Alcohol Industry 1 _Anderson Wesbite

8/12/2019 Alcohol Industry 1 _Anderson Wesbite

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The beverage alcohol industryand alcohol policy

ISAJEHelsinki1 September 2006

Peter Anderson


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Contents:

1. Who is the alcohol industry?

2. How does the alcohol industryrepresent itself?

3. What do social aspect organizations ofthe alcohol industry stand for?

4. Two examples

5. Two cases

6. Some questions


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Concentration in the global beer market

1979-2004Corporation Country

1979/80 2004

Inbev Belgium * 13.9% (1)

SABMiller UK 4.83% (2-Miller), 12.0% (2)

0.93% (17-SAB)Anheuser-Busch USA 6.48% (1) 10.8% (3)

Heineken NV Netherlands 2.84% (4) 7.6% (4)

Carlsberg Breweries A/S Denmark 3.08% (3) 4.3% (5)

Molson Coors Brewing Co. USA + 4.0% (6)

Scottish Courage UK + 3.4% (7)Grupo Modelo Mexico 1.34% (12) 2.9% (8)

Kirin Japan * 2.5% (9)

Baltic Beverages Holding Russia * 2.5% (10)

Total market share

of top ten companies 27.99% 63.90%

Global Market Share

Jernigan 2006


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Concentration in the global distilled spirits

market, 1991-2003Corporation Country ofHQ

Global Market Share

1991

Global Market Share 2004

UDV (Diageo) UK 10.5% (1) 14.7% (1)

Pernod Ricard France 5.7% (4) 12.9% (2)

UB Group India 3.7%(8) 8.5%(3)

Jim Beam (Fortune) US 4.8% (6) 5.9% (4)

Bacardi Bermuda 7.7% (3) 5.8% (5)

Suntory Japan 4% (7) 2.7% (6)

Constellation Brands US 2.5% (10) 2.5% (7)

Brown-Forman US * 2.4% (8)V&S Vin and Sprit AB Sweden * 2.2% (9)

Gruppo Campari Italy * 2.2% (10)

Total share of top ten 57% 60.0%

Jernigan 2006


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Contents:




4. Two examples

5. Two cases

6. Some questions


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1. The companies themselves, e.g. Diageo2. Category Associations (Beer, spirits,

wines)

3. Social aspects organizations


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Dangers facing beverage alcohol industry

taxes; vigorous drink driving measures; restrictions on availability; treatment services;

advertising restrictions; warning labels; and ingredient labelling.

Tim AmblerGrand Metropolitan, 1984


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It is generally agreed that the

tobacco industry reacted to notdissimilar threats in a passive,inadequate manner and most of all toolate ..

Tim AmblerGrand Metropolitan, 1984


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The Portman Group Allied DomecqBacardi Brown FormanBrandsBeverage Brands (UK) LtdCarlsberg UKCoors Brewers UKDiageo Great BritainInterbred UKPeriod Ricard UKScottish and Newcastle

1989

www.portman-group.org.uk

United Kingdom

"The majority of people who drinkalcohol enjoy it without causingharm to themselves orothers. The Portman Group acts

to reduce the misuse of alcohol bythe minority through a strategy ofworking with other organisationslocally and nationally."
http://www.portman-group.org.uk/http://www.portman-group.org.uk/http://www.portman-group.org.uk/http://www.portman-group.org.uk/


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European Forum for ResponsibleDrinking(ex Amsterdam group)

Allied Domecq

Bacardi-Martini

Brown-Forman

DiageoGroupe Pernod Ricard

Mot Hennessy

Rmy Cointreau

V&S Group

1990

www.amsterdamgroup.org

Europe

Communicate thought leadershipby developing tools that deliverevidence-based balanced

policies. Provide the intellectual base to

drive positive change in attitudeand drinking behaviour

Develop and promote programmesthat seek to reduce alcohol

related harm in partnership withmost relevant stakeholders.

Promote the responsibilities of allsocial actors in the supply chain.
http://www.brown-forman.com/http://www.amsterdamgroup.org/http://www.amsterdamgroup.org/http://www.scottish-newcastle.com/http://www.remy-cointreau.com/en/index.phphttp://www.heinekeninternational.com/http://www.pernod-ricard.fr/http://www.diageo.com/http://www.brown-forman.com/


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The International Center for AlcoholPolicies

Allied Domecq PLC

Asahi Breweries, LTD.

Bacardi-Martini

Brown-Forman CorporationCoors Brewing Company

Diageo PLC

Foster's Group Limited

Heineken N.V.

Molson

SABMiller PLC

1996

http://www.icap.org

Global

To promote understanding of therole of alcohol in society and helpreduce the abuse of alcohol

worldwide. To encourage dialogue and pursue

partnerships involving the beveragealcohol industry, the public healthcommunity and others interested inalcohol policy.
http://www.icap.org/http://www.icap.org/


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Social Aspect Organizations

Funded by Alcohol Industry

0

5

10

15

20

25

1971 1980 1985 1990 1995 2000

Worldwide Brewing Alliance: Global social responsibility initiatives

British Beer & Pub Association, 2003 From Babor, 2006


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Contents:




4. Two examples

5. Two cases

6. Some questions


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1. There is a cultural complexity to alcoholconsumption across Europe.

2. Alcohol-related harm is largely related to high-risk drinking behaviour.

3. Any alcohol harm reduction strategies should beunderpinned by robust evidence and sound data.

4. The most effective harm reduction strategiesare those that bring about sustainable resultstowards a reduction in risky drinking behaviour.

5. Reducing alcohol-related harm requires a broad

societal commitment and a concerted effort ofall relevant stakeholders.


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Stakeholder analysis

01

2

3

4

5

6

7

8

9

10

Policyim

pact

Regulation Education Implementation of law

Policy options

NGOGO

AI


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Stakeholder analysis

-4

-3

-2

-1

0

1

2

3

4

SDawayfromm

edianof

scale

Regulation Education Implementation of law

Policy options

NGOGO

AI


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1. Attempting to influence governmentalorganizations;

2. Becoming members of internationalorganizations to broaden policy influence andrespectability;

3. Recruiting policy advisers and scientists;

4. Creating social aspects organizations in lowincome countries; and

5. Preparing and promoting consensus statementsand codes of practice.


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Open lobby

Open: classical, accepted andlegal lobby:

Meetings with politicians Influencing political agenda

Personal networking/ OldBoys Clubs


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Hidden lobby

Strong influence in thedecision making processwithin the Ministry ofHealth

Theywon the right offormal meetings with allpartners: they want to beinformed about every

political strategybeforehand

They initiatedan informalsubgroup with somemanagers in the Ministry

Theygained regularmeetings with theSecretary General of theMinistry of Health.


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Hidden Lobby

At the most criticalpolitical moments (amarketing ban, a happy

hour ban or a excise-dutyrise) they have a directaccess to the Minister ofHealth by a formerMinister of Home Affairswho is commissioner of the

drinks industry


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Contents:




4. Two examples

5. Two cases

6. Some questions


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Babor and Xuan

Alcohol policyresearch and

the grey literature

A Tale of Two Surveys

NAT, 2004


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Compared results of:

ICAP survey of 48/114 (42%)countries, representing 22%

of the worlds population

WHO survey of 118/175 (67%)countries, representing 86%pf the worlds population


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Compared Prevalence ofexisting policies between 2

surveys

Reported on results ofpartnerships with thebeverage alcohol industry

from ICAP survey


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Compared Prevalence ofexisting policies between 2

surveys

Reported on results ofpartnerships with thebeverage alcohol industry

from ICAP survey


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Regarding the issue of partnershipswith the alcoholic beverage industry,

50% of the 48 respondents answeredyes to the question:

Do you view the beverage alcohol

industry as an effective partner indeveloping alcohol policies in yourcountry?


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Among the respondents

answering yes (N = 24),respondents were then asked tolist the topic areas for potentialpartnerships


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But, ICAP used the wrong

denominator, 24,

the respondents who answered yes tothe question Do you view the

beverage alcoholindustry as an effective partner indeveloping alcohol policies in yourcountry?,

instead of the total sample of 48.


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Munro

AN ADDICTION AGENCYSCOLLABORATION WITH

THE DRINKS INDUSTRY:MOO JOOSEAS A CASESTUDY

Addiction, 2005


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Alcohol Education Australia Ltd

In August 2002, the Alcohol and DrugFoundation - Queensland (ADFQ) announcedthe formation, in conjunction with the

alcohol industry, of Alcohol EducationAustralia Ltd. (AEA), to promoteresponsible drinking and moderation in theconsumption of alcohol.


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The host, Alcohol and Drug Foundation

Queensland, was a non-government, not-for-profit body with a thirty-year history. Itconducted treatment services in residential,custodial and community settings, a

prevention program, an annual conference,and published a quarterly magazine.


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According to the Alcohol Education Australia

prospectus: The Company is owned by theAlcohol and Drug Foundation - Queensland,and was set up as a separate legal entity forthe purpose of being recognised as a national

public health organisation.

A board of nine directors will govern AEA,three appointed by each of ADFQ, industry

stakeholders, and community stakeholders.


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The Moo Joosecase

Within months of forming AEA, ADFQintervened in a licensing case to support amanufacturer whose application to sell

alcoholic milk (Moo Joose) was rejected by astate licensing authority. Two principals ofADFQ, the president, and the CEOsubmitted an eight-page statement indefence of Moo Jooseand both appeared

before the tribunal as witnesses for themanufacturer.


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In supporting Moo Joose, ADFQ reversed a

previous policy.In 1997 ADFQ declared Candy Shots, avodka-based pre-mixed drink marketed inflavours of chocolate, banana, caramel, and

marshmallow, dangerous, and called forproscription.

The CEO said, But everyone knows thatunderage drinking occurs and this is just the

type of drink that will make it easier for kidsto get started.


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Features of ADFQs defence of Moo Joose

included:

The narrow neck of the bottle and thescrew top would militate against the risk

of drink spiking. The four-pack was a harm minimisation

strategy that would limit consumption.

The milk content would prevent excessive

use and intoxication.


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The Outcome

Liquor Licensing Victoria rejected Moo Joosebecause it saw alcoholic milk as a corruptionof a product known to be healthy and one

that might easily be taken up by children.


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Contents:

1. Who is the alcohol industry?2. How does the alcohol industry

represent itself?


4. Two examples

5. Two cases

6. Some questions


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Two cases

Working for the alcohol industry

social aspects organization


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Areas where industry interestsinteract with alcohol science

Industry sponsorship of research funding organizations

Direct financing of university-based scientists and centers

Research conducted through contract research

organizations Research conducted by trade organizations and SAOs

Efforts to influence public perceptions of research,research findings and alcohol policies

Publication of scientific documents and support of scientific

journals Sponsorship of scientific conferences and presentations at

scientific conferences

Babor 2006


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Contents:

1. Who is the alcohol industry?2. How does the alcohol industry

represent itself?


4. Two examples

5. Two cases

6. Some questions


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Alcohol Industry 1 _Anderson Wesbite

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