Attachment 16tgtbeningAlcohol Re�ulatlo
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By Pamela S. Erickson, M.A., CEO
Public Action Management, PLC
Former Director, Oregon Liquor Control Commission
CADCA 23rd National Leadership Forum
February 4-7, 2013 Washington, D.C.
i
■ Overall objective is to encourage greater community
use of local and state alcohol regulations which curtail
price, promotion, product and place. Three segments:
■ Basic review of how alcohol regulation represents the
" strong strategies" in reducing alcohol harm.
■ How retail market trends and deregulation decrease
prices, increase availability and promote cheap alcohol.
■ Discussion on how to work in your community to limit
outlet density, reduce high volume purchase discounting,
and remove dangerous products from stores where youth
00MIGrAM,
We are in a period of apathy about alcohol harm; our
]leaders seem unaware of the high price we pay,
• CDC estimates 79,000 deaths
occur due to alcohol annually.
Contrast With 6,000 people lost in
two wars.
• Despite progress on underage
__ _. drinking, it is still unacceptably
high*
@ Alcohol is a causal factor in crime,
domestic Violence and other social
problems.
• In 2011, 9,878 people died and
350,000 were injured from drunk
driving crashes. $132 billion cost.
• If a new product came on the
market and created that number
of tragedies, there would be mass
hysteria!
mayproduce social
harm when alcohol
0s sold,.
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your business plan would include:
Efforts
retain and i*ncrease
customers
" frequent buyers"
Discounts
flowers
0 0
romotions to gain
"flower-loving
" customers
WIllat 'stitute
ha PP ens when you
alcohol
Your business flan calls for:
❑ Marketing to heavy drinkers
and alcoholics. Estimates of
MM underage market are 11 - 18'" '/'1
20% dri*nk heavily or above
recommended levels.
Use of dl*scounts
encourage heavy use.
Marketl*ng to youth to
encourage present and future
alcohol use,.
1 Market Regulations
Prevent this
Scenario: Large
Quantities of Cheap
Alcohol Widely
Available and
HeaVily Promoted
In general, here 1*s how alcohol regulation works to control
business practices,,
What does research say
alcohol regulations.
Credible -research from public
health officials such as the Centers
Health Organization have
confirmed the effectiveness of
basic alcohol regulations.
Z77)--
Example: "Alcohol, No Ordinary
Commodity," Second Edition):
the strong strategies are
"'restrictions on affordability,
availability
and accessibility, as
well as drink -driving deterrence
r.neasures))
about these
Look what happened in the retail sector before
Prohibition:
■ Alcohol sold primarily in "Tied
House" saloons. Large, out of state"r
—'c:4
manufacturers own many retail x 1 x I x i
outlets.
Most common drink was beer, sold in
glasses, keys and buckets.
IR
Aggressive sales promoted high I
volume drinking. F/I
x' x'
x�x�x� 11// /
■ Social t3roblems: public diso.
intoxication and addiction, fan
wages squandered, prostitution
gambling.
ie saloon system is
can't happen today,
ancient history.
6 But deregulation in the United
Kingdom has fostered an alcohol
epidemic.
Today alcohol is available in bars,
clubs and grocery stores 24 hours
a day;,
7 days a week.
Underage drinking rates are twice
ours; hospitalization and disease
due tic) alcohol have doubled in
just 10 years,.
A
4
Hospital 40MI$$10n �rat ipi co
,es wr al hmic over
dsease, 198,90 to 2 0210-3 Engla, nd,-, by sex
5
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Source: Oxford Univesity Press, Medical Council
on Alcohol, c 2012
UK alcohol epidemic: Large grocery chains are widely
blamed as prices fall and promotion is aggressive
Four large chains control 75%
of- the market.
M r -
,Lost use alcohol as
leader "
ng, before going to
bars, has i*ncreased,
]he large
GO
price wars.
A US exam. ple of deregulation,
0 S
Washingto tate
Costco re -wrote 60 pages of state alcohol
laws and gave $22 million to a campaign to
pass a ballot measure in November 2011 to
privatize spirits and deregulate wine.
0
The re -written statutes have *increased
availability of spirits
to over 1,700 outlets
from 328 state stores
(and more are hkely)l
Prices increased due to new taxes, thefts
skyrocketed, small 1iquor stores are failing,
small wineries and disfifleries have lost
money. Simplistic ideas dealing With
complex problems rarely work.
Supermarket chains have become
dominant force in the alcohol marke
They want to sell all forms of alcohol
in lightly regulated environments. I
Many new outlets as drug stores'l,
convenience stores, "dollar stores"
apply for licenses.
* In-store advertising over -exposes
youth to alcohol ads.
* Governments are desperate for
revenue and seem willing to ignore
likely consequences.
We should not be swayed by a need for customer
convenience
b Ameri*cans
a not
St
freauent
consumer
American Alcohol Consumption
13 Do not drink
®Drink 1 - 11 per year
0 Drink 3 or less per week
■Moderate drinkers
0 Heavy drinkers
The cost of getting it wrong is high as re-
regulation takes time and problems will fester
■ This isn't Russia, Democracies
require slow deliberation for
wise decision-making. (1n
contrast, Russia solved
problems with casinos in 2009
by closing,
■ Industry has considerable
power. Meanwhile public
health is often silent due to
grant prohibitions on
"lobbying,"
■ It pays to be very careful when
de *deregul�.tionconsi ring as it
4.
will be difficult to revert back.
11
How can w --e avoid an alcohol
epidemic?
k
Our greatest protection is an effective alcohol
control system which addresses the ABC's of
regulation:
■ Availability. Allows alcohol to be sold by the bottle and the drink,
but limits the number, location, types of alcohol products, and hours
of outlets.
■ No "Bargain Booze". Regulations balance prl*ces5 control price
competition, and restrict dangerous marketing and promotional
practices.
■ Children and. 'T'eens. Age restrictions protect young people from the
serious problems of underage drinking.
■ Drunk driving. Creates and enforces strict measures against drinking
and drl*vl*ng—sobriety checks, blood alcohol limits, driver's license
suspension.
'■ Education and Enforcement,, Uses the carrot of education (alcohol
awareness programs, "schools" for offenders) and the stick of
enforcement (fines, community service and fail) when education fails.
* Source: Adapted from World Health Organization recommendations.
How to curb cheap alcohol,
■ Taxes usually work but are
politically difficult to
increase,
■ There are other ways that
maybe easier: fee 'increases,
new fees, special privilege
fees (late night), rules
against multiple buys for
reduced price.
In so r:ae states, parts of the
the alcohol industry may
support some increased fees,
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How to prevent promotions which encourage heavy drinking:
■ Many states have specific
rules or laws prohibiting
volume discounts, coupons
and multiple buys.
■ Some states have -rules
against high volume drink
promotions.
0 Some states allow local
communities to have sumh
rules.
■ It's possible to get industry
support as good licensees do
not like risky practices.
How stop proliferation of alcohol outlets
■ Many states have quotas
on various types of
licenses and/or give
communities some say
in license decisions.
■ Other ways.* zoning,
local ordinances,
nuisance statutes.
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Education about the value of
our regulatory system and the
importance of price, promotion
and availability
■ Survey community
0
environment to assess prices,
promotions and availab�ty of
alcohol.
■ Rewew current regui �9 eitory
measures that impact price and
availability.
Advocate for current and
enhanced regulatory systems.
Key Takeaways:
■ Alcohol regulations impacting price, product, promotion
and place are some of the strongest and most effective
'D
strategies as confirmed b y credible public health research.
■ Deregulation usually results in serious social problems that
are hard to reverse.
■ Community leaders should review their state and local
regulations to see how they could be strengthened or better
enforced to help reduce alcohol problems.
■ Community coalitions can be very effective in making
changes and can even get local business support.
Resources on R.egulation/Deregulation*
"2013 Issue Briefs for States, Brief Explanations of Common Regulatory Issues
Facing; State and Local Communities," www.healthyalcoholmarket.com
"Alcohol Outlet Density and Public Health", Alcohol Justice (formerly The Marin
Institute):vr7,Vvw.alcol2oljustice.org
"Strategizer 55, Regulating Alcohol Outlet Density: An Action Guide.", CADCA in
partnership with the Center on Alcohol Marketing and Youth (GAMY),
www.cadca.org
"Prev(_:)!nting Excessive Alcohol Consumption," Guide to Community Preventive
Services, VVTVW.thecommuni'tyguide.o_rg
"The ]Dangers of Alcohol Deregulation: The United Kingdom Experience: 2012
Update," Pamela S. Erickson, www.healthyalcoholmarket.com
"The High Price of Cheap Alcohol," Pamela S. Erickson,
wvw. h ealthyalcoh olm arke t. con -i
"What are the most effective and cost-effective interventions in alcohol control.?"
World Health Organization, February 2004
"Today's alcohol demands a closer look," National Alcohol Beverage Control
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