SABMiller is doing more than combining with Molson Coors Brewing Co. In the U.S. to restore growth in the biggest beer market. It's also rubbing salt in its wounds.

Mary Jane Credeur and Amy Wilson
Bloomberg.com
October 16, 2007

Miller Chill, a new brew with a touch of salt and lime, grabbed 1 percent of the U.S. beer market after its June introduction, the fastest growth in a decade for a new Miller product. Sales of Chill may get an even bigger boost when SABMiller merges U.S. operations with Molson next year under an Oct. 9 accord.

The tie-up would give MillerCoors 30 percent of the nation's beer market, and access to hundreds of new distributors. Miller also needs Chill to revive U.S. profit, which fell 17 percent last year after it cut prices to match Anheuser-Busch Cos. and failed to win drinkers with new ads.

Chill's success will help lift SABMiller shares 22 percent to 1,730 pence in the next year, says Sanford C. Bernstein Ltd. analyst Trevor Stirling.

``They got it absolutely right with Miller Chill,'' Stirling said. Chill costs 25 percent more than Miller Lite and is more profitable, making it ``icing on the cake'' for the U.S. unit, Stirling said.

The MillerCoors venture will lift sales of Chill and other niche beers such as Leinenkugel's, and boost profit because the brewers aim to save $500 million a year on manufacturing and shipping costs by merging operations. The accord still needs regulatory approval.

Stock Upgrade

The MillerCoors tie-up prompted Citigroup analyst Bonnie Herzog to upgrade Molson Coors to ``hold'' from ``sell'' today, partly because Molson will gain ``access to Miller's strong portfolio.''

``It's good for both joint venture partners and the distributors because a much wider range of products will be going out,'' said Edward Collins, who helps manage $41 billion at New Star Asset Management Group Plc in London, including SABMiller shares. ``It's very clever.''

Miller Lite's volume and pricing are also holding steady against Bud Light and Coors Light, meaning Chill isn't cannibalizing core light beer drinkers. The fruity brew may add as much as 1 percent to the U.S. unit's profit this year if Miller Chill continues to do well in the cooler months, Stirling said.

Chill will get an additional boost from the venture, SAB executives said. ``The combined brands of the joint venture will be an enviable strength,'' said SABMiller Chief Executive Graham Mackay on a call with journalists Oct. 9.

Market Share

St. Louis-based Anheuser controls 48 percent of the U.S. beer market. SABMiller has about 18 percent, and Coors 11 percent.

To promote Chill, Miller spent an amount ``comparable'' to the $55 million that Amsterdam-based Heineken NV spent to launch Heineken Premium Light last year, said Tom Long, president of Miller's U.S. operations, in a Sept. 24 interview.

Miller Chill is a chelada-style beer, which loosely translates to ``cold one'' in Spanish. Chelada is typically made by mixing beer with lime and salt or spicy tomato juice.

Years in the Making

Miller considered a lime-flavored light beer for a couple of years, Long said. Brewmasters worked on the formula for several months to get the right balance of fruit without overwhelming the beer taste, he said.

Chill was introduced nationwide in June. More than 325,000 barrels were sold in its first three months, a pace that may exceed the company's goal of 400,000 barrels in the first year. The drink may surpass sales of Heineken Premium Light in the coming year, Long said.

Sam Tingle bought a case of Miller Chill to serve at his 40th birthday party in late August. It was the first beer to run out.

``It was the perfect thing to drink, real smooth and light with a good aftertaste,'' said Tingle, a music industry marketer in Atlanta. ``It was a huge hit. Everybody wanted to try it.''

Miller's U.S. volumes have been hurt by imported brews such as Corona, which have doubled in the past decade and now account for 14 percent of beer sold. Miller's profit also suffered from higher costs for aluminum, grain and fuel, and price competition with Anheuser-Busch.

Margins Improving

``Miller's margins show signs of improving,'' said Claude van Cuyck, head of equities at Cape Town-based Sanlam Investment Management, which manages the equivalent of $50 billion. ``It's still early days in terms of Miller's recovery and the sustainability of that recovery.''

The London-based brewer, formed in 2002 by the $5.6 billion merger between South African Breweries Plc and Miller Brewing Co., is the world's third-largest beer maker behind InBev NV and Anheuser.

SABMiller shares rose 16 pence, or 1.1 percent, to 1,429 pence in London for the biggest gain in a week. Molson Coors, based in Denver, fell 25 cents to $54.89 at 4 p.m. in New York Stock Exchange trading.

Gains from Chill and higher prices on Miller Lite helped the brewer narrow its price gap with Anheuser-Busch to about 2 percent from as much as 3.5 percent last year, Citigroup analysts led by Philip Morrisey wrote in an Aug. 27 note.

``Miller could become regarded, against all expectation, as a top-line revival story,'' Morrisey wrote.

Not everyone is a convert to Miller Chill. Jeff Rowe bought the drink after hearing about it from a friend. He dumped most of the bottle down the drain.

``It reminded me of a margarita that's all melted and watered down,'' said Rowe, 27, a dental hygienist. ``Plus it tasted fake.''

Seasonal Fad?

One concern among Miller executives and analysts is how Chill will fare during cooler months, when demand for beer typically slows, especially for those with a Latin connotation.

``Lime and salt is pretty seasonal,'' said Bernstein's Stirling. ``It may be somewhat more of a fad.''

The slowdown may have begun. Chill's share of the beer market was 0.5 percent as of Sept. 23, down from August's peak of 1 percent, according to supermarket scanner data cited by Morgan Stanley analyst Bill Pecoriello.

Miller's Long is unfazed.

He said he will be ``very pleased'' if Chill sales mirror other light beers: dipping in the cold months before spiking around Memorial Day. After all, Corona started as a seasonal beer and is now the top-selling import beer and the sixth- biggest beer in the nation.

Even Long only opts for Chill once in a while: ``I like it as a change of pace. It's not going to dominate my drinking portfolio,'' he said.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a8N8TbC4Cb5I&refer=home

2. Johnnie Walker's Goal: Quadruple Sales
Ambitious Plan Comes as Brand Continuous to in Spite of Struggling Brown-spirits Market

Jeremy Mullman

Ad Age

October 15, 2007

Johnnie Walker is breaking into a sprint.

Diageo is likely to continue to ramp up media spending on Johnnie Walker, which rose about 20% to $12.6 million during 2006, including the brand's first TV push, a $2 million outlay on cable, according to TNS Media Intelligence. Spirits giant Diageo told wholesalers at a recent meeting it plans to quadruple sales of its signature Scotch whisky within the next three years. Should Diageo pull that off, Johnnie Walker -- already the world's largest Scotch brand -- would become one of the largest premium-spirits offerings in the world. It would beat Absolut vodka by about 1 million cases annually and trounce rumrunner Captain Morgan by about 400,000 cases.

That blueprint is ambitious to say the least (one beverage-marketing consultant questioned whether Diageo could make enough whiskey to hit that goal even if it managed to sufficiently raise customer demand). And it would be reliant on a marketing surge in markets outside the U.S. But not everyone is counting out Johnnie Walker, which has thrived in spite of a tough market for brown spirits in general and for whiskey in particular in recent years.

Outsize growth

Sales of Johnnie Walker, including its flagship Red Label and Black Label, as well as pricier versions such as the hyperpremium Blue Label blend, rose 9.5% last year compared with 2% growth for the category, according to spirits trade magazine Impact. That's an acceleration from the 5% annual clip at which it's grown since 2000, compared with 1.4% growth for all Scotch in that period.

Of course, a quadrupling of sales in three years would require much larger annual increases, and, through a spokeswoman, Diageo said it wasn't prepared to offer any insight into how it intends to manage that.

Veteran spirits-marketing consultants, however, said such growth would be possible only with a huge marketing surge in relatively untapped, huge-upside markets such as China, India and Russia.

"They're going to have to flood the Chinese market and flood the Indian market if they want to get anywhere close to that," said veteran beverage marketing consultant Brian Sudano. He said he's curious about the supply. "There's not exactly a river of Scotch out there."

Absolute success

Arthur Shapiro, a former Seagram executive who has consulted on a number of major spirits brands, was a little more optimistic. "Years ago I consulted with Absolut in Russia, and it was very popular there because of its Western credentials," he said. "Just as the U.S. market has shifted from being a traditionally brown-spirits market to vodka, as it is now, you could see the opposite trend in Russia."

Diageo executives have said in recent interviews on other topics that they do see signs of a Scotch resurgence in the U.S., where explosions in vodka and tequila sales have generally come at the expense of whiskey and beer.

They're likely to continue to ramp up media spending, which rose about 20% to $12.6 million during 2006, including the brand's first TV push, a $2 million outlay on cable, according to TNS Media Intelligence. The brand has been riding the same multimedia "Keep Walking" campaign since 1999. Its agencies are Bartle Bogle Hegarty and AQKA.

Experts, however, attribute much of Johnnie Walker's success to clever tactics that aren't measured, such as a new engraved-bottle program designed to encourage gifting; the luxurious silk-lined boxes that hold rarified, serial-numbered bottles of Blue Label; and one of the more innovative online loyalty programs in the category.

"They've cracked the code on franchise identity," said Mr. Shapiro. "That [quadrupling] goal is a bit audacious, but they are very well-positioned right now."

http://adage.com/article?article_id=121126

3. Why Consolidation Storm Is Brewing in Beer Industry

The world's beer giants are showing a growing thirst for consolidation as they try to gain leverage with suppliers, distributors and retailers amid slowing sales in the U.S. and Western Europe.

Wall Street Journal

October 18, 2007

A week after two of America's iconic brewers said they will combine forces, two European titans, Heineken NV and Carlsberg AS, said yesterday that they have formed a consortium to bid for the United Kingdom's best-selling brewer, Scottish & Newcastle PLC.

The companies said they plan to divide up the assets of S&N, which has a market value of $14.5 billion. The Edinburgh, Scotland, brewer, however, reacted coolly, calling the proposition "unsolicited and unwelcome."

The announcement followed news that London's SABMiller PLC planned to combine its U.S. unit, Miller Brewing Co., with the U.S. division of Molson Coors Brewing Co., creating a joint venture called MillerCoors.

The maneuvers, coming about 2½ years after the most recent wave of beer-industry consolidation, are a reaction to shifts in beer-drinking habits across the globe. In Western Europe and the U.S., beer sales growth is sluggish amid increasing competition from wine and spirits.

In many emerging economies, however, including Eastern Europe and China, sales are booming. Another factor prompting consolidation is the rising cost of key commodities like grain, glass and aluminum, which is squeezing profit margins.

In the world's mature beer markets, brewers seeking to consolidate hope to use their increased market share to negotiate better deals for everything from commodities to advertising that could bolster profits. That's part of what Miller and Coors plan to do in the U.S., as they seek to forge a stronger competitor to long-dominant Anheuser-Busch Cos.

It's also a key objective of Netherlands-based Heineken in the United Kingdom. Jean-Francois van Boxmeer, the company's chief executive, said in an interview last month that the beer industry today takes so much capital that it isn't worth the expense being in many of the world's markets unless your company is either the No. 1 or No. 2 player. And, he said, the best deals are ones that beef up a brewer's share of an existing market, not ones where it expands into a virgin one.

"Consolidation in terms of operational benefits, synergies, is essentially a local thing," Mr. van Boxmeer said. S&N's marketing and distribution clout in the U.K. could help boost the paltry 3% market share of Heineken's namesake brew, which as a premium brand sells for higher margins.

Carlsberg, of Denmark, and Heineken said they may make an offer, likely in cash, for Scottish & Newcastle, which makes Newcastle Brown Ale, its best-known brand in the U.S, as well as John Smith's and Kronenbourg 1664.

Under the planned deal, Carlsberg, the world's fifth-largest beer maker by volume, or quantity of beer sold, would acquire full control of a joint venture it owns equally with S&N in Russia, where beer drinking is growing as the populace turns away from hard liquor. The venture, Baltic Beverages Holding AB, has the leading market share there, led by Baltika, Russia's best-selling beer. Carlsberg also would acquire S&N's operations in France and Greece.

Heineken, the world's fourth-largest brewer by volume, would take over S&N's U.K. brands and other European markets. Combined, Heineken would be nearly twice as big in Europe by market share, in terms of volume, as the next-biggest player, Carlsberg.

Heineken also would increase its share of the U.S. market through the deal. It would import Newcastle Brown Ale, which had 1.7% of the highly fragmented market for imported beers in the U.S. last year, according to Beer Marketer's Insights, an industry publication.

The Heineken brand is the second-largest imported beer in the U.S. after Grupo Modelo SA's Corona. Heineken could use that size to help raise Newcastle Brown Ale's U.S. profile. Imports account for about 14% of the U.S. beer market.

Heineken and Carlsberg left in question how other joint ventures would be carved up, including businesses in fast-growing regions such as India and China.

The brewers haven't approached Scottish & Newcastle. A person close to the matter said the consortium aims to negotiate a friendly deal. But Scottish & Newcastle said it "is confident in its future as an independent group" and "strongly urges shareholders to take no action," a sign that it fears the consortium may try to buy shares in the market.

The move marks the latest example of a breakup proposal from corporate buyers who group together to acquire businesses that, for a variety of reasons, couldn't be snapped up by just one bidder.

A group of three European banks this month clinched a record $101 billion takeover of Dutch lender ABN Amro Holding NV; the sprawling operations will be sliced apart and divided among the buyers. Consortium bids have been increasing in recent years because despite the difficulty of assembling groups of competitors and getting them to agree on value and strategy, together they can pay a higher price and often overcome obstacles such as antitrust concerns that no single buyer could surmount.

Shares of S&N surged 19% to £7.56, or $15.36. Because rumors of a bid for the company have been around so long, the consortium considers the price on March 19 of £5.31 to be the best reflection of where the shares traded before the rumors began, according to a person familiar with the matter.

Because Carlsberg is already a joint-venture partner with S&N, it could be difficult to assemble a rival group to make a counterbid. The venture has a clause that allows one side to buy back the other's stake.

One potential buyer is SABMiller, but the company earlier indicated it wouldn't be interested in S&N, at least not as a solo bidder. SABMiller Chief Financial Officer Malcolm Wyman said in April the Western European beer market is "singularly unattractive." SABMiller is the world's second-largest beer maker by volume after Belgium's InBev SA.

Another possible suitor for S&N is Anheuser-Busch, the world's third-largest brewer by volume. The St. Louis-based beer maker is heavily dependent on the U.S. market and may be attracted to the opportunity to gain a big stake in Russia or the U.K. W. Randolph Baker, Anheuser's chief financial officer, declined to comment.

http://online.wsj.com/public/article/SB119262856498561983-gRNPV2tKCLBN6OK63xsRGT40uq4_20071117.html?mod=tff_main_tff_top

4. Liquor Industry Cries Foul

Mike Gallagher
Albuquerque Journal
October 14, 2007

A noted liquor lobbyist once made an ill-advised comment that has become part of New Mexico political folklore.
"I own this Legislature," Frank "Pancho" Padilla yelled at then-State Sen. Fabian Chavez in 1963 during an argument over liquor law reform, according to news accounts at the time.
Many dismiss the outburst as groundless political grandstanding and Padilla was banned from the Legislature— although he denied saying it.
But the industry has turned to the Legislature for help in the past and is once again asking lawmakers to step in as it chafes under what it says is an unfair, get-tough approach by state regulators.

Superintendent Edward Lopez, whose Regulation and Licensing Department oversees the Alcohol and Gaming Division, has undeniably raised some hackles.
The man charged with implementing Gov. Bill Richardson's orders to toughen enforcement of rules against serving underage and intoxicated patrons, Lopez has flagged several liquor-related issues of concern.

Topping his list:

Continuing migration of liquor licenses from rural areas to urban and resort destinations without considering impact on neighborhoods and whether they add to DWI problems.

Liquor license prices that have climbed to more than $300,000— which Lopez says is tough on small business people and could open the door to organized crime interests.
The industry says it has legitimate concerns of its own.
It is critical of new state enforcement rules. It also accuses the state of dragging its feet in approving license transfers and says the state is taking way too long to issue new beer and wine licenses to restaurants.
"It has been taking nine months, and we've had restaurants open and close in that time while waiting for their license," said Carol Wight, head of the New Mexico Restaurant Association.
The industry has also complained that the state's new "three strikes" rule allowing revocation of a very valuable liquor license after three citations is unfair and that enforcement is uneven and arbitrary.
They have heartburn with the rules themselves, arguing the penalties are too severe in cases when it is almost impossible to tell if a patron who walks in the door and orders a drink is intoxicated.
In some cases, agents have followed a patron from another establishment or bullied people leaving bars into taking a breath alcohol test.
"We're working our butts off to abide by the regulations, but one or two slip-ups and I can lose a liquor license," said Connie Nellos, a restaurant and bar operator in Albuquerque.
They're arresting 22-year-old kids (employees) who make a mistake when they check an ID. They get taken to jail in handcuffs."

'Right now, it's a maze'

Lopez, a former General Services secretary who moved to his new post in 2005, said he wanted the public and legislators to focus on problems in the liquor industry.
"If you wanted to design a more dysfunctional set of laws that we have governing the liquor industry, I don't think you could if you tried," Lopez said in an interview. "We really need to look at the laws. Right now, it's a maze."
He's got the Legislature's attention. And so does the industry.
The Legislative Revenue Stabilization and Tax Policy Committee plans a daylong hearing on liquor regulation this week. The session follows one in Las Cruces, where Lopez was roasted by some legislators over enforcement.
Legislators have been receiving complaints from around the state.
Sen. John Arthur Smith, D-Deming, said legislators want to make sure enforcement isn't just targeting small neighborhood bars and package stores but also includes chain restaurants and convenience stores.
"We want to make sure they aren't profiling in their enforcement efforts," he said.
Last month, multiple workers in bars, package stores and restaurants were arrested and the owners cited in one undercover operation.
Regulations approved last October allow for revocation of a liquor license that has convictions on three liquor violations in a 12-month period. Rules used to allow five violations.
Smith said complaints increased after the change.
Both Smith and Lopez also want to examine the roles of unlicensed and unregulated brokers in the sale and transfer of liquor licenses.
"The entire liquor issue has been flying under the radar for too many years. I just think there are enough concerns that we need to get on the radar," Smith said.
Lopez said the industry is applying pressure.
There's a lot of political heat, complaints to the Legislature and the Fourth Floor (a reference to Richardson) about what we're doing."
"I know from my own family how integrated the liquor industry is in politics at the local level. They are part of local campaigns and elections. I saw it growing up in my father's campaigns," said Lopez, whose father was a powerful state senator from Santa Fe.
Smith acknowledged that liquor legislation is difficult.
Trying to do anything about liquor in the Legislature is tough," he said. "It is a tough industry to work through."

Quota problems

As head of Regulation and Licensing, Lopez is in charge of a mixture of regulatory agencies and commissions. None has a higher profile than Alcohol and Gaming.
What he found surprised him.
For starters, he learned the state's quota system, which attempted to limit the number of licenses in cities based on population, had been gutted in 1997.
The population-based quota system allocated one full service license— meaning liquor by the drink or package— for every 2,000 people. Restaurant beer and wine licenses aren't counted against the quota.
But places like Albuquerque had more than 350 by the drink or package liquor licenses when it should have had between 200 and 220. Cities like Carlsbad, Las Cruces, Española, Farmington and Santa Fe have almost twice the number of licenses called for in the quota system.
In large part that's because in 1997 the Legislature allowed up to 10 licenses a year to be move into each municipality from other parts of the state without regard to the quota.
As part of compromise to close drive-up package liquor sales in 1998, the Legislature allowed almost 300 licenses to move anywhere. Many moved to urban areas where chain restaurants, convenience stores and mega-marts were paying top dollar.
Lopez said he was hoping to use the quota system to slow the migration of liquor licenses from rural to urban and resort areas while he assessed the impact of liquor license density on drunken driving accidents and fatalities.
"My charge when I was appointed by the governor was to do something about the DWI problem from the supply side," Lopez said. "I want to make health and safety concerns, for instance the impact on DWI accidents in an area, one of the main considerations for deciding whether a license should be able to move to a location."
He said those decisions would be based on the best scientific data and expert testimony he can get, and he wants lawmakers to give him more authority to do it.
Recent court rulings have limited the state's say in approving the location of transfers, something Lopez wants the Legislature to look at.
Nellos said tough laws and regulations haven't solved the problem of drunken driving.
"The general public is being held hostage by this," he said. "Customers are afraid to have a single beer with dinner and drive."

Price of licenses

The cost of some liquor licenses has raised eyebrows in Santa Fe.
According to department records, two licenses in Las Cruces sold for $600,000 each. Elsewhere, at least one has sold for $400,000, and others sell in the $350,000 price range.
"The price of liquor licenses was growing steadily," Lopez said. "When we see a license sale for $600,000, I believe the day of a $1 million liquor license can't be far off."
Lopez's concern is twofold: concentration of licenses in the hands of national companies, driving out local small businesses, and potential involvement of organized crime.
The organized crime issue is dismissed by many, but federal prosecutors have found that organizations smuggling narcotics and marijuana have bought liquor licenses to help launder cash.
One Albuquerque nightclub and its liquor licenses were recently forfeited in a drug case and sold for $900,000.
"Who can afford a license is becoming an issue," Lopez said.
Ray Shollenbarger has been involved in liquor license sales since he headed the state liquor division in the 1980s.
He says price is driven by demand, availability of certain types of licenses and whether the license can move from one town to another.
Whether an operating business is being sold with a license or a building can also impact the price.
"National chain restaurants don't want a package license. They want to sell by the drink," he said. "The big grocery chains and convenience stores sell package, so they want licenses that allow them to sell package."
Shollenbarger said the national chains pay cash. They aren't interested in the owner's business or other property in most cases.
If a license that allows the sale of package liquor isn't on the market, liquor license brokers will try to find one.
To get the right license to the right buyer sometimes involves two or more licenses changing hands because of the intricacies of state statutes, which can involve a license moving from one town to another.
As the result of one earlier liquor law reform, a group of about 80 retail package liquor licenses can be transferred anywhere in the state. Shollenbarger said these licenses seldom come on the market and when they do they command a premium.
"Right now, you can't touch a license, any license, for under $250,000," Shollenbarger said.

Defense of efforts

Lopez said he believes his willingness to listen to neighborhoods and groups concerned with the drunken driving problem has caused him trouble with the liquor industry.
"I'm not a neo-prohibitionist," Lopez said. "But I'm not going to close my eyes to the problems the state has with alcohol consumption."
Industry criticisms of Lopez's administration cover a wide range of issues from increasing the bureaucracy in license approvals, and drawing a hard line on enforcement.
The Restaurant Association's Wight said she has been working with Lopez to clear a backlog of 108 beer and wine applications.
"We've been working with the superintendent, but we're getting ready to explode."
"These businesses are important for economic development," she said. "The restaurant industry pays more than $200 million a year in gross receipts taxes."
Shollenbarger said approvals for sales of by-the-drink and package licenses can take as long. "I tell people it will take a minimum of six months and as long as nine months," he said.
Lopez said the number of beer and wine applications doubled this year, but the number of hearing officers remained the same at three.
"I've put all three hearing officers on clearing the restaurant license backlog," Lopez said. "We're working with the restaurants to streamline the process, but we didn't have the people to meet the increase in demand."

License to serve

These are cities with the
highest number of licenses over their quotas and some
unincorporated areas of counties that have fewer licenses than their quotas would allow.
Top Cities,
Licenses Over Quota
Albuquerque 156
Santa Fe 80
Las Cruces 27
Gallup 25
Farmington 24
Española 19
Unincorporated Areas, Licences Under Quota
Doña Ana 18
McKinley 12
Bernalillo 7

Quota numbers

It's an illustration of the oft-quoted observation of territorial Gov. Lew Wallace that "every calculation based on experience elsewhere fails in New Mexico."
New Mexico has quotas for liquor licenses, but they are based on 1996 population figures. That's because state law requires the Alcohol and Gaming Division to base the quotas on population figures from the Economic Development Department.
But Alcohol and Gaming chief Edward Lopez says the Economic Development Department doesn't compile those numbers and hasn't since 1996. Hence, those are the numbers used.
The quotas basically don't apply anyway in most cases. The only time the department considers quotas is when an area goes below the quota.

http://www.abqjournal.com/news/state/602320nm10-14-07.htm

5. WSWA Applauds Federal Appeals Court Decision Upholding Maine's Right to Require Face-to-Face Transactions for Alcohol Sales

Washington, D.C. (October 12, 2007)-The Wine & Spirits Wholesalers of America (WSWA) today applauded the decision by the U.S. Court of Appeals for the 1st Circuit to uphold Maine's right to require face-to-face transactions for alcohol sales.

WSWA

October 12, 2007

"Yesterday's decision affirmed an earlier ruling by the federal district court that upheld the state's right to regulate alcohol and rejected a challenge from wineries to allow sales of wine outside the state's current regulatory system," WSWA President and CEO Craig Wolf said. "Maine requires alcohol to be sold from producer to distributor to retailer, and then to consumers in a face-to-face transaction. This is essential to ensuring only legal adults are purchasing alcohol with a valid ID."

The decision upholds Maine's farm winery laws, which grant licenses to wineries that produce no more than 50,000 gallons of wine per year. This license is available to in-state and out-of-state wineries, and allows the wineries to sell wine directly to consumers in a face-to-face transaction either at the winery or at two designated off-site locations. Under no circumstances can any licensee ship wine directly to consumers.

Plaintiffs, represented by Professor Alex Tanford, argued that the face-to-face requirement had a discriminatory effect that gave in-state wineries preferential access to consumers, while causing out-of-state wineries to incur additional cost for the same consumer access.

The 1st Circuit, however, ruled that Maine's farm winery statutes did not discriminate against interstate commerce, and confirmed that the state legislature "has 'virtually complete control' over the importation and sale of liquor and the structure of the liquor distribution system."

WSWA, joined by the National Beer Wholesalers Association, the American Beverage Licensees and the Presidents' Forum of the Beverage Alcohol Industry, filed an amicus brief with the 1st Circuit supporting Maine's battle to prevent efforts by the plaintiffs in the case to deregulate the distribution of alcohol in Maine.

"Maine recognizes that the state has a responsibility to ensure that alcohol does not end up in the hands of minors-something that cannot be prevented when sales occur without a face-to-face transaction between the licensee and the consumer," Wolf said. "WSWA is pleased with the outcome in Maine, and proud to support states that recognize their responsibility under the 21st Amendment to ensure accountable and responsible distribution practices."

http://www.wswa.org/public/media/news.html

6. A Notorious Spirit Finds Its Way Back to Bars

Washington Post
October 16, 2007

Absinthe, an intense alcoholic spirit favored by such artists as Degas, Van Gogh and Hemingway, is making a comeback in the United States after being banned by the government for almost 100 years.

Its rebirth in trendy restaurants and bars is a triumph of marketing -- and of maneuvering through a maze of federal rules on formulas and labels. It took a Swiss distiller, an importer and a Washington lawyer four years to navigate the bureaucracy, even after the drink was legalized again in much of Europe.

"This is a complex issue, and we are addressing it as best we can," said Art Resnick, a spokesman for the Treasury Department's Alcohol and Tobacco Tax and Trade Bureau, referring to the process that led this year to the agency approving four absinthe brands for sale in the United States.

For much of the 19th and early 20th centuries, the liquor, also known as the "green fairy," was wildly popular among artists in Europe. It was featured in the Edgar Degas painting "L'Absinthe." Emile Zola mentioned it in a novel, and Ernest Hemingway wrote: "Got tight last night on absinthe and did knife tricks."

Absinthe was believed to contain large concentrations of wormwood, a plant containing the chemical thujone, which could induce hallucinations and a druglike state. It was thought by many to be the source of Vincent Van Gogh's impulse to cut off his ear.

Imports of absinthe were banned by the Department of Agriculture in 1912 because other countries had outlawed it. Later, a Food and Drug Administration rule demanding "thujone-free" products kept it off the market.

The whiff of illegality made absinthe all the more desirable. Groups like the Wormwood Society kept the mystique alive. It was bootlegged, sold widely over the Internet and smuggled into the country by travelers.

Once bans on the liquor were lifted in Europe in the 1990s, the campaign began in the United States to restore absinthe to the cocktail menu. To do so, however, the liquor would have to remain thujone-free -- meaning it could not contain more than 10 parts per million.

The stakes were high for brand owners and importers. The winner would have a head start on marketing the drink, which costs $50 to $60 a bottle and is often imbibed after a ritualistic ceremony.

In one method, the liquid is poured into a special glass, over which is placed an ornate slotted spoon holding a sugar cube. Cold water is then dripped over the sugar to dilute the drink, which is high in alcohol. This transforms the color to milky white. In another, sugar on the spoon is set aflame and dripped into the absinthe.

Robert Lehrman, a Washington lawyer who specializes in seeking formula and label approvals at the Tax and Trade Bureau, said the government "worked hard to keep the genie in the bottle."

Lehrman, representing an importer and Distillerie Kubler & Wyss of Motiers, Switzerland, cited endless quibbles by regulators. The biggest blow, he said, was last year, when the bureau flatly rejected the label on the grounds that absinthe was still illegal.

It took a meeting in February between regulators and the trade counselor from the Swiss Embassy-- to explain that his country had dropped objections to absinthe in 2004 -- to restart the process.

Hurdles remained. When Kubler proposed listing 33.8 fluid ounces on its proposed bottle label, regulators rejected it, saying the proper designation was 33.82 ounces. In May, Kubler was told to "remove the 'boldness' of the text on back label puffery and use the same size print for all text shown," according to one directive.

Approval for Swiss Absinthe Superieure Kubler, 106 proof, was granted on May 17. Kubler's success was diluted when a competitor, Lucid Absinthe Superieure, 124 proof, was in the stores the same month, after being approved in March.

Jared Gurfein attracted publicity for his Lucid brand when he abandoned a law career to start Viridian Spirits in Manhasset, N.Y., to make and distill absinthe. Gurfein also knew that "Kubler had hit a brick wall" with regulators, he said.

"We pushed the door down, and they walked through it," Lehrman said, expressing frustration with the red tape he faced.

"In this instance, there was more than one reason to take a look at these labels," said Resnick of the Tax and Trade Bureau. The office approved 125,000 labels for beer, wine and spirits last year. He wouldn't elaborate on what those reasons were.

A Web site for the Drug Enforcement Administration 's Office of Diversion Control still lists absinthe under "drugs and chemicals of concern." And the U.S. Customs Web site continues to list it as banned. A Customs spokeswoman said that while individual shipments are being approved for import, the agency is waiting for direction from the Tax and Trade Bureau.

In the meantime, the marketers have taken over.

"This is so easy," said Lyons Brown, chief executive of Altamar Brands in Corona del Mar, Calif., distributor for Kubler, as the product was unveiled last week at Corio, a club in New York. "The key is to just get it into the market with all the theatrics that go with it."

http://www.washingtonpost.com/wp-dyn/content/article/2007/10/15/AR2007101501470_pf.html

7. Schools Using Breathalyzers to Fight Teen Drinking

High schools are rushing to test students for alcohol at extracurricular events like dances and football games.

USA Today
October 16, 2007

"It's increased dramatically," says Bill Judge, an Illinois attorney who advises high schools on testing. He says thousands are doing it.

High school orders for breathalyzers have risen 120% in each of the past four years, says Keith Nothacker, president of KHN Solutions, which sells the machines.

"We get a lot of orders from principals before proms," says Charles Lee of AK Solutions USA, a New Jersey importer of the devices. He says sales to schools have doubled in each of the past three years. Both men decline to reveal sales numbers.

Increased sales come as lawmakers and educators are cracking down on youth drinking with hotlines, awareness classes, tougher penalties for adults who give teens alcohol and more college classes on Fridays to reduce "Thirsty Thursday" partying.

The office of the U.S. surgeon general issued its first "call to action" on underage drinking in March. With 11 million underage drinkers, it says, alcohol is "the most heavily abused substance by America's youth."

Last month, the University of Wisconsin-Madison began a "show and blow" policy at football games. Any student ejected from a previous game for drinking must take a test to attend. "We're trying to change the culture," says Ervin Cox, assistant dean of students.

Some high schools test every student at extracurricular events, but others test randomly or only if they suspect drinking. If a student fails, some call parents or police, and some suspend the student.

High schools use breathalyzers because the technology has improved, says Larrie Reynolds, superintendent of Pequannock Township schools in New Jersey. He plans to begin using them at dances and on senior trips.

Many school machines are the size of cellphones and cost $80 to $200. Tests take seconds.

Schools might violate rights if they test without "reasonable suspicion," says Ben Stone of the American Civil Liberties Union of Iowa. He says schools "increasingly dismiss"those rights.

Students at Carmel High School in Carmel, Ind., are told they will be tested and so far none has failed, says its principal, John Williams. Carmel expanded its testing from dances to football games last month.

Some students say testing violates their rights and means the school doesn't trust them, says Dan Frascella, 17, Carmel's student body president. "I'm OK with it," he says. "It makes for a safer environment."

http://www.usatoday.com/news/nation/2007-10-15-Breathalyzer_N.htm

8. Diageo Profit Meets Forecast on Scotch, Vodka Demand

Diageo Plc, the world's biggest liquor maker, said profit is meeting its forecast this fiscal year on higher sales of Johnnie Walker whiskey and Smirnoff vodka in the U.S. and Latin America.

Amy Wilson
Bloomberg.com
October 16, 2007

Sales gained 5 percent excluding currency movements and acquisitions in the three months through September, the London- based company said today in a statement. Revenue growth on that basis was cut by 1 percentage point by a new distribution system in Korea and because price increases in Venezuela linked to currency shifts are not recognized.

Diageo kept its forecast for annual operating profit to climb 9 percent, beating the prior year's 8.7 percent increase. Stronger sales of higher-priced spirits in the U.S., Brazil and Asia offset weaker European demand for Guinness stout and premixed vodka beverages last year. The shares fell after the company did not indicate it was likely to raise its guidance.

``People may have been expecting something a bit more optimistic,'' said Ben Maitland, an analyst at WestLB in London with a ``hold'' recommendation on the shares. ``They've said everything is in line without even a hint of an upgrade.''

In the prior fiscal year, Diageo raised its profit forecast and then beat the target. The current projection includes the effect of lower sales growth in Venezuela and Korea, the distiller said.

Bailey's Liqueur

Diageo shares fell 16 pence, or 1.5 percent, to 1,083 pence at 12:52 p.m. in London, rebounding from a slide of as much as 1.9 percent. The stock has added 14 percent in the past year, beating the 11 percent advance by Paris-based rival Pernod Ricard SA, the maker of Jameson whiskey.

Net sales in the U.S. rose 7 percent last year, led by Smirnoff and Bailey's liqueur, and Diageo boosted its share of the spirits market by 0.6 percentage point. The international unit, which includes Africa and Latin America, increased sales 18 percent on growth in Johnnie Walker and Buchanan's scotch. In the Asia-Pacific region, revenue gained 13 percent.

Nigerian sales of Guinness overtook revenue in the stout's native Ireland last year, making the African nation the second- biggest market for the beer after the U.K.

Guinness sales in Ireland fell 7 percent, compared with a 14 percent increase in Nigeria that returned the brand to worldwide growth after a decline the previous year. Markets outside the British Isles are ``the future of the brand,'' Walsh said in August.

Exchange-rate movements will trim earnings by 75 million pounds this fiscal year, the company said in August, more than the 40 million pounds it had previously forecast. Interest costs will be reduced by less than 5 million pounds, Diageo said. Currency shifts reduced operating profit by 90 million pounds and cut interest charges by 10 million pounds last year.

Diageo faces higher costs this year for barley, malt, glass and the aluminum used in cans, Chief Financial Officer Nick Rose has said, adding that the price increases were included in the company's profit forecast.

http://www.bloomberg.com/apps/news?pid=20601102&sid=aJQW2rTscBQY

9. Wine Industry in Midst of new Wave of Buyouts

The wine business is experiencing a new wave of acquisition activity that some argue could be the largest in two decades.

Jeff Quackenbush

North Bay Journal

October 15, 2007

In recent months more than a half-billion dollars worth of acquisitions of North Coast stalwarts Duckhorn Wine Co. and Stag's Leap Wine Cellars, plus William Hill Estate and Canyon Road, have brought out other sellers to test the market and highlighted new kinds of buyers, according to industry investment consultants and financiers.

"The level of activity in the M&A market for wineries is more than I've ever seen before," said George Coope, a principal with Demeter Group, a San Francisco-based investment bank focused on boutique food-and-beverage companies.

His 4-year-old firm currently is representing three small and large wine businesses for sale, two on the North Coast and one on the Central Coast.

The swelling number of wine brands or assets for sale could simply be the result of thousands of new labels reaching the market in the past 10 years and new winemaking operations opening, suggested Sean Maher of St. Helena-based Maher Advisors.

More than 7,000 wine brands are sold in the U.S., according to a new Impact Databank report.

Still, the Duckhorn deal, announced at the end of July, could be at the leading edge of increased investment in the wine industry by private-equity firms and other forms of alternative funding, Mr. Coope said.

In a deal estimated to be worth $250 million, GI Partners, which has offices in Menlo Park, took a controlling stake in Duckhorn, which produces the Duckhorn Vineyards and Paraduxx brands in Napa Valley and the Goldeneye pinot noir label in Mendocino County's Anderson Valley.

Until the Duckhorn deal, financing by major private equity players was rare.

"One of the classic problems of the wine industry is that it is a small industry when you compare it to the S&P 500," Mr. Coope said. "Few companies are big enough to be public, and those that are are diversified wine and spirits companies."

So the industry has not had as much access to equity capital or diverse funding sources, especially when the agricultural base of the business and limited options for public-market exit are considered, he added.

Other options for financing

That is changing with sources such as Calpers-backed Premier Pacific Vineyards in Napa, Silverado Premium Properties also in Napa, startup San Rafael-based REIT Vintage Wine Trust and St. Helena-based Global Wine Partners.

Troubles in the subprime and private-equity markets haven't significantly impacted capital available to good-credit wineries and growers. But greater trepidation in the capital markets plus two highly publicized wine company bankruptcies have led to greater scrutiny of acquisition financing, according to Mr. Coope.

One of those bankruptcies was Legacy Estates, whose key assets were the Freemark Abbey and Arrowood wineries on the North Coast and Byron on the Central Coast. Vintner Jess Jackson bought the wineries in bankruptcy court for nearly $100 million early this year.

The other is 360 Global Wine Co., which filed for Chapter 11 reorganization early this year with nearly $60 million in creditor claims, mostly from three hedge funds tapped to acquire the Viansa winery and tasting room in Sonoma and guarantee half of $20 million to establish Kirkland Ranch Winery near Napa.

360 Global filed its reorganization plan on Oct. 3 in the U.S. Bankruptcy Court in Nevada. The plan calls for a court auction of the total equity interest in Viansa's business and assets, which the company suggests are worth $45 million to $70 million, according to court documents. A court hearing is set for Oct. 22.

Despite recent sales to private-equity firms and transitions from family ownership, families continue to dominate the list of top U.S. wine companies, according to David Freed, chairman of Napa-based wine industry financer The UCC Group.

He noted that about 70 percent of the 250 million cases of wine sold by the top 30 wine companies are controlled by families, including the family-run yet publicly traded global wine and spirits giant Constellation Brands.

"The point is that family names add an authenticity factor, whether it is real or not," Mr. Freed said.

http://www.busjrnl.com/article/20071015/BUSINESSJOURNAL/71014032/1207/BUSINESSJOURNAL02

10. US House Failure to Override Veto Good News For Tobacco Cost
The U.S. House's failure Thursday to override President George W. Bush's veto of tobacco tax legislation is another break for the industry.

Cnn.com

October 18, 2007

The bill would have increased federal tobacco excise taxes the equivalent of 61 cents per pack of cigarettes.

Companies that would have been affected include R.J. Reynolds Tobacco Co., a wholly owned operating subsidiary of Reynolds American Inc. (RAI); Philip Morris USA, a subsidiary of Altria Group (MO); and Carolina Group (CG), which is a unit of Loews Corp. (LTR).

The $35 billion raised by the tobacco tax increase over five years would have offset the cost of expanding the State Children's Health Insurance Program. The bill's supporters said that by 2012, the expansion would have allowed the program to cover nearly 10 million children.

Bush vetoed the bill on Oct. 3, arguing that it would encourage families to drop private insurance. He has offered $5 billion that would temporarily increase the number of children enrolled in the program, but would reduce enrollment over the next five years.

The House's 273-to-156 vote Thursday fell 13 votes short of the two-thirds majority needed to override a presidential veto.

J.P. Morgan's Erik Bloomquist had anticipated a 5% to 6% decline in the volume of tobacco product salesfrom passage of the tax, which would have increased retail product prices approximately 15% on average, according to analysis released Oct. 3.

In that analysis, Bloomquist said J.P. Morgan now believes the risk of passage has shifted into 2008, with implementation in 2009 possible, but likely at a lower rate.

The analysis was based in part on House Republican Whip Roy Blunt's correct assessment that House wouldn't override Bush's veto.

Democratic leaders have promised to continue pressing for the bill and Senate Majority Leader Harry Reid, D-Nev., has said there will be no further compromise of the bill's contents.

Congressional Republicans, however, are trying to use political pressure to force Democrats to negotiate. A leading GOP proposal would increase spending on the Schip program by $15 billion, but included no tobacco tax hike.

Bonnie Herzog, analyst at Citigroup Global Markets, had predicted that an override would be difficult, but not impossible.

Still, Herzog wrote in an Oct. 3 analysis, "the President's veto...could force Congress to draft another bill, which calls for less funding for children, and therefore could call for a less stringent (tobacco tax) increase on cigarettes."

Congressional Republicans have insisted that the bill be changed to focus benefits on lower-income children and to exclude coverage for adults.

Given that the bill already takes steps to encourage states to move adults off Schip rolls and provides about 90% of its benefits to families earning under 250% of poverty levels, such changes might not lower the bill's costs substantially.

For example, House Minority Whip Roy Blunt, R-Mo., asked Thursday after the vote whether Democrats would consider prohibiting families earning more than $ 83,000 from enrolling in the program.

Democrast say the bill as currently written doesn't benefit such families, but some say they would be willing to revise the bill to address the concern.

"That is one of the things we would be looking at to find resolution," said House Democratic Whip James Clyburne, D-S.C.

"So long as we can maintain the intentions to cover 10 million children, everything is under discussion," Clyburn said.

"That would be a significant step," Blunt responded.

http://money.cnn.com/news/newsfeeds/articles/djf500/200710181442DOWJONESDJONLINE000993_FORTUNE5.htm

11. National Beer Wholesalers Association Named "Great Place to Work"
Association Recognized for Great Work Environment and Benefits

NBWA
October 18, 2007

The National Beer Wholesalers Association (NBWA), which represents the interests of more than 2,750 beer distributors across the country, is proud to be selected a "Great Place to Work" by The Washingtonian magazine. The publication narrowed down a competitive field of 225 candidates to select the finalists and the winners. NBWA was named as one of the best places to work in the Washington region because of its "interesting work, good pay and benefits, collegial staff, employee development, and flexibility," according to The Washingtonian staff members.

"We are honored to be named by The Washingtonian as one of the great places to work in the Washington region," said NBWA President Craig Purser. "It is fitting that NBWA has been recognized for its great work culture, family-friendly work environment, great jobs, solid wages, company-provided benefits and contributions to the local community. That's because those are priorities familiar to America's beer distributors that NBWA represents."

NBWA employees have worked at the Association for as long as 17 years or as short as a few months. Women make up a majority of employees and more than half of the senior staff.

"We work hard, but we also play hard. We also truly believe in the great work our distributor members do across the country every day," Purser said.

America's beer distributors provide jobs to more than 91,000 hard-working men and women, and they service every congressional district in the country. Those workers receive solid wages and company-provided benefits including healthcare for all employees. Distributors also offer specialized training for everyone from beer truck drivers to sales team members. Distributors also contribute economically to every community; every dollar spent on beer distribution adds $1.50 in economic activity, generating 30 cents in federal tax revenue and 18 cents in state and local tax revenue.

II. INTERNATIONAL NEWS

12. Codorniu Group of Spain, Owners of Artesa Winery Acquires A.V. Imports and Appoints New Management

Business Wire

October 15, 2007

The Codorníu Group, one of the world's leading sparkling and still wine producers, and owners of Napa Valley's Artesa Winery, announced its recent acquisition of A.V. Imports, Inc., a 20 year-old Washington, DC/Baltimore-based importer of fine wine and spirits, as part of an aggressive plan to solidify Codorníu's commitment to the US market and reinforce its position as a major wine and spirits industry player both here and abroad.

The purchase price of A.V. Imports, Inc. is for an undisclosed amount, but estimated to be a multi-million dollar deal. With its acquisition by Codorn?u, effective October 11, 2007, the company will be renamed A.V. Brands; 32-year industry veteran Mike Kenton will be appointed CEO of Codorniu's US Operations (based in Napa). For the past 11 years Kenton has been President of Artesa Winery. In February 2006, he was promoted to the position of Chief Commercial Director in charge of global sales and marketing operations for the parent company in Barcelona reporting to Codorniu CEO, Xavier Pages. Kenton is also a team member of the Codorn?u Group's Executive Committee in Spain. He will continue special assignments for the Group from his home base. Kenton held senior sales and marketing management positions with Gallo, Chateau St. Jean Winery, and Seagram's before joining Codorn?u.

Assuming the role of President of AV Brands is Roy Danis. Danis will be responsible for day to day operations, reporting to Kenton. Danis has 29 years of sales and marketing experience in the beverage industry. During his tenure as Executive Vice President of Sales and Marketing for W.J. Deutsch & Sons, Ltd. (family wine importer based in New York), company sales increased from one million cases to over 10 million cases today. At the same time, the sales group grew from 12 people to the current team of over 100 and its marketing staff increased as well. While at Deutsch, Danis was intimately involved with the Yellow Tail brand, one of the most successful wine brands to appear on the US market. Danis began his career with The Seagram Company, advancing through various sales and marketing positions, including time at their Tropicana Division. He later went on to hold Regional Vice President of Sales positions at the Paddington and IDV Corporations. He also held the position of Vice President Sales and Marketing at Pernod Ricard. Together, Kenton and Danis bring to A.V. Brands 60 years of management experience in the beverage industry.

Explaining Codorn?u's strategy, Kenton stated, "Importing and marketing the great producers in the AV Brands' portfolio allows us to provide added value and profit for our current distribution network partners. The acquisition of A.V. Imports gives Codorn?u a major strategic platform in the US." He continued, "A.V. Brands does not strive to be the biggest marketing company, but it does intend to be among the best. We will focus primarily on organic growth of current partners along a path that guarantees our ability to maintain the highest level of performance. Strategic acquisitions of additional prestigious brands will also be a part of our growth plans."

A milestone for the Codorn?u Group in the U.S. occurred in 1991 with the opening of what was then called Codorníu Napa, producing sparkling wines. Codorn?u invested $30 million dollars and spent two years constructing the ground-breaking structure that is today one of Napa's most stunning wineries. In 1997, after a complete retooling and reconfiguration of its sparkling production equipment into still wine producing facilities, as well as vineyard acquisitions in the finest growing areas of Napa (investments totaling $20 million), the Artesa Winery was launched. Artesa is currently an award-winning 100,000-case still winery with 400 acres of planted vineyards on both sides of the Mayacamas Mountains: in Napa's Carneros and Atlas Peak appellations, and in Sonoma's Alexander Valley.

A.V. Imports, formerly owned by founding partners Ron Wollman and Albert Pecora, ranks among the top 20 importers in the U.S. by dollar volume. Their portfolio of fine wines and spirits includes top Italian Pinot Grigios Ca' Montini, Luna di Luna, and Voga; Piccini Tuscan wines; Terras Gauda Albariño from R?as Baixas, Spain; Caliterra from Chile; Tio Pepe Sherry from Spain; and Camus Cognac from France. Current sales are approximately 1,000,000 cases annually.

In addition to A.V. Brands, the Codorníu Group owns eleven still and sparkling wineries in some of the world's most prestigious regions such as Rioja and Priorat (Spain), Napa Valley (California), and Mendoza (Argentina). Owned entirely by the Raventós family since the 16th century, the Codorníu Group produces quality cavas and fine still wines as follows: Codorníu (D.O. Cava), Abadía de Poblet (D.O. Conca de Barberà), Bach (D.O. Penedés), Bodegas Bilbaínas (D.O.Ca. Rioja), Cellers Scala Dei (D.O.C. Priorat) and Legaris (D.O. Ribera del Duero), Raimat (D.O. Costers del Segre), Nuviana (Valle del Cinca), Rondel (D.O. Cava), Artesa (Napa Valley, California), and Septima (Mendoza, Argentina). Codorníu is also the leader in both value and volume in the Spanish cava market. The Group's current turnover is approximately $350 million US with six million combined case sales.

http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20071015005182&newsLang=en

13. France: Vodka Makes Inroads in World's Biggest Scotch Market

The music is pumping and the lights are low, but something strange is happening in the bar of R, a trendy rooftop club in Paris: in the world's biggest Scotch whisky market the young drinkers are turning to vodka.

Nick Antonovics

Today Reuters
October 16, 2007

While national statistics show Scotch is still France's favourite tipple after wine and beer, vodka consumption is booming, and the industry's giants are muscling in.

"Overall it's 50/50 (whisky/vodka) but with young people it's much more vodka," said Guillaume, 23, the barman at R. Female drinkers, especially, prefer white spirits, he said.

Whisky sales still dwarf those of vodka by 10 to 1 in France. Nearly 140 million litres of Scotch was sold in 2006, according to France's drinks industry federation. But in terms of value, vodka sales grew 16 percent, three times faster than Scotch and the fastest rate of growth of any spirits category.

According to market research group ACNielsen, the French vodka market is now worth more than 121 million euros.

"It's certain that we sell more vodka than whisky," said Guillaume Le Blan, a barman at Alcazar, a restaurant and bar in the heart of Paris's bustling St Germain district. "I would say its 30/70 (whisky/vodka)."

WHISKY MAKERS NOT WORRIED

The Scotch Whisky Association is not worried, yet. Spokesman David Williamson said the French market continued to be strong, growing nearly 10 percent in 2006 to 170 million bottles, meaning it remained the biggest market by volume in the world.

"Scotch sells more in one month (in France) than cognac does in a year," he noted.

Big Scotch producers -- like France's Pernod Ricard (PERP.PA: Quote, Profile, Research), which makes Chivas Regal and Ballantines, and LVMH Moet Hennessy Louis Vuitton (LVMH.PA: Quote, Profile, Research), which makes Glenmorangie, -- are continuing to invest in their Scottish highland distilleries. But at the same time they are expanding in vodka.

LVMH -- through its Moet Hennessy joint venture with Britain's Diageo (DGE.L: Quote, Profile, Research) -- this year took full control of the Belvedere vodka brand, acquiring full rights in the United States.

Pernod Ricard has made no secret of its desire to buy Absolut vodka, a top-5 brand in France and the jewel in the crown of Swedish state-owned drinks company, Vin & Sprit.

The French group is also in talks with Russia's government to acquire full rights to Stolichnaya vodka, which it currently sells outside Russia under a deal due to expire in 2010.

Stolichnaya sales in France grew sixfold in the year to June, Ricard said in a statement. "This spectacular growth is due mainly to sales generated outside the home (92 percent of volume, of which 75 percent in bars and night clubs)," it said.

NEW ENTRANTS

While the French market is currently dominated by western groups -- the leading brand is "Eristoff," a vodka made in France by Bacardi -- it is beginning to attract Russian interest.

Russian Standard, a leading Russian brand, launched this month in a blaze of publicity with the aim of becoming number one "as quickly as possible," said founder Roustam Tariko.

"Vodka is the hottest brand worldwide now," he said. "So it's very easy to outsell Scotch. In some markets (Scotch) is a declining category, in some markets it's just not growing."

A recently created professional organisation, "Le Monde des Vodkas Russe," backed by Russian manufacturer Kin, has just opened an office in Paris with the aim of encouraging demand for "Authentic Russian Vodka," a quality label it is promoting.

Olivier Balva, a director with French wines and spirits group Belvedere (BEVD.PA: Quote, Profile, Research), which said its Polish-made vodka Sobieski has captured more than 5 percent of the French market in less than a year, agreed the trend was clear.

"Vodka in France, like everywhere else in the world, is the most dynamic part of the market ... The trend is towards white spirits and away from brown ones," Balva said.

But Pernod Ricard Chairman Patrick Ricard predicted Scotch would remain king for a long time.

"Certainly vodka's growth is remarkable, but from a low base. If it happens, it won't be tomorrow," he said. "In France, a lot of the vodka sold is also not of premium quality, so in terms of value it's not tomorrow that Scotch will be dethroned."

http://today.reuters.com/news/articlenews.aspx?type=inDepthNews&storyid=2007-10-17T003025Z_01_L20797239_RTRUKOC_0_US-VODKA-FRANCE.xml

14. Alaska: Fairbanks Wants to Double Alcohol Tax

Fairbanks wants to double its alcohol tax to help combat a $2 million shortfall in next year's city budget.

The Associated Press
October 18, 2007

City officials say they'd rather raise the alcohol tax than make cuts in the budget.

If approved, the tax hike proposed by Mayor Steve Thompson would cancel out at least one third of the shortfall.

The plan would increase the tax on alcoholic drinks, beer, wine and liquor from 5 percent to 10 percent in the city.

It would apply to restaurants, general stores, bars and liquor stores that sell alcohol inside the city limits.

The tax exempts wholesale sales.

Representatives from the hospitality industry object to the plan, saying it will cut into their bottom lines.

Thompson argues that the Fairbanks Police Department's workload revolves largely around alcohol-related problems.

The proposal comes two weeks after voters permanently capped property tax rates inside the city, lowering city revenues.

http://www.ktva.com/alaska/ci_7215468

III. IOWA NEWS

15. Group Targets 21-Only

Abby Harvey

The Daily Iowan

October 12, 2007

An impassioned seven students from the UI Student Health Initiative Task Force presented different strategies designed to increase student voter registration for the 21-ordinance vote on Nov. 6 at the UI Main Library Thursday night.

If passed, the citywide 21-ordinance would make it illegal for anyone under the age of 21 to be in a bar after 10 p.m.

"Early voting is huge," said Atul Nakhasi, a co-founder of the task force and the UI Democrats' president.

"It takes away the confusion of the event," said task force director Matt Pfaltzgraf, noting that it allows students to register and to cast a vote simultaneously.

Satellite-voting locations have been set up in Hillcrest, Burge, Mayflower, the IMU, and the Main Library.

In the last city election, only 700 of 30,000 students placed votes - compared with 14,000 nonstudents, according to the task force. The panel hopes to change this.

UI senior Melissa Harmeyer, who has lived in the Iowa City/Cedar Rapids area all her life, was one of 40 representatives to attend the anti-21-ordinance meeting.

"I don't want to see the downtown ruined, and house parties are unsafe," she said.

UI sophomore Ryan Venem, who went to the meeting to learn more about the issue, has the same reservations about the 21-ordinance.

"I have a bunch of friends who go to the bars, and I go hang out with them," said Venem. "[The ordinance] will scatter 20,000 kids into that community who can't be policed."

The 21-ordinance meeting also contended that throwing 19- and 20-year-olds out of the downtown scene will not make for a safer city.

If the ordinance passed, they argued, the effect would result in an increased number of house parties - which have no bouncers or staff members to regulate disorderly behavior, no instant gratification cab or "Night Ride" service. There would also be delayed response from police officers in case of inebriated altercations, task-force members said.

Many voiced concern over the economic effect the 21-ordinance will have on Iowa City, as well.

"The bars are kind of a vital part of the city," said Sophie Switzer, a UI freshman originally from Massachusetts interested in registering to vote.

Besides an increase in property taxes and monthly rents, students and citizens would feel the backlash of the 21-ordinance in other ways. Around 1,500 students are employed downtown, and at least half would become unemployed because of the ordinance, according to the presentation.

The task force encourages all students to register to vote so everyone can speak on the issue, especially because the 21-ordinance has never been voted on by the public before.

"We want students to choose to walk out [of downtown], rather than be forced out," Pfaltzgraf said. "If they're forced out, they'll go find another place to drink."

http://media.www.dailyiowan.com/media/storage/paper599/news/2007/10/12/Metro/Group.Targets.21Only-3029770.shtml

16. Many Factors Figure into 21-and-Older Ordinance Battle
IOWA CITY - A proposed ordinance that would kick underage patrons out of Iowa City bars at 10 p.m. has mobilized some Iowa City residents to form political action committees in hopes of influencing the Nov. 6 vote.

Jennifer Hemmingsen
The Gazette
October 15, 2007

Here's a look at the groups' leaders and what they have at stake:

The Committee for Healthy Choices

Co-chairs the Rev. Mark Martin and Dr. Rick Dobyns organized last spring's petition drive that spearheaded the ballot initiative.

Dobyns, 51, a family practice doctor and University of Iowa medical professor, made a 21-and-older ordinance a platform issue in his unsuccessful 2005 bid for an Iowa City Council seat. He said his job as a doctor is to educate patients so they can make their own decisions.

If the ordinance fails on Nov. 6, he said, he'll still feel like he did his job.

In April, Dobyns helped form a panel of community members to study drinking problems in Iowa City. The panel recommended enacting a 21-and-older ordinance last fall.

Martin, a minister at St. Andrew Presbyterian Church, 1300 Melrose Ave., represented the faith community on that panel. After talking with community members and reviewing sometimes conflicting research, the panel concluded that limiting bar entry would help curb underage and excessive drinking, he said.

Martin, 62, of Iowa City, said if the ordinance passes he and his wife might go downtown for dinner more often, but that he's advocating the change because he feels a responsibility to the young adults in his church and in the community.

``I don't think we're being helpful to them by being permissive on this issue,'' he said.

As of Friday, the Committee for Healthy Choices had collected $5,260 in cash, including a $1,000 donation from the Johnson County Medical Society, treasurer Michael Cabbage said. He declined to be interviewed about his involvement for this article.

The group collected contributions of more than $25 from 83 people -- including former Iowa City mayors Ernie Lehman and Naomi Novick, UI Student Health Director David Braun and City Councilwoman Dee Vanderhoef. It collected another $440 in contributions of less than $25 that haven't been itemized and $482.82 in in-kind contributions.

Bloc21 committee Chairwoman Leah Cohen doesn't allow underage people in her bar, but she said Bo-James, 118 E. Washington St., will have to compete with bars that now allow underage patrons if the ordinance passes. She called the proposed ordinance an ``economic experiment'' that would mess with a healthy downtown economy.

``This is not any magical answer,'' said Cohen, 55, who ran for City Council in 2001. ``Does it reduce binge drinking? Does it reduce underage drinking? Possibly. I don't know that anyone can say that factually. But at what price does that happen? I feel it's at too high of a price.''

Cohen said her primary concern is safety, and she's worried underage drinkers will be assaulted and dangerously intoxicated at house parties if the ordinance passes.

Bloc21 treasurer Mike Porter declined to share information about the group's funding with The Gazette last week. Porter, 39, of Iowa City, owns two downtown Iowa City bars that allow 19- and 20-year-olds -- The Summit and One-Eyed Jake's --- but declined to comment on how the ordinance might affect his businesses. He said it would have far-reaching economic effects.

Student Health Initiative Task Force

If the 21-and-older ordinance passes, Atul Nakhasi won't be able to go to bars after 10 p.m. Nakhasi, 19, a University of Iowa junior pre-med student from Waterloo, is co-chair of the Student Health Initiative Task Force, which is lobbying against the ordinance. He declined to say whether he drinks or goes to bars, or talk about other ways he might personally be affected by the ordinance.

He said the group wants to address students' demand for alcohol by providing alternative entertainment instead of trying to cut off the supply. It has launched a Web site devoted to defeating the ordinance and a Facebook group that boasted more than 3,200 members last week.

``We want students to walk out of the bar,'' said the group's co-chair, Matt Pfaltzgraf, 22, of Ankeny. ``We don't want them pushed out.''

Pfaltzgraf, a senior finance and political science major, said he thinks banning underage people from bars will force parties into apartments and landlords will increase rents to cover additional damages. He said he has underage friends who work in bars, and they'll have to find new jobs.

``I don't want to leave school worse than when I came,'' he said.

http://www.gazetteonline.com/apps/pbcs.dll/article?AID=/20071015/NEWS/71014025/1001/NEWS

17. Sides Clash on 21-Only Proposal
Few Students Attend Forum

Rob Daniel
Iowa City Press-Citizen
October 19, 2007

One side promised that underage binge drinking and disorderly conduct would continue in downtown Iowa City bars without a 21-only ordinance, while the other side said that binge drinking would spread to the surrounding neighborhoods.

The predictions came at a forum Thursday at the Iowa City Public Library about whether the city should bar anyone younger than 21 from bars after 10 p.m. Sponsored by the League of Women Voters of Johnson County, the event presented arguments from both sides of the issue that will go before voters in Iowa City on Nov. 6.

Leah Cohen, owner of Bo-James, 118 E. Washington St., and co-chairwoman of the Iowa City Alcohol Advisory Board, said Iowa college towns such as Cedar Falls and Ames have had 21-only ordinances, only to see students who were excessively drinking spread out to neighborhoods surrounding campus. She said the University of Northern Iowa experienced riots around Halloween and homecoming before the Cedar Falls City Council repealed its ordinance. Ames, meanwhile, has dealt with house parties at fraternities and off-campus houses as well as riots during Iowa State University's annual Veishea celebration, the most recent coming in 2004, she said.

"They continued to battle with the fraternity houses," Cohen said of Ames police. "(A 21-only ordinance) by no means has solved things in Ames."

Jim Clayton, representing the Committee for Healthy Choices that petitioned for the ordinance, said the number of bars serving mainly students has skyrocketed from seven in 1971 to 51 in 2007. He said that despite efforts by the University of Iowa to educate students on the dangers of excessive drinking, binge drinking continues to be a problem for UI students. UI recently was noted as having a 69 percent binge drinking rate, higher than Ames or the national average, he said. He added that bars do not provide enough entertainment that would discourage the mass consumption of alcohol.

"Bars are for drinking," he said. "You do not see people being entertained. You see people being held up by the person next to them. Entertainment is secondary."

Clayton said Iowa City has become a "drinking destination" for the region, drawing underage drinkers into town. He said the plethora of bars downtown has caused them to compete by lowering prices for beer and other liquor.

"We have too many bars," he said. "They're forced to differentiate themselves, and one way is through price."

Cohen said that despite excess drinking by some students, there are few major incidents in downtown Iowa City. She said more education is needed along with UI and the rest of the community needing to work together to come up with more activities that do not revolve around drinking.

"You have to have a packed Memorial Union," she said.

While about 35 people attended the forum, most were older than the average UI student. Karin Franklin, who moderated the forum for the League of Women Voters, said she did not know why so few students showed up.

http://www.press-citizen.com/apps/pbcs.dll/article?AID=2007710190324

18. Iowa's Drinking Called Epidemic
Experts say binging affects health later

Lee Hermiston
Iowa City Press-Citizen
October 13, 2007

It has been more than 12 years since the death of University of Iowa student Matthew Garofalo, and it's likely that few, if any, students on campus even know who he was or how he died.

On Sept. 7, 1995, Garofalo, 19, of Elgin, Ill., passed out drunk about 11 p.m. at the Lambda Chi Alpha fraternity house, where he was a pledge. It wasn't for another 12 and a half hours that Garofalo's lifeless body was found. In the hours between, Garofalo had vomited while on his back and inhaled some of his vomit. His lungs became irritated and filled with fluid until they stopped producing oxygen. About 7 a.m. his heart stopped, and he died.

Although this may be the most extreme example of the effects of binge drinking, health professionals warn that the culture of excessive drinking in Iowa City and at UI is creating problems for students right now that will continue for the rest of their lives.

They point to Garofalo's death, the death of 20-year-old Joseph Domke -- who fell from a balcony after drinking downtown underage -- drunken driving deaths, countless drunken assaults and attacks and a 2005 Harvard School of Public Health study that states UI has a binge drinking rate of nearly 70 percent -- the highest in the Big Ten -- as reasons for their concern.

Binge drinking is defined as five or more consecutive drinks in a sitting in a two-week period for men and four or more for women.

Harvard's statistics also show that although the percentages of occasional binge drinkers have declined since the study began in 1993; the percentage of frequent binge drinkers has increased.

UI students rate much higher than college students on average, where only two of five students nation wide report binge drinking.

It's for all of those reasons and the adverse health and societal effects of binge drinking that medical professionals and many others are in support of the proposed 21-only ordinance, which would ban 19- and 20-year-olds from bars. Proponents of the legal age measure argue that by restricting access to alcohol, the binge-drinking rate would significantly drop.

Will binge drinking decrease?

However, opponents argue such a measure would not decrease binging and simply would push underage people out into the communities and into unsupervised and potentially dangerous house parties.

Atul Nakhasi, a UI junior who founded the anti-21 group, the Student Health Initiative Task Force, said the proposed ordinance "directly impacts student health and safety," by potentially driving underage students to house parties.

"We're going to end up seeing more underage drinking," said Nakhasi, a pre-medicine student. "Now instead of using ID checks, you could have middle schoolers at the party. Instead of serving checkers (who can control the number of drinks served), you're going to have students with greater underage drinking. And what we're going to see is a likely increase in DUIs (and) sexual assaults."

Richard Dobyns, a clinic professor of family medicine at the UI, said it's difficult to speculate whether or not there would be more house parties.

"Could there be? Sure. You can speculate in either direction," Dobyns said. "There's always been house parties, there's always been pre- and post-drinking. Basically, what this initiative will instigate, not by itself, is a reduced alcohol consumption culture."

Dobyns said he believes the drinking rate among students has reached epidemic proportions. That belief has caused Dobyns to take action and act as a spearhead for the 21-only proposal.

"I mean, if you saw that the state of Iowa had twice the influenza numbers of any other state, you would hope your community would do something about it," he said. "You need to respond. It's not ethical to walk away from something like that."

Dobyns said he has a broad definition of the health effects of binge drinking and although students' binge drinking doesn't do much immediately, there are consequences later on. People who develop alcohol-related issues are more likely to have difficulty forming meaningful relationships and experience trouble holding down a job, as well as an increased likelihood of developing mood disorders, unwanted pregnancies, unwanted sexually-transmitted diseases, premature coronary disease, liver disease, vascular disease and neurological disease.

"If you define health a little more broadly, you would include those things as well," Dobyns said.

Dobyns added that public policy should not be based on random events, such as Garofalo's death.

"It's extremely sad for everyone," he said. "However, you have to look past those sad issues and look at the everyday sad issues."

Effects: now and later

Dr. Peter Nathan, a professor emeritus in community and behavioral health, was acting UI president at the time of Garofalo's death. He said it was hard to predict whether Garofalo's death would have been prevented by a 21-only measure.

"Would this have happened to Matthew if the referendum happened at the time?" Nathan said. "Matthew didn't drink in the bars."

Like Dobyns, Nathan -- an alcoholism researcher for 40 years --said binge drinking at a young age doesn't immediately do much to students, health-wise. However, he said frequent binge drinking can lead to cutting classes, less studying, an increased risk for injury, forgetting things or doing regrettable things.

The long-term effects are more severe, Nathan said. Frequent binge drinkers -- which represent about 46 percent of the student body -- are at a much greater risk to develop alcoholism after college.

"Alcoholism, in turn, is associated with a lot of sociological, psychological and physical problems," he said. "Alcoholics, on average, die several years early."

That's not to say Iowa City is inundated with alcoholic graduates from the university. Nathan said well-educated communities like Iowa City tend to have fewer alcoholics than other places.

Nathan said out of each graduating class, there could be up to 5 to 10 percent of the students who meet the criteria for alcohol dependence. Many of them don't stick around Iowa City, though.

"Students who graduated from here do a whole lot of things," Nathan said. "Some stay here, many don't."

Nathan said if parents are worried about sending their kids to the UI and having them come home with alcohol abuse problems, their concerns are valid, although coming to the university does not doom students to a life of alcoholism.

"The damage is still there"

However, centers that treat people for substance abuse problems, such as MECCA, are seeing people in their late teens and early 20s. Steve Steine, the clinical coordinator for MECCA's Iowa City location, said students are coming to the facility for outpatient programs.

"Most of the college students that we are seeing are those that have had a first or second OWI offense," Steine said. "Or, they may have what we would call recurrent alcohol-related issues; two or more public intoxications, two or more PAULAs, that really would have them meeting the criteria."

Steine said the facility doesn't track whether or not their patients are students, but of the 24 people enrolled in the current outpatient program -- an entry level program aimed at younger people and those experiencing first time substance abuse problems -- there are 10 people 21 or younger. He did not know whether or not they were university students.

"It's difficult to track," Steine said.

Steine didn't wish to weigh in on his view of the ordinance but said the problems with alcohol consumption might not be solved by laws and fines.

"If students get charged with a PAULA in a bar, they usually just get a ticket, pay a fine, that's it," he said. "They don't get any attention until there's something recurrent. I've known some students who have had multiple possession tickets and aren't mandated to doing some substance abuse program."

Ed Haycraft, an abuse counselor for UI Student Health, said the health center already is treating students for secondary effects of alcohol abuse. In 2006, 600 to 700 students came to Student Health for alcohol-related issues. Haycraft said they either attended the Seminar on Substances, an educational program, or the Brief Alcohol Screening and Intervention for College Students (BASICS) program.

"There's quite a few young people that come in and say, 'Well, I'm depressed,' and we ask them, 'How much are you drinking?' " Haycraft said.

Haycraft said drinking releases dopamine -- a chemical that triggers a pleasurable feeling -- into the brain. When the drinking stops and the production of dopamine halts, drinkers come down from that high and feel depressed.

However, in terms of physical effects, outside of getting sick or falling and hurting themselves when they're drunk, Haycraft said binging won't do much to younger drinkers.

"When you are 18 to 20 years old, you snap back real quick," Haycraft said. "But the damage is still there. It's one of those things that people don't realize when they're 18 to 20."

But some damage is being done right now. According to an annual report compiled by Student Health, of the 875 surveys completed, 73 percent reported they had experienced hangovers from drinking, 52 percent said they had vomited, 32 percent said they had injured themselves while drinking and 29 percent said they had unintended or regretted sex.

Students like Nakhasi, UI Student Government President Barrett Anderson and many others said they don't refute the negative health effects of binge drinking, just the approach taken by the 21-only measure.

"This is not going to fix these issues of underage drinking," Nakhasi said. "We recognize there's a problem...Our goal is not to only address and oppose this measure, but propose a possible solution."

Still, Ralph Wilmoth, the outgoing director of Johnson County Public Health, a 21-only supporter, said something must be done.

"The whole idea that we have an environment that supports that behavior is a contradiction to the very principles that public health is based on," Wilmoth said.

http://www.press-citizen.com/apps/pbcs.dll/article?AID=/20071013/NEWS01/710130309/1079

19. Tanked-up Drake hurlers face $80 fine for cleanup
Drake University dormitory residents who vomit from over-drinking and don't clean up the mess will have more than a hangover to nurse the next day: They will be fined $80.

Des Moines Register
October 18, 2007

Students received a flier on the matter this fall from school officials in response to three "vomiting instances" in the residence halls, said Sentwali Bakari, Drake's dean of students.

"There's an integrity and moral issue, plus we have to call someone in," Bakari said. "There is a charge for that. The fee pays for the cleanup."

Bakari said he was unsure of the exact cost of bringing in employees after hours to clean up vomit messes.

Students could be asked to reimburse costs incurred for late-night hurl sessions that make a mess in the residence halls at the University of Iowa and at Iowa State University, staff there said.

At ISU, it costs $134 for someone with training in blood-born pathogens to clean up a late-night vomit mess, said Sally Deters, an ISU coordinator of residence life.

U of I staff said extra cleaning charges cost $24 per hour, and a student could be charged whatever portion of that hour a vomit-cleaning took.

At the University of Northern Iowa, residence hall officials said they would prefer to get students medical assistance rather than fining them if they drank to the point of vomiting.

"I think that for a lot of students, if they have any kind of charge, it goes onto their university bill," said Lyn Redington, UNI's associate director of residence halls. "I don't know if they see their bill or if it goes to their parents."

Drake isn't the only campus cracking down on puking on school property.

George Washington University in Washington, D.C., has reportedly decided to impose a fine of at least $200 on students who drink too much and upchuck on a bus that runs around the clock between two of the school's campuses.

Bakari said the only way Drake staff would know the identity of the vomiter and whether the cause was alcohol is if the perpetrator or an employee brought it to the attention of the staff.

"We would certainly need to be firm in that identification," he said.

Drake students are mixed in their support of the fine.

Brenna Buckner, 20, from Lawrence, Kan., said students should be asked to do community service in the dormitory rather than pay a fine. Students are already scrounging around for money, she said.

"I hate to say it - stuff like that happens. It's college," she said. "A service is much more effective and it takes time, and we're limited on time."

Michelle Thilges, 21, a Drake senior from Fort Dodge, said she supports the fine.

"I've been in the dorms, and people have gotten sick, and it's not fun," she said.

Drake senior Kelly Zieman, 21, said the fine was a good idea only if officials were sure someone vomited from drinking.

"If they don't know it's from drinking, I'm not sure they'd be justified in fining people," she said.

http://www.desmoinesregister.com/apps/pbcs.dll/article?AID=2007710180405

20. Authorities Say Alcohol May Be Involved In Hayride Wreck
Deputies Say Alcohol Found At Scene

KCCI Channel 8
October 16, 2007

Alcohol may have played a role in a hayride wreck that injured 20 people in eastern Iowa.

The wreck happened early Sunday morning just outside Clinton.

A tractor pulling a trailer went over the side of a quarry. Two passengers were flown to nearby hospitals, and 18 other passengers suffered minor injuries.

Sheriff's deputies said they found alcohol at the wreck scene but aren't sure if the tractor driver had consumed any alcohol.

http://www.kcci.com/news/14351942/detail.html

21. Henry County Health Center now Tobacco Free
The health consequences of smoking have long been known, and the public concern over the hazards of second-hand smoke has led to businesses restricting the use of tobacco products in buildings and on properties.

Golden Triangle Media

October 12, 2007

Henry County Health Center is among other organizations addressing this health concerns.

In an effort to work toward its mission of advancing the health of individuals and its communities, HCHC will implement a tobacco-free campus policy beginning Nov. 15, the date of the American Cancer Society's Great American Smokeout.

Since the 1980's, the hospital has prohibited smoking within the facility but permitted smoking in designated areas outside the facility. However, the new tobacco-free policy will prohibit the use of all tobacco products on the HCHC campus both indoors and outdoors, including all HCHC-owned properties and hospital vehicles.

"Iowa's Clean Indoor Air Act was intended to protect Iowans from the harmful effects of passive smoke by separating smoking and non-smoking sections in workplaces and other public places," explained Darren Shull, respiratory therapist and cardiac and cardiopulmonary department manager at HCHC.

"HCHC has joined hospitals across Iowa in taking that law one step further by making our entire campus tobacco free.

HCHC is committed to promoting the health, well being, and safety of patients, residents, visitors, volunteers, medical staff, and associates, a news release said.

As a healthcare provider we must take these steps to provide the healthiest environment possible."

HCHC realizes that this policy may be difficult for people who smoke, and the Tobacco- Free Task Force is exploring resources that can help smokers adhere to this new policy. We are committed to promoting wellness and healthy lifestyles, and the public's cooperation with our policy for a tobacco-free campus is appreciated.

Smoking Cessation helps smokers breathe easy

Smoking has ill effects on the health of smokers, their families, friends, and our environment, and for these reasons HCHC is implementing a tobacco-free campus. HCHC's Cardiopulmonary Department is actively working with smokers to help them break the tobacco habit by offering smoking cessation classes.

There are numerous benefits to quitting smoking. If you or someone you know smokes and wants to stop, call 385-6104 to learn more about HCHC's smoking cessation class, or call Quitline Iowa, a toll-free, statewide smoking cessation telephone counseling hotline at 1-800-QUIT NOW (1-800-784-8669).

http://www.zwire.com/site/news.cfm?newsid=18912334&BRD=1142&PAG=461&dept_id=567520&rfi=6

22. Filippo Gets Six Years in Prison
CHARLES CITY --- A Cedar Falls man will spend up to six years in prison for trying to run over a state trooper with a sport utility vehicle earlier this year.

Josh Nelson

Courier Staff Writer
October 17, 2007

William Filippo Jr., 30, was convicted of assaulting a peace officer with a weapon, eluding and second-offense operating while intoxicated Aug. 31. Judge John Mackey made the ruling after a trial on the minutes.

Filippo initially faced an attempted murder charge.

"You endangered quite a few people in this little episode you went on," Mackey said during the sentencing hearing Tuesday.

Mackey suspended a $750 fine, but said he couldn't suspend the $315 fine for eluding.

Authorities said Filippo tried to run down trooper Mark Domino on Feb. 16. The incident occurred two miles south of Charles City on U.S. Highway 218 after Domino attempted to stop Filippo for erratic behavior.

Domino intentionally rammed his patrol car into Filippo's Dodge Durango. Domino later fired four shots at the vehicle when Filippo drove toward the officer. One of the bullets struck Filippo behind his right ear.

Court documents reveal Filippo had a blood alcohol level of .207 and had cocaine and THC --- an indication of marijuana --- in his system at the time of the incident.

Mackey said Filippo gave Domino "no choice but to shoot you" after acting as aggressively as he did.

Trooper Mark Domino said in a statement to the court the day this incident continues to haunt him.

Prior to the shooting, Domino said he was attending to usual affairs. He held a driver's education class at Charles City High School then met with members of the Izaak Walton League to discuss a gun safety class for children.

Domino said he was on his way to New Hampton when the call came in about an erratic driver near Janesville. He encountered Filippo near the intersection of County Road T76 on U.S. 218 near Nashua. That began what turned out to be a high-speed chase covering 20 miles.

Domino said he was afraid about what would happen if the chase lasted much longer.

"I have been a trooper for 25 years, and I have seen a lot of drunk drivers, but this was by far the worst," he said.

The chase ended in a snow-filled median.

The trooper defended his decision to shoot.

"I had to use deadly force because the driver was using deadly force against me, " Domino said. "Deadly force was the only way I could get this driver stopped."

Nearly a dozen members of the Floyd County Sheriff's Department and Iowa State Patrol were present during the sentencing in an apparent show of support for Domino.

Filippo's attorney Susan Flander tried to paint a different picture of her client. She presented letters from supporters and called Filippo's mother to the stand.

Peggy Filippo of Philadelphia said her son was the oldest of three boys. She added he wanted to help people, even at a young age, but lost his way.

"Is the person you've heard driving the vehicle in February of this year the same person you know?" Flander asked.

"No," Peggy Filippo said.

Filippo joined the U.S. Air Force in hopes of eventually joining the Philadelphia Fire Department. During his four years of service, he changed his mind and decided to pursue a career in education. At the time of the shooting, he had completed three years of college.

Peggy Filippo said she wasn't sure what happened to her son but was certain he had a substance abuse problem. She said the damage he suffered from the event was "enough punishment."

Flander called the incident "tragic" but doesn't think all the blame rests solely on Filippo. She pointed to evidence Domino also had a blood alcohol level of .037 that morning, which might have impaired his judgment.

The amount of alcohol in Domino's system was lower than the legal limit but high enough that the Iowa State Patrol disciplined the trooper in September.

"Decisions were made that were bad all the way around," Flander said.

Flander successfully lobbied Mackey to set aside the operating while intoxicated conviction in a separate hearing prior to the sentencing. The defense attorney successfully argued his conviction on that charge was improper because Filippo was never arraigned for that alleged offense.

Filippo said he was thankful to be alive, though he lost an eye in the incident.

He said he realized he made the wrong decisions that day, including the decision to use alcohol. He said he hoped to use his experience to help others facing problems with substance abuse.

"I apologize to the court and everyone involved," Filippo said. "This was an isolated incident. I'm very disgusted and ashamed of myself."

http://www.wcfcourier.com/articles/2007/10/17/news/regional/82ac53e0de8ff3768625737700451edc.txt

23. Kickin' the Habit

Terry McCoy
The Cedar Rapids Gazette

October 16, 2007

Teacher Chuck Tonelli speaks with Michelle Corley about her journal entry during a quit smoking class at Metro High School in Cedar Rapids

It's a Monday morning. Eleven bleary-eyed students shuffle into Room 213 at Metro High School.

``Here's your candy!'' instructor Debra Jacque twitters while placing a bowl brimming with hard candy on the table. Half the high schoolers stand and hastily begin rifling through the treats.

At this class, where students who smoke learn how to drop their habit, hard candy's as essential as pen and paper.

The course was added in the Cedar Rapids school district because the school, effective this school year, banned tobacco use on school grounds.

Another effect: Some staffers are quitting entirely.

Dave Dvorak, the manager of the school district's buildings and grounds, tore through a pack of cigarettes a day for more than 34 years. A few months ago, he smoked his last.

``I wanted to quit,'' he said. ``Most smokers want to. But it's a tough thing to do. It's very hard, and I don't think I would have had the ambition to do it'' without the
ban.

Nowhere else is the smoking ban felt more than at Metro, an alternative high school where 73 percent of the student body said last year they use tobacco products and -- before the ban -- student and instructor alike would sometimes take the school's daily, 10-minute smoke breaks together.

Student smoking on campus already was forbidden at the other three high schools. There, if caught, school officials would call police and the student would be issued a $50 citation for a first offense.

The Iowa City school district campus has been tobacco-free since 1987.

``I wasn't so sure this would work here though,'' said Bonnie Sovern, who has taught at Metro for 17 years. ``Smoking was one of the impetuses for students to come here, and I was worried about students not coming back.''

But they did, Metro Principal Kathy Green said. Week to week, nearly 70 percent of the student body populates the building, which is right on track with last year, according to attendance records.

Whether they stay for the whole day or not is a different story, some Metro students say.

Metro senior Alex Powers said some students usually check in at morning and then skip the last hour of class to smoke.

``By the end of the day, people aren't here anymore,'' he said.

Powers, who said he used to smoke up to a carton of cigarettes a week, said he's one of the ones using the ban as a reason to quit.

``My older sister always smoked, and I thought they were so cool,'' he said. ``But then smoking became too expensive. And now I can't even skateboard, or really do anything, without being out of breath.''

But quitting smoking is a monumental task and not one without slipups. Less than an hour after Powers was interviewed, he was outside, on school grounds, with a cigarette at his lips.

The students he was with said they were ignoring the ban.

``Every day I come out here and smoke,'' Metro senior Miranda O'Hara said. ``What are they going to do, kick me out?''

Regardless, administrator Laurel Day, a member of the district's tobacco-free committee, said most students and staff are following the new rule.

``I would say it has absolutely been a success based on the positive response,'' Day said. ``I think people are pleased and have positively accepted it, if not applauded it.''

Washington, Jefferson and Kennedy high schools report no problems with anyone violating the policy, principals said.

Laura Daman, coordinator of the Metro Wellness Program, said the district may institute smoking cessation classes for staffers if enough employees ask for the course.

District employees could be fired if they are caught smoking on school grounds, Day said.

``But this is not a contrary issue,'' she said. ``Many staffers hopped on board and were ready to implement it.''

Even at Kingston Stadium where people have sucked on cigarettes behind the bleachers for years, the habit has mostly been sidelined.

``The school district has done a good job,'' said Jeff Smith, who was working security at the high school football game at Kingston last Thursday night. ``I think everyone is aware that you can't smoke in the public areas'' on school grounds.

Except 18-year-old Tony Meis, who had a cigar furtively tucked behind his right ear. He still considers breaking the ban at football games.

``The main point is: Who's going to stop me?'' he said while sitting in the bleachers last Thursday. ``What's the big deal? I don't think anyone would ever kick me out.''

Back at Metro, some teachers are saying kicking the smoking habit is only the beginning. Their ultimate goal: defeating addiction of any kind.

``Our minds are so powerful,'' Metro teacher Jacque said. ``And if that's what we want to do, it will happen.''

http://www.gazetteonline.com/apps/pbcs.dll/article?AID=/20071016/NEWS/71016027/1006/NEWS

IV. OTHER STATE NEWS

24. Vote Slated for Sunday Liquor Sales (Alabama)

Sheffield Restaurants and motels could begin selling alcohol Sunday if city council members approve a change to the city's liquor ordinance during tonight's council meeting.

Times Daily
October 14, 2007

The revisions are a result of a Sept. 25 referendum in which Sheffield voters approved Sunday alcohol sales by a vote of 768-475.

The new ordinance allows the sale of alcohol on Sundays for on-premise consumption only.

The sale of alcohol for off-premise consumption is still prohibited, but its sale is allowed at certain retail establishments as late as 2 a.m. Sunday.

Sheffield is the first Alabama municipality to approve Sunday sales since Florence approved a similar measure in May 2005.

"If we approve it ... it will take effect immediately," Mayor Billy Don Anderson said.

City attorney Vince McAlister said the council must change the city's alcohol ordinance to reflect the results of the referendum.

Anderson said Sunday alcohol sales is an economic issue that should help level the playing field between Sheffield and other Shoals cities, especially Florence.

Sheffield residents supported Sunday sales during a 2005 countywide referendum that was defeated elsewhere in Colbert County.

It appears unlikely that other Colbert County governments will follow Sheffield's lead.

Muscle Shoals Mayor David Bradford said 70 percent of the residents of his city who voted in the 2005 referendum opposed Sunday sales.

"I think the majority of folks in Muscle Shoals spoke," Bradford said. "They would rather not have Sunday sales."

Bradford said he has not been approached by any outside group or business owner seeking to initiate a Sunday sales referendum in Muscle Shoals.

Tuscumbia Mayor Bill Shoemaker said no group has approached him on the issue.

"It's not as big a deal for us as it would be for some of the larger hotels that must have (Sunday sales) to attract big conventions," Shoemaker said. "I don't see that issue coming up any time soon."

Erin Lebischak was at the Old Town Tavern in downtown Sheffield the night the referendum was approved.

"It will definitely be good for business," she said.

She thinks Sheffield should also seek legislative approval to allow the sale of draft beer.

The state Legislature approved a bill earlier this year allowing draft beer sales in the city of Florence. Draft beer sales began Sept. 1.

http://www.timesdaily.com/article/20071015/NEWS/710150323/1011

25. Few Stores Sampling Wine-Law Prospects (Arkansas)

Stacy Hudson
Arkansas Democrat

October 15, 2007

California wines made by Clos LaChance, Dreyer and Icaria Creek now share supermarket shelf space with Arkansas' offerings of Post Familie, Wiederkehr and Cowie.

Since March 29, retail groceries and mom-and-pop convenience stores have been able to sell out-of-state wines, but few have taken advantage of a new state law allowing them to do so. Some simply lack the space. Others worry about the future of the law, still being challenged in court.

Harvest Foods has 14 permits from the state Alcoholic Beverage Control Administration Division to sell "small farm" out-of-state wines, but only offers such wines in seven stores, said Chad Evans, director of retail operations for Little Rock-based Supermarket Investors, which operates several regional chains including Harvest Foods.

The supermarket began selling out-of-state wines a few weeks ago and plans to eventually sell them in all 14 of its stores in Arkansas that have permits to carry wine, Evans said. Harvest Foods' other nine stores are in dry counties and can't sell alcohol, he added.

Wal-Mart Stores Inc. holds 18 retail wine permits from the state agency and The Kroger Co. has 22 such permits.

The Wal-Mart Supercenter in west Little Rock now carries the wine. But it's unclear how many Wal-Mart and Kroger stores are selling out-of-state wines. Representatives of both stores were unable to provide the information by press time.

The state Alcoholic Beverage Control Board does not keep up with how many stores that hold permits actually sell outof-state wines. Convenience and grocery stores "could still be selling only Arkansas wines," Marilyn Hawley, an administrative assistant for the state agency, said recently, adding that she wasn't sure how many new permits had been issued since the law took effect. Since July 1, 14 wineries from California, Missouri, Oregon and Washington state have received Arkansas permits to sell their wines in Arkansas grocery and convenience stores.

LACK OF SHELF SPACE Stan Hastings, president of Moon Distributors Inc. and Central Distributors Inc., both of Little Rock, said that his companies haven't distributed many out-of-state wines to Arkansas grocery and convenience stores since the law was enacted.

"At this point, there's no real 'up' side for them," Hastings said of out-of-state wineries.

The new law is confusing at best, not to mention that it's being challenged in court, and many small wineries don't want to go through the 60- to 90-day licensing process with the Alcoholic Beverage Control Administration Division if the law's future is uncertain, he said.

In June 2005, Little Rock cardiologist Scott Beau sued the state agency in U. S. District Court because he wants to be able to buy wine from out-of-state wineries and have it shipped directly to him, according to his lawsuit.

In July, Judge Susan Webber Wright of U. S. District Court for the Eastern District of Arkansas allowed Beau's attorneys to file a new complaint addressing what they say is unconstitutional discrimination created by the new law.

Beau's attorneys say the new legislation allows Arkansas wineries to sell their wines directly to consumers, while forcing those outside the state to distribute through licensed retailers. The disparity, they argue, is unconstitutional.

http://www.arkansas.newsperspective.us/

26. California Bolsters Distributor Protections in New Beer Franchise Law (California)

Susan Cagann
FBM.Com

October 11, 2007

New Beer Franchise Law

This week, Governor Schwarzenegger signed new legislation expanding the rights of beer wholesalers in the event of a supplier's change in control, sale of a brand or other transition. Under Senate Bill 574, section 25000.2 is added to the Business and Professions Code; this statute compels a successor beer manufacturer to compensate a beer wholesaler if the distribution relationship is terminated.

The new law requires the successor manufacturer to pay fair market value for the terminated "distribution right". The value is to be negotiated by the parties. If the parties cannot reach agreement on the fair market value of the distribution right, mandatory arbitration is required. A dissatisfied party may appeal the arbitration award to the superior court. Until an agreement is reached or a result is compelled by an arbitrator or court, the successor supplier is required to continue the relationship with the beer wholesaler.

A Case to Watch: Wine Distribution

Litigants are wrapping up a trial in a case challenging well settled California law that permits wine suppliers to terminate wholesalers without compensating the wholesaler for the value of the departing brand or brands. Unlike beer distribution relationships, there is no statute in California that creates franchise protection for wine distributors. Since 1995, California courts have recognized that an oral distribution agreement for wine is terminable at will upon reasonable notice. Varni Bros. Corp. v. Wine World, Inc. (1995) 35 Cal.App.4th 880. Trial is underway in San Joaquin Superior Court in the matter of Phillips Farms v. Frank-Lin Distillers Products Ltd. Case No: CV029401 where among other issues, the distributor-Frank-Lin-- is asserting that the relationship cannot be terminated without the winery paying a significant termination fee.

In the Varni case, there was no written distribution agreement. The Court found that the parties' conduct evidenced a distribution agreement. The Court allowed evidence of trade customs to supply terms of the implied contract so long as they were consistent with the parties' conduct. As there was no agreement as to the duration of the distribution relationship, the Court held that the contract was of indefinite duration, terminable at the will by either party. In reaching this conclusion, the Court was persuaded by evidence of industry custom that wine distribution arrangements were terminable for any reason and not just for good cause. The Court held that Wine World was free to terminate the implied contract with Varni.

In the current litigation as in the Varni case, Phillips Farms had no written distribution contract with Frank-Lin. The relationship began in 2002. The winery provided reasonable notice of termination to the distributor. Frank-Lin asserts the relationship cannot be terminated absent good cause. And, the distributor is demanding a hefty penalty for termination.

Closing arguments in the case could begin before this week ends. The decision in this case could alter long standing practices in wine distribution relationships. If the distributor is successful, many wineries should reevaluate whether to require written contracts with their distributors or if they already have written agreements, to assess the terms in light of a distributor victory.

http://www.fbm.com/index.cfm/fuseaction/publications.home/publications.cfm

27. Bar Liability Bill Debated; Accident Victim Could Sue Business for Serving Alcohol (Delaware)

Legislation aimed at holding bars and restaurants liable for serving intoxicated individuals alcohol has been introduced in the state Senate for another go-round.

Delaware State News
October 13, 2007

Under Senate Bill 173, bar and restaurant owners would be held liable if their establishment “intentionally or recklessly” served an alcoholic drink to an intoxicated person and that person injured or killed someone.

“Delaware is one of three states east of the Mississippi without dramshop laws,” said Sen. Karen E. Peterson, D-Stanton, who is sponsoring the bill.

A court would have to find that the bar or restaurant acted recklessly and knowingly served an intoxicated person for the bar to be found liable.

State law already prohibits serving the intoxicated, but judges have ruled that accident victims cannot sue the establishments because no provision exists in state law holding the businesses accountable.

Damages would be capped at $250,000. The bill would not impact residents hosting private parties at their homes.

Sen. Peterson said the measure is one of, if not the most effective way to curb drunk driving.

“There will definitely be an effect because the people who are policing would be the employees themselves and they know they could be responsible for it,” said Sen. eterson, who added that studies suggest alcohol-related traffic deaths would drop 10 percent.

“The (Division of Alcoholic Beverage Control and Tobacco Enforcement) doesn’t have enough staff to put one person in every bar every night.”

Sen. Peterson said she introduced the bill in response to a 2001 incident in which a drunken driver killed four youths in New Castle County.

The driver, whose blood-alcohol content was two-and-half times higher than the legal limit, had been drinking for seven hours at a Newark pizzeria before the accident.

An identical bill passed the Senate in 2003 but died in a House of Representatives committee.

Sen. Peterson said the key to her legislation is that the bartender or server would have to know that the person is intoxicated.

Bars and restaurants have said they are concerned that the bill would increase their liability insurance rates to untenable rates.

“This will affect small businesses more than anything else,” said Dover attorney Kevin Howard, who co-owns Irish Mike’s Olde Towne Pub in Dover.

“Premiums for general liability are set on nationwide experience. We’ve never had a claim against us and our fire and liability premiums have quadrupled in the last four years.

“Ultimately, the cost will be passed down to the consumer. The hardest part of dramshop laws is creating responsibility on the part of the employee to determine who is intoxicated.

“You’re going to have a 21-year-old person serving in a bar and if they make the wrong decision, the business owner is going to get sued.”

Mr. Howard said his fire and liability premiums are about $14,000 a year and he believes those premiums would increase significantly if the dramshop legislation passes, and there would be no noticeable difference in alcohol-related crashes.

During the debates for the previous incarnation of the bill, the Delaware Restaurant Association argued that insurance premiums that cost $500 a year could skyrocket to $10,000 annually.

DRA President Carrie Leishman did not return several calls seeking comment Friday.

Sen. Peterson said research shows that insurance liability would increase by only 25 percent, with the $250,000 cap designed to keep premiums down.

“This is a way to get more enforcement people in every bar and restaurant,” she said. “It will be the employees self-policing.”

SB 173 has been assigned to the Senate Administrative Services Committee, which Sen. Peterson chairs. She hopes to have a hearing and vote on the bill when the legislature reconvenes in January.

28. Legislative Proposal Would Raise Tobacco Tax (Kansas)

Smokers fume at plan to increase price by 50 cents

Sophia Maines

Lawrence Journal World

October 17, 2007

Buying cigarettes in the state could soon become more expensive

The Kansas Health Policy Authority Board wants a 50 cent per pack increase in the tax on cigarettes to fund health programs. Watch

The cost of cigarettes will rise like smoke if federal and state officials have their way.

Kansas Health Policy Authority board on Tuesday approved its recommendations for the upcoming legislative session, and increasing the tobacco tax was on the list. The move comes as federal lawmakers wrestle over a plan to raise the federal tax on cigarettes by 61 cents a pack.

The local response Tuesday was predictable, with many smokers voicing their disapproval and some nonsmokers standing in support of the measures.

“I think the whole sin tax thing is completely ridiculous,” said Jim Pickard, a Lawrence resident and smoker. “They’re not charging sin taxes if somebody prefers to have tea or other things. They’re strictly applying it to smokers, drinkers.”

The authority proposes raising $52 million annually by increasing the state cigarette tax by 50 cents a pack, to $1.29. The revenue would support health care initiatives and, it is hoped, discourage smoking.

The federal tax is part of a plan for a five-year, $35 billion increase for the State Children’s Health Insurance Program, which provides low-cost health coverage to qualifying children. But President Bush has vetoed the bill and attempts to override the veto are expected to fail. Votes are scheduled for Thursday.

Hiking the price of cigarettes won’t discourage Pickard, who said he has watched the price steadily grow from about $1 when he first started smoking to more than $4 today.

“I have no interest in quitting,” he said.

But to some nonsmokers, the rising costs are a welcome way to curb others’ bad habits.

“The more money they have to spend, the more they’re going to quit because they can’t afford it,” said Juliana Norris, a Kansas University student and nonsmoker.

While some smokers say they’ll keep puffing regardless of cost, some say it’s getting to the point where it might be time to change.

“If they get up to five bucks a pack, I’m going to have to quit,” Lawrence resident Brad Harrell said. “It’s already a ridiculous amount of money to hand out every day for a pack. If it keeps going up, that’s way too much, really.”

Tax increase or not, business won’t change at the BP convenience store at Haskell Avenue and 19th Street, where cigarettes move like hotcakes.

Faisal Absar, the store’s manager, predicted raising the tax won’t dampen sales.

“People will still smoke,” he said.

http://www2.ljworld.com/news/2007/oct/17/legislative_proposal_would_raise_tobacco_tax/

29. Harvard Students Keep Beer Flowing, Defying New Alcohol Policy (Massachusetts)

Harvard University's student leaders are defying a dean's order to stop using college funds for alcohol served in dormitory rooms.

Bloomberg.com

October 15, 2007

After the nation's oldest and richest school said it will no longer release money for private parties, the Harvard Undergraduate Council continued to mete out grants of $100 or more that can be spent on alcohol, according to that body's president. The school hasn't stopped any parties, hoping the standoff can be ended through talks, Associate Dean Judith A. Kidd said on Oct. 11.

U.S. colleges are growing less tolerant of drinking and more concerned about the consequences of abetting imbibers. Two officials at Rider University, in Lawrenceville, New Jersey, were indicted by a grand jury in August in the death of a student by alcohol poisoning during a fraternity initiation. The charges of aggravated hazing were later dropped.

At Cambridge, Massachusetts-based Harvard, ``the fact that the school was actually paying for unsupervised drinking is simply stupid and shouldn't have been happening in the first place,'' said David Rosenbloom, 63, the principal investigator of the federally funded Youth Alcohol Prevention Center at Boston University's School of Public Health. ``Kids have far too easy access to alcohol as it is, and they didn't need their university's help to get it.''

Rosenbloom said more schools are moving away from a ``total hands-off view toward student drinking.''

Harvard's Undergraduate Council, or UC, said it provided the private-party grants from funds remaining in its account. The council president, Ryan Petersen, a 21-year-old senior, said the university shouldn't have any say in the matter.

``That money is our money,'' Petersen said in a telephone interview on Oct. 11. ``The allocation of funds is completely the decision of the Undergraduate Council.''

The use of such money for private parties began in 2003, when Harvard administrators and students sought to improve social life at the school. Last spring, the university opened a campus pub, the Cambridge Queen's Head.

David Pilbeam, who became the interim dean of Harvard College in September, announced earlier this month that he was cutting off money for private parties. The college is the Ivy League university's undergraduate school.

``It is quite apparent that the UC Party Grant program, in practice, has funded parties where the focus is on drinking,'' Pilbeam wrote in a letter to the council leaders, posted on Harvard College's Web site.

``The UC Party Grant program is at odds with the message that students, parents, faculty and administrative leaders of this community should be sending about responsible and safe alcohol use.''

A 2002 study published in the Journal of Studies on Alcohol found that 31 percent of college students met criteria for a diagnosis of alcohol abuse during the previous year. The study was based on questionnaires answered by students.

Liability also played a role in Harvard's decision to cut off funding for private parties, Kidd said.

``The legal climate is changing out there,'' she said. ``We collect and distribute the money. Therefore we are responsible for making sure it is used appropriately.''

Petersen said he proposed to administrators that an arbitrator be hired to resolve the dispute.

``Until the Undergraduate Council decides the program has to be eliminated, the program will remain in effect,'' Petersen said.

The money for private parties comes from an optional $75 activity fee for each student that raises about $450,000 a year. Kidd said the UC gives $51,000 annually for private parties. Petersen said the amount is lower, about $30,000 a year.

Students apply to the council for the grants. To qualify for the money, the students must affirm they are 21 or older and promise to obey school rules and local, state and federal laws, Petersen said.

The council also requires that the parties be advertised. Faculty members who live in the dormitories are notified of the parties and have the authority to supervise them, Petersen said.

Generally, the private parties aren't supervised by university employees, Kidd said. Faculty members who live in the dormitories complained that the events often draw more students than can be accommodated in a dormitory suite, Kidd said.

``They are spilling out into the hallways,'' Kidd said. ``We all agreed there was no control possible, so we were going to eliminate the program.''

Harvard will continue to pay for alcohol purchases at events hosted by student organizations and dormitory committees, Kidd said. Those parties are held in larger spaces and supervised by graduate students hired and trained by the university, she said.

One columnist for the Harvard Crimson, the student newspaper, supported the university's decision to cut off funding.

``Broadly, this whole affair speaks to the larger problem of the overblown sense of entitlement among undergraduates,'' wrote Lucy Caldwell, who plans to graduate in 2009, in the Oct. 8 edition. ``It is disheartening that Harvard students are so intent on bickering over bucks for booze.''

http://www.bloomberg.com/apps/news?pid=20601103&sid=auRyv5aAsxA0&refer=us

30. Tobacco Sellers Must Now be Certified (Nebraska)
Sellers of tobacco and alcohol products in North Platte must now be certified by the North Platte police.

Denise Poss
The North Platte Bulletin

October 17^th 2007

The city ordinances governing sales of alcohol and tobacco are now complete. Anyone selling alcohol or tobacco products in North Platte must first be certified by the North Platte police.

The North Platte City Council Tuesday passed an ordinance on the third and final reading that requires anyone selling tobacco products in the city limits to first be certified by the Responsible Server Training Program offered by the police.

In September, the council approved a similar ordinance for alcohol servers.

The ordinance affects store clerks, bartenders, waiters and any other person who sells alcohol or tobacco products in North Platte.

They are now required to take the 1-1/2 hour program called the Responsible Server Training Program

The new ordinance makes the server’s certification good for three years..

The program is designed to educate employees serving alcohol to ensure booze and tobacco is kept out of the hands of minors, according to Martin Gutschenritter, North Platte Chief of Police. Gutschenritter said North Platte would be the first community in Nebraska that has enacted such an ordinance but anticipated that others would follow suit.

Gutschenritter said minors in possession of alcohol and tobacco remains a serious problem in the community. He said classes will be offered frequently and a various times so they would be available to all working people.

In other business the council:

• Accepted bids and awarded a contract to Wells Fargo Bank for the lease/purchase four refuse transfer trailers from Travis Body and Trailer Inc., of Houston Texas, for $277,260.00. The city received a trade-in allowance of $53,000, leaving a balance of $224,260.00 to be financed by the bank.

• Postponed the approval of a lease agreement with Masek Golf Car Company for 36 golf carts. The proposed lease payments will be $3,840.00 per month for six months a year. Previous lease payments were $3,536.00 per month for six months. A memo to the council from Iron Eagle Golf Course manager Brad Kai said the cost to replace one set of batteries in a cart was $660.00 and the cost to replace a single speed controller was $800.00. He said at those costs it would not take long to make up the $1,824.00 difference in lease payments. The problem with the agreement is that it wasn’t able to make it out of committee since there was not a quorum of members present. The council postponed the vote until the committee could consider the leases.

• Approved a renewal of a lease agreement between Regional Recycling and the city for use of the city’s baler and for receiving and brokering recyclables.

• Set an assessment schedule for a water extension district, a sanitary sewer district and a paving district for the Iron Eagle Second Replat at Halligan Drive and Iron Eagle Lane and into Iron Eagle Court. The water extension district will cost $109,078.71. The sewer district costs $90,840.42 and the paving district costs $391,039.51. Frontier Development of Kearney will pay for the improvements.

• Approved an application by Butch’s Inc. of Hershey for a special designated liquor permit Dec. 1, 2007, from 8 a.m. to 1 a.m. at the D&N Event Center, 501 East Walker Road for the Shane Larson Memorial Bull Riding competition.

http://www.northplattebulletin.com/index.asp?show=news&action=readStory&storyID=13204&pageID=3

31. Tough Enforcement of N.H. Liquor Laws will pay Off (New Hampshire)

Getting tough is paying off.

Fosters.com

October 12, 2007

Things began to change when Eddie Edwards took over as chief enforcement officer for the New Hampshire Liquor Commission two years ago. In Edwards' first year on the job, the number of liquor license suspensions soared — nearly quadrupling as they jumped from 40 to 151.

The message was heard. In Edwards' second year, the suspensions were down to 91. Edwards' policy had paid off.

We trust it will continue to do so and the number of violations will drop further.

The liquor commission has given Edwards the tools with which to work. Fines for selling to underage patrons and customers have been doubled, and license suspensions have been given teeth.

For years, the enforcement bureau did little more than run stings and visit bars and restaurants.

Liquor law violations have been too common over the years. It's been as if a mindset was present to run a sting every now and then, but do nothing that might interfere with sales.

The sale of beer, wine and spirits represents a large chunk of change in the state's unrestricted revenue box. At the same time, the sale of alcoholic beverages has to be closely monitored to ensure compliance with the law.

A recent Associated Press story with information gathered by the New Hampshire Union Leader pointed out that the crackdown on violators has been effective, particularly in Manchester, the state's largest city.

"The violations are pretty scary," Sandy Rozek, director of wine and spirits for The Common Man group, was quoted as saying.

Edwards isn't out to frighten the owners of businesses that sell alcoholic beverages. What he is out to do is see that the law is followed — that there's a reduction in the sale of alcoholic beverages to underage customers, that the law regulating their sale in bars, clubs and restaurants is observed and that sales to visibly intoxicated persons are curtailed.

Edwards says he does not play favorites, and when he hears of club owners comparing violations among themselves, he knows the bureau he heads is being effective.

Edwards doesn't drink, but he's seen what alcohol abuse can do. He describes living in a housing project with his grandmother as a teenager and watching a man beat his wife in the street while onlookers ignored the woman's cries for help.

"That's what happens in communities when you tolerate (alcohol)," Edwards is reported as saying.

Few people advocate a return to prohibition — a failed experiment of the 1920s. What reasonable people do expect is responsible regulation coupled with a marketplace that recognizes it has a role to play in that regulation.

Yes, toss down a drink before or with dinner. Enjoy a drink at a social gathering if it adds to your evening, but as many of the alcoholic beverage producers and distributors say, "Please drink responsibly."

There's a special responsibility on the retailers of beer, wine and spirits — one that says they and the people they employ must obey the state's liquor laws.

Pat Russell, one of the three members of the liquor commission, is quoted as saying, "There's more bars, more drinking. We have to be more vigilant, and Eddie is very vigilant."

http://www.fosters.com/apps/pbcs.dll/article?AID=/20071012/FOSTERS05/710120106

32. Liquor Enforcement Shuts Down 'Party Bus' (New Hampshire)

State Liquor Enforcement Chief Eddie Edwards says a bus offering free rides and alcohol is against the law, however good its intentions may have been.

Fosters.com

October 14, 2007

The New Hampshire Liquor Commission has ordered the "Portsmouth Party Bus" to stop serving alcohol.

The bus has been in operation for a month and offered free rides to University of New Hampshire students going from campus residential areas to Libby's Bar and Grill.

Students, during the ride, were allowed to drink free alcohol provided by Chris Pleshaw, owner of the bus, before they were dropped off at Libby's, according to Edwards.

He said he investigated the bus and it's illegal to serve the free drinks on the bus because the transportation of open containers of alcohol is illegal.

Also illegal was a raffle conducted by the bus offering a $5 bar tab at Libby's, which Edwards says violated the state happy hour law.

"I simply explained the law to the operation and licensee, and they were unaware of the restrictions and have agreed to cease activity," Edwards said.

He said there would be no action taken against the bus or Libby's.

"Education is the action; it's our job to educate about the law, and that's the action we chose to take," he said.

A different approach will be taken for any repeat violation, Edwards said.

The bus is allowed to continue providing rides to students, minus the alcohol.

"It appears his intentions were to provide safe rides to the establishment. However, providing alcohol was the issue," Edwards said. "Anything that improves public safety is certainly a wise choice, but activity providing free drinks is not wise."

Pleshaw could not be reached for comment on Saturday.

The University of New Hampshire student newspaper, The New Hampshire, ran a feature story about the bus last week, and Pleshaw was quoted as saying "people here are amazed it's legal."

The bus is equipped with leather couches, plasma TVs at the front and rear, a stereo with iPod connectivity, a mini-refrigerator and strings of soft lights lining the ceiling, according to the article.

http://www.fosters.com/apps/pbcs.dll/article?AID=/20071014/FOSTERS01/710140069

33. Alcoholic Beverage Control in NC: ABC System Seen as Wasteful (North Carolina)

North Carolina operates an Alcoholic Beverage Control system replete with duplication. Across the state, 155 separate local ABC boards run the liquor stores. Two-thirds of the boards run only one store.

Charlotte Observer
October 14, 2007

In coastal Brunswick County, nine separate boards operate 10 stores.

It's a unique system of local control that creates needless bureaucracy, breeds inefficiency and wastes money, its critics say. Some state leaders and veterans of the system contend that as long as North Carolina controls alcohol sales -- not only to regulate it but to recoup money for public needs -- then the public should get more out of their monopoly business.

State ABC Commission Chair Doug Fox wrote Gov. Mike Easley in August seeking support for three major legislative changes in the liquor system:

• The state board would have more power to require mergers, primarily among neighboring ABC boards that are struggling financially but refuse to combine operations.

• The state board would have more authority over local store operations, such as the design and hours of stores, to help create the uniformity and consistent service that customers expect.

• A community would have to collect 5,000 signatures, instead of the current 500, to put creation of a new local ABC board to a public vote.

"In little Town A and little Town B, they're competing for the same customer," Fox said. "You're going to have two systems that are probably going to be inefficient."

Easley, a Democrat, said Fox's proposals make good business sense, and Easley wants to examine whether he can implement any of them through executive orders.

"Most of these things (Fox) recommends are just bringing this into the 20th, much less the 21st, century," Easley said.

Local boards defend the fragmented system by emphasizing that it still makes tens of millions for the state and communities while giving communities more decision-making ability on liquor issues than under a centralized or privately run liquor system.

North Carolina, which has 400 stores, is the only state with such a large, independent system of local control. The other 18 states (and two counties in Maryland) that directly control alcohol sales operate state-run stores, sell through private retailers as agents of the state or some combination of the two.

Most other states, including South Carolina, allow licensed private retailers to sell liquor.

Some unprofitable or marginally profitable jurisdictions in North Carolina have resisted past suggestions to merge with nearby local ABC boards because local elected officials don't want to lose control of their store or the plum of a board appointment, said Ann Fulton, who chaired the commission from 2001 to 2004.

Multiple boards increase expenses, say state officials. The 538 locally appointed board members across North Carolina aren't paid a salary but receive stipends for attending meetings -- $50 per monthly meeting is typical, according to Clyde Sigmon, a member of the Catawba County ABC board and president of the state association of local boards.

That alone costs more than $320,000 a year. And once a year, board members spend money on conferences at pricey locations. A July conference at the Grove Park Inn in Asheville cost at least $140,000 in liquor revenue that otherwise would go to communities.

Beyond the individual members' expenses, the local board system generates duplicative efforts and costs in warehousing, management salaries, audits and accounting, said Larry Beck, executive director of the Gastonia ABC Board, which operates five stores. Each board does its own annual audit at $3,000 to $5,000 apiece.

"The more boards we create, we're being redundant in offering the same product and service, but we're adding overhead to it," Beck said.

The four other ABC boards in Gaston County -- Cherryville, Bessemer City, Cramerton and Mount Holly -- each oversee only one store.

The ABC boards in Seven Devils, Banner Elk and Sugar Mountain each operated a store in the mid-1990s, and all were within three miles of each other. They merged into one store in Banner Elk in 1998.

Expenses dropped from $331,000 among the three stores in 1998 to $145,000 in the first year of the merger. Profits rocketed from a pre-merger, collective total of $98,000 to $247,000 for the merged store.

"The system needs changing," said state ABC commissioner Mike Joyner of Charlotte. "It's been 70 years since it was set up. ... For the most part the local boards do a good job, but you have to honestly question if you need a local board to run one store."

The ABC boards in the state's larger urban areas, such as Mecklenburg's two dozen stores, generally are among the more efficient and more profitable, with centralized management and staff.

The glut of local boards in small towns sometimes translates into a lack of management expertise.

Last summer the state ABC Commission wrote local ABC boards in the 50 smallest jurisdictions after several cases of embezzlement or theft. The letter suggested the boards were failing to sufficiently watch over their stores.

"Situations continue to arise where a manager abuses that trust (of the local board) and breaks the law," wrote Laurie Lee, director of audits and pricing at the state commission, on Aug. 28.

Resistance at local level

"I know that everybody wants to keep their own store for themselves," said Sara Brewer, manager of the Banner Elk store before and after their merger. "But having been on both sides of it, I think they can learn a great lesson from this. ... Some of the smaller stores that could merge together should seriously look at it."Consolidation is something that legislative leaders and candidates for governor say they are willing to consider, but local boards and local officials would mostly oppose it.

The system is a product of the state's history of wanting decisions made as closely as possible to the people, said Fox, the state chairman.

Some legislative leaders expressed interest in re-examining the ABC system, including Senate President Pro Tem Marc Basnight, a Democrat from Dare County. Fox and other advocates for reform, however, likely will have difficulty building momentum for legislation next year, an election year when the General Assembly's session is shorter and legislators are preoccupied with enormous budget questions.

Proponents tout profits

The state commission, composed of three members, runs a central liquor warehouse and sets statewide prices but doesn't operate stores. It can offer help to local boards, but can only intervene when there are major problems.

Officials of local boards defend the system, pointing out rising sales and multimillion-dollar profits.

ABC sales rose 8 percent, to $650 million, in the fiscal year that ended in June. That put $168 million in the state's general fund through taxes and $40 million in localities' bank accounts from net profits.

"Throughout the system, North Carolina does pretty well as far as profitability," said Sigmon, the association of local boards president.

Board members boast of the big checks they write to their town or county that pay for parks or firetrucks. The Catawba County ABC board handed over $900,000 to that county last year. Mecklenburg County and Charlotte received a total of $4.4 million from the county ABC board.

But 32 boards, about one-fifth of them, did not give a single dollar to local government last year, according to state data. Some boards didn't make enough money, while some newer boards had too many start-up bills to pay. The lack of contributions raises questions about one of the board members' central arguments for their system -- that they return money to their community.

Merger more beneficial?

Mergers are still rare, despite success in the Banner Elk area and another recent example near Greensboro.

When Bermuda Run, in Davie County, created an ABC board in 2005, the board considered opening an independent store, but instead consolidated with what is now the Triad ABC board, which already had 13 stores.

By merging, Bermuda Run's store generated revenue for the town in the first year instead of several years later, as is typical for stand-alone stores. The merger saved on staff, accounting costs, insurance, store design and bulk purchasing power, said Sam Krause, the town's representative on the Triad Board.

"It wasn't a difficult decision at all," Krause said. "It was so much more advantageous from a financial standpoint."

Still, boards almost never take that step.

Sigmon said he doesn't want mergers forced on anybody, but acknowledged they don't take place in some cases when it seems logical. Lincoln County voted to create its own ABC board in 2002, when the town of Lincolnton already had a board that had run its store for 35 years.

"Rather than merge with Lincolnton, (Lincoln County) set up their own system, which is, to me, a little redundant," Sigmon said.

http://www.charlotte.com/breaking_news/v-print/story/318252.html

34. Tobacco-Free Campuses Improve Health (North Dakota)

Peton Daily News
October 19, 2007

A timely matter continues to present itself to the North Dakota State College of Science campus. Many campuses in the state of North Dakota as well as several state universities in Minnesota have gone smoke-free or tobacco-free. Jason Bergstrand, tobacco prevention coordinator at the Richland County Health Department, presented a slideshow on campus Wednesday on the benefits of having a smoke-free or tobacco-free campus.

North Dakota campuses that have gone smoke-free include Minot State University, and campuses that have gone tobacco-free include University of North Dakota, Bismarck State College, Jamestown College and Valley City University.

As released by a North Dakota Core Survey, 29.5 percent of current NDSCS students are smokers while the rate for all other campuses in the state is 16.6 percent.Tobacco use is also the No. 1 preventable cause of death and disability in the United States. More than 430,000 die annually.

"Secondhand smoke is equally dangerous," Bergstrand said.

Bergstrand emphasized that tobacco's impact on health outweighs those of alcohol, motor vehicle accidents, homicides, HIV and suicide. The number of people who die annually because of those issues combined don't equal the deaths caused by tobacco use each year.

"Although the consequences may not be as immediate as drunk driving, it's a significant issue," Bergstrand said.

The benefits of the NDSCS campus moving to a tobacco-free campus are wide spread and would affect the whole campus if the choice was made to adopt a tobacco-free policy.

"Should we do it because everyone else is doing it? Probably not," Bergstand said. "Should we do it because it's the right thing to do? Yes."

Bergstrand said more often than not, in driving by campus, students or others are standing outside smoking and "it doesn't reflect very well on the community as a whole," he said. Benefits of going to a tobacco-free campus include a cleaner and healthier campus, an improved social and community reputation and "I'm almost positive you'll see a less burden to your student health service," Bergstrand said.

In addition, the campus would more then likely see improved student health with increased class attendance and better academic comprehension by the students.

Also, because many employers are seeking workers who don't smoke, a campus that promotes no smoking would ultimately provide more marketable students to enter the workforce.

Going to a tobacco-free campus would also benefit NDSCS because it would decrease the initiation to tobacco use and most likely decrease tobacco consumption because it wouldn't be allowed anywhere on the campus.

The last of the benefits Bergstrand included, although there may be many more, was a no tobacco use policy would cause less exposure to secondhand smoke.

The idea of a tobacco-free campus continues to present itself but NDSCS has yet to officially adopt a policy.

"I think your administration is in favor of moving to a smoke-free campus, but they'd like to see it come from underneath," Bergstrand said. If it would happen, Bergstrand said the NDSCS administration would like to see students or faculty present the issue.

Weather

http://www.wahpetondailynews.com/articles/2007/10/18/news/news01.txt

35. Changes in Law have hurt Oklahoma Winemakers (Oklahoma)

Z wire
October 16, 2007

Voters popped the cork for Oklahoma winemakers seven years ago with a law that allowed them to sell directly to liquor stores and restaurants. In time, the number of vineyards grew from four to 40 and vintages with names like "Route 66 White" appeared.

But the good times stopped when a federal judge invalidated that law and the Oklahoma Legislature did not step in to help.

Now Oklahoma winemakers wonder if they can survive.

"We're back to where we were, where you have to get your product distributed by a wholesaler," says Gary Butler, president of the Oklahoma Wine Makers Association.

Judge Stephen Friot invalidated the wine law in 2006 because it discriminated against out-of-state wineries, who are not allowed to sell directly to liquor stores or restaurants in Oklahoma. He delayed enforcement of the ruling until July of this year to give the Legislature time to fix it.

But during the 2007 legislative session, lawmakers, under intense lobbying from liquor wholesalers, declined to enact any of several proposals to retain Oklahoma winemakers' markets or open up new ones. One idea was to permit wineries to ship to customers' homes.

Oklahoma wineries, mostly mom-and-pop operations, have been trying to catch up with neighboring Arkansas, Missouri and Texas, which have long winemaking traditions. Before the court decision, winemaking appeared to have great potential in Oklahoma, even though it is a conservative state that did not repeal Prohibition until 1959.

The arguments of winery enthusiasts were strong: homegrown economic development, a boost for tourism, another important crop in an agriculture state.

Some winemakers even dreamed of a Napa Valley in middle America. Oklahoma has a long growing season, too, they reasoned.

"This is a good grape-growing state," said Don Neal, who operates StapleRidge Winery at Stroud, between Tulsa and Oklahoma City, with his wife, Annetta, a former first-grade teacher.

California, where many Oklahomans fled during the Dust Bowl, is by far the biggest wine producing state.

36. New US$2m Wine Research Institute for Oregon (Oregon)

Oregon's wine industry is set to gain a new US$2m (£1m) academic institute with money from its winemakers and state funding.

Panos Kakaviatos

October 18, 2007

Although still in the planning stages, the Oregon State University Wine Institute is expected to be operational by autumn 2008. The bill is to be divided in two with Oregon vintners stumping up $1m and a state legislature allocation matching the sum.

Patty Skinkis, a viticulturalist at the University, said they were already looking to hire a director and 'new positions in the institute'.

The institute's mandate wil be to assist the Oregon wine industry with research for both winemaking and vineyard work, and will support wineries with business decisions and marketing.

'I think it is a great opportunity for this industry, long under the shadows of a much more mature California industry,' said Steve Thomson, executive vice president of King Estate Winery. '[We can] step up and build some of the infrastructure that we need.

He added that Californian research, often conducted by the University of California, Davis (UCD) or California State Fresno, is 'not necessarily valid' with regard to Oregon varietals - mainly Pinot Noir and Pinot Gris.

http://www.decanter.com/news/150361.html

37. Seven Firms Vying for Liquor Sore Deal (Pennsylvania)

Bill Toland

Pittsburgh Post-Gazette

October 18, 2007

Four Pennsylvania marketing firms and three from out of state have submitted proposals to remake the Pennsylvania Liquor Control Board's image and create an "enduring, iconic brand," as the post-Prohibition agency enters its 75th year.

The contract will give the winner carte blanche to overhaul the stores themselves, coming up with new signage and logos, even rearranging the interior traffic flow and merchandise layouts, according to the "request for proposals" (RFP) issued by the board.

The agencies are:

LevLane Advertising, Philadelphia; Gyro Worldwide, Philadelphia; Pavone, Harrisburg; Neiman Group, Harrisburg; Redscout LLC, New York City; G2, New York City, and Landor Associates, of San Francisco. (Pavone already handles some public relations duties for the liquor stores and the Pennsylvania Winery Association.)

The PLCB, which had $1.69 billion in sales in the 2006-07 fiscal year, has seen increased sales during the past decade, but believes it could perform better if its image were streamlined.

38. Smoking Ban Earns Broad Support (South Dakota)

71 Percent say cities should make rules for bars, restaurants

Megan Myers
Sioux Falls Argus Leader

October 14, 2007

Photo by Elisha Page / Argus Leader

Wayne Jones owns Waterhole No.1 on West Madison Street. "Back when I took over, 75 to 80 percent of people were smokers," Jones said. "Now I guess it's about 20 percent, or less than that."

Sioux Falls residents want local control over smoking in bars and restaurants, and with such power, most would favor a complete tobacco ban in the state's largest city.

According to a citywide poll conducted for the Argus Leader, 71 percent of people surveyed want the state to allow local government to decide where smoking would be legal, while 21 percent favor state control. Eight percent were undecided.

That's not news to many local control advocates who feel cities should be able to decide.

"Right now, nobody's got an option," said Yvonne Taylor, executive director of the South Dakota Municipal League.

If local regulations were allowed by the state, 59 percent of those surveyed said they would support a comprehensive ban on smoking in bars and restaurants, while 37 percent would oppose such a ban. Four percent were undecided.

"If that were to happen, and the city would be able to make that decision, I think there'd be a strong push at that point in time to go smoke-free," said Pat Costello, a Sioux Falls city councilor.

The scientific poll involved 625 registered voters in Sioux Falls. The individuals were surveyed during the first three days of October. The margin for error is plus or minus 4 percent.

The poll numbers bolster the arguments of smoking foes who plan a push for some form of a smoking ban in the 2008 Legislature. Measures to further restrict smoking in public places have met resistance in the Legislature each year since the state's 2002 law banning smoking in nonhospitality workplaces went into effect.

Opponents of an across-the-board ban have long maintained that business owners should decide for themselves, and if they choose to allow smoking and some customers don't like it, those customers can eat or drink elsewhere.

"It's a legal product, and the businesses should determine whether they want it or not," said Sen. Gene Abdallah, R-Sioux Falls. "That should be up to the individual that makes the investment and for businesses to be able to make a profit."

Those who favor a ban say medical studies consistently show that second-hand smoke can cause lung cancer and a range of other illnesses, and that employers who allow smoking expose their workers to a potentially lethal health risk. They add that workers don't simply have the option of walking away from their jobs.

"We know there's support across the state for more smoke-free laws," said Jennifer Stalley, project director for the South Dakota Tobacco-Free Kids Network and director of government relations for the South Dakota chapter of the American Cancer Society.

Current law

A new ban would expand South Dakota's smoke-free workplace legislation passed in 2002 that banned smoking in most public places.

The law allowed exemptions for sleeping rooms in motels, tobacco shops, video lottery casinos, Deadwood gaming halls and places with on-sale liquor licenses.

Supporters of the 2002 law thought it would limit tobacco to establishments restricted to people older than 21. But some restaurants found ways around the ban by buying malt beverage licenses that let them allow smoking while not actually selling alcohol.

It's an issue that's been playing across the country this decade.

Twenty-two states have passed comprehensive indoor smoking bans, based largely on the principle that exposure to secondhand smoke is dangerous. Minnesota's ban went into effect Oct. 1.

A June 2006 U.S. Surgeon General's report concluded that secondhand smoke can lead to lung cancer and heart disease in nonsmoking adults and can cause sudden infant death syndrome, respiratory problems, ear infections and asthma attacks in infants and children.

Nonsmokers exposed to secondhand smoke at home or work increase their risk of developing heart disease by 25 to 30 percent and lung cancer by 20 to 30 percent, according to the report.

Costello said as a city councilor in Sioux Falls, he's in favor of bringing government closer to the people.

"We think the more local the decisions are made, the better," Costello said.

But he's also a bar owner and restaurateur, and he fears the repercussions of having a hodgepodge of varying smoking laws in the Sioux Falls area.

For example, if Sioux Falls banned smoking, and other cities such as Brandon, Tea and Harrisburg did not, "it could incentivize those groups of people who smoke to go out of town," Costello said, adding that he worries such a situation could lead to increased drunken driving.

"Local control I'd like to see, but to the extent that it's not consistent, it's problematic," he said.

Republican Sen. Tom Hansen of Huron, who sponsored last year's smoking ban legislation, sees that point.

"I've had business owners and bar owners tell me that they would sure appreciate it if someone would make that decision so they wouldn't do something that would put them at a competitive disadvantage," Hansen said.

Taylor, of the Municipal League, said cities and counties already do have different ordinances, from speed limits to sales taxes.

"I don't know why (smoking) would be any different," Taylor said. "And I think there's a limit to how far someone would drive to go smoke."

Mixed views

Many other bar and restaurant owners and their patrons are mixed on smoking bans and local control.

Wayne Jones, owner of Waterhole No. 1 on Madison Avenue in Sioux Falls, said he's seen smoking by his customers decrease dramatically since he bought the bar in 1972.

"Back when I took over, 75 to 80 percent of people were smokers," Jones said. "Now I guess it's about 20 percent, or less than that."

Jones said he doesn't plan to hang up a "no smoking" sign anytime soon; he uses an exhaust system that he says filters out much of the smoke, and that's good enough for now. But he wouldn't protest if a ban went into effect.

"If it comes to that, then I would go along with it," Jones said. "But I still believe it's the choice of a person to decide whether they want to go somewhere where there's going to be smoking."

Connie Mogen of Sioux Falls, a former smoker, said she would support a ban - local or statewide.

"I understand the addiction; I used to smoke myself," Mogen said. "But I think it shouldn't affect other people.

"It's not like alcohol, where you can all sit in the same place and drink and one person can decide not to drink and isn't affected by the others," Mogen added.

But banning smoking in bars and restaurants leads cities down a slippery slope, said Jay Cornwall of Arnold's Park, Iowa, who regularly visits the Sioux Falls area to eat lunch.

"If you start banning all that stuff, what'll be next? Saying I can't eat a cheeseburger because it's bad for me?" Cornwall said.

"If you're in here, and the smoke bothers you, I've got an idea -- leave."

http://www.argusleader.com/apps/pbcs.dll/article?AID=/20071014/NEWS/710140322/1001

39. Group’s Place Value on Alcohol Initiative (Texas)

John Lowman

The Facts.com
October 14, 2007

A pair of Brazoria County groups are arguing family values against the value of increased commerce in the buildup to a Nov. 6 vote that could legalize the sale of wine in county stores and mixed drinks in restaurants.

Brazoria Residents to Advance Community Economics, and Circle the Wagons — an unofficial group not registered with the county elections office —are gearing up for the fight.

“We are supporting this based on economic issues to our community as well as Brazoria County,” said Pearland resident Gary Bucek, a member of BRACE. “In stores, not only would you add the cost of wine, there’s the obvious sales taxes.”

For every $1 in wine sales spent in communities allowing such sale, a shopper buys an additional $3 in merchandise, he said.

“If someone goes to a grocery store in Harris County, they’ll pick up other items like bread, milk. … It’s just convenient to buy all the things you need at once,” he said. “We’re only selling wine and are in it for the economic impact.”

Family, not money, should drive the vote, said Larry Townsend, an Alvin resident who helped organize Circle the Wagons with a handful of members.

“There’s not a family in Brazoria County who hasn’t been affected adversely by someone who has gone to the bottle and couldn’t get off,” he said. “The folks for this have big bucks donated to them and the whole thing is about money.

“Money talks. It doesn’t always tell the truth, but it always talks.”

The Brazoria County Local Option Election would allow “the legal sale of beer and wine for off-premise consumption only,” and “the legal sale of mixed beverages in restaurants by food and beverage certificate holders only,” according to a sample ballot on the county’s Web site.

A vote “For” will allow alcohol sales. A vote “Against” denies the proposition. Each can be voted on separately.

Wine already is available in grocery stores in some cities with beer available in all except Sweeny, which is dry. If both pass, wine could be available in all grocery stores in Brazoria County and not just liquor stores, and restaurants no longer would be forced to be “private clubs” requiring memberships to sell mixed drinks, lead elections clerk Susan Cloudt said.

Richwood was voted dry in 1967 with beer allowed in 1968. Sale of alcoholic beverages was voted in for Angleton in 1977, and Surfside Beach and Freeport in 1978. The same measure passed in Iowa Colony in 1992 with beer and wine legal in Quintana in 1996.

Sale of mixed beverages in restaurants by food and beverage certificate holders only became law in Pearland in 2002 and in West Columbia in 2006.

Proponents have pushed for a countywide measure since that time, enlisting the aid of Texas Petition Strategies, a collection of “veteran political consultants” who “help you with your campaigning,” according to the Austin-based firm’s Web site.

Repeated calls to Petition Strategies consultant John Hatch were not returned.

A similar measure about 25 years ago was defeated by a few dozen votes, Townsend said. The more alcohol available, the more tempted will be someone prone to drinking, he said.

“Many, many people have had to go to AA or whatever to straighten out their lives, and if this passes, they can’t even go to the drug store to buy Band-Aids without seeing it,” he said. “I can’t just stand idly by and watch it go on without trying.”

BRACE began their campaign in earnest this weekend, delivering 300 small signs to Lake Jackson businesses. Townsend’s group does not have the money to print signs and he doesn’t plan to begin distributing literature.

Townsend said opponents believe if the current proposals pass, the same people advocating this vote will push for hard liquor in all Brazoria County cities.

“I’ve read the writing on the wall,” he said. “When they get this thing passed, BRACE will turn around and make it over liquor. They won’t be satisfied until they have a liquor store on every corner in the name of prosperity and economic development.”

That’s not the case, Bucek said.

“We’re selling wine, and kids don’t drink wine,” he said. “We’ve been able to buy beer in grocery stores since the 1930s. The only change is the addition of wine sales at supermarkets.”

County commissioners will canvass results Nov. 14, and any changes to the county’s liquor laws would be immediate once retailers and restaurants get the proper permits, Cloudt said.

“You might find wine available as a selection in the grocery store,” she said. “Restaurants would be able to sell mixed drinks without memberships. It would be countywide. Right now, it’s piecemeal throughout the county.”

http://thefacts.com/story.lasso?ewcd=a0e13bab6f79f0e2

40. Chesapeake Prison Guards Plead Guilty to Smuggling Tobacco (Virginia)
Two Indian Creek Correctional Center guards have pleaded guilty to roles in smuggling tobacco and other items to inmates at the medium-security prison in Chesapeake.

John Hopkins

The Virginian-Pilot

October 18, 2007

The two guards pleaded guilty Tuesday in Chesapeake Circuit Court. Mijan Jemmott, 30, and Davis Morris, 48, both of Hampton, entered plea agreements with prosecutors.

Judge Frederick Creekmore sentenced Jemmott to a 12-month suspended sentence for obstructing justice. Jemmott was placed on six months of supervised probation.

Morris, charged with obstructing justice and the unauthorized delivery to prisoners, was sentenced to 12 months in prison on each charge. All but two months were suspended.

Morris is expected to serve his time on weekends, starting Oct. 26.

Both men had been indicted for felony bribery. Those charges were amended to misdemeanor obstruction of justice.

The Virginia Department of Corrections did not release information on the two guards' crimes and alleged smuggling activity.

Larry Traylor, a prison spokesman, said Jemmott had worked as a guard since March 25, 2004. Morris had worked there since March 16, 1994. They were both terminated Feb. 27, 2006.

The prison, at 801 Sanderson Road in Chesapeake, is a long-term, treatment facility for substance abuse offenders.

http://content.hamptonroads.com/story.cfm?story=134861&ran=8762

23. Kickin' the Habit

12. Codorniu Group of Spain, Owners of Artesa Winery Acquires A.V. Imports and Appoints New Management

Jennifer Hemmingsen The GazetteOctober 15, 2007

Here's a look at the groups' leaders and what they have at stake:

The Committee for Healthy Choices

Co-chairs the Rev. Mark Martin and Dr. Rick Dobyns organized last spring's petition drive that spearheaded the ballot initiative.

Dobyns, 51, a family practice doctor and University of Iowa medical professor, made a 21-and-older ordinance a platform issue in his unsuccessful 2005 bid for an Iowa City Council seat. He said his job as a doctor is to educate patients so they can make their own decisions.

If the ordinance fails on Nov. 6, he said, he'll still feel like he did his job.

In April, Dobyns helped form a panel of community members to study drinking problems in Iowa City. The panel recommended enacting a 21-and-older ordinance last fall.

Martin, 62, of Iowa City, said if the ordinance passes he and his wife might go downtown for dinner more often, but that he's advocating the change because he feels a responsibility to the young adults in his church and in the community.

``I don't think we're being helpful to them by being permissive on this issue,'' he said.

As of Friday, the Committee for Healthy Choices had collected $5,260 in cash, including a $1,000 donation from the Johnson County Medical Society, treasurer Michael Cabbage said. He declined to be interviewed about his involvement for this article.

``This is not any magical answer,'' said Cohen, 55, who ran for City Council in 2001. ``Does it reduce binge drinking? Does it reduce underage drinking? Possibly. I don't know that anyone can say that factually. But at what price does that happen? I feel it's at too high of a price.''

Cohen said her primary concern is safety, and she's worried underage drinkers will be assaulted and dangerously intoxicated at house parties if the ordinance passes.

Student Health Initiative Task Force

He said the group wants to address students' demand for alcohol by providing alternative entertainment instead of trying to cut off the supply. It has launched a Web site devoted to defeating the ordinance and a Facebook group that boasted more than 3,200 members last week.

``We want students to walk out of the bar,'' said the group's co-chair, Matt Pfaltzgraf, 22, of Ankeny. ``We don't want them pushed out.''

Pfaltzgraf, a senior finance and political science major, said he thinks banning underage people from bars will force parties into apartments and landlords will increase rents to cover additional damages. He said he has underage friends who work in bars, and they'll have to find new jobs.

``I don't want to leave school worse than when I came,'' he said. http://www.gazetteonline.com/apps/pbcs.dll/article?AID=/20071015/NEWS/71014025/1001/NEWS

17. Sides Clash on 21-Only ProposalFew Students Attend Forum

Rob DanielIowa City Press-Citizen October 19, 2007

One side promised that underage binge drinking and disorderly conduct would continue in downtown Iowa City bars without a 21-only ordinance, while the other side said that binge drinking would spread to the surrounding neighborhoods.

"They continued to battle with the fraternity houses," Cohen said of Ames police. "(A 21-only ordinance) by no means has solved things in Ames."

"Bars are for drinking," he said. "You do not see people being entertained. You see people being held up by the person next to them. Entertainment is secondary."

Clayton said Iowa City has become a "drinking destination" for the region, drawing underage drinkers into town. He said the plethora of bars downtown has caused them to compete by lowering prices for beer and other liquor.

"We have too many bars," he said. "They're forced to differentiate themselves, and one way is through price."

Cohen said that despite excess drinking by some students, there are few major incidents in downtown Iowa City. She said more education is needed along with UI and the rest of the community needing to work together to come up with more activities that do not revolve around drinking.

"You have to have a packed Memorial Union," she said.

While about 35 people attended the forum, most were older than the average UI student. Karin Franklin, who moderated the forum for the League of Women Voters, said she did not know why so few students showed up.

http://www.press-citizen.com/apps/pbcs.dll/article?AID=2007710190324

18. Iowa's Drinking Called EpidemicExperts say binging affects health later

Lee HermistonIowa City Press-Citizen October 13, 2007

It has been more than 12 years since the death of University of Iowa student Matthew Garofalo, and it's likely that few, if any, students on campus even know who he was or how he died.

Although this may be the most extreme example of the effects of binge drinking, health professionals warn that the culture of excessive drinking in Iowa City and at UI is creating problems for students right now that will continue for the rest of their lives.

Binge drinking is defined as five or more consecutive drinks in a sitting in a two-week period for men and four or more for women.

Harvard's statistics also show that although the percentages of occasional binge drinkers have declined since the study began in 1993; the percentage of frequent binge drinkers has increased.

UI students rate much higher than college students on average, where only two of five students nation wide report binge drinking.

Will binge drinking decrease?

However, opponents argue such a measure would not decrease binging and simply would push underage people out into the communities and into unsupervised and potentially dangerous house parties.

Atul Nakhasi, a UI junior who founded the anti-21 group, the Student Health Initiative Task Force, said the proposed ordinance "directly impacts student health and safety," by potentially driving underage students to house parties.

Richard Dobyns, a clinic professor of family medicine at the UI, said it's difficult to speculate whether or not there would be more house parties.

"Could there be? Sure. You can speculate in either direction," Dobyns said. "There's always been house parties, there's always been pre- and post-drinking. Basically, what this initiative will instigate, not by itself, is a reduced alcohol consumption culture."

Dobyns said he believes the drinking rate among students has reached epidemic proportions. That belief has caused Dobyns to take action and act as a spearhead for the 21-only proposal.

"I mean, if you saw that the state of Iowa had twice the influenza numbers of any other state, you would hope your community would do something about it," he said. "You need to respond. It's not ethical to walk away from something like that."

"If you define health a little more broadly, you would include those things as well," Dobyns said.

Dobyns added that public policy should not be based on random events, such as Garofalo's death.

"It's extremely sad for everyone," he said. "However, you have to look past those sad issues and look at the everyday sad issues."

Effects: now and later

Dr. Peter Nathan, a professor emeritus in community and behavioral health, was acting UI president at the time of Garofalo's death. He said it was hard to predict whether Garofalo's death would have been prevented by a 21-only measure.

"Would this have happened to Matthew if the referendum happened at the time?" Nathan said. "Matthew didn't drink in the bars."

The long-term effects are more severe, Nathan said. Frequent binge drinkers -- which represent about 46 percent of the student body -- are at a much greater risk to develop alcoholism after college.

"Alcoholism, in turn, is associated with a lot of sociological, psychological and physical problems," he said. "Alcoholics, on average, die several years early."

That's not to say Iowa City is inundated with alcoholic graduates from the university. Nathan said well-educated communities like Iowa City tend to have fewer alcoholics than other places.

Nathan said out of each graduating class, there could be up to 5 to 10 percent of the students who meet the criteria for alcohol dependence. Many of them don't stick around Iowa City, though.

"Students who graduated from here do a whole lot of things," Nathan said. "Some stay here, many don't."

Nathan said if parents are worried about sending their kids to the UI and having them come home with alcohol abuse problems, their concerns are valid, although coming to the university does not doom students to a life of alcoholism.

"The damage is still there"

However, centers that treat people for substance abuse problems, such as MECCA, are seeing people in their late teens and early 20s. Steve Steine, the clinical coordinator for MECCA's Iowa City location, said students are coming to the facility for outpatient programs.

"Most of the college students that we are seeing are those that have had a first or second OWI offense," Steine said. "Or, they may have what we would call recurrent alcohol-related issues; two or more public intoxications, two or more PAULAs, that really would have them meeting the criteria."

"It's difficult to track," Steine said.

Steine didn't wish to weigh in on his view of the ordinance but said the problems with alcohol consumption might not be solved by laws and fines.

"There's quite a few young people that come in and say, 'Well, I'm depressed,' and we ask them, 'How much are you drinking?' " Haycraft said.

Haycraft said drinking releases dopamine -- a chemical that triggers a pleasurable feeling -- into the brain. When the drinking stops and the production of dopamine halts, drinkers come down from that high and feel depressed.

However, in terms of physical effects, outside of getting sick or falling and hurting themselves when they're drunk, Haycraft said binging won't do much to younger drinkers.

"When you are 18 to 20 years old, you snap back real quick," Haycraft said. "But the damage is still there. It's one of those things that people don't realize when they're 18 to 20."

Students like Nakhasi, UI Student Government President Barrett Anderson and many others said they don't refute the negative health effects of binge drinking, just the approach taken by the 21-only measure.

"This is not going to fix these issues of underage drinking," Nakhasi said. "We recognize there's a problem...Our goal is not to only address and oppose this measure, but propose a possible solution."

Still, Ralph Wilmoth, the outgoing director of Johnson County Public Health, a 21-only supporter, said something must be done.

"The whole idea that we have an environment that supports that behavior is a contradiction to the very principles that public health is based on," Wilmoth said.

http://www.desmoinesregister.com/apps/pbcs.dll/article?AID=2007710180405 20. Authorities Say Alcohol May Be Involved In Hayride WreckDeputies Say Alcohol Found At SceneKCCI Channel 8October 16, 2007

http://www.wcfcourier.com/articles/2007/10/17/news/regional/82ac53e0de8ff3768625737700451edc.txt 23. Kickin' the Habit

Jennifer Hemmingsen
The Gazette
October 15, 2007

``I don't want to leave school worse than when I came,'' he said.

http://www.gazetteonline.com/apps/pbcs.dll/article?AID=/20071015/NEWS/71014025/1001/NEWS

17. Sides Clash on 21-Only Proposal
Few Students Attend Forum

Rob Daniel
Iowa City Press-Citizen
October 19, 2007

18. Iowa's Drinking Called Epidemic
Experts say binging affects health later

Lee Hermiston
Iowa City Press-Citizen
October 13, 2007

http://www.desmoinesregister.com/apps/pbcs.dll/article?AID=2007710180405

20. Authorities Say Alcohol May Be Involved In Hayride Wreck
Deputies Say Alcohol Found At Scene

KCCI Channel 8
October 16, 2007

http://www.wcfcourier.com/articles/2007/10/17/news/regional/82ac53e0de8ff3768625737700451edc.txt

23. Kickin' the Habit