Two licensed Missouri retailers were also plaintiffs in the lawsuit. The June District Court decision follows a bench trial held in February This language may be familiar to many practitioners and regulators as a nearly identical provision appears in the Federal Alcohol and Tobacco Tax and Trade Bureau TTB tied house regulations.
In the United States, marketing is a crucial part of the alcohol supply chain. According to the Federal Trade Commission FTCalcohol producers spend two to three times their measured media expenditures in unmeasured promotions such as sponsorships, Internet advertising, point-of-sale materials, product placement, items with brand logos, and other means.
Growth in measured alcohol advertising has outstripped inflation by 20 percent since Impact Databank, a ; Taylor Nelson Sofres, ; U. Department of Labor, One effect of this marketing is to create high barriers to entry Jain,which in turn contributes to the concentration of market share in the hands of a small number of companies.
These companies face a market that, until recently, essentially had been declining or flat for most of the past two decades.
To maintain their markets, alcohol companies must continue to invest heavily in advertising and promotion; to expand the market, they must encourage drinkers to switch brands or increase their consumption, or persuade nondrinkers to begin drinking.
Young people are one audience for their efforts. Although the precise effects of this marketing on individuals are difficult to calibrate, it is increasingly ubiquitous, and benefits from technologies that are at the cutting edge of information societies.
The regulatory frameworks for alcohol marketing, in contrast, were developed in the first part of the previous century and have changed little in the interim. This chapter will begin with a brief summary of the shape of and trends in the alcohol market in the United States, with particular attention to youth consumption.
It will then describe the nature of and trends in alcohol marketing, particularly as these pertain to young people; the structure of the alcohol industry and key players in it; and the shape and effectiveness of regulatory and self-regulatory frameworks within which those players operate.
The paper will conclude with a discussion of needs for further developments both in research and in public policies. Per capita alcohol consumption among Americans peaked in It is now 16 percent lower than it was in see Figurealthough it has begun to increase again in recent years.
Per capita consumption of alcohol has also fallen relative to other consumer beverages: World Health Organization, According to the National Household Survey, fewer than half of Americans age 12 or older are current drinkers had a drink in the past 30 daysand fewer than 5.
Of United States drinkers, the heaviest drinking 5 percent those who average 4. More than half of all alcoholic beverages in the United States and 76 percent of beer are consumed at high-risk levels, that is, when drinkers had five or more drinks on a single occasion Rogers and Greenfield, Consumption among young people is even more concentrated in a small group of heavy users.
Young people under age 21 account for an estimated 12 percent of the total market U. These binge drinkers consume the vast majority of the alcohol drunk by young people: Department of Justice, The number of new teenage drinkers appears to be increasing.
According to the National Household Survey on Drug Abuse NHSDAbetween and the latest year for which data are availablethe total number of people who began drinking alcohol increased significantly from 3. The majority of those initiates were teens: At the same time, the average age of initiation of alcohol use has generally decreased since National Institute on Drug Abuse, Growing the Alcohol Market: Whereas in earlier eras, alcohol may have been marketed based on the quality, purity, and price of the product, now the identity of the brand is paramount Jernigan, Marketing is what creates brands and brand images.
In the past 20 years, viewing alcohol marketing as confined to advertising has become more inaccurate. A total marketing strategy has five steps: Pricing the product so that it is affordable to the target consumer and making it available wherever those consumers may be are important parts of the marketing mix that are beyond the scope of this chapter.
Following a brief discussion of market segmentation and targeting, this chapter will focus on the areas of new product development and advertising and promotion. Market segmentation and target marketing are standard business practices that assist in expanding the number of consumers in the population Kotler, Nonwhites and other lower consuming groups are thus particularly important to the growth of the market Scott et al.
Notably, recent research suggests that alcohol availability and advertising, particularly billboard and point-of-purchase advertising, are becoming significantly more prevalent in African-American and Latino communities Altman et al.12 Alcohol Advertising and Promotion David Jernigan and James O'Hara T he supply of alcohol, including its production, marketing, and retail sale, can play a significant role in alcohol consumption and problems (Holder, ).
Given that alcohol advertising is one of the factors influencing the beliefs and behaviors of young people, The effect of alcohol advertising, marketing and portrayal on drinking behavior in young people: systematic review of prospective cohort studies.
BMC Public Health 9: Alcohol marketers have two reasons to feel good about the findings of a new academic study on advertising impact.
For one, their money seems to be well spent on generating new or . WFA believes alcohol marketing codes of conduct are an effective protection of consumers, on top (and not instead) of statutory regulation of alcohol advertising. The Responsible Marketing Pact (RMP) is an initiative launched by the leading producers of beer, wine and spirits in the European Union- AB InBev, Bacardi Limited, Brown .
The Center on Alcohol Marketing and Youth (CAMY) employs a public health approach to prevent and reduce alcohol-related problems among young people. To this end, our work focuses on the marketing variables of product, place, promotion and price, and the role these variables play in youth drinking and related problems.
Concerns about the marketing of alcohol reflect the serious costs of underage alcohol use. Underage drinking has declined significantly since all states adopted 21 as the minimum legal drinking age two decades ago, as shown by Figure 1, 3 but drinking by minors remains high.