8/12/2019 Alcohol Industry 1 _Anderson Wesbite
1/49
The beverage alcohol industryand alcohol policy
ISAJEHelsinki1 September 2006
Peter Anderson
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
2/49
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
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
3/49
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
4/49
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
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
5/49
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
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
6/49
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
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
7/49
1. The companies themselves, e.g. Diageo2. Category Associations (Beer, spirits,
wines)
3. Social aspects organizations
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
8/49
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
9/49
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
10/49
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
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
11/49
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
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
12/49
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/8/12/2019 Alcohol Industry 1 _Anderson Wesbite
13/49
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/8/12/2019 Alcohol Industry 1 _Anderson Wesbite
14/49
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/8/12/2019 Alcohol Industry 1 _Anderson Wesbite
15/49
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
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
16/49
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
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
17/49
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.
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
18/49
Stakeholder analysis
01
2
3
4
5
6
7
8
9
10
Policyim
pact
Regulation Education Implementation of law
Policy options
NGOGO
AI
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
19/49
Stakeholder analysis
-4
-3
-2
-1
0
1
2
3
4
SDawayfromm
edianof
scale
Regulation Education Implementation of law
Policy options
NGOGO
AI
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
20/49
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.
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
21/49
Open lobby
Open: classical, accepted andlegal lobby:
Meetings with politicians Influencing political agenda
Personal networking/ OldBoys Clubs
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
22/49
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.
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
23/49
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
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
24/49
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
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
25/49
Babor and Xuan
Alcohol policyresearch and
the grey literature
A Tale of Two Surveys
NAT, 2004
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
26/49
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
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
27/49
Compared Prevalence ofexisting policies between 2
surveys
Reported on results ofpartnerships with thebeverage alcohol industry
from ICAP survey
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
28/49
Compared Prevalence ofexisting policies between 2
surveys
Reported on results ofpartnerships with thebeverage alcohol industry
from ICAP survey
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
29/49
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
30/49
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?
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
31/49
Among the respondents
answering yes (N = 24),respondents were then asked tolist the topic areas for potentialpartnerships
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
32/49
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
33/49
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.
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
34/49
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
35/49
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
36/49
Munro
AN ADDICTION AGENCYSCOLLABORATION WITH
THE DRINKS INDUSTRY:MOO JOOSEAS A CASESTUDY
Addiction, 2005
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
37/49
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.
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
38/49
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.
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
39/49
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.
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
40/49
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.
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
41/49
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.
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
42/49
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.
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
43/49
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.
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
44/49
Contents:
1. Who is the alcohol industry?2. How does the alcohol industry
represent itself?
3. What do social aspect organizations ofthe alcohol industry stand for?
4. Two examples
5. Two cases
6. Some questions
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
45/49
Two cases
Working for the alcohol industry
social aspects organization
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
46/49
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
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
47/49
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
48/49
Contents:
1. Who is the alcohol industry?2. How does the alcohol industry
represent itself?
3. What do social aspect organizations ofthe alcohol industry stand for?
4. Two examples
5. Two cases
6. Some questions
8/12/2019 Alcohol Industry 1 _Anderson Wesbite
49/49