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www.IowaABD.com |
Lynn M. Walding, Administrator |
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e - NEWS |
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May 16,2003 |
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1. Secret
Merger Talks For Allied
3. Study
Finds Liquor Ads Popular With Teens
4.
7-Eleven Will Sell its Own Inexpensive, Imported Beer
5. Forget
Proposal to Increase State Alcohol Tax, Critics Advise
6. FTC
Study Examines Effects of Online Wine Sales
7.
Windsor Heights Council Weighs Liquor-Buffet Ban
8. Liquor Effects Last Longer Than Earlier Presumed
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1. Secret
Merger Talks For Allied This is Bristol May 12, 2003 |
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Drinks giant Allied Domecq, which has its headquarters at
Bedminster Down, has held secret merger talks with privately-owned rum
distiller Bacardi, according to reports. The Observer said Allied's chief
executive Philip Bowman had met Ruben Rodriguez, the Bacardi chairman, at the
group's Bermuda headquarters in the last month in an effort to strike a deal.
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Business & Entertainment Editors – Business Wire
Miami, FL
May 13, 2003
Diageo, the world's leading
premium drinks business, today took a leadership stance in the industry by
launching an unprecedented program to recognize, detect and prevent
intoxication among Hispanic consumers. The company, through a substantial grant
from the Diageo Foundation, has joined forces with the nationally-recognized
Health Communications, Inc. (HCI), creators of the proven and well-established
Training for Intervention ProcedureS (TIPS) program, to introduce TIPS en
Espanol (Hispanic TIPS), the first server training program in Spanish.
Expanding on its affiliation with HCI, Diageo announced that it will fund the
supplemental TIPS en Espanol Train-the-Trainer program and committed to
sponsoring training workshops in the United States and key countries in Latin
America and the Caribbean.
TIPS, marketed primarily to the hospitality industry, is a program that trains
bartenders and sellers of alcohol beverages in methods geared at preventing
intoxication among consumers. "Over the years, Diageo has worked closely
with organizations like TIPS, and with elected officials, government agencies,
educators, and the public health community authorities on initiatives aimed at
preventing alcohol misuse," said Carolyn Panzer, Diageo Senior Vice
President of Public Policy. "With the explosive population growth among Hispanics
in the United States, we wanted to have an immediate impact with this consumer
segment in the area of social responsibility. Our vision was shared with HCI
and became the genesis for TIPS en Espanol," Panzer continued.
The launch of Hispanic TIPS took place at Bongo's Cuban
Cafe, a bar and restaurant owned by Gloria and Emilio Estefan. World renowned
Emmy and Grammy award winning trumpeter Arturo Sandoval delivered his message
of "Trumpeting Responsibility" and underscored his commitment to TIPS
en Espanol.
Sandoval said, "TIPS en Espanol provides us with a unique opportunity to
train those who serve alcohol as our first line of defense. I am asking my
friends and colleagues in the entertainment industry to join me in using our
reach and influence to heighten awareness on responsible consumption among
Hispanics." Sandoval added, "I am honored to join Diageo and be part
of this important undertaking."
Miami-Dade County Mayor Alex Penelas, international music producer Emilio
Estefan, and State of Florida and local law enforcement officials joined Diageo
executives and other distinguished supporters in the launch of TIPS en Espanol.
"Educating those who serve alcohol is an important
component in the county's overall program in promoting public safety,"
said Mayor Alex Penelas. "As a county with one of the largest Hispanic
populations in the country, I commend all involved in delivering this program
and for providing the hospitality and tourism industries with the necessary
tools to deal with the issues associated with alcohol misuse," Penelas
added.
The launch of TIPS en Espanol was followed by a one-day comprehensive training
of candidates consisting of professionals from leading hotels, restaurants and
bars in the Miami-Dade county area, state and local law enforcement officials,
and employees from Diageo's Florida distributor, Southern Wine and Spirits. It
is anticipated that the newly trained graduates of the TIPS en Espanol program
will share their knowledge with others in the industry to expand the reach of
the program, not only nationally, but throughout Latin America and the
Caribbean.
A study of the Hispanic community in the United States entitled "Snapshots
of the U.S. Hispanic Market," released last April, revealed that the
Hispanic population reached 38.5 million in 2002, or 13.4 percent of the total,
and that it is expected to make up 18.9 percent of the population by 2020.
Since its creation in 1982, TIPS has certified over 25,000 trainers and almost
1,000,000 servers in the United States and around the world. TIPS certification
has its privileges and benefits. Bars, restaurants and other establishments can
receive discounts of up to 25 percent off liability premiums from their
insurers. Also, studies show that when a TIPS program is in place, there is a
50 percent reduction of intoxicated patrons, as well as 13 percent increase in
gratuities. Courts recognize TIPS as the standard for server training programs
and use TIPS records in legal proceedings.
TIPS en Espanol is in line with Diageo's vision of Celebrating Life
Responsibly, Every day, Everywhere. "Diageo strives to set the pace in
social responsibility. We have developed a mandatory Marketing Code that we
believe represents best practice in the industry," said Panzer. "Recognizing
that with leadership comes responsibility, Diageo will continue to develop
initiatives and fund organizations around the world whose mission is to fight
underage drinking and alcohol misuse."
About Diageo
Diageo is the world's leading
premium drinks business with an outstanding collection of beverage alcohol
brands across spirits, wine and beer categories. Diageo is a global company,
trading in more than 180 countries around the world. The company is listed on
both the New York Stock Exchange (DEO) and the London Stock Exchange (DGE).
Entirely committed to the well being of the individuals in every community
where it operates, Diageo builds strong and enduring relationships with its
business partners and communities around the world. Diageo has supported a number
of alcohol education initiatives in its principal markets. The company has been
a founding member and leading participant worldwide in a number of social
aspects organizations, which undertake responsible drinking initiatives on
behalf of the industry. For more information about Diageo, its people, brands
and performance, visit us at http://www.diageo.com.
About Training for Intervention ProcedureS (TIPS) Program
The TIPS (Training for
Intervention ProcedureS) program is designed to teach servers, sellers and
consumers of alcohol to prevent intoxication, drunk driving and underage
drinking. There are several versions of the program addressing concerns
specific to different groups. The programs currently available include: On
Premise, Off Premise, Social Functions, Concessions, Casinos, University,
Seniors, Parents and Workplace. All sessions are taught by certified TIPS
trainers, using video and printed materials to facilitate discussion of the
course content. All training materials of Hispanic TIPS are in Spanish,
including a comprehensive videotape in Spanish, as well as culturally sensitive
vignettes. For more information about TIPS and its programs visit http://www.gettips.com.
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3. Study Finds Liquor Ads Popular With Teens
Gadsden Times
May 13, 2003
Magazines popular with teenagers, such as Rolling Stone, Sports Illustrated and
People, tend to have more liquor and beer ads than other titles, suggesting the
alcohol industry may be indirectly targeting underage drinkers, according to a
study.
"Kids also read these magazines, and if this is truly a public health
concern, then we need to find ways to talk about decreasing adolescent exposure
to advertising," said one of the researchers, Dr. Craig Garfield of the
Evanston Northwestern Healthcare Research Institute in the Chicago suburb of
Evanston, Ill.
The researchers compared 35 magazines and found that for every 1 million more
readers ages 12 to 19, a magazine had about 60 percent more beer and distilled
liquor ads.
"We're not in any way trying to suggest that they are doing this
intentionally. It simply may be worth it for them to look a little more closely
at their advertising strategies," said another one of the researchers, Dr.
Paul Chung of the medical school at the University of California at Los
Angeles.
The study was published in Wednesday's Journal of the American Medical
Association and was funded by the Robert Wood Johnson Clinical Scholars Program.
The Distilled Spirits Council of the United States, a major trade association,
ridiculed the study as "typical of the Robert Wood Johnson
Foundation-funded advocacy efforts: rife with flagrant technical errors
bordering on junk science." It said the study's tables show that only 16
percent of the magazines' total readers are ages 12 to 19, so the overwhelming
majority of those seeing the ads are adults.
The council said its member companies "are strongly committed to
responsible marketing and advertising policies directed to adults."
The researchers said major alcoholic beverage trade associations have codes of
conduct pledging to avoid marketing to teens. The researchers said that if
self-regulation by the industry is not enough, then maybe the government or an
independent auditor needs to monitor the situation.
"We always consider that stuff to be the last resort," Chung said.
The Beer Institute, a trade association for the malt beverage industry, said
more regulation will not reduce underage drinking.
"The strongest influences on young people are their parents and their
peers," the group said in a statement. "Providing materials to
parents - that the beer industry does in abundance - that allows them to talk
about drinking with their kids, is the sort of effective solution that this
industry's critics should embrace."
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4.
7-Eleven Will Sell its Own Inexpensive, Imported Beer
By Christopher Lawton and Ann Zimmerman – The Wall Street
Journal
May 12, 2003
During hard economic times, shoppers tend to trade
down to store brands.
But try to find a cheap imported beer. There aren't
many options.
7-Eleven Inc. sees an opening. This summer, the
country's largest chain of convenience stores plans to introduce Santiago, a
private-label beer from El Salvador designed to compete head-to-head with the
nation's top-selling imported brew, Mexico's Corona.
One of the nation's biggest beer retailers, 7-Eleven
wants to take advantage of twin trends in the $60 billion-a-year beer business:
rising prices and consumers' growing fondness for imports. 7-Eleven is aiming
Santiago at the market's sweet spot - slightly more costly than the average
domestic but less than imports. A six-pack of Santiago will sell for $5.99
nationwide - less than a six-pack of Corona, which 7-Eleven stores price at
$6.99 to $7.99. (Of course, some states limit liquor sales, so those 7-Elevens
won't stock the beer.)
The 7 million people who shop at 7-Eleven every day
probably will think Santiago is the latest trendy brew from across the border.
They won't have a hint that it is private label, historically the cheap
category of goods packed in drab plain packages on a store's lower shelves.
Santiago comes in a clear glass bottle with a picture
of the sun on it - pretty close to Corona, which has a similarly shaped bottle
with a crown as its symbol. 7-Eleven, based in Dallas, is hoping Santiago will
appeal to Hispanic customers, who make up almost 19 percent of its shoppers, an
increase of five percentage points in recent years.
The company spent two years developing the product,
creating a flavor similar to Corona's yet distinct. "One of the things we
were going after was to develop a taste that you could drink without that lime,"
says Robin Michel, 7-Eleven's vice president of merchandising, referring to a
customary way to consume Corona.
But despite Santiago's obvious similarities to Corona,
Suzanne McDonald, 7-Eleven's category manager for beer and wine, says she
thinks the product's packaging and flavor will appeal to a wider range of
customers. "We think it has a European flair," McDonald says.
Launching a private-label beer is no easy feat. People
often try new beers at bars - a platform store-label beers don't have. And beer
is mostly about image: That's why brewers spend more than $1 billion a year
advertising their brands. Stores usually don't want to spend that kind of
money, but how else can a beer convey an image while sitting on a shelf?
"The challenge of a beer positioned at the premium side that is produced
for a retailer would be, 'What does it stand for? What's the imagery and the
appeal, and how do you build preference?' " says Andrew Conway, a Credit
Suisse First Boston analyst.
7-Eleven doesn't plan national ads but will promote
Santiago heavily in stores with signs. The strategy relies on customer traffic
at the chain's 5,300 U.S. stores. "Our advantage is clearly one of
scale," says Jim Keyes, 7-Eleven chief executive. Santiago will share
shelf space with more than three dozen imports and flavored malt offerings,
7-Eleven's fastest-growing beer segments.
7-Eleven has experience building powerhouse private
brands: the Slurpee, with $160 million in annual sales, and the Big Gulp
fountain drinks, with $130 million in sales. If Santiago flies, other big
retailers may be tempted to give beer a try. Wal-Mart Stores Inc. says it has
no immediate plans to develop a private-label beer. Among big supermarkets,
just Albertson's Inc. and Kroger Co. have introduced private-label beers:
Albertson's San Lucas has been out for only about a year; sales this year of
Kroger's three-year-old Caguama have been flat.
Nina Gorham, a drinker of imported beer and a regular
7-Eleven customer, says she is looking forward to tasting Santiago. "If
it's as good as their coffee drinks, I'm sold," she says, referring to the
flavored and iced coffee drinks 7-Eleven sells, competing with Starbucks.
Corona's importers say they aren't worried about
losing sales to Santiago. Carlos Alvarez, president of Gambrinus Co., San
Antonio, one of two U.S. importers of Corona, allows the new brew may elicit
some initial curiosity. But it will have a tough time competing against
Corona's carefully cultivated image.
"The consumer is being presented with an imitation
of the real product," he says.
SABMiller PLC's Salvadoran brewery, Cerveceria La
Constancia S.A., will make the beer; its Miller Brewing unit will distribute it
exclusively to 7-Eleven.
Other industry players are watching Santiago's
introduction closely. Beer sales are sluggish this year. Anheuser-Busch, the
world's largest brewer, raised prices for the fourth year in a row, and rivals
Miller Brewing and Adolph Coors Co. followed suit.
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5. Forget Proposal to Increase
State Alcohol Tax, Critics Advise
It would hurt stores in border cities and fail to
meet revenue objectives, they say.
By Lynn Okomoto, Register Staff Writer – Des Moines Register
May 14, 2003
A last-minute legislative proposal to increase Iowa's already-high excise tax on alcohol met resistance Tuesday from those who said the idea hadn't been studied enough and would make Iowa less competitive with its neighbors.
"When you're a border city, your competition
comes from the surrounding states," said Kirk Ivener, a co-owner of Ivy's
Liquor Store in Sioux City. "That would definitely have an effect. It
could maybe produce more people going across the state line."
Senate Republicans on Monday proposed increasing the
tax on alcohol and cigarettes to pay for a $700 million fund that would promote
biotechnology and other economic-development initiatives.
Iowa already ranks third-highest for its
$1.75-per-gallon tax on wine and 25th for its 19-cent-a-gallon tax on beer,
said Lynn Walding, administrator of the Iowa Alcoholic Beverages Division.
Lawmakers did not specify the size of the proposed
increase, but said a 10 percent increase in excise taxes on alcohol would raise
an additional $9 million for state government.
Gov. Tom Vilsack said Tuesday that he'd prefer to stick
with an increase in the cigarette tax - an idea that has received support from
Attorney General Tom Miller, a coalition of 28 anti-tobacco groups, and a
student group called Just Eliminate Lies. Iowa's cigarette tax ranks below
those of many other Midwestern states.
"My focus would be primarily on the tobacco
tax," Vilsack said. "It's simpler, quicker, and I think there's a
political momentum for looking at that tax. I don't know that there's momentum
for the alcohol (tax)."
Walding said an increase in the tax on alcohol might
hurt sales at Iowa restaurants, some of which already are suffering because of
the sluggish economy.
Calls to the Iowa Hospitality Association were not
returned Tuesday. However, a legislative analysis shows lawmakers expect a tax
increase to cause a 10 percent reduction in alcohol sales.
Walding also said increasing the tax on alcohol
wouldn't generate enough money.
"It would take a whole lot of hooch to produce
the revenue being discussed," he said. "The money they're talking
about for the Iowa Values Fund, you're not going to get there by
drinking."
At least 21 other states have considered increasing
excise taxes on alcoholic beverages this year, mostly because of budget
deficits, according to the National Conference of State Legislatures. Arkansas
and Utah have passed such a tax increase into law.
The Center for Science in the Public Interest in
Washington, D.C., has pushed for increasing alcohol taxes nationwide, saying
that alcohol costs the nation $185 billion a year.
"This is an appropriate way to derive some
revenues," said George Hacker, director of the center's Alcohol Policies
Project. "Alcohol use costs this country and states tremendous amounts of
resources in terms of lost work, property damage, law enforcement costs and
drunken-driving crashes, as well as having to treat and prevent alcohol
problems."
Hacker said raising alcohol taxes also would help
reduce drinking, especially among young people.
But Stephany Schwartz, an employee at the Family Mart
in Dubuque, said she didn't think an increase in the state tax on alcohol would
have much of an impact on sales. "If people want to drink, they'll drink,
don't matter how much it costs," she said.
Iowa last increased its tax on beer in July 1986, when
it went from 14 cents to 19 cents per gallon, Walding said. The tax on wine was
increased in 1985 from $1.50 to $1.75 a gallon.
Liquor taxes were reduced from a 60 percent markup in March 1987 to the current 50 percent markup. It's the fifth-highest liquor tax in the nation at $14.41 per gallon. The disparity isn't as big as it looks, however, because in other states liquor is sold by private wholesalers, while in Iowa the state is the wholesaler.
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6. FTC
Study Examines Effects of Online Wine Sales
By Margaret Webb Pressler - The Washington Post
05/12/2003
The Federal Trade Commission just finished a study of
wine buying that looked at how laws preventing consumers from ordering the
nectar of the vine online affect prices at conventional stores. The study draws
some potentially broad conclusions, even though the agency focused on just one
state, Virginia.
All manner of people like to buy wine online, but many
can't because state regulations won't allow it. That's provoking some battles
in a number of states.
The problem with online buying isn't the purchase
itself but the shipping. Many states prohibit "direct shipments" of
any alcoholic beverages to consumers, and in some places it's even a felony.
Other states simply make it burdensome, requiring middlemen and licenses. (In
Delaware, it's illegal to buy or send alcohol from a supplier who doesn't have
a Delaware license.)
The arguments against allowing direct shipments of
wine to consumers are, on their face, understandable. States have the right, under
the 21st Amendment, to regulate the sale of alcohol within their borders. That
helps to control alcohol sales, prevent underage purchases and provide
efficient tax collection.
Many states believe direct shipping would circumvent
these controls, potentially putting more alcohol into the hands of minors and
keeping money out of state coffers. The Wine and Spirits Wholesalers
Association, the trade group representing distributors that sell to wine stores
and supermarkets, supports this position.
This system of controlled distribution has
"served consumers and states well for 70 years," the association says
on its Web page. "WSWA is committed to preserving the integrity of the
state-based alcohol control system." Of course, that system benefits
wholesalers by making them a critical link in the sale of wine.
Even if wholesalers were more open to direct shipments
of alcohol, prickly issues remain, such as underage drinking and tax
collection. Wine lovers dargue that these issues can be handled without restricting
consumer choice.
Most people interested in buying online or directly
from a winery want access to wines they cannot get at local outlets.
Devotees say they're willing to pay taxes and support
efforts to curb underage drinking. Wineries can be responsible for collecting
taxes. Delivery companies can be required to get the signature of someone 21 or
older. Besides, they argue, most online purchases in states where direct
shipping is legal are for higher-end wines that kids wouldn't be buying.
The FTC realized there had been no studies of the
matter, leaving the arguments largely theoretical and ideological. The agency
studied all the wine shops in the Washington suburb of McLean, Va., comparing
their offerings with those online.
The study found that "if interstate direct
shipping were legal, Virginians would have access to greater wine varieties and
some lower prices," said Jerry Ellig, acting director of the office of
policy planning.
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7. Windsor Heights Council Weighs
Liquor-Buffet Ban
By Wendy Weiskircher, Register
Staff Writer – Des Moines Register
05/14/2003
Windsor Heights could be the next
metro-area city to ban all-you-can-drink bar specials if the City Council
passes an ordinance Monday.
Not that Windsor Heights is a hotbed of so-called
liquor-buffet activity, City Administrator Marketa Oliver said. But Waukee,
West Des Moines and Clive all have banned the drink specials, and "we
thought it was a good idea," she said.
"I don't know that we have a lot of bars here
that offer those specials," Oliver said. "The issue is more do we
want to be the only place that allows it?"
The Windsor Heights City Council will meet at 5 p.m.
Monday in the City Hall council chambers, 1133 66th St.
Approval of the ordinance would ban drink specials in
which patrons pay one cover price - up to $15 - and receive unlimited drinks
the rest of the night.
"It prohibits a free-for-all," Oliver said
of the proposed ordinance.
There would be an exception for private gatherings,
such as bachelorette parties, she said.
The college towns of Ames and Iowa City both have
banned drink buffets, and Des Moines considered a similar ban last fall. If the
Windsor Heights ordinance is approved, Oliver said she does not expect the ban
to have a major effect on the Windsor Heights bar scene.
"It's a public-safety issue," she said.
Clay Cook, owner of the Front Row bar in Windsor
Heights, said he supports the ban.
"I think it's a good idea - I'm all for
it," he said. "I don't mind two-for-one drinks every once in a while
or lowering drink prices 50 cents to bring people in. But those $5
all-you-can-puke specials don't help anybody."
Another issue being watched by the council is the
upkeep at the Paradise Mobile Home Park, 6400 Hickman Road. Officials last
month ordered residents to resolve nuisance issues after neighbors complained
about "trash and those kinds of things," Oliver said.
Residents received cleanup orders April 18. If
problems aren't resolved, Oliver said, those living in the mobile-home park
face municipal fines. Oliver said progress has been made.
"I was out there recently and saw people
planting flowers," she said. "The people out there have been
terrific. They've done a really good job getting it cleaned up."
The park will be discussed at Monday's council meeting.
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8. Liquor Effects Last Longer Than Earlier Presumed
Yahoo! News: World
May 15, 2003
Washington, May 15 (ANI):
Researchers have found that executive cognitive function (ECF) is more impaired
during the descending limb of the blood alcohol concentration curve, when
people no longer feel stimulated by alcohol.
These findings indicate that intoxication effects
last much longer than previously believed. ECF encompasses a number of
"higher order" cognitive abilities, such as attention, abstract
reasoning, organization, mental flexibility, planning, self-monitoring and the
ability to use external feedback to moderate personal behaviour.
A study, published in the latest issue of Alcoholism:
Clinical and Experimental Research, has confirmed that not only does alcohol
impair ECF but, surprisingly, this effect is more pronounced on the descending
rather than the ascending trajectory (or limb) of the blood alcohol
concentration (BAC) curve.
"Executive functioning is basically a metaphor
for frontal lobe functioning. This area of the brain, the prefrontal cortex,
arguably defines us as a species; it is roughly 120 percent larger in humans
than in our closest primate relatives. In fact, some Russian neurophysiologists
refer to it as the area of the brain that pulls the past, the present and the
future together. In other words, it puts things in context", explained
Robert O Pihl, professor of psychology and psychiatry at McGill University and
first author of the study.
This finding has important ramifications for
behaviours such as driving. "People who think they have waited two hours
before driving home may need to actually wait six hours. Or else, maybe at the
time when you least expect it, you are the most vulnerable", he added.
(ANI)
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