Reducing Underage Drinking A Collective Responsibility (2004) / Chapter Skim
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12 Alcohol Advertising and Promotion--David Jernigan and James O’Hara
12 Alcohol Advertising and Promotion--David Jernigan and James O’Hara
Pages 625-653
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From page 625... ...
. According to the Federal Trade Commission (FTC)
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From page 626... ...
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.
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From page 627... ...
According to the National Household Survey on Drug Abuse (NHSDA) , between 1995 and 1999 (the latest year for which data are available)
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In the past 20 years, viewing alcohol marketing as confined to advertising has become more inaccurate. A total marketing strategy has five steps: product development, pricing, market segmentation and targeting, advertising and promotion campaigns, and physical availability (Cowan and Mosher, 1985)
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From page 629... ...
. However, given the confusion in the marketplace because of new product introductions -- such as malternatives, alcopops, ready-todrink mixed distilled spirits drinks such as "Kahlua Mudslide Cocktail," and so on -- it is unclear at this point what the "wine cooler" category is measuring.
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From page 630... ...
. The ability of the industry to market at the grass-roots level has increased in recent years through the use of technologies such as the Internet; the adoption of racial, ethnic, and other holidays and celebrations, such as Cinco de Mayo and Halloween, as alcohol marketing opportunities (Alaniz and Wilkes, 1998)
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From page 631... ...
The FTC (1999) estimate that the costs of non-measured alcohol marketing activities are two to three times the costs of measured expenses suggests that alcohol companies are not an exception to this trend.
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Premixed energy drinks were a natural successor to the common practice of mixing nonalcoholic energy drinks such as Red Bull with vodka or other distilled spirits.
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From page 633... ...
For example the Internet has become an important channel for alcohol companies. Marketing beer to young people via the Internet made headlines in the United States in 1998, when a media watchdog group charged that 82 percent of beer industry sites were using marketing tactics attractive to youth, such as contests, games, slang, and cartoons (Center for Media Education, 1998)
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From page 634... ...
, and the www.cuttysarkusa.com Web site offered sexually explicit downloadable movies of a Cutty Sark party at Mardi Gras. Smirnoff billboards took on beer directly as a competitor, through billboards depicting a Smirnoff vodka bottle lying on its side against a red background with the caption, "Beer doesn't mix well with cranberries." While overall vodka sales were dropping, Skyy Vodka sales increased by 21 percent as the company focused on promotions and advertisements in hip clubs and in media outlets such as Spin magazine, with substantial overrepresentation of young people in its readership (Fulmer, 1999; Center on Alcohol Marketing and Youth, 2002)
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From page 635... ...
2.4 Total top five 86.8 Distilled Spirits Guinness-UDV (Diageo) 21.5 Future Brands LLCc 13.2 Constellation Brands, Inc.
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From page 636... ...
They also vary in how they treat the various beverages, such as exercising monopoly control over distilled spirits, or over spirits and sales of liquor by the drink, or over all beverages above a certain level of alcohol content, regardless of beverage type. Those states that elected to adopt licensing systems usually began with limits on the number, placement, and hours of sale permitted to alcohol retailers.
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From page 637... ...
, part of DHHS; and the Federal Trade Commission, an independent regulatory agency. For wines with 7 percent or more alcohol, distilled spirits, and malt beverages to a degree, BATF has primary authority over advertising and labeling.
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Alcohol industry standards. The OIG reviewed the voluntary codes then in effect under the auspices of the Beer Institute, the Wine Institute, the Distilled Spirits Council of the United States (DISCUS)
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From page 639... ...
"where most of the audience is reasonably expected to be below the legal purchase age." In addition to placement, the code also calls on companies to use in their ads models and actors who are at least 25 years old and "reasonably appear to be over 21 years of age." Prohibitions on content include symbols, language, music, gestures, cartoon characters, or an entertainment figure or group with "primary appeal" to persons under the legal purchase age. That appeal is defined as "special attractiveness to such persons above and beyond the general attractiveness it has for persons above the legal purchase age, including young adults above the legal purchase age." There is a specific prohibition against
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From page 640... ...
. Like The Beer Institute, the DISCUS code calls for advertising not to be placed "where most of audience is reasonably expected to be below the legal purchase age." In addition, distilled spirits companies are told not to advertise on "college or university campuses," including their newspapers; however, marketing activities are allowed if they are "in licensed retail establishments located on such campuses." The DISCUS code also prohibits billboards within 500 feet "of an established place of worship or an elementary school or a secondary school except on a licensed premise." In a particularly significant development regarding advertising placements, in 1996 DISCUS lifted its self-imposed ban on distilled spirits advertising on the broadcast airwaves by removing this prohibition from its code (Roman, 1996)
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Coors follows not only The Beer Institute guidelines, but also more restrictive ad placement guidelines of its own. To ensure that it follows both sets of guidelines, Coors now participates in the Better Business Bureau Advertising Pledge Program (BBB APP)
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The FTC responded in September 1999 with a report titled, Self-Regulation in the Alcohol Industry: A Review of Industry Efforts to Avoid Promoting Alcohol to Underage Consumers (Federal Trade Commission, 1999)
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From page 643... ...
. To limit the exposure of underage audiences to alcohol ads, the Commission pointed to three "best practices": lowering the percentage of an underage audience that is acceptable; regularly reviewing audience composition data; and maintaining "no buy" lists for programs and magazines "popular with underage audiences" (Federal Trade Commission, 1999:10)
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From page 644... ...
. To limit underage audience exposure through this advertising technique, the Commission pointed out as best practices some companies' restriction of product placement to "R" movies, and one company's total avoidance of movies that "deal strictly with college life" (Federal Trade Commission, 1999:12)
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From page 645... ...
As "best practices," the Commission pointed to the DISCUS prohibition on marketing activities on campus, as well as many companies' termination of promotions of spring break activities, and efforts to limit advertising and marketing activities to bars and other licensed retail establishments where the audience is assumed to be of legal age. Regarding enforcement of the voluntary codes, the Commission noted that even where, as in the case of DISCUS, a trade association has a panel charged with handling complaints under the code, this raised "concerns that the responsibility of the association to represent its members in the best light might conflict with its responsibility under the code to criticize member behavior" (Federal Trade Commission, 1999:15)
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From page 646... ...
· If a product ad was to be aired outside this time slot, NBC would consider it only if the program had a minimum audience of 85 percent adults ages 21 and older. · Distilled spirits manufacturers would have to commit to a minimum of 4 months of "100 percent paid branded social responsibility messages" before product ads could be aired, and after that at least 20 percent of the companies' ads had to continue to be "branded social responsibility messages" (NBC Corporation, 2001)
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From page 647... ...
The primary demographic target for the placements was clearly those ages 21 to 34. However, the ages 12-to-20 demographic received only 16 percent less exposure for beer advertising and 26 percent less in the case of distilled spirits, but 95 percent greater coverage in beer advertising and 63 percent greater exposure in spirits advertising than adults aged 35 and over.
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From page 648... ...
First, the DISCUS and Beer Institute standards for television advertising placements, barring advertisements on programs with majority youth audiences, leave nearly all of the television landscape open for alcohol ads. If youth audiences are defined as persons between the ages of 12 and 20, this standard places only 1 percent of programs (187 out of 14,359)
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From page 649... ...
Such research provides one indicator of the appeal of alcohol industry marketing campaigns to underage youth. Without such research into the preferences of young people who have recently initiated alcohol use, it is also difficult to assess the public health impact of new product introductions that at least appear to be designed to appeal to young consumers unaccustomed to and not inclined toward the taste of traditional alcoholic beverages.
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From page 650... ...
Based on the Center on Alcohol Marketing and Youth's research, tighter standards will likely be required. In addition, given the generally positive normative environment surrounding alcohol use in most areas of society (including, for example, in G-rated children's films)
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. Federal Trade Commission.
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From page 652... ...
The U.S. distilled spirits market: Impact databank review and forecast.
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From page 653... ...
. Beer Institute advertising and marketing code.
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