Alcohol Regulation: Alcohol Regulation: Let’s Get Off Tobacco RoadLet’s Get Off Tobacco Road

James F. Mosher, JDJames F. Mosher, JDThe CDM Group, Inc.The CDM Group, Inc.

Alcohol IS Different Panel, 16Alcohol IS Different Panel, 16thth Annual Symposium on Alcohol Beverage Law and Regulation, Annual Symposium on Alcohol Beverage Law and Regulation, National Alcohol Beverage Control Association, March 9, 2009National Alcohol Beverage Control Association, March 9, 2009

Alcohol, Tobacco, and Illicit Drugs:Alcohol, Tobacco, and Illicit Drugs:Global Public Health and Safety ImpactGlobal Public Health and Safety Impact

World Health Organization, 2002World Health Organization, 2002

* Disability Adjusted Life Years Lost* Disability Adjusted Life Years Lost

SubstanceSubstance MortalityMortality DALYs*DALYs*

TobaccoTobacco 4.9 million4.9 million 59.1 million59.1 million

AlcoholAlcohol 1.8 million1.8 million 58.3 million58.3 million

Illicit DrugsIllicit Drugs .2 million.2 million 11.2 million11.2 million

Every year Every year 2,1152,115 16-20 year olds die in 16-20 year olds die in drunk driving crashesdrunk driving crashes

Tobacco Industry’s Marketing and Tobacco Industry’s Marketing and Regulatory StrategiesRegulatory Strategies

Market aggressively to Market aggressively to young peopleyoung people

Manipulate product to Manipulate product to make it more addictive and make it more addictive and more attractive to youthmore attractive to youth

Deny the use of these Deny the use of these marketing strategiesmarketing strategies

Tobacco Industry’s Marketing and Tobacco Industry’s Marketing and Regulatory StrategiesRegulatory Strategies

Deny or minimize adverse health impactsDeny or minimize adverse health impactsOppose all forms of market regulationOppose all forms of market regulationUse Preemption to invalidate local and Use Preemption to invalidate local and State public health regulationsState public health regulationsFocus on individual and parental responsibilityFocus on individual and parental responsibility

Alcoholic Energy Drinks:Alcoholic Energy Drinks:A Case StudyA Case Study

The Energy Drink Market: The Energy Drink Market: Youth DrivenYouth Driven

One in three teens are likely to use energy drinks compared to one in ten adults.

Youth consumption is rapidly increasing.

The Sparks FormulaThe Sparks Formula

Build on the energy Build on the energy drink marketdrink market

Alcohol + caffeine = Alcohol + caffeine = enhanced partyingenhanced partying

“Miller goes under the radar;

Guerrilla marketing of malt beverage targets

Generation Y”Milwaukee Journal Sentinel,

December 2007

Generation Y: Those born between 1980 and 1995 (13-27 year olds)

Advertising Age

Alcoholic Energy DrinkAlcoholic Energy DrinkMarketing StrategiesMarketing Strategies

Viral MarketingViral Marketing

““The early adopters of Sparks The early adopters of Sparks were spending a significant were spending a significant amount of time on the Internet. amount of time on the Internet. We saw that and embraced it. We We saw that and embraced it. We invited consumers to comment on invited consumers to comment on the Website and post comments the Website and post comments without editing them, creating a without editing them, creating a community of Sparks users who community of Sparks users who shared ideas and experiences." shared ideas and experiences." Minott WessingerMinott Wessinger

Sample Web Postings by High Sample Web Postings by High School StudentsSchool Students

““im only 18 and i had a six pack of sparks in my im only 18 and i had a six pack of sparks in my room and my mom found it, but she had no idea room and my mom found it, but she had no idea and thought they were jus energy drinks.”and thought they were jus energy drinks.”

““Sparks plus any night.. or day.... classic is what i Sparks plus any night.. or day.... classic is what i first tried on like prom night or something like it first tried on like prom night or something like it and i was hooked then plus came around and it and i was hooked then plus came around and it was love at first sip”was love at first sip”

At One San Diego Middle School…At One San Diego Middle School…

Teachers checked the campus during lunch Teachers checked the campus during lunch to see how many young people were to see how many young people were drinking energy drinks. drinking energy drinks.

They found that 12 of the 43 students with They found that 12 of the 43 students with energy drinks were drinking alcohol. energy drinks were drinking alcohol.

(Oct 2007)(Oct 2007)

Sparks Energy Drinks Total SalesSparks Energy Drinks Total Sales(gallons)(gallons)

0

2000

4000

6000

8000

10000

12000

14000

2002 2003 2004 2005 2006

Sparks

The JackpotThe Jackpot

McKenzie River McKenzie River sold Sparks to SAB sold Sparks to SAB Miller in 2006 forMiller in 2006 for

$220 million$220 million four years after its four years after its introduction.introduction.

Alcohol + Energy Drinks = Alcohol + Energy Drinks = Increased Risk of InjuryIncreased Risk of Injury

Stimulants cause a reduced subjective feeling of intoxication

S. E. Ferreira, Marco T. de Mello, S. Pompe´ ia,& M. L. Oliveira de Souza-Formigoni 2006.

Alcohol effects on motor skills, judgment and mental acuity not affected by stimulants

The result: Increased risk taking and increased risk of injuryA “Wide Awake Drunk”

State Attorneys General InvestigationsState Attorneys General Investigations

Anheuser-Anheuser-Busch and Busch and MillerCoors MillerCoors agree to agree to remove remove stimulants stimulants from Tilt, from Tilt, Bud Extra, Bud Extra, and Sparksand Sparks

Tobacco and AlcoholTobacco and AlcoholARE DifferentARE Different

Public Health PerspectiveTobacco: Deter any consumptionTobacco: Deter any consumptionAlcohol: Accept moderate consumption in Alcohol: Accept moderate consumption in

low risk settingslow risk settings

Seeking Common GroundSeeking Common Ground

Regulators, public health, and industry should Regulators, public health, and industry should share a commitment to:share a commitment to:

An orderly and well-regulated alcohol market An orderly and well-regulated alcohol market that discourages youth consumption and deters that discourages youth consumption and deters youth access, binge drinking, and consumption in youth access, binge drinking, and consumption in high risks settings;high risks settings;

A healthy, profitable, and responsible A healthy, profitable, and responsible industry.industry.