Norman Giesbrecht
Alcohol policy in Canada:
Reflections on the role of
the alcohol industry
Introduction
The alcohol industry has played, and continues to play, a
decisive role in alcohol policy issues. Given the importance
of alcohol policy in reducing or preventing harm from alcohol (Babor et al. 2003), it is surprising that there have
been relatively few studies that have looked at the role of
the alcohol industry in policy-making (e.g., Addiction 2000;
Greenfield et al. 2004; Ogborne et al. 2006; Giesbrecht et al.
2006a). Policy-makers face many challenges, and these can
be highlighted by contrasting the view that emerges from recent alcohol epidemiology and social science with that from
alcohol marketing and promotion.
In the epidemiological studies such as the WHO Global
Burden of Disease Project, the disease, death and disability
from alcohol is similar to that from tobacco, and even higher
in some developing countries (World Health Organization
2002; Rehm et al. 2003a). Alcohol is a major contributor to
unintentional injuries or death, violence including homicide and suicide, and a wide range of chronic diseases (e.g.
Bagnardi et al. 2001; Boffetta & Hashibe 2006; Room et al.
2005). While epidemiological literature has shown that alcohol is an important risk factor for acute and chronic damage
(e.g. World Health Organization 2002; Haydon et al. 2006),
Acknowledgement: An earlier version of this paper was presented at the
Scientific Meeting on the Alcohol Industry and Alcohol Policy, Schaeffergaarden, Copenhagen, April 5–7, 2006. I wish to thank the following persons for providing advice or information: Rebecca Fortin, Emma Haydon,
Robert Mann, Benjamin Rempel, Michelle Swenarchuk and Gerald Thomas,
and anonymous reviewers of the manuscript. Special thanks are extended
to Sunny Ba, Michael Roerecke and Gina Stoduto for their contributions.
However, the views and opinions expressed here do not necessarily reflect
those of the persons acknowledged, or the policies of the Centre for Addiction and Mental Health.
NORDIC STUDIES ON ALCOHOL AND DRUGS
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445
Canada
alcohol still has a minor place in generic
prevention planning and health promo-
Context
singular, rather than the alcohol indus-
 Structure
A few companies with international ownership dominate the alcohol industry in
Canada. Domestically produced beer,
spirits and wine represent about 81.8% of
beverage volume sold in Canada in fiscal
year 2003–2004 (89.0% for beer, 72.6%
for spirits and 39.8% for wine) (Statistics Canada 2005b). In addition there is
extensive import with regard to all three
beverage groups. A brief overview of the
structure is provided in Appendix I. With
regard to beer, just two international companies, Molson Coors Brewing Company
and InBev S.A. (Labatt) control 90% of
the market. Sleeman Breweries Ltd. controls about 6% of the market share while
the remaining 4% goes to independent
microbreweries and imports not controlled by the above companies. Each of the
three largest breweries produces a number
of brands as well as partnership with others for distribution. A few companies control about 45% of the wine market share.
Here again international ownership is
tries, plural, for convenience. There are
evident with Vincor International lead-
indeed a number of industries – produc-
ing the Canadian wine industry at 21% of
tion, wholesale, retailing, marketing, and
the market share and Diageo also being a
hospitality – either directly involved in or
major owner. The distilled spirits industry
related to the alcohol business. This col-
is particularly concentrated, with Diageo
lection of organizations is not monolithic
being the largest firm internationally fol-
in perspective, goals, and methods with
lowed by Pernod Ricard. These two giants
regard to alcohol policy and management
basically control the entire spirits market
topics. This paper focuses more on the
by adding brands to their portfolios. Per-
producers than any other group under the
nod Ricard S.A. is the international owner
general umbrella of “alcohol industry”.
of Seagram and Allied Domecq (who pre-
These organizations and their associations
viously owned Hiram Walker), and Hiram
tend to be among the most powerful and
Walker owns in excess of 51% shares of
well organized.
Corby Distilleries.
tion practice, including those focusing on
chronic disease prevention (Chronic Disease Prevention Alliance of Canada 2004;
see also Anglin et al. 2005).
The alcohol industry has had a central
and noteworthy role, but not a solitary
one, in the positioning, promotion and entrenching of alcohol use and drinking into
everyday life. This paper focuses mainly
on recent Canadian experiences on the
topic of the alcohol industry and alcohol
policy. Three caveats should be noted.
First, this is a snapshot of recent developments, rather than a more detailed analysis of longitudinal trends (see Room et al.
2006). There is reference to trends, but not
a systematic examination of them. Second,
a variation of the definition of Babor et al.
(2003, pp. 6–7) is used for alcohol policy,
including both those measures that may
increase the harm from alcohol, as well
as those that might reduce harm. Third,
this paper refers to the alcohol industry,
446
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V O L . 2 3. 2 0 0 6 . 6
Canada
There are two main implications for
wholesale operations. This combination
alcohol policy. The globalization and
of dominance in retailing and wholesal-
oligopolization of the alcohol industry,
ing indicates that at the provincial level,
particularly of the beer and spirits indus-
the government has considerable leeway
tries, can enhance the industries’ political
with regard to how alcohol is managed in
strength internationally, and probably en-
their jurisdiction. They can, in principle,
hances marketing and promotional prow-
control accessibility to alcoholic bever-
ess in local markets (Room 1998, pp. 797–
ages through pricing, density restrictions
798). However, there may be efficiencies of
and location of outlets, hours of sale, and
scale for public policy advocates or legis-
through their liquor board stores set stand-
lators seeking to influence alcohol produc-
ards or at least examples through display
ers, and working with a few rather than
and promotion arrangements. The govern-
dozens may be preferred. As Room (1998)
ment liquor store networks can also set an
indicated, the larger corporations may
example for all outlets with regard to what
have more at stake and therefore may not
attention is paid to controlling sales to mi-
be as innovative in using promotion and
nors or intoxicated persons.
selling practices that will be most harmful
to public health.
Licensed premises (for on-premise consumption) are privately run, but licensed
and inspected by either the same liquor
 Alcohol management in Canada
The system of alcohol management is a
combination of government and private
enterprises and controlled at the provincial level. In all provinces and territories,
except for the province of Alberta, there
is a government-run retailing system, i.e.
commissions that oversee the retail sales,
­liquor board or commission, which han-
boards, and their arrangement likely var-
dles a large share of off-sale retailing. In
ies by province, circumstance and indus-
terms of the volume of products distribut-
try sector. Nevertheless, some generaliza-
ed, this varies greatly, with the government
tions are feasible: the industry is not con-
liquor stores in some provinces handling
sistently or strongly opposed to govern-
beer, wine and spirits. In Ontario, for ex-
ment-run systems neither consistently in
ample, liquor board outlets are responsible
support of privatizing alcohol retailing.
for off-premise sale of all spirits, imported
There was not great enthusiasm from the
wine and some beer in small packages.
alcohol industry when the province of
There is a parallel off-sale system in On-
Alberta privatized their off-sale alcohol-
tario of privately run beer stores and do-
retailing network in 1993. In 1995 when
mestic wine stores. However, even in these
the Ontario government explored priva-
mixed systems, the lion’s share of the ab-
tizing of the retailing system, it was clear
solute ethanol equivalent goes through the
from comments at multi-sectorial regional
government-run liquor stores.
seminars held on the topic that at least the
The provincial governments control
or by a parallel government agency – for
example, the Alcohol and Gaming Commission of Ontario.
The alcohol industry has a longstanding well-established working arrangement with these commissions or
brewers and vintners where not keen to
NORDIC STUDIES ON ALCOHOL AND DRUGS
V O L . 23. 2006 . 6
447
Canada
see this proposal move forward (Giesbre-
now a voluntary activity and is undertaken
cht et al. 2006b). Also, in 2005 when the
only at the request by the alcohol adver-
Ontario Minister of Finance summarily
tiser (Rempel & Fortin 2005).
rejected a recommendation by a govern-
In 2005 the ASC received 1,271 com-
ment appointed commission to privatize
plaints from consumers about 804 adver-
the Liquor Control Board of Ontario, there
tisements, and 38 were about alcoholic
was no apparent protest from the brewers,
beverages (Advertising Standards Canada
vintners or distillers of that province.
2005). However, some have questioned
whether the low volume of complaints is
 Marketing, promotion and sponsorship
of alcoholic beverages
The changes in alcohol retailing in Canada
over the past decades indicate that the alcohol industry has played an active role
during this transformation. The marketing
of alcohol has increased dramatically in
the past decades, and in this regard, Canada’s experience is not that different from
that of other countries, including the United States and parts of Europe. Alcohol advertising is common on television, radio,
and billboards, within licensed premises
and government liquor stores. After a court
challenge, distilled spirits can now be advertised on television (Ogborne & Stoduto
2006). In the past 10 years a self-regulatory
arrangement has evolved with regard to alcohol advertising. Screening of advertising
has been handled since 1997 by Advertising Standards Canada (ASC), and not by a
branch of the federal government (Ogborne
& Stoduto 2006). Broadcast advertisements
for alcohol are regulated by the Canadian
Radio-television and Telecommunications
Commission (CRTC) through the Code for
Broadcast Advertising of Alcoholic Beverages. And the ASC offers pre-clearance
services of alcohol advertisements, and
deals with complaints about any that are
considered to contravene the Code (Advertising Standards Canada 2004). However,
pre-clearance of alcohol advertising is
448
NORDIC STUDIES ON ALCOHOL AND DRUGS
truly reflective of public sentiment, since
the process and contact information for
lodging a complaint is not easily accessible, and definitely does not accompany the
print or electronic media advertisements
(see Rempel & Fortin 2005, pp. 13–14). One
assessment of the current domestic regulation of alcohol advertising was that the
laws are toothless, ineffective and vague,
could be interpreted subjectively, are applied leniently and invisible to the public,
and involve inaccessible complaint procedures (Swenarchuk 2005).
The liquor boards and alcohol industry collaborate on a number of fronts, for
example, with regard to arrangements
in liquor boards to display products and
marketing them. For example, in Ontario’s
liquor control board stores, Ontario wines
are displayed on the most prominent
shelves in a store. Liquor boards also collaborate in marketing beverage alcohol
products. In Toronto, for example, about
once a month or more often one can find
multicolour glossy inserts in daily newspapers, with themes linked to special
events, such as Valentine’s or special holidays. These inserts display and promote
selected beer, wine and spirits products
available at the government retail stores,
as well as mixed drink recipes and advice
on food to be served with the drinks, and
appear to be produced in collaboration
V O L . 2 3. 2 0 0 6 . 6
Canada
between the Ontario liquor board and
types of advertising suggest a close work-
 Access to Markets
While there have been few dramatic changes overall in access to markets, the general
direction is that of increased access. As indicated in tables 1 and 2, both off-premise
and on-premise density rates have in-
ing relationship between a government
creased since 1950 in the most popu­lous
retailer and the producers, and one that
provinces. In some cases the change has
is likely more cost-efficient under a gov-
been quite marked, as in Quebec with the
ernment-run retail system than one where
introduction of certain wines into their
retailing is handled by dozens if not more
corner store network (see Trolldal 2005),
private businesses.
and specifically with regard to on-premise
alcohol producers. The Food and Drink
magazine, produced by the Liquor Control
Board and available at retail outlets, also
has extensive alcohol advertising. These
There is also extensive promotion of
sales. In addition, all provinces have re-
alcohol through sponsorship of sport-
laxed their hours of sale and allow sales
ing, music and other cultural events, e.g.,
on Sundays. In some instances, such as
Molson Indy races, Labatt’s sports events,
in connection with Toronto’s annual film
to name a few. A 2006 example, labelled
festival, closing hours of on-premise ven-
Budweiser Super Bowl Tailgate Train, was
ues are extended to give celebrities and
linked to that year’s Super Bowl event in
theatregoers greater opportunity to visit
Detroit, Michigan. Officials in Windsor, a
licensed premises.
Canadian city located just across the St.
Clair river from Detroit, as well as VIA Rail
Canada, Budweiser and NFL Canada collaborated in promoting an exclusive train
trip, Toronto to Windsor, for 500 fans with
the opportunity for some to win tickets to
attend the Super Bowl.
 Consumption trends
The trends in drinking in Canada are likely
both a contributor to and product of these
developments. As indicated in Figure 1,
drinking rates display three main features
in the last three decades: an increase be-
Table 1. Rate of Off-Premise Alcohol Retail Outlets, Selected Canadian Provinces
Year
Nova Scotia
Québec
Ontario
Alberta
British Columbia
1950
1.26
11.70
1.24
0.93
1.19
1955
1.28
12.12
1.27
1.00
1.23
1960
1.33
13.42
1.50
1.01
1.11
1965
1.37
15.07
1.73
1.44
1.11
1970
1.45
17.90
1.71
1.41
1.08
1975
1.47
20.15
1.79
1.48
1.05
1980
1.25
22.68
1.82
1.28
1.25
1985
1.25
23.00
1.84
1.35
1.39
1990
1.35
21.04
1.86
3.83
1.32
1995
1.36
17.82
1.70
3.26
1.19
2000
1.30
15.32
1.66
3.83
1.10
Rates per 10,000 persons aged 15 and older
NORDIC STUDIES ON ALCOHOL AND DRUGS
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449
Canada
Table 2. Rate of on-premise alcohol licenses, selected Canadian provinces
Year
Nova Scotia
Québec
Ontario
Alberta
British Columbia
Licenses
Premises
1950
4.71
7.90
13.23
5.94
14.49
6.74
1955
8.54
7.46
1960
10.47
8.28
12.43
5.66
13.82
11.89
11.25
5.43
13.83
11.99
1965
11.37
1970
13.18
11.37
11.98
6.13
13.68
13.68
14.07
11.83
6.43
13.47
15.36
1975
18.34
1980
29.47
26.50
8.15
21.59
19.20
33.17
12.28
20.74
21.76
1985
35.97
15.68
28.99
25.24
1990
38.26
17.82
31.92
1995
38.68
17.89
35.02
2000
39.04
33.57
Rates per 10,000 persons aged 15 and older
tween 1960 and levelling off about 1980,
crease, decline and increase again pattern
a decline up until about 1996 and 1997,
of overall consumption makes it difficult
and an increase in the last seven years.
to find a nice fit for potential explanatory
There is no simple or single convincing ex-
factors. An aging population, rise of self-
planation for this overall picture. The in-
help groups, such as AA, or more intensive
Litres of absolute alcohol
12
10
8
Total
6
4
Beer
2
Spirits
Wine
0
1950
1960
1970
1980
Year
1990
2004
Source: Statistics Canada (multiple years): Control & Sale of Alcoholic Beverages
Figure 1. Per capita alcohol consumption, in litres of absolute alcohol, Canada, aged 15 and
older (1950–2004)
450
NORDIC STUDIES ON ALCOHOL AND DRUGS
V O L . 2 3. 2 0 0 6 . 6
Canada
campaigns to control drinking and driving
sidered to drink in a high-risk manner
would be good candidates to explain the
(see Figures 2 & 3). Those classified as
period of decline, but these developments
heavy drinkers1 represent 12.5% of those
are not restricted to that period (see Smart
surveyed in 2004, and the proportion is
& Mann 1995). The increase in alcohol
significantly higher compared to 1994
marketing and greater access to alcohol
(8.7%). About 16% of drinkers in 2004
might serve as a partial explanation for the
usually had 5 drinks or more on drinking
earlier period and most recent years, but
occasions, and 10% consumed alcohol at
is not as convincing for the 1980 to mid-
least 4 times a week. Also, 17% of drink-
1990s time frame. The increased concern
ers were classified as hazardous drinkers,
with controlling/reducing drinking and
using the AUDIT score, and 23% exceeded
driving in the 1980s and accompanying
the low risk drinking guidelines (Table 4).
increased enforcement possibly had con-
Studies conducted a few years ago, fo-
tributed in part to deflating consumption
cusing on the Canadian experience be-
during this time period, but it is likely not
tween 1950 and 2000, and using the ba-
the only or major factor.
sic methods employed in the European
However, the most recent increase in
Comparative Alcohol Studies project (e.g.
overall drinking rates seems to coincide
Norström 2001), demonstrated that as
with an increase in the proportion con-
overall rates of consumption increased, so
did alcohol specific mortality (Ramstedt
Rate per 100,000
30,000
2003a), deaths from liver cirrhosis (RamMales
25,000
%
35
20,000
Both sexes
15,000
20–34 years
30
12–19 years
25
10,000
Females
5,000
35–44 years
20
45–64 years
15
0
10
1994–
1995
1996–
1997
1998–
1999
2000–
2001
2003
Year
Note: This figure presents the data in a different way than published on the website of Statistics Canada as it displays the rates
of heavy drinkers among the total population, not among current
drinkers.
Source: Statistics Canada (1999; 2004; 2005a): National Population Health Survey and Canadian Community Health Survey
Figure 2. Age-standardized prevalence
(Canada 1991) of heavy drinkers (5+ drinks
on one occasion 12 or more times in the past
year) 15 years and older, by sex, Canada,
1994–2003
65 years and over
5
0
1994–
1995
1996–
1997
1998–
1999
Year
2000–
2001
2003
Source: Statistics Canada, (1999, 2004, 2005a): National Population
Health Survey and Canadian Community Health Survey
Figure 3. Percentage of heavy drinkers (5+
drinks on one occasion 12 or more times
in the past year) among current drinkers,
Canada, 1994–2003
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451
Canada
Table 3. Drinking patterns, Canada, aged 15 and older (1989, 1994, 2004)
Drinking Pattern
Definition
Lifetime Abstainers
Never had alcohol beyond sips
or tastes
Former Drinkers
NADS1 1989
CADS2 1994
CAS3 2004
%
%
%
6.6
12.8*
7.2
Drank some time during their
lives, but not during the 12
months preceding the survey
15.7*
13.5
13.5
Light-infrequent
drinkers
Past-year drinkers who drink
less often than once a week
usually fewer than five drinks
when alcohol is used
35.5
33.6*
38.1
Light-frequent
drinkers
Past-year drinkers who drink
once a week or more usually
fewer than five drinks when
alcohol is used
31.3*
29.2
27.3
Heavy-infrequent
drinkers
Past-year drinkers who drink
less often than once a week
usually five drinks or more when
alcohol is used
3.6*
3.3*
5.5
Heavy-frequent
drinkers
Past-year drinkers who drink
once a week or more, and
usually five drinks or more when
alcohol is used
6.7
5.4*
7.0
0.6*
2.1
1.5
Not Stated
* Significantly different from CAS
1) National Alcohol and Other Drugs Survey, 2) Canadian Alcohol and Other Drugs Surve,
3) Canadian Addictions Survey
Source: Adlaf et al. (2005): Canadian Addictions Survey, Table 8.2
stedt 2003b), traffic fatalities (Skog 2003),
suicide (Ramstedt 2005), homicide (Rossow 2004) and total mortality (Norström
2004).
It is estimated that in Canada in 2002
there were 4,258 deaths due to alcohol
(3,494 men and 764 women). These were
net deaths and the estimation took into
account the prevention of mortality from
moderate use of alcohol. This work also
produced estimates that premature mortality resulted in 191,136 years of life lost
(140,776 men and 50,360 women) (Giesbrecht et al. 2005a; Rehm et al. 2006).
452
NORDIC STUDIES ON ALCOHOL AND DRUGS
 Damage from alcohol
The alcohol industry acknowledges a
number of problems related to the use of
their products. There seems to be an underlying rationale in the problems that
are identified and highlighted. It is a rationale that is not necessarily driven by
the findings of epidemiology or social science, but by other considerations. They
acknowledge problems that have one of
the following characteristics: problems
that are already widely known, problems
that involve a minority – and usually lowvolume – consumers (e.g., pregnant women), or problems that are experienced by
persons considered dependent on alcohol.
V O L . 2 3. 2 0 0 6 . 6
Canada
Table 4. Risky Drinking, Canada, aged 15
and older (2004), %
prominent player in funding and working
Hazardous
drinking (AUDIT
8+)1 ,%
and promoting interventions. Interven-
Total drinkers (10,696)
17.0
Exceeding low-risk
drinking guidelines
(LRDG)2 ,%
22.6
Male
tions that focus on the drinking driver or
his or her companions, such as designated
driver programs, are strongly supported. In
contrast, there appears to be ambivalence
Sex
Female
with groups involved in raising awareness
8.9
15.1
about programs that place substantial pres-
25.1
30.2
sure on servers to curtail sales, and opposition to interventions that would control
Age Group
15–17
30.9
24.6
the volume consumed, such as lower of-
18–19
44.6
32.3
ficial BAC levels. Furthermore, it is other
20–24
34.2
38.0
groups and organizations that have taken
25–34
21.1
24.9
the lead in identifying alcohol damage as-
35–44
14.2
22.3
sociated with boating and snowmobiling,
45–54
14.0
22.4
for example, or with mass transportation
55–64
10.8
18.4
(e.g. operators of trains and ships, pilots
65–74
3.9
10.9
of airplanes, or alcohol-related ‘air rage’
75+
4.5
13.6
among airline passengers).
1) The Alcohol Use Disorders Identification Test (AUDIT)
was developed by the World Health Organization as a tool
to screen excessive drinking. A score of 8+ points (out of
40) from the ten-item questionnaire indicates hazardous
consumption likely to result in harm, as well as possible
alcohol dependence.
2) Ontario’s Low-Risk Drinking Guidelines advise no more
than two standard drinks on any given day and up to 9
drinks a week for women and 14 drinks a week for men. A
standard drink contains 13.6 grams of alcohol and is equal
to a 5oz glass of wine, a 12oz bottle of beer, or a 1.5oz
of spirits.
Source: Adlaf et al. (2005): Canadian Addiction
Survey, Tables 4.1 & 3.5
It is uncommon and unlikely that the alcohol industry takes the lead in identifying a
problem, but rather once a problem gains
ascendancy in social consciousness, media
attention or via government interventions,
the industry seeks to also become part of
the solution.
A classic case of the first example is
drinking and driving. For at least two decades there has been extensive activities
in this area, and in Canada, as elsewhere,
the alcohol industry is a regular and often
 The alcohol industry and social
responsibility and prevention initiatives
The alcohol industry and their social aspect organizations have a large and seemingly growing role in raising awareness of
alcohol problems, educating the public
and special populations on specific risks,
sponsoring or co-sponsoring programs and
targeted interventions. These international
activities have been explored elsewhere
(McCreanor et al. 2000; Anderson 2002a,
2002b; Giesbrecht 2000; 2004).
Appendix II provides a snapshot of
recent initiatives by Canadian producers as well as some examples from the
largest retailer of alcoholic beverages
in Canada, the Liquor Control Board
of Ontario. The range of activities is
considerable with many focusing on drinking and driving, as well as youth, alcohol and
pregnancy and acute damage from alcohol.
Nevertheless, several themes are missNORDIC STUDIES ON ALCOHOL AND DRUGS
V O L . 23. 2006 . 6
453
Canada
ing from the examples in Appendix II.
However, it should be noted that there
Although about 50% of the overall burden
is not necessarily a good match between
from alcohol in North American contexts
whether there is research evidence show-
is linked to chronic disease (Rehm et al.
ing that a policy option reduces harm and
2003b), it is curious that no interventions,
whether industry support for it. For ex-
other than those dealing with foetal alco-
ample, the following have been shown to
hol effects, specifically focus on chronic
reduce harm, but they are either not sup-
disease where alcohol is a risk factor. Fur-
ported by the alcohol industry or there is
thermore, most are oriented to the individ-
considerable ambivalence about these in-
ual, and not directed at the aggregate level.
terventions: higher taxes, reducing hours
However, interventions at both levels are
or days of sale, controls on outlet density,
needed for an effective and comprehen-
raising the legal drinking age, reducing the
sive response, and the former, while im-
official BAC limit, and, last but not least,
portant, is typically less cost-effective and
controlling overall per capita consump-
with more limited ‘reach’ (see Chisholm et
tion.
al. 2004). Third, as noted in Babor et al.
A number of these interventions come
(2003, chapter 16), not all policies are of
closest to negatively impacting the busi-
equal potency. It turns out that those iden-
ness of alcohol marketing and profit from
tified as being of higher effectiveness are
alcohol sales. While, in principle, restric-
not strongly represented in Appendix II,
tions might be introduced that do not pro-
while those either not evaluated or found
vide an unfair advantage to any one type
from international evaluations to have
of beverage, in practice this is seldom
modest or minimal impact, figure promi-
the case. Therefore, a preferred option is
nently in this appendix.
likely to be that of resisting or rejecting
the restrictions on access, rather than the
 Alcohol industry and alcohol policy
options
The preceding sections have alluded to apparent positions of the alcohol industry on
alcohol policy options. Here these themes
are summarized (Table 5).2 There is support
for a number of policy options and opposition to others. Opposition appears evident
to a number of controls, while support was
shown for interventions that involve information and persuasion, or more focused
interventions. The control of drinking and
driving is a highly developed area with a
number of very specific interventions that
are being tried in Canada and elsewhere.
As indicated, there is industry support for
a number of countermeasures.
454
NORDIC STUDIES ON ALCOHOL AND DRUGS
complicated, time-consuming and collaborative approach that looks for opportunities where potentially convergent agendas
can be realized between public health and
market place proponents. Nevertheless,
the deliberations underway with regard to
the draft National Alcohol Strategy, which
is not yet released, include tentative signals that alcohol industries are willing at
this stage to consider a range of prevention
strategies. Some measures include controlling access through a ceiling on density of
outlets and a pricing policy that insures
that alcohol beverages keep pace with the
consumer price index, and thus reinforcing an effective public health approach to
alcohol problem prevention.
V O L . 2 3. 2 0 0 6 . 6
Canada
Table 5. Apparent perspective of the alcohol industry on selected alcohol policy options,
Canada
Policy option or intervention
Supports
Ambivalent
or varies1
Opposes
Alcohol: Taxes & prices
Higher taxes
x
Higher retail prices
x
Floor prices
x
Retail social reference price (linked to Consumer price
index)
x
Retailing system
Government retailing of alcohol
x
Government wholesaling
x
Access controls
Ceiling on density of outlets
x
Reduce hours of sale
x
Reduce days of sale
x
Raise legal drinking age
x
Marketing
Controls on marketing
x
Self-regulation of advertising
x
Government regulation of advertising
x
Controls on promotion
x
Information dissemination & persuasion
Promote school-based programs
x
Expand counter-advertising
x
2
Standard product content labels
x
Introduce warning labels
x
Types of Beverages
Control high strength beverages
x
Control alcohol pops
x
Control alcohol smuggling
x
Consumers & drinking styles
Discourage drinking by pregnant women
x
Discourage drinking by underage youth
x
Discourage high-risk drinking
x
Encourage moderate consumption
x
Drinking and driving
Per se BAC limit of .08
x
Per se BAC limit of .05
Provincial BAC limit of .05 with traffic ticket
x
x
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Canada
Policy option or intervention
Supports
Ambivalent
or varies
Provincial BAC limit with increased penalty
Opposes
x
Administrative license suspension
x
Graduated licensure
x
Lower BAC for young/new drivers
x
Stricter repeat offender penalties
x
Tougher penalties for excessive BAC levels
x
Ignition Interlock device
x
Prevention education programs
x
Remedial programs
x
Conditional sentencing of offenders
x
Increased spot checks
x
Improved court processing of offenders
x
Other damage from alcohol
Promote Bar-room interventions and controls
x
Identify a wide range of problems related to alcohol (e.g.
cancers, other chronic diseases, violence)
x
x
Disseminate information about dependence
x
Benefits of alcohol use
Disseminate information about benefits of alcohol for CVD
x
General
Control overall per capita consumption
x
Research on alcohol issues
x
Encourage health and safety advocates to be included at
policy tables
x
x
x
1) For example, if policy option does not create an unfair advantage across three main types of producers it is more likely to
be supported.
2) Less likely to support messages that identify overall consumption or controls of promotion of alcohol as goals.
The situation for some interventions is
other sectors.
not necessarily a simple one. There may
From the perspective of the consumer
be some areas where flexibility is feasible.
and harm reduction potential of pricing,
For example, there may be support among
the active ingredient is the relative price,
sectors of the alcohol industry for higher
not the components, such as tax. It would
prices or retail social reference price (e.g.
seem that an effective way forward with
annually raised to keep pace with the
regard to pricing that can reduce harm
consumer price index). But this support
would require some interaction between
is likely to be contingent on the govern-
health and safety advocates, researchers,
ments not receiving a larger share of the
representatives of government depart-
retail price, via tax increases, and being
ments, liquor boards and the alcohol in-
implemented so that no one sector of the
dustry.
alcohol industry benefits more than the
456
NORDIC STUDIES ON ALCOHOL AND DRUGS
V O L . 2 3. 2 0 0 6 . 6
Canada
Alcohol policy options and
public opinion
There is neither consistent agreement
nor disagreement across these dimensions.
A final comparison considers the apparent
Nevertheless, a few points might be noted.
alcohol industry positions with regard to
Items where public support was weak
several policy options, public support and
(high scores in column two) were also op-
the research evidence in terms of the as-
posed by the alcohol industry. In general,
sessed impact of a policy on overall con-
a criticism that the alcohol industry tends
sumption and/or alcohol-related harm.
to be most supportive of the less effective
This three-way comparison is summarized
polices, is not necessarily one that should
in Table 6. The first column ranks the re-
be restricted to the alcohol industry. It
search evidenced, based on Babor et al.
must be noted that there is also strong sup-
(2003), with the lower number indicating
port for weak or ineffective interventions
higher rank in terms of impact. The second
and opposition to effective policies among
column ranks public support in Ontario,
governments and among members of the
based on surveys involving representative
general public. The motives for this sup-
samples of adults (Giesbrecht et al. 2005b).
port may vary by the group or organiza-
The third provides an interpretation of
tion, but the outcomes are similar. Ineffec-
Canadian industry perspectives on these
tive and often expensive interventions are
policy options.
promoted and sponsored while those with
Table 6. Assessed impact of a policy, public support & apparent alcohol industry
perspectives
Policy item
Assessed impact
on consumption
and/or harm1
Public
support2
Alcohol
industry
Raise alcohol taxes3
1
11
oppose
Raise minimum age
2
5
oppose
Retain government retailing system
3
5
support
Reduce number of liquor stores
4
9
ambivalent
Reduce number of beer stores
5
8
oppose
Reduce number of places to buy alcohol
6
7
oppose
Reduce hours of sale – licensed premises
7
6
oppose
One day dry
8
10
Stop service to intoxicated customers or patrons
unknown
9
1
support
Ban alcohol advertising on TV
10
12
oppose
Ban alcohol advertising directed at youth
11
3
Ban alcohol sponsorship
12
13
oppose
Introduce warning labels on beverage containers
13
2
oppose
ambivalent
1) Based on Babor et al. 2003, chapter 16.
2) Based on responses to annual surveys of Ontario adults.
3) Lower number indicates higher rank, e.g. 1 for alcohol taxes indicates strong support in the research literature of impact
from this intervention, but 11 indicates low support for this intervention among Ontario respondents.
Source: Based, in part, on Giesbrecht, et al. (2005b).
NORDIC STUDIES ON ALCOHOL AND DRUGS
V O L . 23. 2006 . 6
457
Canada
greater potential are not. As a consequence
Other measures of access to alcohol have
the chronic and acute negative effects of
shown some increase in recent years, such
an increase in high-risk drinking and rise
as density of outlets, but not dramatically
in overall consumption are not being ef-
so, except for Alberta. Hours of sale are, on
fectively controlled.
average, longer, and Sunday sales are now
fairly common. No changes in the mini-
Discussion
mum legal drinking age are expected, with
The recent Canadian experiences with re-
3 provinces have it set at 18 and the other
gard to alcohol policies indicates that the
jurisdictions at 19. Despite the frequent
influence of the alcohol industry appears to
talk of privatization of alcohol retailing,
have been significant, but not consistently
only Alberta has, to date, gone that route
so across policies (Giesbrecht et al. 2006c).
fully, while in other provinces, an accu-
An important caveat is that the position
rate description might be privatization by
and roles of the industry have not always
stealth or by small steps.
been transparent, and insider information
However, there has been considerable
is needed to gauge more accurately what
activity in the domain of alcohol promo-
their role has been in the policy domain.
tion. There is extensive advertising and
For example, a number of policy decisions
promotion of alcohol, and concurrently a
are not the outcome of public hearings or
reduction of government having a direct
committee deliberations that are a matter
role in screening alcohol advertising. Al-
of public record.
though there have been several attempts
Several interventions are considered to
to introduce warning labels on alcohol
be particularly effective in reducing alco-
beverage containers, all have failed at the
hol-related harm (e.g., Babor et al. 2003,
national level.
chap. 16). Based on this orientation, it is
Also, of special importance is that, to
feasible to highlight several developments
date, neither controlling overall consump-
in Canada. From a public health and safety
tion nor controlling high-risk drinking
perspective, some are worrisome and oth-
appear to have been a central focus of al-
ers less so.
cohol policies supported by the alcohol
There have been some changes in retail
industry in the recent past. It remains to
prices of all three beverages. At the na­tional
be seen if the emerging National Alcohol
level retail prices of beer are now higher
Strategy will give high priority to both and
than the consumer price index, compared
also advocate for interventions that have a
to the situation in 1991; wine prices have
reasonable chance of making progress in
also increased, but spirits prices have gen-
controlling overall consumption and high-
erally not kept pace with the consumer
risk drinking levels.
price index. Recent developments on this
The policies that would have a high po-
front include, for example, the discount-
tential to achieve one or both are typically
ing of beers in Ontario and British Colum-
either ignored or undervalued. However,
bia by a smaller brewer, which may lead
there are extensive efforts to control drink-
to the larger brewers or other producers
ing and driving, and these initiatives stand
doing the same.
in sharp contrast to the relative absence of
458
NORDIC STUDIES ON ALCOHOL AND DRUGS
V O L . 2 3. 2 0 0 6 . 6
Canada
major policies to prevent other alcoholrelated problems. Furthermore, there is
the more generic and persistent challenge
of raising the profile of alcohol as a pub-
Norman Giesbrecht, Senior scientist
Centre for Addiction & Mental Health,
33 Russell Street, Toronto, Ontario M5S 2S1
Canada
E-mail: norman_giesbrecht@camh.net
lic health and safety issue; particularly in
health promotion circles where alcohol
problem prevention advocates are in a minority or not at the table.
NOTES
1) Respondents who reported having 5 or
more drinks on one occasion 12 or more
times in the past year.
2) The table is based on a combination of
sources: discussions with key informants,
industry documents or web pages, and
presentations by industry representatives.
In some cases the information is sketchy
or it is not fully clear what the industry
perspective is on a topic; hence the table is
cautiously labelled “apparent perspective”.
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Appendix I. Alcohol Industry of Canada – Brief Overview
BEER Brewers Association of Canada
International
Ownership
Molson Coors Brewing Company
(from Montreal Molson and Colorado
Adolf Coors 2004 merger)
InBev S.A.
(from Belgian Interbrew and
Brazilian AmBev 2004 merger)
Top Brewers
in Canada
#1: Molson Coors
#2: Labatt
#3: Sleeman
Breweries Ltd.
Profile
• fifth largest in industry
worldwide
• founded in 1786, Molson is North America’s
oldest beer brand
• The Coors family owns
27% of shares; W. Leo
Kielly III, CEO
• Founded in 1847
• Rober Labatt, CEO
• Acquired by Interbrew
in 1995
• Founded in 1851 in
Guelph, Ontario
• John Sleeman, CEO
Key Brands
• Coors/Coors Light
• Molson Canadian
• Carling
• Black Ice
• Rickard’s
• Bavaria
• Labatt Blue
• Alexander Keith’s
• Blue Star
• Kokanee
• Club
• Kootenay
• Lucky
• Oland
• Schooner
• Sleeman’s
• Shaftebury
• Upper Canada
• Stroh
• Okanagan
Partnered
with/
Distributes
• Heineken
• Miller
• Foster’s
• Corona
• Budweiser/Bud Light
• Guinness
• PC Premium Draft
• Bass
• Beck’s
• Cristall
• Dos Equis
• Löwenbräu
• Stella Artois.
• Grolsch
• Pilsner Urquell
• Samuel Adams
• Sapporo
• Scottish and Newcastle
WINE
Canadian Vintners Association
Top Wineries #1: Vincor International
#2: Andre’s Wines Ltd
#3: Diageo
Profile
• Founded in 1961
• John Peller, President/
CEO
• Formed in 1997
from Guinness and
GrandMet merger
• Lord (James) Blyth
of Rowington,
Chairman
462
Other independent
microbreweries
• Largest in Canada, fourth
in N. America, 13th
worldwide
• Don Triggs, President/
CEO
• Traces back to 1874 Niagara Wine Company
• Owns The Wine Rack
(Ontario)
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Others: Mission
Hill Maxxium
Canada
Key Brands
SPIRITS
• Inniskillin
• Jackson-Triggs
• Hogue
• Sumac Ridge
• Kumala
• Goundrey
• Cascadia
• Thirsty Bench
• Peller Estates
• Hillebrand Estates
• Domaine D’Or.
• Red Rooster
• Hochtaler
• Beaulieu
• Sterling
Spirits Canada (aka Association of Canadian Distillers)
International
Ownership
PERNOD RICARD S.A.,
the 2nd largest wine and spirits operator in the world (behind London’s Diageo), founded in
1975 by the merger of the two French companies. It acquired Seagram in 2001, and Allied
Domecq in 2005 (who previously owned Hiram Walker). Sales in 2004/2005 approximately
5.8 billion€.
Hiram Walker and Sons Ltd.
Owns in excess of 51% shares of Corby Distilleries and sources 75% of Corby’s product
requirements.
Corby Distilleries Ltd.
Corby owns or represents 8 of the top-selling 25 brands in Canada, and 16 of the top 50.
Key Brands
• Canadian Club
• Lamb’s Rum
• Seagram’s Coolers
• Polar Ice Vodka
• Wiser’s rye whiskies
Represents/
distributes
• Ballantine’s Scotch
• Beefeater gin
• Malibu rum
• Kahlua liqueur
• Chivas Regal
• Havana Club rum
Sources:
Brewers of Canada: 2004 Annual Statistical Bulletin. [Online: http://www.brewers.ca/EN/index.htm]
Molson Coors (Feb 9, 2005): Molson Coors Announces Results for Molson’s 3rd Quarter of Fiscal 2005. [Online: http://www.
molsoncoors.com/press/02_09_05_molson.html]
Maguire, B. (2006): The Battle of our Beers. The Dominion, January 26. [Online: http://dominionpaper.ca/business/2006/01/26/the_battle.html]
Oligopoly Watch (Mar 3, 2004): Interbrew, AmBev plan to merge. [Online: http://oligopolywatch.com/2004/03/03.html]
InBev (2006): About InBev > Our Company. [Online: http://www.inbev.com/about_inbev/1__1__0__ourcompany.cfm]
Oligopoly Watch (July 22, 2004): Coors/Molson. [Online: http://www.oligopolywatch.com/2004/07/22.html]
CNW Group (Feb 9, 2006): Corby Distilleries Limited announces stock split, dividend & earnings for four months ended December 31, 2005. [Online: http://www.newswire.ca/en/releases/archive/February2006/09/c0765.html]
Wine Industry Report (Mar 8, 2006): Pernod Ricard & Corby Distilleries announce combined strategic approach to Canadian
market. [Online: http://wineindustryreport.finewinepress.com/2006/03/08/pernod-ricard-corby-distilleries-announce-combined-strategic-approach-to-canadian-market/]
Ryval, M. (2001): Glass Half Full. The Globe and Mail, September 28. [Online: http://www.theglobeandmail.com/series/wine/
glass.html]
Paul, M.: Western Wines & the UK Wine Market. [Online: http://www.vincorinternational.com/download/InvDay.pdf]
Vincor International (Oct 9, 2002): Vincor International announces agreement to acquire Australia’s groundrey wines. [Online:
http://www.vincorinternational.com/base-module/companynewsreleases.cfm?newsID=1585&companyID=49&maintitle=
Media]
Canadian Shareowner (Sep/Oct 2004): Vincor International Inc.: Good For You Too. [Online: http://www.findarticles.com/p/articles/mi_qa4037/is_200409/ai_n9409482#continue]
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Canada
Appendix II. Collaboration of the Alcohol Producers and Alcohol Retailers on
Prevention Initiatives & Campaigns – Examples from Canada
Brewers of Canada
• Media campaigns on radio, television, and outdoor
advertising to remind Canadians not to drink and
drive; with Canada Safety Council, Ontario Community Council on Impaired Driving, Student Life
Education Company and the Traffic Injury Research
Foundation.
• Support alcohol ignition interlock devices.
• Motherrisk program of the Hospital for Sick Children
in Toronto, supported by Brewers of Canada (BAC).
• Alcohol Risk Assessment and Intervention (ARAI)
program with the College of Family Physicians of
Canada.
• FAS Resource Centre, with Health Canada, Association of Canadian Distillers and the Canadian
Centre on Substance Abuse (CCSA).
• Alcoholic Beverage Research Foundation (ABMRF),
funded by brewers in Canada and US, provides
grants for research on the prevention of harmful
consumption of alcoholic beverages.
• Program materials to reach audiences in the Native
community; with Native Physicians’ Association in
Canada.
• Multimedia program for young teens to learn about
alcohol; with educators and health and substance
abuse professionals, piloted in New Brunswick.
Now in the public domain the websites are currently
hosted by Schoolnet, the Federal Government’s
Internet server.
• Labatt: Drive Home Safe Program in Atlantic Canada, and the Labatt Opération Nez Rouge in Quebec,
where Labatt volunteers driver others who do not
feel comfortable driving their own vehicles home.
Labatt has partnered with local transit commissions to support New Year’s Eve Free Ride
campaigns that provide passengers with free transit
service all evening. First Canadian brewer to launch
a moderation program and first to introduce a
“near-zero” alcohol beer. Enlists major sports and
entertainment figures in the fight against alcohol
abuse. Know When to Draw the Line: Responsible
consumption campaign by Labatt. Partner with
Canadian Red Cross, Red Cross Swim and On
Board to produce materials and programs to help
boaters and swimmers remain safe and consume
alcohol responsibly in and around the water. Partner
with Canadian Avalanche Association on education
on avalanche preparedness, safety and resources to
avoid accidents.
• Molson: Launched responsible use program with regard to impaired driving, including 1-888 TAXIGUY/
TAXI SVP. This program provides consumers with
a safe, viable and convenient alternative to drinking
and driving. Includes a network of over 425 partner
cab companies, TAXIGUY services are now available
in over 700 Canadian cities and towns, including all
major urban centres. Over 150,000 calls made to
date. Molson promotes the Don’t Drink and Drive
message at many sports and entertainment events
across Canada. “When we invite people to enjoy a
Molson event, we remind them to plan an alternative
to getting behind the wheel.”
• Brewers state that “no other industry matches the
human financial resources committed by the Canadian brewers in promoting further reduction in the
already declining incidence of alcohol. We remain
committed to what we see as both a corporate
and social responsibility to promote responsible
drinking.”
• Over the past 10 years Canadian brewers have
claimed to spend more than $100 million in funding
for a number of activities, numerous partners including Health Canada:
– targeted educational and intervention programs
in partnership with health professionals and third
party interest groups.
– multimedia advertising responsible drinking
campaigns.
– support for medial and social-behavioural
research.
Sources:
Brewers of Canada: Responsible Drinking. [Online: http://www.brewers.ca/EN/frames/enter_responsible.htm]
Labatt: Responsible Use. [Online: http://www.labatts.com/english/lbc_responsible/lbc_main.htm]
Brewers of Canada: Accountability means acting responsibly. [Online: http://www.brewers.ca/EN/responsible/index.htm]
Brewers of Canada: What’s New: Brewers Remind Canadians Don’t Drink and Drive. [Online: http://www.brewers.ca/EN/whats_new/toronto_apr7_2004.htm]
Molson: Molson in the Community. [Online: http://www.molson.com/community/ddad/index.php]
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Canada
Association of Canadian Distillers (ACD)
• Prevention of impaired driving programs, with
Canada Safety Council (CSC).
• Public service announcements against dangers of
drinking and driving (regardless of beverage) with
CSC.
• SMASHED magazine with multiple collaborators.
• Crime Stoppers Program – poster campaign with
Liquor Control Board of Ontario, Ontario Provincial
Police and the Royal Canadian Mounted Police
(RCMP).
• Fetal Alcohol Syndrome Information Service with
Brewers Association of Canada and Health Canada.
• Alcohol education and awareness programs and
campaigns for post-secondary audience, with BACCHUS Canada.
• Ontario Licence Plate Program illustrating a Don’t
Drink and Drive symbol, with Ontario Ministry of
Transportation.
• Of 18 groups/campaigns listed on their website, 13
had to do with impaired driving.
• ACD supports and participates in alcohol awareness
programs that promote responsible consumption,
collaborate with governments, public health agencies, law enforcement agencies, research groups
and other stakeholders across the country.
Sources:
Association of Canadian Distillers: Programs and Campaigns. [Online: http://www.canadiandistillers.com/eng/
ResponsibleUse/programs.htm]
Vintners
• Web site of the Canadian Vintners Association
provides links to numerous organizations involved
in alcohol policy issues, including various councils, research institutions as well as social aspects
organizations, e.g. Portman Group.
• Other web sites links focus on: e.g., drinking and
driving, fetal syndrome/fetal alcohol effects, government organizations, nutrition, moderate wine consumption and the benefits to health, and national
and prevention organizations.
• The Canadian Vintners Association “supports the
responsible and moderate consumption of wine, but
does not advocate non-drinkers begin drinking for
the health benefits associated with wine. The abuse
or over-consumption of wine or any other alcoholic
beverage increases the risk of short or long term
harm to health and should be avoided. Please enjoy
our product in moderation and drink responsibly.”
• The Wine Council of Ontario (January 11, 2005) welcomed Ontario’s Provincial Review of the Beverage
Alcohol Business and supported the five principles
that will guide the expert review panel in their work:
– Promotion of on Ontario’s products
– Safeguarding socially responsible consumption,
storage, distribution and sale of beverage alcohol
– Convenience, variety and competititive prices for
consumers
– Maximizing value to taxpayers
– Ensuring responsible reuse and recycling practices
Sources:
Canadian Vintners Associaton [Online: http://www.canadianvintners.com/health/links.htm]
Wine Council of Ontario [Online: www.winesofontario.org/PDFs/WCO&ProvincialReviewofBeverageAlcoholBusiness.pdf ]
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Canada
Liquor Control Board of Ontario
• Partners with numerous groups to promote social
responsibility and raise awareness of important alcohol-related issues, such as drinking and driving and
responsible personal consumption.
• Partners include: social and health agencies, social
responsibility groups, community organizations, police
agencies, educational agencies, beverage alcohol
suppliers, the hospitality industry, and government.
• “Since 1995, the LCBO has used TV, radio, print,
cinema and billboard ads to bring our social responsibility messages to Ontario communities. Research
has shown that public recall of these ad campaigns is
high and that most respondents who’ve seen the ads
would think twice about drinking and driving – and
feel their family and friends would too”.
• “Selling liquor responsibly is a public trust the LCBO
has taken very seriously since 1927. We consider
social responsibility as important as our mandate to
provide a high level of customer service and maximize
dividends for the provincial government.” LCBO
programs include:
– Information campaigns aimed at teenagers, such
as the Safe Prom Campaign, which includes
posters, teachers’ educational materials and tips
for both parents and teens. [Online: http://www.
lcbo.com/prom]
– Talk to Your Kids about Alcohol. [Online: http://
www.talktokidsaboutalcohol.ca]
– Staff training to prevent the sale of alcohol to
minors, and to persons who are intoxicated,
e.g. SMAART Training for Staff, Challenge and
Refusal Program.
– Television commercials in partnership with MADD
Canada.
– Responsible Host Tips and Good Host kits for
overnight guests. Good Host Kit was developed
by LCBO in partnership with Shoppers Drug
Mart. It facilitates hosts of holiday celebrations
to take action to deter drinking and driving. It
includes everything a host would need for unexpected overnight guests. Plans are underway for
a summer version of Good Host Kit.
– Programs in partnership with other organizations,
e.g., R.I.D.E. (in association with the Ontario
Association of Chiefs of Police).
– Collaborated with Mothers Against Drunk Driving
(MADD Canada) on seven TV campaigns, which
helped raise $400,000. LCBO also collaborated
with MADD on the holiday season Project Red
Ribbon campaign.
Sources:
Liquor Control Board of Ontario: Social Responsibility. [Online: http://www.lcbo.com/socialresponsibility/ourcommitment.shtml]
Liquor Control Board of Ontario: Media Center. [Online: http://www.lcbo.com/aboutlcbo/media_centre/faq.shtml]
Mothers Against Drunk Driving: Madd Canada News. [Online: http://www.madd.ca/english/news/pr/p05apr14.htm]
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