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Alcohol Policies Across the Country: Implications in MichiganImplications in Michigan
James F. Mosher, JDJames F. Mosher, JDAl h l P li C lt tiAl h l P li C lt tiAlcohol Policy ConsultationsAlcohol Policy Consultations
November 6, 2008November 6, 2008Presentation to:Presentation to:
Michigan Alcohol Policy Conference: Burning Issues in Prevention: 2008Michigan Alcohol Policy Conference: Burning Issues in Prevention: 2008Michigan Prevention AssociationMichigan Prevention Association
“Captain Morgan maintains its relevance “Captain Morgan maintains its relevance with consumers entering the drinking age with consumers entering the drinking age because they can associate with the icon.”because they can associate with the icon.”yyChief MarketerChief Marketer, November 2005, November 2005
Philadelphia Inquirer, The (PA), March 1, 2001, Page: A01Philadelphia Inquirer, The (PA), March 1, 2001, Page: A01
MARDI GRAS MELEE MARDI GRAS MELEE PROVOKES OUTRAGEPROVOKES OUTRAGEPROVOKES OUTRAGE PROVOKES OUTRAGE AND CALL FOR CHANGEAND CALL FOR CHANGEAND CALL FOR CHANGEAND CALL FOR CHANGE
The Mardi Gras celebration Tuesday night on The Mardi Gras celebration Tuesday night on y gy gSouth Street brought a hangover to South Street brought a hangover to Philadelphia yesterday as officials, merchants Philadelphia yesterday as officials, merchants and residents assessed the drunken melee thatand residents assessed the drunken melee thatand residents assessed the drunken melee that and residents assessed the drunken melee that ended with 81 arrests, numerous injuries, and ended with 81 arrests, numerous injuries, and businesses scarred by vandalism.businesses scarred by vandalism.yy
Diageo:Diageo:Diageo:Diageo:The Innovator of the Distilled Spirits IndustryThe Innovator of the Distilled Spirits Industry
Formed in 1997 when Guinness and Grand Formed in 1997 when Guinness and Grand Metropolitan merged, becoming the largest Metropolitan merged, becoming the largest distilled spirits company in the world.distilled spirits company in the world.Determined to expand the U.S. market, Determined to expand the U.S. market, which has been dominated by beer.which has been dominated by beer.yy
Total MarketingTotal Marketing
“ … Combines “ … Combines all the key all the key marketing marketing elements into elements into a single a single orchestratedorchestratedorchestrated orchestrated thrust.” thrust.”
August A. August A. Busch, IIIBusch, III
4 “P” E i4 “P”s Exercise
Diageo: Competing with BeerDiageo: Competing with BeerDiageo: Competing with BeerDiageo: Competing with Beer
Beer has significant marketing advantagesBeer has significant marketing advantages over distilled spirits particularly for young drinkers:young drinkers:Advertising on network television;L r t r t (f Mi hi $ 20/ llLower tax rates (for Michigan, $.20/gallon instead of $1.87/gallon for distilled spirits);More ret il o tlet (Mi hi h 7 700 b rMore retail outlets (Michigan has 7,700 beer off-sale outlets compared to 4,000 distilled spirits off-sale outlets)spirits off sale outlets).
The AnswerCreate a maltCreate a malt--based, lowbased, low--alcohol alcohol be erage ith distilled spiritsbe erage ith distilled spirits
The Answer
beverage with distilled spirits beverage with distilled spirits branding that is appealing to branding that is appealing to young drinkers particularlyyoung drinkers particularlyyoung drinkers, particularly young drinkers, particularly young women, and regulated as young women, and regulated as beerbeerbeer.beer.
Developing Brand Loyalty Developing Brand Loyalty AAat an Early Ageat an Early Age
“Di ll d t S i ff I i“Di ll d t S i ff I i“Diageo rolled out Smirnoff Ice in “Diageo rolled out Smirnoff Ice in the US market...it suddenly put the the US market...it suddenly put the onceonce--stodgy Smirnoff name on thestodgy Smirnoff name on theonceonce stodgy Smirnoff name on the stodgy Smirnoff name on the tips of millions of echo boomers’ tips of millions of echo boomers’ tongues” tongues” –– ((ImpactImpact, May 15, 2003), May 15, 2003)gg (( pp y )y )
Echo Boomers:Echo Boomers:Americans born from 1980Americans born from 1980--199519958 8 –– 23 years old in 200323 years old in 2003
AppleAppleAppleApple
“The beauty of this category is that it brings in new drinkers, people who really don’t
like the taste of beer.”like the taste of beer.
Marlene Coulis, ,Director of New
Products,Anheuser Busch CoAnheuser-Busch Co.
Advertising Age, April 22, 20022002
Who are “New Drinkers”?Who are “New Drinkers”?Who are New Drinkers ?Who are New Drinkers ?
Age of First Use of Alcoholic Beverages among 12-17 year olds 2004: 14 4 years old12 17 year olds, 2004: 14.4 years old.
Every day 5 400 young people under 16 yearsEvery day, 5,400 young people under 16 years old started drinking.
Alcopop Advertising Expenditures Four Top AdvertisersFour Top Advertisers
(millions of dollars)
404550
25303540
SmirnoffB di
152025 Bacardi
Mike'sSkyy
05
10
2000 2001 2002 2003 2004
Television Advertising Placement: Television Advertising Placement: A i OA i OYouth Audience OverexposureYouth Audience Overexposure
35%
25%
30%
35%
20%
25%Alcopop ads
Distilled spirits
10%
15% Beer
Industry average
0%
5%
20062006
Source: Center on Alcohol Marketing and Youth
Bitch’s Brew, Girlie Beer, Bitch’s Brew, Girlie Beer, Cheerleader BeerCheerleader Beer
“A third of all girls “A third of all girls older than 12 have triedolder than 12 have triedolder than 12 have tried older than 12 have tried ‘alcopops’. Companies ‘alcopops’. Companies market these ‘startermarket these ‘startermarket these starter market these starter drinks’ to appeal to girls drinks’ to appeal to girls and young women.and young women.and young women. and young women. Don’t be taken in.”Don’t be taken in.”AMA 2004 StudyAMA 2004 Study
Beverage Choice for 12Beverage Choice for 12thth Grade Grade F l Bi * D i kF l Bi * D i kFemale Binge* DrinkersFemale Binge* Drinkers
25
15
20
rink
ers
Liquor
10
15
% b
inge
dr q
BeerWine
0
5%
1991
1993
1995
1997
1999
2001
2003
2005
*5+ drinks in one settingg
Alcopops akaAlcopops akaFlavored “Malt” BeveragesFlavored “Malt” Beverages
“Flavored malt beverages exhibit little or no “Flavored malt beverages exhibit little or no traditional beer or malt beverage character. … traditional beer or malt beverage character. … Brewers remove the color bitterness and taste thatBrewers remove the color bitterness and taste thatBrewers … remove the color, bitterness, and taste that Brewers … remove the color, bitterness, and taste that are generally associated with beer. … This leaves a are generally associated with beer. … This leaves a base product to which brewers add various flavors, base product to which brewers add various flavors, which typically contain distilled spirits, to achieve the which typically contain distilled spirits, to achieve the desired taste profile.”desired taste profile.”
Federal Alcohol and Tobacco Tax and Trade Bureau (TTB) Federal Alcohol and Tobacco Tax and Trade Bureau (TTB) Description of “Flavored Malt Beverages” (Alcopops)Description of “Flavored Malt Beverages” (Alcopops)
Michigan DefinitionsMichigan DefinitionsMichigan DefinitionsMichigan Definitions
"Mixed spirit drink""Mixed spirit drink" means a drinkmeans a drinkMixed spirit drinkMixed spirit drink means a drink … means a drink … which contains 10% or less alcohol by volume which contains 10% or less alcohol by volume consisting of distilled spirits mixed withconsisting of distilled spirits mixed withconsisting of distilled spirits mixed with consisting of distilled spirits mixed with nonalcoholic beverages or flavoring or coloring nonalcoholic beverages or flavoring or coloring materials and which may also contain 1 or morematerials and which may also contain 1 or morematerials and which may also contain 1 or more materials and which may also contain 1 or more of the following: (a) Water. (b) Fruit juices. (c) of the following: (a) Water. (b) Fruit juices. (c) Fruit adjuncts (d) Sugar (e) Carbon dioxide (f)Fruit adjuncts (d) Sugar (e) Carbon dioxide (f)Fruit adjuncts. (d) Sugar. (e) Carbon dioxide. (f) Fruit adjuncts. (d) Sugar. (e) Carbon dioxide. (f) Preservatives.Preservatives.
Mich. Comp. Laws s. 436.1109
Michigan DefinitionsMichigan DefinitionsMichigan DefinitionsMichigan Definitions
“Beer”“Beer” means any beverage obtained by means any beverage obtained by alcoholic fermentation of an infusion oralcoholic fermentation of an infusion oralcoholic fermentation of an infusion or alcoholic fermentation of an infusion or decoction of barley, malt, hops, or other decoction of barley, malt, hops, or other
l i t bl tl i t bl tcereal in potable water.cereal in potable water.
Mich. Comp. Laws § 436.1105
What alcohol industry commentators say aboutWhat alcohol industry commentators say about
Mi tt W iMi tt W iMinott WessingerMinott Wessinger
One of the most One of the most successful successful innovators in innovators in industry history industry history y yy yHe is a risk takerHe is a risk takerThe guy has theThe guy has theThe guy has the The guy has the Midas touchMidas touch
“H h“H h“He has an uncanny “He has an uncanny knack for creating knack for creating brands that tap into brands that tap into consumer trends consumer trends and demand.”and demand.”
“[Wessinger] kept“[Wessinger] kept[Wessinger] kept [Wessinger] kept close tabs on close tabs on popular culturepopular culturepopular culture popular culture and consumer and consumer trends intrends intrends in trends in everything from everything from music to art ”music to art ”music to art.music to art.
The Sparks FormulaThe Sparks FormulaThe Sparks FormulaThe Sparks Formula
Build on the energy Build on the energy d i k kd i k kdrink marketdrink marketAlcohol + caffeine = Alcohol + caffeine = enhanced partyingenhanced partying
Youth/Adult Energy Drink gyConsumers
30%
35%
20%
25%
10%
15% Youth (12-17)Adults (18+)
0%
5%
RegularUsers
Heavy Users(10+/month)
Which Energy Drink Contains Which Energy Drink Contains Alcohol?Alcohol?
At One San Diego Middle School…At One San Diego Middle School…At One San Diego Middle School…At One San Diego Middle School…
Teachers checked the campus during Teachers checked the campus during lunch to see how many young people lunch to see how many young people were drinking energy drinks. were drinking energy drinks.
They found that 12 of the 43 students They found that 12 of the 43 students with energy drinks were drinking alcoholwith energy drinks were drinking alcoholwith energy drinks were drinking alcohol. with energy drinks were drinking alcohol.
(Oct 2007)(Oct 2007)
Alcoholic Energy DrinkAlcoholic Energy DrinkMarketing StrategiesMarketing StrategiesMarketing StrategiesMarketing Strategies
Viral MarketingViral Marketing
“The early adopters of Sparks were “The early adopters of Sparks were spending a significant amount of time onspending a significant amount of time onspending a significant amount of time on spending a significant amount of time on the Internet. We saw that and embraced it. the Internet. We saw that and embraced it. We invited consumers to comment on the We invited consumers to comment on the Website and post comments without Website and post comments without editing them, creating a community of editing them, creating a community of S k h h d id dS k h h d id dSparks users who shared ideas and Sparks users who shared ideas and experiences." experiences." Mi tt W iMi tt W iMinott WessingerMinott Wessinger
“Miller goes under theMiller goes under the radar;
G ill k ti fGuerrilla marketing of [Sparks] targets Generation Y”
Milwaukee Journal Sentinel, December 2007
Generation Y: Those born between 1980 and 1995 (13-27 year olds)
Advertising Age
Sparks onSparks on FacebookFacebookCh GCh GChat GroupsChat Groups
Drink Sparks DieDrink Sparks DieDrink Sparks Die Drink Sparks Die YoungYoung
Sparks AddictsSparks AddictsSparks Addicts Sparks Addicts AnonymousAnonymous
Sparks baby!Sparks baby!Sparks baby! Sparks baby!
I drink Sparks every I drink Sparks every day of my lifeday of my lifey yy y
Sparks energizes Sparks energizes BermudaBermuda
Sample Web Postings by High Sample Web Postings by High School StudentsSchool Students
“Sparks plus any night or day classic is“Sparks plus any night or day classic is“i l k b i h h“i l k b i h hSparks plus any night.. or day.... classic is Sparks plus any night.. or day.... classic is what i first tried on like prom night or what i first tried on like prom night or something like it and i was hooked then plussomething like it and i was hooked then plus
“i luv sparks because it has that yummy “i luv sparks because it has that yummy flintstone vitamin taste, gets me drunk and flintstone vitamin taste, gets me drunk and gives me that extra engery i need to get throughgives me that extra engery i need to get throughsomething like it and i was hooked then plus something like it and i was hooked then plus came around and it was love at first sip”came around and it was love at first sip”gives me that extra engery i need to get through gives me that extra engery i need to get through a nite of partying!”a nite of partying!”
Sparks: The Party DrinkSparks: The Party DrinkSparks: The Party DrinkSparks: The Party Drink
“ lif“ lif i i i ii i i i“a life“a life--saving invention.i can start saving invention.i can start drinking at noon, get wasted and drinking at noon, get wasted and “i luv sparks because it has that “i luv sparks because it has that g , gg , gtired by 7pm and then drink some tired by 7pm and then drink some sparks and it starts all over again isparks and it starts all over again i
ppyummy flintstone vitamin taste, gets yummy flintstone vitamin taste, gets me drunk and gives me that extrame drunk and gives me that extrasparks and it starts all over again. i sparks and it starts all over again. i love you sparks. that....and it's love you sparks. that....and it's me drunk and gives me that extra me drunk and gives me that extra engery i need to get through a nite of engery i need to get through a nite of partying!”partying!”cheaper than cocaine.”cheaper than cocaine.”partying!”partying!”
Alcohol Brands Cost LessAlcohol Brands Cost Less
Alcohol + Energy Drinks = Alcohol + Energy Drinks = Increased Risk of InjuryIncreased Risk of Injury
Stimulants cause a reduced subjective feeling of intoxication
The result: Increased risk taking and increased risk of injuryA “ id A k k”
Alcohol effects on motor skills, judgment and mental acuity not
increased risk of injuryA “Wide Awake Drunk”judgment and mental acuity not affected by stimulants
S. E. Ferreira, Marco T. de Mello, S. Pompe´ ia,& M. L. Oliveira de Souza-pFormigoni 2006.
Sparks Energy Drinks Total SalesSparks Energy Drinks Total Sales(gallons)(gallons)
14000
10000
12000
14000
6000
8000
10000
Sparks
4000
6000
0
2000
2002 2003 2004 2005 20062002 2003 2004 2005 2006
The JackpotThe JackpotThe JackpotThe Jackpot
Wessinger’s companyWessinger’s companyWessinger s company Wessinger s company sold Sparks to SAB sold Sparks to SAB Mill i 2006 fMill i 2006 fMiller in 2006 forMiller in 2006 for
$220 million$220 million$220 million$220 millionfour years after itsfour years after itsfour years after its four years after its introduction.introduction.
Mi tt W i ithMinott Wessinger with rapper DJ Pooh
State Attorneys General InvestigationState Attorneys General InvestigationState Attorneys General InvestigationState Attorneys General Investigation
A hA hAnheuserAnheuser--Busch Busch
ttagrees to agrees to remove remove ti l tti l tstimulants stimulants
from Tilt from Tilt d B dd B dand Bud and Bud
ExtraExtra
Alcohol Problems Prevention
Changing the Paradigm
INDIVIDUALS POPULATIONS
Prevention ParadigmsgIndividualIndividual EnvironmentalEnvironmental
Behavior and behavior change
Policy and policy changeg g
Relationship of i di id l t l h l
Social, physical, political individual to alcohol
problemand economic context of
alcohol problems
Short term focus on program
Long term focus on policy development and p g
developmentpo cy deve op e t a d
implementation
Prevention ParadigmsgAlcohol IndustryAlcohol Industry EnvironmentalEnvironmentalIndividual choice and
free marketPolicy change and social
context
Cultural traditions used to promote consumption
Cultural traditions integrated into policy
Profit is motivator Public health and social justice is motivatorjustice is motivator
Industry controls policy d th h lit
Communities control li d th hagenda through elite
politicspolicy agenda through
grassroots action
4 “P”s from Public Health Perspective
Place MattersPlace MattersOverconcentration:Overconcentration:
A link to youth violence
Implementing Prevention Strategiesp g gIndividualIndividual EnvironmentalEnvironmental
Individual seeks self improvement
Individual seeks community improvementp y p
Individual is di
Individual is activistaudience
Professionals P f i l i tProfessionals make decisions for
individual
Professionals assist communities in
creating policy changeindividual creating policy change
“Th h f t f f d d t“Th h f t f f d d t“Those who profess to favor freedom and yet “Those who profess to favor freedom and yet depreciate agitation, are people who want crops depreciate agitation, are people who want crops
ith t l hi th d th t iith t l hi th d th t iwithout ploughing the ground; they want rain without ploughing the ground; they want rain without thunder and lightning; they want the without thunder and lightning; they want the
ith t th f it t Thith t th f it t Thocean without the roar of its many waters. The ocean without the roar of its many waters. The struggle may be a moral one, or it may be a struggle may be a moral one, or it may be a
h i l it b b th B t it t bh i l it b b th B t it t bphysical one, or it may be both. But it must be a physical one, or it may be both. But it must be a struggle. Power concedes nothing without a struggle. Power concedes nothing without a d d it h d it ill ”d d it h d it ill ”demand; it never has and it never will.”demand; it never has and it never will.”Frederick DouglassFrederick Douglass