIER AGE VERIFICATION

CALLS INTO QUESTION STATE DIRECT SHIPPING LAWS

Source: WSWAFeb 21st Washington, D.C. (February 21, 2008)-The Wine & Spirits Wholesalers of America

(WSWA) urged states to conduct a careful and broad re-evaluation of direct shipping regulations in the wake of a troubling Supreme Court decision handed down Wednesday.

In unanimously striking down a Maine law regarding the direct shipment of tobacco products to consumers, the Supreme Court found that the state cannot legally compel carriers to verify that recipients of packages containing tobacco are of legal age. The case was closely watched by the beverage alcohol community because of the potential ramifications for unregulated home delivery of alcohol, a product which also carries a minimum age requirement for purchase.

As a practical matter, what enforcement capability do we really have? If none, why have the regulations?

Page 43: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Micro Distilleries

Do micro distilleries open the door to more and yet larger manufacturers selling direct to consumers? What defines a “distillery’? Do they threaten the Control State System?

Washington: Distillers may get lift from the state

By Andrew Garber

Jan 21st

Seattle Times Olympia bureau

OLYMPIA - Don Poffenroth can show you how he makes whiskey from Washington-grown grains at his new Dry Fly distillery in Spokane. But he can't sell you a bottle or even offer a nip.

Customers who want a taste have to walk to a pub next door to buy a drink. If they want to purchase a bottle, Poffenroth says, he has to "draw them a map to a liquor store."

The reason: Only state liquor stores can sell bottles of booze, a holdover from the end of Prohibition in 1933. But that's likely to change soon.

Page 44: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Chain Power ON / OFF

What threat do very large and powerful retailers pose to society as it relates to alcohol? Should their economic interest in alcohol sales be constrained?

How stores pile alcohol high and sell it cheap

Last updated at 00:52am on 15th February 2008

Supermarkets are selling alcohol at a loss to pull in customers.

They are offering shoppers savings worth millions, particularly around the time of sporting events and national holidays.

Evidence supplied to a Competition Commission inquiry suggests the big four - Tesco, Asda, Sainsbury's and Morrisons - sold an estimated £100 million worth of beer, wines and spirits below cost at the time of the World Cup in 2006.

Recent promotions of cheap lager and cider have brought down the cost of alcohol to below the prices charged for some bottled water.

Page 45: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Chain Power ON / OFF

Can large chain ON premise operators be relied upon to promote alcohol responsibly? How long before they want to buy direct? What impact will that have on drinks prices?

DUI suit settled for $21 million. Man in crash that killed 3 drank at T.G.I. Friday's

By GREGORY A. HALL The Courier-Journal BY SAM UPSHAW JR., THE COURIER-JOURNAL

The company that owns the T.G.I. Friday's restaurant that served alcohol to a Prospect, Ky man before he drove his truck into a car carrying two 16-year-old sweethearts — killing all three — has paid $21 million to settle a lawsuit filed by the teens' parents.

Direct quote from ON Premise Chain Operator: “I do not understand why my buyers cannot receive gifts from alcohol vendors like they get from food vendors”

Page 46: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Global Pricing

• Sovereign and state trade rules and regulations are eliminated

• Chains grow into international and global groups

• Prices are compared across countries

What will the convergence of these trends mean for alcohol prices? Are prices likely to go up or go down? In turn, how will this impact alcohol consumption in the US?

Tesco Takes On US Shoppers

The company hopes to keep prices low by selling big volumes of those few chosen items and relying on trusted suppliers, some of which it brought from Britain to the U.S.

Page 47: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Advertising• Cable companies are becoming increasingly lenient with spirits

advertising…

1531

2807 2860 2991

0

5001000

1500

2000

25003000

3500

Feb 2000 Nov 2001 Jan 2003 Jan 2004

0

131143

157

0

50

100

150

200

Feb 2000 Nov 2001 Jan 2003 Jan 2004

70

444525 540

0

100

200

300

400

500

600

Feb 2000 Nov 2001 Jan 2003 Jan 2004

Radio Stations Accepting Spirits Ads Cable Markets Accepting Spirits Ads

Local TV Accepting Spirits Ads

What is the long term impact of this trend?

Page 48: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Social Media(You Tube / My Space)

What impact do new trends like You Tube, Face Book, My Space have on the role of alcohol in society?

Page 49: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Gang ActivityMesa 'party crew' arrested for hosting underage drinking

Reported by: EastValleyTribune.com Last Update: 1/27 9:23 pm

“Police! Get down on the ground!” officers yell as they race to the front of the restaurant.

Typically made up of gang members or their friends, party crews are highly organized groups of older teens who throw large parties, where for $3 to $10, underage kids come in and drink. Their proceeds often fund more parties, announced over cell phone text messages or in some cases, on MySpace.com, an Internet “social” site popular with teens.

But it isn’t just the underage drinking that worries police — it’s the violence that often comes with it.

What is driving this? Increasingly liberal or conservative attitudes to alcohol? Increasing pressure on youth? Drinking age? Society in general?

Page 50: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Nutritional Labeling

Labels on Alcoholic Drinks Should Include Calories, Ingredients & Alcohol Content

• In 2003, CSPI, the National Consumer League, and others called on TTB to develop an easy-to-read, standardized Alcohol Facts label, similar to the popular Nutrition Facts labels on packaged foods. In 2007, TTB responded by proposing a “Serving Facts” label which would include calories, fat, carbs, and protein, but which would let manufacturers disclose alcohol content elsewhere, and presumably in much smaller print, on the label. The TTB proposal also would not require disclosure of ingredients, nor would it require a statement communicating the government’s advice on moderate drinking.

• In fact, one of the TTB’s proposed Serving Facts label is eerily similar to a 2005 Diageo advertisement in USA Today for Seagram’s 7 whiskey, neatly illustrating the industry’s influence over the bureau, says CSPI.

What message will this send to society about alcohol? What type of new products will this give rise to? What long term impact on consumption will this have?

Page 51: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

==============http://www.drinkvitavodka.com/App #77256490    

Trade Mark

                                                                 

(words only): VITAVODKA - VITAMIN INFUSED VODKA

Current Status: Final review prior to publication has been completed, application will be published for opposition.

Date of Status: 2008-02-05

Filing Date: 2007-08-15

GMC SPIRITS LLC2771 VISTA PARKWAY #F11WEST PALM BEACH, FL 33411United States

International Class: 033Liquor; Distilled SpiritsBasis: 1(b)

Disclaimer: "VITAMIN INFUSED VODKA"

Vita VodkaVitaVodka was founded on the principle of creating a healthier adult beverage, using the highest quality manufacturing techniques,including quadruple distilled grain vodka.

Page 52: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Edgy Products

What impact do these type of products have on consumption levels and patterns?

Page 53: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Drinking AgeSouth Carolina: SC Rep.: Alcohol for Underage Military

Jan 30th, 2008

Source: AP

A state lawmaker wants to give members of the armed forces younger than 21 the right to buy alcohol even though it's in stark contrast to the military's efforts to diminish underage drinking and related accidents.

"I really don't think it should create a problem for the military. It might even enhance their morale," Rep. Fletcher Smith said Wednesday.

What is 60 Minutes about to say on the subject. We all well remember the power of the “French Paradox” segment.

The movement appears to gaining steam. What impact will this have on the broader question of the LDA?

Page 54: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Well, you might say….. “Are we on a pathway to alcohol anarchy?”

We might well be, but we are going to do it in bi-polar manner!!

So, don’t bolt for the exit yet, it gets better!

Page 55: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Dry VotesLouisville Voters reject alcohol sales in 4 precincts

'We're just elated,' ban supporters say

Source: The Courier-Journal

Alcohol sales will soon be a thing of the past in part of far western Louisville. In a special election yesterday, 86 percent of voters backed banning liquor and alcohol sales in

four precincts that take in a large portion of the Shawnee neighborhood and a sliver of Portland.

Is this just an isolated issue or part of a developing trend? What if this becomes more widespread?

Page 56: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Product BansAdvocates Taking Aim at Alcoholic Energy DrinksSource: Beverage News Daily

February 14, 2008

Advocacy groups are taking dead aim at energy drinks that contain alcohol, with the objective of having them removed from the market - either voluntarily by suppliers or by state and local action.

That became clear at a workshop during the Community Anti-Drug Coalitions of America's (CADCA) National Leadership Forum yesterday.

"Banning the products is what we really want," she said.

New > Anheuser, Miller Face Marketing Probes and a lawsuit!

Where does this begin and end? Who decides? Does this increase or reduce demand? Does it cause “other channels” to open?

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Advertising BansThe Clock's Running-Out On Super Bowl Beer Ads

Source: Marin Institute

Wednesday January 30, 6:00 am ET

Marin Institute Demands the NFL and A-B Stop Advertising Alcohol to Kids

Marin Institute, the alcohol industry watchdog, is demanding that National Football League (NFL) commissioner Roger Goodell, and August Bush IV, CEO of Anheuser-Bush (A-B), stop advertising and marketing beer during the Super Bowl, a sporting event known to reach millions of young viewers.

Where does this begin and end? Who decides? What’s right, legal, appropriate?

New York: End of the Line for Alcohol Advertising on Public Transit

Marin Institute, the national alcohol industry watchdog group, joined New York State Assemblyman Felix Ortiz (D-Brooklyn), a group of students from Hunter College, City University of New York, and Bruce Carmel of the Brooklyn youth development nonprofit, Turning Point, at a news conference today on the steps of New York City Hall. They came together to release a new report and demand an end to alcohol advertising on New York's public transit systems.

Page 58: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

DUI EnforcementLiquor industry-MADD square off in Olympia

Source: Puget Sound Business Journal (Seattle)

Jan 24th

The liquor industry and Mothers Against Drunk Driving aren't seeing eye-to-eye at the Washington state capitol.

Thursday, MADD announced its support for two pieces of legislation: one would authorize the use of DUI checkpoints in the state, and another would mandate alcohol ignition interlock devices for all first-time drunken driving offenders in the state.

"Neither of these bills will help solve the drunk driving problem in Washington state, because they aren't targeting the right people," said ABI spokeswoman Sarah Longwell, in a statement.

Is there a limit to the efforts we should expend to rid our country of this blight? What price 17,000 lives?

Page 59: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Ignition InterlocksVirginia: Virginia House Okays Interlocks on 1st DUISource: Beverage News DailyFebruary 13, 2008

The Virginia House of Delegates approved, 80-18, and sent to the state Senate a bill requiring installation of ignition interlock devices upon a first conviction of drunken driving. An ignition interlock is equipment that the driver must blow into to start his car. If the driver has alcohol on his breath, the car won't start.

The law now requires the device upon a second DUI conviction.

Some delegates, however, said the measure goes too far. Del. Kenneth Melvin (D) said most people who get one DUI never get another. "They're chagrined, they're embarrassed and they're lighter in the pocket," he said.

How long before every car comes standard with a lock? How long before it becomes law? What will the BAC limit be?

Page 60: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Smoking Bans

New smoking ban changes business

The ban has hurt the business' alcohol sales. People no longer sit around to chat and drink. Instead they might drink one quick beer then head home where they can light up, Paula Ray said.

How does the smoking ban impact alcohol consumption? Culture of consumption? Overall consumption?

Smoking ban slashes pub trade

01 February 2008

Two south Norfolk publicans may consider closing their pubs because the smoking ban has slashed trade.

“The smoking ban has put a lot of pressure on us and this combined with cheap booze has led to a lot of people staying at home,” Mr Green said.

Page 61: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Menus and Calories

What will this do to the restaurant trade and in turn alcohol consumption and patterns?

• NYC Votes To Force Chain Restaurants To Put Calories On Menus

DOW JONES NEWSWIRES

January 22, 2008 6:49 p.m.

NEW YORK (AP)--Want 300-calorie fries with that?

The New York City Board of Health voted Tuesday to approve a new version of a law requiring fast-food outlets to display calorie counts on their menus, hoping the fat-filled truth will shock New Yorkers into eating healthier.

• Footnote: Ruby Tuesday removed calorie listings after sales dropped

Page 62: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Labeling Proliferation

Where on the product do all these labels go? What will it to the image of the products? How will consumption be affected?

• Allergen Labels

• Ingredient Labels

• Nutrition Facts

• Local Labels

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Local Labeling Initiatives

At what point will Federal label approvals no longer be good enough for the states? A different label for each state?

• California Alcopops Labeling Bill Clears Senate

Governmental Organization Committee; Legislators Help Control Alcohol Marketing to Kids

Source: AScribe

Tue Jul 10 17:54:39 2007 Pacific Time

SAN RAFAEL, Calif., July 10 (AScribe Newswire) -- AB 346, a measure authored by California Assembly Members Jim Beall (D-San Jose) and Lori Saldana (D-San Diego) cleared another hurdle today when the Senate Governmental Organization Committee passed the bill on a bipartisan vote of 6 to 2. The legislation would ensure that underage youth, parents, teachers, law enforcement personnel, retail employees that sell alcoholic beverages, and other members of the public are able to readily discern that a particular product contains alcohol. The measure also mandates a clear label statement signifying the amount of alcohol the product contains.

Page 64: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Tax, Tax, Tax

Federal taxes? State Taxes? Municipal taxes? How much is enough? When do folks start to make their own hooch or find Russian style alternatives?

Alaska: Fairbanks wants to double alcohol tax

by The Associated Press

Thursday, Oct. 18, 2007

FAIRBANKS, Alaska -- Fairbanks wants to double its alcohol tax to help combat a $2 million shortfall in next year's city budget.

City officials say they'd rather raise the alcohol tax than make cuts in the budget.

Alaskan Supermarkets Move Mouthwash Behind the Counter to Reduce Alcohol AbuseMonday, January 14, 2008Source: FoxNews

ANCHORAGE, Alaska - A few supermarkets in Anchorage are selling mouthwash from behind the counter to keep people from stealing it to get drunk.

Page 65: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Liquor with Drugs

What does this mean? Alcohol on the verge of becoming an illegal substance again? What are the long term implications?

Oklahoma: Bill would merge alcohol, drug control

Source: NewsOK

By Michael McNutt

Feb 14th

A bill abolishing the commission that regulates the state's alcohol industry and placing it under the state's drug enforcement agency received the backing of a House committee and is on its way to the full House.

At the same time Oklahoma committee approved direct shipment to retail.

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Gathering Coalitions

• World Health Organisation

• Health Advocates

• Attorneys General

• Governors Spouses

• Concerned Industry Members

• MADD

• Special Interest groups

As deregulation and its consequences gather momentum, what type of new coalitions will be formed. What impact on the landscape will they have?

Page 67: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Now, you might say…..”Are we on a pathway to a new prohibition?

Page 68: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Here to answer all these questions in 10 minutes flat, are our three

panelists!!

Page 69: Alcohol Control Where Are We Headed? Wednesday, March 12 th, 2008 Arlington, Virginia

Panel Presentations