On Wednesday, the state’s Board of Equalization, an elected body charged with oversight of the state’s various tax regulations, changed the classification of alcopops, malt beverages flavored with sweeteners and pumped with distilled liquor. Mike’s Hard Lemonade, Jack Daniel’s Hurricane Punch, Sparks, Rock Star 21, Smirnoff Ice, and many other drinks that have been formulated since the ’90s to attract “entry-level drinkers” who don’t like the bitter taste of hard liquor, beer and wine are examples of alcopops.
The result of the decision is that these drinks will be taxed at $3.30 a gallon, rather than the current 20 cents per gallon. It impacts its availability by limiting them to establishments with full liquor licenses, rather than convenience stores and gas stations that have beer and wine licenses. The move is a good one to limit these drinks that have become so troublesome among underage drinkers, but is just the beginning of a long multi-pronged fight.
Why is this good for our local youth? As I’ve written before, studies and surveys have indicated that these drinks are mostly favored by underage drinkers, particularly girls. Tasting sweet like candy or lemonade, marketed as making one cool or sexy – egads, even healthy – the drinks are attractive particularly to underage drinkers. A 2004 study from the University of Michigan found that of 8th-grade drinkers, 78 percent drank alcopops; 71 percent of 10th-grade drinkers and 65 percent of 12th-grade drinkers. Among legal adult drinkers, less than 50 percent of drinkers choose such drinks.
In addition to the taste, the price is attractive. Go into any convenience store, and compare the price of individual drinks and you’ll find that juice is almost $1 more than the alcopops! Often, you’ll find the alcopops near the sodas or other fruit drinks. By changing the classification, the price will rise, and the placement of the drinks has a few more restrictions.
The Marin Institute, an alcohol industry watchdog, just released a study of the cost of underage drinking of alcopops. The results were, well, sobering. The cost to Californians per year is $1.25 billion in public and private services to treat problems caused by the underage drinking: 50,105 incidents of harm, which include theft and burglary, violent crime, high-risk sex, traffic accidents and the necessity of alcohol treatment. Sixty precious young lives are lost each year.
They took a look at other countries that have already acknowledged the problem of alcopops and underage drinkers and changed their taxation levels. In doing so, they saw a reduction in underage alcopops abuse and in incidents of harm. So, the Marin Institute calculated that if the BOE changed the classification to properly reflect California law – not impose a new tax, it’s important to note – underage consumption would be reduced by 35 percent, 21 lives would be saved, $437 million would be saved.
Opponents of the change in classification claimed that such a move was not the BOE’s charge. Taxation should not be used to regulate social behavior. We know that’s already done. Others claimed that this was a “taste tax” that burdened the alcohol industry with $28 million over four years. This ignores that the alcohol industry profits more than $200 million a year on underage drinkers alone in California, and the $437 million saved to taxpayers.
As Lynn Goodwin, an adult youth advocate stated, “it’s the job of every adult in California to ensure the wellbeing of our young people,” and fortunately, the majority of commissioners acknowledged the ability of their action to have a positive impact on the problem of underage drinking.
Local groups have been working with other advocates around the state for more than six months to make this change. Local student Nancy Marquez, from El Portal Leadership Academy, lent her considerable energy by working locally and appearing on “Mornings on 2” in Oakland and then attending the hearing in Sacramento. Morgan Hill youths Joey Edgar and Hallie Kiernan and their peers have been busy educating Morgan Hill officials and enlisting their support as well.
This entire effort started with a petition from several youth groups in California. Unable to vote, they still have been raising their voices to seek help from those who make the decisions that impact their lives. Congratulations to all those youth who endured the tedious public processes and thanks to the adults who listened. As the youth implored them in their various testimonies, “doing the right thing isn’t always the easy thing.” Fortunately, this time, they did the right thing.
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 is published every Friday.
