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Lynn M. Walding, Administrator


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 e - NEWS

April 16, 2004


1. State Wants to Hire its Own Workers to Distribute Liquor (Iowa)

2. Chivas Bids to Make the Glenlivet Number One

3. Jim Beam Ends Yearlong Marketing Hiatus

4. Ex-officer Sentenced in Alcohol Case

5. Coralville Considers Limited Smoking Ban

6. 3 Council Bluffs Teens Face Murder Charges

7. Patch 'to Cut Booze Temptation'

8. Alcohol, Especially Beer, Linked to Gout

9. S Spirits LLC, Purveyors of S GUARO(TM) Launch.....


1. State Wants to Hire its Own Workers to Distribute Liquor (Iowa)

Associated Press

April 12, 2004


(Des Moines-AP) -- State regulators want to hire their own workers to haul liquor to retailers around Iowa.


The Iowa Alcoholic Beverages Division thinks it can save taxpayers money by doing that work itself instead of paying a private company to do so.


The state workers would take over work done by J-A Jones Global Services, which is in bankruptcy proceedings.


The agency says it can save taxpayers one-point-three-million-dollars in the next two years. The plan would require hiring about 30 new workers and leasing a fleet of trucks.


Business lobbyists say it's a bad idea because lawmakers are trying to reduce the size of government.


Jones officials have accepted the state's offer to buyout the remaining two-and-a-half years of their contract. A bankruptcy court must still sign off on the deal.






Whisky galore: Through increased marketing, Chivas Brothers is hoping The Glenlivet can close the gap on the top selling Glenfiddich. Picture: Colin Hattersley.







2. Chivas Bids to Make the Glenlivet Number One

By Guy Dixon  - Scotland on Sunday

April 11, 2004


CHIVAS Brothers, the Scotch whisky division of Pernod Ricard, is preparing a global marketing blitz in support of The Glenlivet later this year as it seeks to close the gap on the world’s top selling single malt, Glenfiddich.

IIt is expected that several million pounds will be spent improving The Glenlivet’s packaging, and on a global marketing and branding campaign for the whisky will begin iin the second half of the year.

Christian Porta, the new chairman and chief executive of Chivas Brothers, wants to turn his company into the world’s leading Scotch whisky business, and will spearhead  these efforts, in part, using The Glenlivet.


Porta said: "The Glenlivet is a brand in which we are going to invest more and we have ambitions in the US, in Europe and also in Asia."

Glenfiddich, which is owned by William Grant & Sons, is the world’s best-selling single malt whisky, selling around 775,000 cases each year.

Sales of The Glenlivet grew by 7% last year to just under 400,000, ranking the malt third in global sales behind Chivas Brothers’ other single malt whisky, Glen Grant. However, Glen Grant is not classed as a premium malt by Chivas Brothers because it iis sold at a lower age, typically five years.

Because Porta’s ambition is to turn Chivas Brothers into the world’s top premium whisky group, the company is promoting The Glenlivet over Glen Grant.

Porta, who took over the top job at Chivas Brothers in January, wants to increase sales iin Asia, where single malts are growing in popularity. He also wants to improve sales among younger drinkers.

Chivas Brothers spent £26m on marketing its premium blended whisky, Chivas Regal, last year which resulted in a 7% increase in sales. This year, that figure is expected to  rise to £29m.

A spokesman for Chivas Brothers said: "This is about challenging the top players. We think that there’s significant growth with brands that weren’t being invested in in the past."

A spokesperson for William Grant & Sons declined to comment on Chivas Brothers’ plans.





3. Jim Beam Ends Yearlong Marketing Hiatus

 By: Natives

The New York Times

April 15, 2004


After more than 200 years, Jim Beam Bourbon still has loyal customers around the globe and had about $400 million in reported worldwide sales last year. But in the 21st century, sales have been flat - and last year showed an actual decline - even as many other liquor brands grew.


So this week Jim Beam ends a yearlong hiatus from advertising and will have its first campaign by its new agency, the Chicago office of BBDO Worldwide. The new ads discard an earlier campaign's focus on socializing and the theme "Real friends. Real bourbon."


Instead the new campaign, with a budget estimated at $8 million to $12 million, features Jim Beam bottles stripped of their labels for an unobstructed view of their brown liquid contents. The new theme: "The stuff inside matters most."


"It's a way for us to highlight that it's not about the label," said Tom Flocco, chief executive at Jim Beam Brands Worldwide in Deerfield, Ill., part of Fortune Brands. "It's about the bourbon inside."


While Jim Beam remains one of the top-selling brands in the world, it faces several challenges as it seeks a return to growth, people involved with the industry said.


In the broader contest between brown spirits like whiskey and brandy and white spirits like vodka and gin, the "browns" have been declining for years, said Frank C. Walters, the senior vice president and research director of M. Shanken Communications in New York, who oversees the company's annual Impact report on distilled spirits.


"The tastes have changed and the marketing has changed," Mr. Walters said, citing the robust expansion of vodka over the last 30 years as well as the new flavored vodkas that are currently stoking sales in the category.


Jim Beam's share of the bourbon and whiskey market increased to 22.1 percent in 2002, from 21.4 percent in 1990, according to the 2004 Impact study. Its peak came in 1994 at 23.8 percent, Mr. Walters said.


By comparison, Jack Daniel's Tennessee Whiskey represented 29 percent of the market in 2002, up from 21 percent in 1990.


Even though Jim Beam advertising was dark last year, its marketers were busy reorganizing and expanding their research team. They concluded that the brand's most loyal customers believed in and identified with its "true character."


Marty Orzio, chief creative officer at BBDO Chicago, part of the Omnicom Group, said conveying a product's character to consumers was not the same as evoking the ideal emotional reaction from them. "I can say I believe in goodness," Mr. Orzio said, "and the consumer can say, 'Yeah, so what?' If you're going to talk about character, where you begin is by demonstrating it."


"The very simple demonstration that we are willing to take the label off the bottle and allow the bourbon to speak for itself takes it one step further," Mr. Orzio added.


To underscore the theme of authenticity, the agency photographed the ads in real bars on counters that in some cases bore the visible wear from years of bent elbows. One ad due later in the campaign points out that the United States Constitution, written in 1787, lists the 17 times it has been revised. "Jim Beam's recipe was written in 1795," the ad then says, without further comment. No amendments is the implication.


The outdoor component will include billboards tailored to their setting, as in the New York City poster that reads, "New Yorkers aren't about labels. Neither are we."


But it is the debut print ad of the campaign that will probably set the tone.


"The first ad is highly intrusive, where consumers can actually pull the label off the page," said Mr. Flocco, the Jim Beam chief executive, using "intrusive" as a compliment in the way that marketers do.


The ad, which will run in magazines like Rolling Stone and Details, asks readers to peel the label from the picture of a bottle on the page. "Go ahead," the ad copy reads, "peel that label off. What really matters is the stuff inside."


The removable label, prepared for Jim Beam by Multiple Images Printing in Elmhurst, Ill., provides extra impact by including more ad copy on its reverse side.


But the peel-off label speaks as well to the extra efforts that alcohol marketers must make in their magazine and newspaper ads, given the limits on where and how they can advertise. Most visibly, perhaps, the increasing criticism of alcohol ads has slowed the liquor marketers' recent moves toward television advertising, which was once considered off limits but has lately been regarded by the industry as a road to increased revenue.


Some companies have forged ahead, like Absolut Spirits, which began showing a commercial this month to introduce its premium Level vodka. But Jim Beam is still wrestling with whether to take its campaign to television, trying to weigh the benefits against potential criticism and, of course, greatly increased media costs. In the meantime, standing out in the venues that remain, like magazines, is paramount.


Michael T. Maguire, president at Structural Graphics in Essex, Conn., has created three-dimensional, interactive and even audio-enhanced print ads for clients like HBO as well as Smirnoff and Absolut vodkas.


The inability to be on television has clearly contributed to the desire of marketers to use eye-popping print ads, Mr. Maguire said.


"The budgets are there because they can't be spent on TV," he said. "They also need to make a splash."


Despite the spate of complaints over alcohol marketing, one frequent critic said the Jim Beam campaign might be better than more typical approaches.


"If they're focusing on quality, that's better than them focusing on wealth, success, attractiveness and other lifestyle themes intended to sell pleasure and life more than the product itself," said George A. Hacker, director of the Alcohol Policies Project at the Center for Science in the Public Interest in Washington.


"We would encourage Jim Beam to stay with print and not move onto the airwaves," Mr. Hacker added. For every spirits advertiser that joins beer marketers on television, he predicted, the more the spirits commercials will come to resemble beer spots.


"The whole premise of advertising liquor on television is that the industry has the right to do whatever beer has done," he said. "The end product is that you're going to have the Bacardi Twins and mud-wrestling women in whiskey ads. Those are the sort of themes that have clear appeal to younger people."



4. Ex-officer Sentenced in Alcohol Case

By Mike McWilliams – Iowa City Press-Citizen

April 14, 2004


Lenoch gets deferred judgment for providing to 18-year-old girl

IOWA CITY, IA -- A former Coralville police officer received a deferred judgment and one year of unsupervised probation Tuesday after admitting to providing alcohol for an underage girl.

Christopher Lee Lenoch, 30, told the court he takes full responsibility for providing alcohol for an 18-year-old girl multiple times between Jan. 6 and March 13, 2003. Lenoch joined the Coralville Police Department in March 1998 before resigning in May 2003.

At the time, the girl was a student at West High.

"As a result, I've since lost employment with the Coralville Police Department and have possibly put myself in a position not to be in law enforcement for the rest of my life," Lenoch said. "I understand I made a mistake, needless to say, and ... hopefully will return to law enforcement."

The Johnson County Attorney's Office charged Lenoch with the serious misdemeanor in January. He initially pleaded not guilty but entered a written guilty plea in February.

District Associate Judge Stephen C. Gerard III also ordered Lenoch to complete 50 hours of community service. If Lenoch completes the terms of his probation and stays out of trouble for one year, the charge will be cleared from his record.

Lenoch said he never let the girl drive drunk and would let her stay at his house when she had been drinking. Lenoch described his relationship with the girl as close.

"It was, upon meeting her, the best words I can use are head over heels at the time," he said.

Lenoch said he has been emotionally "up and down" since Jan-uary. He said it has been most embarrassing when people in the community who didn't know about the charge ask him why he's no longer a police officer.

County Attorney J. Patrick White sought the minimum penalty, a $500 fine, against Lenoch instead of a deferred judgment because of the nature of the offense, Lenoch's role as a police officer and because the incidents spanned more than two months.

However, White also said he sought the minimum fine because of Lenoch's clean criminal record and his promptness to accept responsibility for the charge.

Defense attorney Nick Russo urged Gerard to hear the case as an instance of "human frailty."

"He's human, and he got caught up in a serious mistake," Russo said.

Based on Lenoch's age and clean criminal record, Gerard agreed to the deferred judgment.

"One of the many troubling matters is that law enforcement officers are sworn to uphold the laws 24 hours a day," Gerard said.

Iowa Law Enforcement Academy legal instructor William Callaghan said since Lenoch received a deferred judgment, it likely would not affect his law enforcement certification. However, his certification could be brought up before the academy council at its request or upon request by the Coralville Police Department.

Coralville Police Chief Barry Bedford said that is not likely to happen.

"The academy council is overburdened as it is," Bedford said. "I haven't given a lot of consideration to going to the academy at this point in time. Especially if he gets it deferred and gets his life straightened out, I think that's the main thing. Certainly, I wish him the best."

5. Coralville Considers Limited Smoking Ban

By Jessica Seveska - The Daily Iowan

April 14, 2004

CORALVILLE, IA -- Coralville city councilors weighed in on a proposed smoking ban for city-owned property Tuesday night with cautious optimism and a lot of questions about how the town will enforce the sweeping measure.

How, councilors wondered, do you stop a golfer from lighting up on the Brown Deer Golf Club's green? Can you realistically snuff out a picnic-goer's Marlboro at S.T. Morrison Park? And what about weddings or parties in public places?

"It's logistics," said Councilor Jean Schnake, one of the proposal's critics. "What do you do if people don't follow the policy?"

Unlike Iowa City's now-defunct ban - which had prohibited smoking in establishments that make more than 50 percent of their revenuefrom food sales - the Coralville policy would halt smoking in such places as parks and recreation facilities. Restaurants and other private venues would remain unaffected.

One thing is certain, Councilor Tom Gill said about the bill he presented to the public at Tuesday's meeting: The policy, if passed, would make Coralville a state leader in the push to crack down on smoking.

"This is a health issue," Gill said, noting that cities such as Minneapolis have successfully enforced similar policies. Coralville, he said, is a "healthy" city whose facilities should reflect "healthy" attitudes.

Other councilors, such as Henry Herwig, suggested a more moderate approach, such as designating certain areas for smoking. The city will share the idea with its Parks and Recreation Department before moving ahead.

"You don't want to adopt a policy you can't enforce," warned city administrator Kelly Hayworth.

Iowa City's smoking ordinance, hailed as a victory for anti-smoking activists, crumbled in May 2003 when the Iowa Supreme Court overturned a similar ban in Ames. That ordinance might return, however, as state lawmakers continue efforts to remove the law on which the court based its ruling.


6. 3 Council Bluffs Teens Face Murder Charges


April 14, 2004


Teens Accused In Fall Down Stairs That Killed Man

COUNCIL BLUFFS, IA -- Three teenagers from Council Bluffs face first-degree murder charges in the death of a 23-year-old man last month. Hedges Harris died after he was beaten during a house party, according to police.

On March 27, police said, partygoers were drinking beer, vodka and whiskey, and smoking marijuana. Around 4:30 a.m., Harris was attacked.


Court documents show that Mike Anderson, 17, punched Harris in the back of the head, knocked him to the ground and continued striking Harris in the face and head no less than six times. Anderson is also accused of kneeing Harris in the mouth.



Jon Adams, 16, is accused of kicking Harris in the head. Devon McConnell, 18, is accused of ordering the attack, allegedly because Harris was talking badly about some friends.


Harris attempted to leave, according to investigators, but fell down the stairs and died.


"The cause of death, according to the autopsy, was blunt trauma to the head, and the fall down the stairs," said Pottawattamie County Attorney Matt Wilbur, who made the decision to charge the teens with first-degree murder. "If death occurs while people are participating in a forcible felony, it's murder in the first."


Wilber said it's a difficult case, especially with the young ages of the suspects.


"It bothers me a lot. I've struggled with this case a lot -- what to charge," Wilbur said.


The court documents show people at the party did not immediately call 911 after Harris fell down the stairs. It took between 10 and 20 minutes before someone finally called. Harris was declared dead at the scene.

Anderson was arrested Tuesday. Police are looking for Adams and McConnell.


7. Patch 'to Cut Booze Temptation'

BBC News

April 16, 2004


A patch is being developed which could cut drinkers' desire for a tipple.


The patches will contain both nicotine, to help smokers quit, and a compound called mecamylamine, which tackles the temptation to drink.


Alcohol consumption in drinkers was reduced by using the patch, researchers at Duke University, North Carolina, found.


However, alcohol campaigners said it was better for people to simply stick to recommended amounts of alcohol.


The patches would be worn at all times, which has the benefit of keeping medication levels in the blood constant.


A patch purely for drinkers who do not smoke could be developed at a later date.


The most common current treatment is antabuse which causes drinkers to have the symptoms of a bad hangover.


Mecamylamine will instead reduce people's desire to have a drink.


It works by affecting dopamine pathways in the brain, which are stimulated by alcohol and nicotine.




Jed Rose, director of the nicotine research programme at Duke University, said: "Basically, mecamylamine removes some of the positive enjoyment of these drugs."


He added: "We have observed that mecamylamine, administered in combination with a nicotine patch, reduces alcohol consumption in light drinkers.


"We hope that it can also help heavy drinkers cut down."


However, the Society of Chemical Industry said the patch's effectiveness on curbing drinkers' desires is yet to be proved.


Michelle Wilson, of the society's biotechnology group, said: "While a more user friendly approach to curbing excessive alcohol consumption is an attractive idea, it is still far from being established that this patch could have a real impact on this issue."


And Alcohol Concern said the patch was "unlikely to have a significant effect" on the UK's estimated 2.9m people addicted to alcohol.


It advised people to stick to the recommended limits for alcohol consumption which are two to three units a day for women and three to four units a day for men.





8. Alcohol, Especially Beer, Linked to Gout

April 16, 2004

BY Emma Ross– Associated Press

Study confirms what has long been believed

LONDON -- Researchers have found that drinking alcohol -- particularly beer -- can more than double a man's risk of developing gout.

One of humankind's most ancient diseases, the painful joint condition is the leading cause of arthritis in men. It is less common in women, occurring only after menopause.

The connection to drinking has been believed for centuries, but a study published this week in the Lancet medical journal verifies it for the first time. The study found that even light indulgence increases the risk.

It found that beer was the worst choice for gout, followed by spirits. It concluded that moderate wine drinking did not appear to pose a problem, but experts said there were too few men in the study who drank a lot of wine to be sure that wine is safer.

In the study, conducted by scientists at Massachusetts General Hospital, Brigham and Women's Hospital, and Harvard's medical and public health schools in Boston, researchers followed 47,150 men with no history of gout for 12 years.

When the study ended in 1998, 730 men, or nearly 2 percent, had developed gout.

The higher the man's daily alcohol consumption, the more likely he was to develop gout. The disease was more than twice as likely to occur in men who drank the most alcohol compared with those who drank none.

Gout is caused by too much uric acid in the blood. The acid forms crystal deposits in joints, particularly in the big toe, feet and ankles.

Uric acid levels are raised by foods and drinks containing a compound called purine. Digestion breaks purine down into uric acid. Beer is particularly high in purine.

Gout causes sometimes-excruciating episodes of pain in feet and joints. Severe cases can cause major disability or kidney failure. Curtailing alcohol consumption is already recommended for people who suffer from the disease.



9. S Spirits LLC, Purveyors of S GUARO(TM) Launch.....

Excerpted from a press release

April 14, 2004

The Distinctive New White Spirit Originating From Costa Rica

LOS ANGELES, April 14 /PRNewswire/ -- With an initial launch in Los Angeles and surrounding areas causing a stir of anticipation, S GUARO(TM), is poised to go from Hollywood A-List drink of choice, to national phenomenon, with a group of the Entertainment and Spirits industry's finest at the helm.

S GUARO is the first major white spirit to be introduced into the US market since Tequila. Through a series of key associations, in conjunction with high profile events during the 2004 Academy Awards®, Grammy Awards®, and Mercedes-Benz Fashion Week at Smashbox Studios, S GUARO has, in only three short months of limited US distribution in the Los Angeles market, become an instant hit with the Hollywood "A-List" set. With the first phase of product introduction in progress, S Spirits has secured an impressive Board of Directors to guide its continued rollout throughout Los Angeles and beyond to additional markets in the US during 2004.