Alcohol Policy, Underage
Drinking Prevention, and the
Health Care Reform Debate
James F. Mosher
Alcohol Policy Consultations
Keynote Presentation, Shutting off the Tap to Teens and Young Adults:
Preventing Underage Drinking Through Policy Conference
Minneapolis, MN December 2, 2009.
Lessons from Alcohol Policy and
Underage Drinking Prevention
Lesson #1
Private industry’s focus on
short-term profits can
undermine public health
outcomes.
Diageo:
The Innovator of the Distilled Spirits Industry


Formed in 1997 when Guinness and Grand
Metropolitan merged, becoming the largest
distilled spirits company in the world.
Determined to expand the U.S. market,
which has been dominated by beer.
The Diageo Strategy


Engage the politicians, public officials,
the medical profession, educators,
parents, law enforcement agencies,
among others to promote a “responsible”
corporate image.
Under the cover of that image, engage in
predatory marketing practices targeting
youth.
“Captain Morgan maintains its relevance
with consumers entering the drinking age
because they can associate with the icon.”
Chief Marketer, November 2005
Diageo: Competing with Beer
Beer has significant marketing advantages
over distilled spirits particularly for
young drinkers:



Advertising on network television;
Lower tax rates;
More retail outlets.
The Answer
Create a malt-based, low-alcohol
beverage with distilled spirits
branding that is appealing to
young drinkers, particularly
young women, and regulated as
beer.
Developing Brand Loyalty
at an Early Age
“Diageo rolled out Smirnoff Ice in
the US market...it suddenly put the
once-stodgy Smirnoff name on the
tips of millions of echo boomers’
tongues” – (Impact, May 15, 2003)
Echo Boomers:
 Americans born from 1980-1995
 8 – 23 years old in 2003
“The beauty of
this category is
that it brings in
new drinkers,
people who really
don’t like the taste
of beer.”
Marlene Coulis
Director of New Products
Anheuser-Busch Co.
Advertising Age
April 22, 2002
Who are “New Drinkers”?
Average Age of First Use of Alcoholic Beverages
among 12-17 year olds, 2004: 14.4 years old.
Every day, 2,700 young people under 15 years old
started drinking.
Television Advertising Placement:
Youth Audience Overexposure
35%
30%
25%
Alcopop ads
Distilled spirits
Beer
Industry average
20%
15%
10%
5%
0%
2006
Source: Center on Alcohol Marketing and Youth
.
“In our marketing activities, we never target people
under the legal purchase age.”
Diageo Corporate Citizenship Report, 2003
Alcopop Preference:
14-20 year old drinkers
5 State Survey, 4075 Respondents, 2004
Smirnoff Ice
14%
11%
54%
Mike's Hard
Lemonade
Bacardi Silver
Other
Wolfson M. et al. “Flavored Malt Beverage Use in a Multi-state Sample of
Adolescents”, Wake Forest University, December 2005
Alcopops aka
Flavored “Malt” Beverages
“Flavored malt beverages exhibit little or no traditional
beer or malt beverage character. … Brewers … remove
the color, bitterness, and taste that are generally associated
with beer. … This leaves a base product to which brewers
add various flavors, which typically contain distilled
spirits, to achieve the desired taste profile.”
Federal Alcohol and Tobacco Tax and Trade Bureau (TTB)
Description of “Flavored Malt Beverages” (Alcopops)
Minnesota Distilled Spirits
Definition until 2006
“Distilled Spirits” means intoxicating liquors,
including ethyl alcohol, hydrated oxide of
ethyl, spirits of wine, whiskey, rum, brandy,
gin, and other distilled spirits, including all
dilutions and mixtures, for nonindustrial use.
MN Stat. Ann. § 297G(7)
Beverage Choice for 12th Grade
Female Binge* Drinkers
% binge drinkers
25
20
Liquor
Beer
Wine
15
10
5
*5+ drinks in one setting
07
20
05
20
03
20
01
20
99
19
97
19
95
19
93
19
19
91
0
Smirnoff Vodka Sales
1990 - 2006
(U.S., thousands of nine-liter cases)
9500
9000
8500
8000
7500
Smirnoff
Vodka sales
7000
6500
6000
5500
5000
1990 1996 1999 2001 2003 2005 2007
Introduction of Smirnoff Ice
Guy Smith
“Reputation & Crisis Management” Expert



2000-2008: VP for
Marketing Public
Relations, Diageo
1998-1999: Special
Advisor to President
Clinton
1975-1992: VP-Corporate
Affairs, Philip Morris
Company
Lessons from Alcohol Policy and
Underage Drinking Prevention
Lesson #2
Community environments have
enormous impact on community
members’ health outcomes.
Underage Drinking Policies:
Their Role in Changing Community
Alcohol Environments
INDIVIDUALS
POPULATIONS
Number of Drinks Consumed by
Social Context
Mean Number of Drinks
6
5
Alone
4
With 1 other
person
With 2 or more
other people
3
2
1
0
Ages 12-14
NSDUH, 2009
Ages 15-17
Ages 18-20
“Four is all about the party!!!”
Four Loko Facebook Page
State Attorneys General Investigation
Miller/Coors
and
Anheuser-Busch agree to
remove stimulants from
Sparks, Tilt and Bud
Extra.
Miller/Coors agrees to
discontinue youthoriented marketing for
Sparks.
Price Comparison:
Nonalcoholic vs. Alcoholic Energy Drinks
$2.39/16 oz = $.15/oz
($4.00/32 oz = $.125/oz)
$2.59/23.5 oz = $.11/oz
Price Matters
Alaska increased
alcohol taxes in 1983
and 2002 resulting in
29% and 11%
reductions in alcoholrelated mortality.
Wagenaar et al. 2009
Place Matters
Overconcentration:
A link to youth violence
Role of Policy in
Affecting Underage Drinking Behavior
Public and
Institutional
Policies
Alcohol
Availability
Norms,
Attitudes,
Beliefs
Derived from Wagenaar et al., 1986
Alcohol
Use and
Problems
Lessons from Alcohol Policy and
Underage Drinking Prevention
Lesson #3
Underage drinking policy reform
can only succeed through
democratic, grassroots action.
Alcopop Classification:
Legislative and Regulatory Activity
WA
ME
OR
MN
VT
NY
MI
CT
NE
MD
UT
CA
IL
MO
NM
VA
AR
Alaska
Hawaii
Public health provisions enacted
Public health provisions proposed
Industry definition enacted
Lessons from Alcohol Policy and
Underage Drinking Prevention
Lesson #4
Underage drinking prevention
policy is grounded in a
commitment to social justice.
Lessons from Alcohol Policy and
Underage Drinking Prevention
Lesson #5
Underage drinking prevention
policy is a unifying force in the
body politic and bridges the
divisions across our society.
Prevention Paradigms
Alcohol Industry
Environmental
Individual choice and
free market
Policy change and social
context
Profit is motivator
Public health and social
justice is motivator
Industry controls policy
agenda through elite
politics
Divide and isolate
community members
Communities control
policy agenda through
grassroots action
Unite and inspire individuals
to build community
Y.O.Y.O.
vs.
W.I.T.H.
WE’RE IN THIS TOGETHER