Transcript Slide 1

Alcohol Regulation:
“Striking The Right Balance”
Friday, January 5th, 2007
Sanibel, Florida
Outcome
When This Panel Discussion Is Over………
• Reviewed and discussed “alcohol, society &
regulation” - trends from around the world
• Focused particularly on the erosion of the state’s
rights to regulate alcohol
• Discussed what role “structure” (i.e. 3 tier) plays in
the regulatory scheme, if any
• Debated what should be done in reaction to the
trends? Anything? Nothing?
Format
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90m
15m
45m
15m
15m
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Total Session
“Teeing Up” The Issue
Panelist Presentations
Moderator Questions
Audience Questions
Panelists
• In true Sgueo-esque style and a feeble attempt
to disorient the moderator we have managed to
assemble a panel of “Three Peter’s”
- Peter Anderson
- Peter Cressy
- Peter Lake
Panelists
• In true Sgueo-esque style and a feeble attempt
to disorient the moderator we have managed to
assemble a panel of “Three Peter’s”
- Peter Anderson
- Peter Cressy
- Peter Lake
Panelists
• In true Sgueo-esque style and a feeble attempt
to disorient the moderator we have managed to
assemble a panel of “Three Peter’s”
- Dr. Anderson
- Dr. Cressy
- Professor Lake
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.
Dr. Peter Cressy
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Dr. Peter H. Cressy joined the Distilled Spirits Council as President and Chief
Executive Officer in September 1999. A distinguished educator and retired U.S.
Navy Rear Admiral, Dr. Cressy has an impressive history of leadership positions.
•
He came to the Distilled Spirits Council following six years as Chancellor of the
University of Massachusetts Dartmouth.
Dr. Cressy's academic career also included two years as President of the
Massachusetts Maritime Academy as well as numerous teaching assignments.
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His 28 year naval career included key appointments at the State Department, House
of Representatives, the Pentagon and several commanding officer positions. His
operational assignments included duties in Alaska, Japan, Iceland, Italy, the
Mediterranean and shipboard duty off the coast of Vietnam during the evacuation of
Saigon and the Mayaguez Rescue.
He concluded his career as Commander, Fleet Air Mediterranean and Commander,
NATO Air Mediterranean during Desert Storm.
A 1963 graduate of Yale University, he has a Master's Degree in International
Affairs from George Washington University, an MBA from the University of Rhode
Island, and a Doctorate in Education from the University of San Francisco. He also
graduated with distinction from the Naval War College.
Professor Peter Lake
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Peter F. Lake is the Charles A. Dana Chair and Director of the Center for Higher
Education Law and Policy at Stetson University College of Law. He teaches and
writes in the areas of Torts, Higher Education Law and Policy, Insurance, and
Jurisprudence
He co-authored The Rights and Responsibilities of the Modern University (Carolina
Academic Press 1999), and has authored numerous law review articles and other
publications.
Professor Lake is a highly sought after speaker and futurist, particularly in the field
of higher education law and policy, where he has served as a presenter or keynote
speaker presenter at more than 100 national and regional meetings.
In recognition of his work, Professor Lake has been appointed to several boards,
including the board of editors of the Journal of College and University Law, and the
Center for Academic Integrity.
Professor Lake joined Stetson's faculty in 1990.
After graduating from law school, Professor Lake was a law clerk for the
Honorable Bruce Selya and then for the Honorable Neil Lynch, Associate Justice of
the Massachusetts Supreme Judicial Court.
Before joining Stetson, Professor Lake was a litigation associate with the law firm
of Cahill, Gordon & Reindel in New York City, where he was involved in a variety
of commercial litigation and First Amendment matters.
Teeing Up The Issue
On The One Hand…..
We Know This Does Not Work
And So To……..
73 Years Later
8 Year Trend:
Annual Bev AL Servings purchases are flat
Total US
Buying Rate
Servings per Buying Household
350
300
307
305
219
193
218
195
106
113
250
200
150
100
50
0
1998
1999
2000
2001
TOTAL ALCOHOLIC BEVERAGES
2002
2003
WINE
BEER
2004
2005
SPIRITS
Source: ACNielsen Homescan
Confidential & Proprietary ● Copyright © 2006 ACNielsen ● a VNU business
15
Percentage of US Households purchasing
Beverage Alcohol is declining
Total US
Penetration - % of Households Purchasing
62
60
45
37
41
36
29
28
1998
1999
2000
2001
TOTAL ALCOHOLIC BEVERAGES
2002
WINE
2003
BEER
2004
2005
SPIRITS
Source: ACNielsen Homescan
Confidential & Proprietary ● Copyright © 2006 ACNielsen ● a VNU business
16
If it weren’t for Population growth . . .
70
65
60
55
50
45
40
35
30
25
20
114
112
110
108
106
104
102
100
Total US Households (Millions)
% of Households Purchasing
Total US
Penetration - % of Households Purchasing
98
96
1998
1999
2000
2001
TOTAL ALCOHOLIC BEVERAGES
BEER
Total Households (MM)
2002
2003
2004
2005
WINE
SPIRITS
Source: ACNielsen Homescan
Confidential & Proprietary ● Copyright © 2006 ACNielsen ● a VNU business
17
Not Perfect
But certainly effective enough for
us to be very cautious about
changing it!
Punch Lines
Rules, regulations and laws are intertwined,
forming complex relationships
Pulling the wrong one out at the wrong
moment can cause disaster to strike
You had better know what you are doing
before you start messing with the sticks!
We Were Not Alone!
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Canada
Britain
Nordic Countries
Russia & Soviet Union
Middle East, North Africa, Central Asia
South Asia
All have / have had various forms of
prohibition or severe restrictions
We Also Know That……Misplaced
Policy and Regulation Still Cause
Issues Today
Overprice / Overtax It…….
Russia: Sweet smell of excess
16/06/2006 12:00
Written 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?"
A Serious Problem……..
Alcohol deaths prompt state of emergency in Siberia
06 Dec 2006 16:35:00 GMT
Source: 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.
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 then
another 100 people have died in similar tragedies in other districts.
But the reports of the judicial probes on these tragedies have not
resulted in any concrete action by the government.
That also explains why the Opposition has described the announcement for
a judicial probe into the Ganjam tragedy only an eyewash.
On Other Continents Too….
In Paraguay 14 die after drinking doctored liquor
02 Dec 2006 18:12:43 GMT
Source: 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 30
Source: 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.
But Also Closer To Home…
•
United Kingdom: Potentially fatal vodka on sale
Source: BBC
Sept 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.
And About To Get Worse?
United Kingdom: Treasury haunted by spectre of fake spirits
By: 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.
However! We also know…..
It Ain’t Milk
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), alcohol
dependence, and other biochemical effects of alcohol. In addition to chronic diseases that may
affect 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 death
or 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 between
alcohol 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) of
Disability-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 for
close 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 mortality
developing 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
United Kingdom: Supermarkets under fire as child alcohol abuse surges
By Sam Coates
Source: 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.
Scottish girls among most violent in the world
Camillo Fracassini
Source: London Sunday Times
SCOTTISH girls have been revealed as among the
most violent in the world. A new study shows that
almost one in three 11- to 15-year-olds was involved in
at least one physical fight in the previous year.
Only girls from England, Belgium, Lithuania, Estonia
and Hungary admitted to being more violent, in the
study of 35 developed countries.
Rising alcohol and drug use has been blamed on a
surge in violent crime
United Kingdom: Alcohol deaths soaring, new figures show
Saturday July 1, 2006
The 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."
S&N UK slams cheap supermarket booze
31 July, 2006
By Hamish Champ
Major players using low-cost beer to drive custom
Brewer Scottish & Newcastle UK (S&N UK) has slammed Britain’s supermarket chains for selling its beers
on the cheap.
In a submission to the Competition Commission, which is looking into claims that the big grocery retailers
are squeezing out smaller, independent players, S&N UK said it “viewed with concern the willingness of the
major multiples to invest in relatively cheap beer and cider prices to drive ‘footfall’ within this sector”.
The group said the sale of alcoholic drinks at low cost – even below cost – was not consistent with the
promotion of responsible drinking.
“There is now firm anecdotal evidence that drinkers are consuming cheap alcohol at home prior to crossing
(Pre gaming) over into the on-trade for a night out and then topping up at pubs and bars,” S&NUK’s
submission went on.
“Furthermore, with the advent of public place smoking bans now in Scotland and due in England, Wales
and Northern Ireland, we expect the demand for this kind of consumption to increase.”
The emphasis on low price to drive customers into the store “was an unwelcome feature of the grocery
market”, it concluded.
Sainsbury’s and Tesco were unavailable for comment.
United Kingdom: Curb on teenage drinkers and smokers
Source: Daily Telegraph / (Filed: 14/09/2006)
Drastic action to stop the spread of heavy drinking and smoking among young people - including a ban on
advertising alcohol on television - is recommended by Government advisers today. Half of British
children drink at least once a week.
"Of all the drugs, alcohol has shown the most recent growth in uses and causes the most problems among
young people today," it adds. "It is also the least regulated and the most heavily marketed.
The group calls for a progressive increase in the excise duty on alcohol to try to price it out of the range of
young people and a ban on television adverts for alcohol and restrictions on cinema advertising to the
under-18s. There would also be a reduction in the maximum legal drink-drive limit for drivers under 25
from 80 to 50 mgs of alcohol per 100mls of blood and a prohibition on the sponsorship by drinks
companies of sports and music events attended and watched by under-18s.
"Of all the psychoactive drug producers, the alcohol industry is at present uniquely able to market its
products with all the creativity and resources it can muster," says the report.
A Government spokesman said it was "determined" to reduce the harm caused to young people by
tobacco, alcohol and illegal drugs but there was no rush to endorse any of the recommendations.
United Kingdom: Police back call for alcohol tax
Source: BBC / Oct 27th
Police chiefs have backed calls by Health Secretary Patricia Hewitt to increase tax
on alcohol in an effort to address binge drinking by young people.
The Association of Chief Police Officers (ACPO) suggested the revenue raised
could tackle problems associated with excessive drinking.
Ms Hewitt had urged Chancellor Gordon Brown to "really increase" taxes on drinks
such as alcopops.
Ms Hewitt said: "We've got enormous numbers of young people, particularly on a
Friday and Saturday night, ending up in the casualty department of hospitals
because they're drunk."
Liberal Democrat health spokesman Steve Webb said Ms Hewitt's proposal was a
sign she had accepted defeat in tackling binge drinking.
"This is a veiled admission of failure from a minister who has failed miserably to
tackle the problem of alcohol abuse."
About 23% of men and 9% of women binge drink in the UK
UK death rates due to binge drinking have doubled in the last 20 years
United Kingdom: Grogan: let us fight supermarket booze prices
02/11/2006 08:11 / Written by: Tony Halstead
All-Party Parliamentary Beer Group chairman John Grogan has called on more brewers and
pub companies to join the fight against rock-bottom supermarket beer prices.
Grogan believes the big chains are finally on the defensive as criticism of their "loss-leader"
discount policies grows.
His comments follow Scottish & Newcastle's recent highlighting of store prices which sees a
unit-alcohol price of 30 pence in supermarkets compared to an average pub rate of £1.02.
Grogan believes the four big players Tesco, Asda, Sainsbury's and Morrisons are already
sweating it out in fear of the current Competition Commission inquiry.
For the first time, brewers and have joined pub companies, farmers, small shops and
environmentalists in making critical submissions to the Commission
"They are united in the complaint that supermarkets are abusing their power at some social
and economic cost."
He compared supermarket beer promotions to the notorious £10 nightclub entry "drink-forfree" deals.
"But while on-trade operators have signed up to a robust code outlawing irresponsible
promotion, the latter (supermarkets) refuse to confront the issue," he said.
"The big stores are effectively showing two fingers to the whole concept of responsible
retailing," he said.
Supermarket booze fight gathers pace
24/12/2006 10:32
Morning Advertiser
As supermarket tills ring to the tune of Christmas shopping more MPs are adding their support
to a call for an end to irresponsible drinks promotions in the off-trade.
John Grogan, MP for Selby and chairman of the All-Party Parliamentary Beer Group tabled an
early day motion last week which has now got the support of 41 members of Parliament.
Grogan’s submission reads: “That this House believes that the substantial price differential
between alcohol sold in pubs and that sold in the off-trade is exacerbating the problem of
binge drinking; continues to support the pub trade's efforts to curb irresponsible drinking and
promotions; and urges supermarkets and off-licences to follow the example of pubs and act to
end irresponsible drinks promotions and agree not to use alcohol as a loss leader on their
premises.”
Glass half full or half empty?
By Andrew Bounds
Published: October 27 2006 12:17 | Last updated: October 27 2006
12:17
This week's paper on how Europe can reduce the harm caused by binge drinking
was one of the most fiercely resisted of the year in Brussels.
Drinks companies lobbied furiously after research commissioned by the European
Commission proposed measures such as a ban on advertising and tobacco-style
warning labels.
There was a chorus of approval from the industry when the much watered-down
document was released. Health campaigners were not crying into their cups,
however.
"We are disappointed. It has the pawprints of industry all over it," said Andrew
McNeill of Eurocare, the alcohol health campaign group. "Having said that, at least
there is a strategy at European level. If it doesn't work then there will obviously be
a review and a need for further action. We know it won't work because we know
what does work."
Expect the clash of glasses to be heard again before too long.
Alcohol becomes leading killer of Finns
The Associated Press / Friday, December 8, 2006
Alcohol has become Finland's leading killer of adult men and women, as consumption
reached an all-time high last year, officials said Friday.
Last year, Finns drank the equivalent of 55.2 million liters (14.5 million gallons) of pure
alcohol - an increase of 2.5 percent on 2004, but 14 percent higher than in 2003 just before
alcohol taxes were slashed.
The government has traditionally kept a tight control on alcohol consumption with high prices
in its Alko monopoly retail outlets, and supermarkets do not sell beer with higher alcohol
content.
However, in March 2004, it slashed alcohol taxes by more than 40 percent to discourage
growing "booze cruises" to Russia and neighboring Estonia, where alcohol is much cheaper.
The move caused an outcry from health officials who warned of the negative health effects,
and police who reported a growth in public drunkenness and anti-social behavior.
Officials reported a 10-percent growth in binge drinking among 17-year-olds in the first six
months after the tax cut, and general consumption began to grow, reaching new records.
United Kingdom: 7 out of 10 would back new laws to tackle alcohol
abuse
ALISON HARDIE AND LYNDSAY MOSS
The Scotsman
Jan 2nd
Survey reveals 71% are for measures to restrict alcohol availability. Executive
admits alcohol is next public-health battleground Scotland's relationship with
alcohol is seen as 'out of balance'
Key quote:
The mood of the general population has changed and I think there is a general
realisation that our relationship with alcohol is out of balance. - TOM WOOD,
ACTION ON ALCOHOL AND DRUGS
Story in full:
NEARLY three-quarters of Scots would welcome the introduction of new laws to
tackle the nation's problematic relationship with alcohol, according to a poll.
An exclusive survey for The Scotsman has found that following the success of the
smoking ban, voters are now ready for politicians to take more radical measures to
tackle the alcohol abuse and binge drinking that costs the country more than £1
billion a year.
The Executive has already said that alcohol will be the new public-health
battleground, but MPs and MSPs have traditionally shied away from taking tough
action, fearing a backlash from voters and business.
A Little
Deregulation
Unintended
Consequences
Atmosphere of
Deregulation
Knee-jerk
Reaction
More
Deregulation
Re-Regulation
Higher Taxes
Complete
Deregulation
Worse Than
Present
Meanwhile Back At Home!
What Are We Debating?
(The Forest)
A complete change in the way
alcoholic beverages are regulated,
taxed, distributed and sold in the
United States
What Are We Debating?
(The Trees)
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The 3 tier system
Complete de-regulation
Complete re-regulation
Channels of distribution
Direct shipping
The internet
Taxation
Liability laws
Advertising
Sunday sales
Consolidation
Globalization
Shelf space
Product range
Credit card fees
Roving DUI patrols
•
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Legislative “initiatives”
Judicial disregard
Global warming
Energy crisis
Balance of power
Dram shop
Wal*Mart
Macro level social issues; i.e. health,
binge drinking
Underage drinking
Drinking age
DUI
Ignition Interlocks
Nutritional labeling
Smoking bans
Emerging issues
Who Thinks They Should Have The Power
“The Players”
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200 Sovereign Governments
Government agencies
World Health Organization
World Trade Organization
European Union
Judiciary
Enforcement agencies
Federal Trade Commission
Fed. Communication Comm.
Anti-Alcohol lobby
Religious groups
Special interest groups
Legislators
State agencies
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Taxing authorities
Legal profession
Educators
Health community
Trade associations
DISCUS
NABCA
Suppliers
Municipalities
Manufacturers
Brand Owners
Wholesalers
Retailers
Consumers
Who Is Friend? Who Is Foe?
DUI
DOT Releases 2005 State-by-State Data on Alcohol-Related Traffic Fatalities;
Statistics Underscore Drunk Driving is Deadliest of Crimes – 12,945
2006/12/22 16:50:00 / Source: Layover.com
U.S. Secretary of Transportation Mary E. Peters today released new state-by-state data for
2005 showing that alcohol-impaired driving remains one of the nation's deadliest crimes.
Last year, 23 states and Puerto Rico showed a decrease in the fatality rate for crashes
where the driver had an illegal alcohol level of at least .08, while the rate in 21 states and
the District of Columbia increased and in 6 other states it remained flat.
"As a wife, a mother, and a grandmother, I never want to receive a call saying that a loved
one will not be coming home because of a crash, especially one caused by alcohol,"
remarked Peters. "This coordinated air and ground campaign is helping prevent our
officers from having to make that dreaded phone call."
"Statistics are a vital tool in our battle against drunk driving," said Peters. "But, we must
remember that there is a human face behind every one of those numbers - a mother, an
uncle, a brother or best friend that lost their lives because someone made a lethal decision.
This holiday season, every one should picture their loved ones if they are planning to party.
It will help you make responsible decisions."
Product “Innovation”
New York: Liquor-ish 'Popsicles' Get Nixed in New York
A panel of New York State judges has turned a cold shoulder on "Freaky
Ice" - ice-pops spiked with malt liquor.
The booze-sicles are designed to be squeezed out of their plastic
packets just like the icy treats popular with children - and because of
that, they are far too likely to get into the hands of underage
slurpers, the judges ruled in barring their sale in New York state.
The judges said the "not for children" label was printed too small, and
also condemned "the decidedly juvenile-sounding brand name, 'Freaky
Ice.' "
"It is all too likely that 'Freaky Ice' will be confused with ice
treats, such as 'freeze pops' (of which 'Freaky Ice' appears to be an
alcoholic version) or popsicles," the judges wrote, in agreeing with
lawyers for the State Liquor Authority.
Advertising
Alcohol industry accused of marketing to
More colleges are minors
turning off tap for booze
advertising
A lawsuit claiming that alcoholic-beverage
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appears to model claims that were brought
against the tobacco industry -- think Joe
Camel -- for promoting smoking to children.
Advertising
• Cable companies are becoming increasingly lenient with spirits advertising…
Radio Stations Accepting Spirits Ads
3500
2000
200
2991
2860
2807
3000
2500
Cable Markets Accepting Spirits Ads
131
150
1531
1500
100
1000
500
50
0
0
Feb 2000
Nov 2001
Jan 2003
Feb 2000
Nov 2001
Local TV Accepting Spirits Ads
525
540
Jan 2003
Jan 2004
444
500
400
300
200
100
70
0
Feb 2000
Nov 2001
157
0
Jan 2004
600
143
Jan 2003
Jan 2004
Erosion Of State’s Rights!
Washington: Beer and wine prices may get more palatable
Illinois grapples with rules for shipping wine
By Monica Soto Ouchi
By Kevin McDermott
Washington state consumers may soon pay less for wine and
Let the wine flow
beer made in other states.
POST-DISPATCH SPRINGFIELD BUREAU
The state
Legislature on Friday moved one step closer to
Published January
14, 2006
allowing out-of-state wineries and brewers the right to sell its
01/18/2006
products
directly to Washington retailers — a privilege in-state
Tribune
Washington: Source:
The LawChicago
of Wine
already
enjoy.
The twoproducers
sides in Illinois'
battle
over direct-shipping of wine say they
willSupreme
continueCourt
negotiating
a way
let the
state's
small winery
The U.S.
ruled in
Maytothat
states
couldn't
By Roger Downey
industry
discriminate
when it comes to selling and shipping wine directly to
consumers.
Source: Seattle
Weekly If a state allows wineries within its borders to sell wine
to consumers over the phone or Internet, it must accord the same
privilege
to out-of-state
wineries.
do otherwise iswine
an law back
When Judge Janet
Pechman
offed a big
chunk To
of Washington's
unconstitutional infringement on interstate commerce.
" Right. And who manages this proven, cost-effective system? Why, the Washington State
Liquor Control Board, of course. If we started letting the marketplace
handle the wine and beer distribution system, somebody might start
wondering why the WSLCB should be involved at all. Hmmmm. . . .
A Sober Wal-Mart Launches Drive Into Tricky
Area: Liquor
Retailer Teams With Diageo, Adds Shelf Space
for Booze;
A Web of State Regulations Some Store
Managers Balk
By DEBORAH BALL and ANN
ZIMMERMAN
Staff Reporters of THE WALL STREET
JOURNAL
August 17, 2005; Page A1
Two years ago, Wal-Mart Stores Inc. held a
series of meetings with the world's top liquor
makers at its alcohol-free headquarters in the
middle of a dry county. The subject, say several
people who were there: What did Wal-Mart
need to do to sell more vodka, whiskey and
rum?
Good, Bad or …….
J. Alexander Tanford
A.B., 1972, Princeton University; J.D., LL.M., Duke University.
Professor Tanford's specialty is litigation, and he is a leading authority
on trial practice and procedure. He teaches trial practice, evidence, and
pretrial civil litigation, and coaches the trial competition team.
He is currently co-counsel in a series of constitutional cases
challenging state laws that prohibit ordering wine over the
Internet.
Professor Tanford is a frequent speaker on evidence, litigation, and civil
liberties, and a participant in interdisciplinary conferences in law and
psychology. He has received a number of awards and fellowships for
his teaching, research and service.
Pechman Piles On!
Costco Doesn’t Miss A Beat
• OPENING REMARKS: DAVE BURMAN of COSTCO. Dave
says they are “guardedly optimistic” that they will prevail, yet
feel certain no matter who wins this round, it will be appealed
to the 9th Circuit Court. He pointed out, correctly I think, that
the Commerce Clause piece of this case has already been
decided and Washington State will "level up", meaning they
will (and have) fix the out-of-state vs in-state exemption
problem, by extending the same rights to out-of-state
producers vs. restricting in-state. While this was a victory,
Dave says it was not as broad a ruling as they would've liked
and they feel like the next go around of litigation will address
non-U.S. wineries.
What’s Good For The Goose…….
Quantity
Quantity
Ship Direct To Retail
Ship Direct To
Consumers
250,000
300,000,000
Domestic Brewers
1,500
Some
Some
Domestic Wineries
5,645
More
More
Domestic Distillers
100
No
No
Overseas Brewers
10,000
No
No
Overseas Wineries
22,000
No
No
Overseas Distillers
6,000
No
No
The Question Is?
•
•
•
•
•
Who will collect the federal taxes?
Who will collect the state taxes?
Who will ensure product integrity?
Who will ensure package integrity?
Who will make sure our kids don’t get their
hands on the product?
• Who will ensure an orderly market?
A Little
Deregulation
Unintended
Consequences
Atmosphere of
Deregulation
Knee-jerk
Reaction
More
Deregulation
Re-Regulation
Higher Taxes
Complete
Deregulation
Worse Than
Present
Summary
• We know that prohibition and draconian
regulatory schemes don’t work
• We know that too much deregulation has bad
consequences for society
• Implies that a balance is needed
• SO, where is the balance?
• Who has the answers?
Panel Presentations
Moderator Questions
Moderator Questions
•
•
•
•
•
•
•
•
•
•
•
•
•
•
ALL
ALL
PA
ALL
PC
ALL
PA
PC
PC
PL
PL
PC
PA
ALL
What are the keys to an effective alcohol policy? What should we focus on?
What does not work?
What does good look like? What is the best we can hope for?
How concerned are you about some of the current trends?
Who knows best? Federal or Local? Why?
What role does structure (i.e. 3 tier) play in overall alcohol policy?
Should distribution / availability be controlled? If so, how best?
What role does DISCUS play in supporting the current structure of industry?
What future role does NABCA play in the grand scheme?
Should different forms of alcohol be taxed differently?
What role should enforcement play in overall policy? What % of the mix?
How much deregulation is enough? Where would you draw the line?
How should old mantras about allies and enemies change?
What would you ask people in this room to do?
Questions From The Floor
Outcome
When This Panel Discussion Is Over………
• Reviewed and discussed “alcohol, society &
regulation” - trends from around the world
• Focused particularly on the erosion of the state’s
rights to regulate alcohol
• Discussed what role “structure” (i.e. 3 tier) plays in
the regulatory scheme, if any
• Debated what should be done in reaction to the
trends? Anything? Nothing?
Summary
• It isn’t milk; it is serious
• We know that prohibition and draconian regulatory schemes
don’t work
• We know that too much deregulation has bad consequences for
society
• We have to find the balance
• We very possibly have the right balance now
• Let’s not throw the baby out with………
We Should Work Together…..
Thank You!