There’s some new activity around the issue of “Alcopops,” which I wrote about in November when Santa Clara County announced a lawsuit against the state Board of Equalization to force it to properly classify the drink.
The term is applied to those flavored – most often sweet and fruity – alcohol drinks, such as Mike’s Hard Lemonade, Smirnoff Ice, which is flavored vodka in a variety of flavors like Jolly Ranchers.
Studies have shown they are attractive to young girls because the flavors hide the taste of the alcohol. Anheuser-Busch marketers have been quoted saying these drinks are targeted to “entry level drinkers” for the same reason.
First, the Board of Equalization two weeks ago began a series of “interested party” hearings that are expected to take the reclassification issue into late summer. Currently, alcopops are in the same category as beer, and therefore similarly taxed at a lower rate and regulated more loosely than distilled liquor.
The tax rate of 20 cents per gallon and regulations that allow them to be sold at convenience stores and gas stations increases their availability. In contrast, distilled alcohol is taxed at $3.30 per gallon and has a few more restrictions in its license for distribution.
Proponents of reclassification contend that the alcohol industry is misrepresenting this product by insisting that it’s beer, when it’s a beverage that starts as beer, then it’s stripped to water, and then flavoring and distilled alcohol is added. Common sense says that it’s a beverage of distilled alcohol. But origin – not the end product – is beer, so they industry was able to get the category of beer.
Just before the hearings began, Assemblymembers Jim Beall from Santa Clara County and Lori Saldana from Orange County introduced two new bills. Assemblymember Saldana’s basically directs how the increased tax revenue should be divided among programs for alcohol abuse prevention education, assessment of the impact of alcohol marketing and advertising on youth (so far, indicators are the impacts are far greater than we realize), programs for prevention and programs for treatment. It will enhance enforcement of rules prohibiting sales of alcohol to minors. Her bill really is contingent upon the successful re-classification of these flavored beverages.
Assemblymember Beall’s bill targets the marketing strategies and distribution of these beverages “with special appeal to minors.” This will impact those beverages that are packaged to look like box juices or energy drinks. The alcohol content must be prominently displayed on the label and state “Warning: contains alcohol.”
It specifies where these beverages can be placed in the store. They cannot be within five feet of non-alcoholic beverages. Currently, some local establishments have these among juices and non-alcoholic beverages. They can’t be placed in a refrigerated cooler or tub for easy access. It also requires the ABC and the industry to update regularly a list of the beverages that have appeal to minors. Soon, Anheuser-Busch will be adding “green-tea” flavor. So, a green tea malt beverage drinker can trick themselves into thinking they are having the taste benefits of green tea while getting their buzz.
What’s the big deal? In 2005, underage drinkers consumed 12.4 percent of all alcohol sold in California, totaling $2.3 billion dollars in sales, yielding profits of approximately $1.1 billion to the alcohol industry. The problems resulting from underage drinking cost California taxpayers $7.3 billion.
This is but one way to keep the industry honest.
Columnist Dina Campeau is a wife, mother of two teens and a resident of Morgan Hill. Her work for the last seven years has focused on affordable housing and homeless issues in Santa Clara County. Her column will be published each Friday. Reach her at
dc******@ch*****.net
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