Why Cant We Sell Alcohol Like Tires and

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Why Can’t We Sell Alcohol Like Tires and Mayonnaise? By Pamela S. Erickson, M.

Why Can’t We Sell Alcohol Like Tires and Mayonnaise? By Pamela S. Erickson, M. A. , CEO Public Action Management, PLC Former Director, Oregon Liquor Control Commission North Carolina Substance Abuse Prevention Conference May 2 -3, 2017, Raleigh, North Carolina

Basic objective: Greater prevention community involvement to maintain strong alcohol regulation. Learning segments: q

Basic objective: Greater prevention community involvement to maintain strong alcohol regulation. Learning segments: q q q Why common business practices create problems for alcohol. How alcohol regulations work to curb these business practices. What research says about alcohol regulation. Examples of deregulation and problems that ensued. Ways to strengthen alcohol regulation relating to price, promotion, product and place.

Why? Prevention Works!!! * Remarkable decline in 8 th grade use nationally. * Major

Why? Prevention Works!!! * Remarkable decline in 8 th grade use nationally. * Major declines in many other risky behaviors and increase in parent influence. * Prevention is more costeffective than criminal sanctions…especially jail. * Alcohol regulation is basic prevention because it employs strong environmental strategies. This track record warrants greater involvement and investment in prevention.

Be able to explain why we regulate alcohol!. We are in a period of

Be able to explain why we regulate alcohol!. We are in a period of apathy about alcohol harm; elected officials are focused on jobs and revenue. But…. � In 2015, 10, 265 died as a result of drunk driving crashes. Injuries claimed another 290, 000 costing billions of dollars. � CDC estimates 88, 000 deaths occur due to alcohol annually. � Despite progress on underage drinking, it is still unacceptably high. Alcohol is a causal factor in crime, domestic violence and other social problems. � A quarter of the general public has experienced a “personal � “Have you or your family ever experienced a personal tragedy that was a result of the abuse of alcohol? ” 26% Yes 74% No Source: Whitman Insight Strategies & Wilson Perkins Allen Opinion Research, 2015

So why do we need special regulations for businesses that sell alcohol? Because some

So why do we need special regulations for businesses that sell alcohol? Because some normal business practices — quite legitimate for other commodities — may produce social harm when alcohol is sold.

As an illustration, imagine you decide to buy a floral business…

As an illustration, imagine you decide to buy a floral business…

business plan would include: Your 1. Efforts to retain and increase customers who are

business plan would include: Your 1. Efforts to retain and increase customers who are “frequent buyers” of flowers 2. Discounts and promotions to gain new “flower-loving” customers 3. Advertising to young people to build a future customer base

What happens when you substitute alcohol for flowers? Your business plan calls for: q

What happens when you substitute alcohol for flowers? Your business plan calls for: q Marketing to heavy drinkers and alcoholics. Estimates of underage market are 11 -18%; Underage consumption is primarily binge drinking. q Use of volume discounts to encourage heavy use. q Marketing to underage youth to encourage present and future alcohol use.

In general, here is how alcohol regulation works to foster public health and safety:

In general, here is how alcohol regulation works to foster public health and safety: 1. Price: keeps prices reasonably high and prevents price wars. Low prices increase consumption, particularly among youth. 2. Promotion: curtails or bans promotions that encourage high volume consumption. 3. Product: controls or bans dangerous or high potency products. 4. Place: limits availability

What does research say about these alcohol regulations? Credible research from public health officials

What does research say about these alcohol regulations? Credible research from public health officials such as the Centers for Disease Control and the World Health Organization have confirmed the effectiveness of basic alcohol regulations. � Example: “Alcohol, No Ordinary Commodity, ” Second Edition): the strong strategies are “restrictions on affordability, availability and accessibility, as well as drink-driving deterrence measures” �

Let’s see what happens when alcohol is sold in a free or deregulated marketplace

Let’s see what happens when alcohol is sold in a free or deregulated marketplace

Look what happened in the retail sector before Prohibition: � Alcohol sold primarily in

Look what happened in the retail sector before Prohibition: � Alcohol sold primarily in “Tied House” saloons. Large, out of state manufacturers own many retail outlets. � Most common drink was beer, sold in glasses, kegs and buckets. � Aggressive sales promoted high volume drinking. � Social problems: public disorder, intoxication and addiction, family wages squandered, prostitution, gambling.

Some say, “The saloon system is ancient history. It can’t happen today. ” �BUT

Some say, “The saloon system is ancient history. It can’t happen today. ” �BUT deregulation in the United Kingdom has fostered an alcohol epidemic. � Today all forms of alcohol are available in bars, clubs and grocery stores 24 hours a day, 7 days a week. � Underage drinking rates skyrocketed to twice ours; now have decreased, but hospitalization and disease due to alcohol continue at high levels. Source: Oxford Univesity Press, Medical Council on Alcohol, c 2012

UK alcohol epidemic: Large grocery chains are widely blamed as prices fall and promotion

UK alcohol epidemic: Large grocery chains are widely blamed as prices fall and promotion is aggressive Four large chains control over 70% of the market. Most use alcohol as a “loss leader”. Pre-drinking, before going to bars, has increased. The large chains are locked in price wars.

A US example of deregulation: Washington State • Costco re-wrote 60 pages of state

A US example of deregulation: Washington State • 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. • The re-written statutes have increased availability of spirits from 328 state stores to over 1, 500 outlets. • Alcohol problems increased: shoplifting rampant, violent crime correlated with increased outlets. • Consumers got more outlets, less variety, and much higher prices. Some evidence purchase of spirit products actually

Pressure to deregulate: Hyper-competitive grocery market, governments needing revenue, craft operators want special privileges,

Pressure to deregulate: Hyper-competitive grocery market, governments needing revenue, craft operators want special privileges, large suppliers want them too! � Supermarket chains have become a dominant force in the alcohol market. They want to sell all forms of alcohol in lightly regulated environments. � Many new outlets: drug stores, convenience stores, “dollar stores” apply for licenses. � Governments are desperate for revenue and seem willing to ignore likely consequences. � Small craft operators want to retail and distribute their own products. Most states allow it, but large alcohol companies have used it as a loophole to get into the retail business.

We should not be swayed by a need for customer convenience because most Americans

We should not be swayed by a need for customer convenience because most Americans are not frequent alcohol consumers! Source: National Institutes of Health Survey, 2008 -2010 American Alcohol Consumption 5% Do not drink 15% Drink 1 - 11 per year 36% Drink 3 or less per week Moderate drinkers Heavy drinkers 32% 12%

The cost of getting it wrong is high as reregulation takes time and problems

The cost of getting it wrong is high as reregulation takes time and problems will fester This isn’t Russia. Democracies require slow deliberation for wise decision-making. (In contrast, Russia solved problems with casinos in 2009 by closing. ) them all down!) � Industry has considerable power. Meanwhile public health is often silent due to grant prohibitions on “lobbying. ”. ” � It pays to be very careful when considering deregulation as it will be �

How can we avoid an alcohol epidemic?

How can we avoid an alcohol epidemic?

Our greatest protection is an effective alcohol control system which addresses the ABC’s of

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 prices, control price competition, and restrict dangerous marketing and promotional practices. Children and Teens. Age restrictions protect young people from the serious problems of underage drinking. Drunk driving. Creates and enforces strict measures against drinking and driving—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 jail) when education fails. � Source: Adapted from World Health Organization recommendations.

How to curb cheap alcohol? Taxes usually work but are politically difficult to increase.

How to curb cheap alcohol? Taxes usually work but are politically difficult to increase. There are other ways that may be easier: fee increases, new fees, special privilege fees (late night), rules against multiple buys for reduced price. In some states, parts of the alcohol industry may support some increased fees.

How can you get dangerous products off the shelf or behind the counter? �

How can you get dangerous products off the shelf or behind the counter? � North Carolina is a “control state” for spirits. � State ABC decides what products may be sold in ABC stores (called listing and de-listing). � Some states have limited high proof or street drinking products via rule, law or special permits. � Work with local retailers on this and other prevention issues. PHOTO BY MICHAEL ZIRKLE PHOTOGRAPHY, COURTESY OF RALEIGH HISTORIC DEVELOPMENT COMMISSION

How to prevent promotions which encourage heavy drinking: Many states have specific rules or

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. North Carolina has some good “happy hour” restrictions. � Some states allow local communities to have regulations to fit their community such as different closing hours. � It’s possible to get industry support as good licensees do not like risky practices. �

How stop proliferation of alcohol outlets North Carolina cities and counties are required to

How stop proliferation of alcohol outlets North Carolina cities and counties are required to be notified when someone has applied for an alcohol permit. 15 days to offer opinion about the applicant and location. � North Carolina has 166 local ABC systems that operate 427 retail liquor stores. According to ABC website, “They retain authority to set policy and adopt rules in conformity with ABC Laws and Commission rules. ” � Local advocates should get to know these entities and how to work with their processes. �

What can community members do? � � � Education about the value of our

What can community members do? � � � Education about the value of our regulatory system and the importance of price, promotion and availability. Survey community environment to assess prices, promotions and availability of alcohol. Review current regulatory measures that impact price and availability. Advocate for current and enhanced regulatory systems as well as fair enforcement backed by adequate resources. Example of youth action project.

Key Takeaways: � Alcohol regulations impacting price, product, promotion and place are some of

Key Takeaways: � Alcohol regulations impacting price, product, promotion and place are some of the strongest and most effective strategies as confirmed by 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. � Prevention works! Community coalitions can be very effective in making changes and can even get local business support.

Resources on Regulation/Deregulation: � � � � “ 2017 Issue Briefs for States, Brief

Resources on Regulation/Deregulation: � � � � “ 2017 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): www. alcoholjustice. org “Alcohol Policy Research & Alcoholic Beverage Control Systems: An Annotated Bibliography & Review, ” NABCA, National Alcohol Beverage Control Association. “Preventing Excessive Alcohol Consumption, ” Guide to Community Preventive Services, www. thecommunityguide. org “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, www. healthyalcoholmarket. com Toward Liquor Control, Raymond B. Fosdick and Albert L. Scott, Center for Alcohol Policy, www. centerforalcoholpolicy. org “What are the most effective and cost-effective interventions in alcohol

For more information: contact Pamela Erickson, pam@pamaction. com or visit website www. healthyalcoholmarket. com.

For more information: contact Pamela Erickson, pam@pamaction. com or visit website www. healthyalcoholmarket. com. Website has: � Monthly newsletter, educational pieces, Power. Point presentations from conferences. (These are free!) � Recent reports available: “Public supports Strong Alcohol Policies, ” and “Fair Trade Practice Regulations. ” (Free download) � Issue Briefs for 2017 has simple explanations of alcohol regulatory issues as well as citations for research and more information.