Overview
Almost all over the world and throughout history, drinking has been as much a part of human culture as eating, music, dancing and prayer. Alcohol is a part of everyday life, associated with celebrations, informal gatherings, business dinners, dinner-tables, and the list goes on…
The promotion and marketing of alcohol products has been the subject of a contentious debate sometimes among governmental agencies, the alcohol industry, public health advocates, policymakers and the public at large. At the center of controversy is the adverse effect alcohol promotion may have on youth, for whom the consumption of alcohol is both illegal and unhealthy.
The alcohol industry invests $4 to $5 billion each year to promote its products. As a result, young people live in an environment filled with alcohol promotions, including media advertising, event sponsorships, Internet sites, giveaways and other non-traditional forms of marketing. Many critics contend that the industry overexposes young people to advertising messages, using youth-oriented themes, images and music. However, the alcohol industry rejects these charges and contends that advertising does not influence a young person's decision to drink.
Talking of wines, in the global wine market, supply is expanding faster than demand, a situation that is causing prices for wine, and hence wine grapes, to decline. Low prices and the current wine supply-demand situation present a critical challenge to the future viability of wine makers and wine grape growers.
In spite of all these marketing challenges and social impacts, the alcohol industry is only getting larger and larger. The various aspects discussed in this book relating to the alcoholic beverage industry may be broadly classified under the industry overview, growth of industry over the times, recent challenges (advertising and promotion restrictions, content specifications, import-export duties and taxes, decreasing market for wine, self regulation norm), future prospects, social impact (social stigma, alcoholism) and health concerns. It is aimed at providing beneficial readership for Organizational heads, Business heads, Management students, Executives in charge of CSR initiatives, Entrepreneurs, Management counselors, Social workers and organizations, Consumers, Global citizens and Advertising agencies.
There are two sections in this book:
Section I: Industry Perspectives. This has 7 articles.
Section II: Social and Health Concerns. This has 6 articles.
"Alcoholic Beverage Industry: An Overview" is the curtain-raising article by Simantee Sen. The promotion and marketing of alcohol products has been the subject of a contentious debate sometimes among governmental agencies, the alcohol industry, public health advocates, policymakers and the public at large. This article is a curtain-raiser and overview of the alcoholic beverage industry globally and deals with marketing, advertising, packaging, regulations, and, most importantly, the related social issues of the alcohol industry worldwide. The other aspects discussed are the growth of industry over the times, recent challenges (advertising and promotion restrictions, content specifications, import-export duties and taxes, decreasing market for wine, self-regulation norm), future prospects, social impact (social stigma, alcoholism) and health concerns. The objective of this article is to throw light on the marketing and social challenges faced by the alcohol industry worldwide.
The second article "The Structure of the Beverage Alcohol Industry" is an ICAP report that provides a summary of the beverage alcohol industry, its nature and scope. It offers a basic overview of economic trade (employment, taxation, licensing, distribution, advertising) , and development aspects, as well as how some of these relate to social and health issues. It presents an analysis of current trends, such as industry consolidation, and possible future developments. It concludes by identifying a range of industrial bodies and industry-supported bodies, such as trade associations and social aspects organizations (SAOs), which contribute to the addressing of social and public health aspects of alcohol.
There is a discussion and a chart on how a huge volume of unrecorded alcohol is produced, found in virtually every country and includes both traditional home-brews and the illegal production and trade of alcohol. The author divides the industry into 3 sectors and identifies producer companies, unique set of opportunities and threats.
The next paper "Alcohol in the Economy: Issues and Opportunities" by Brian Easton, focuses on future economic factors which will influence drinking patterns and are intended to be a background to the policy objective of minimizing harm from alcohol misuse. The author discusses how Globalization will result in increased interaction of attitudes and behavior between national drinking cultures, as well as a globalized liquor industry. While a useful statistical distinction, a helpful rule of thumb, the limits of safe drinking are dependent upon many more factors than can be captured by such a risk measure. There are several aspects of the alcoholic beverage industry that the author touches upon: demography, prices, taxes, packaging, consumption, trends, etc. A brief outline is given as to how large multinational companies will penetrate markets through their aggressive cutting prices, intensifying of marketing, and opening of access, that will lend a hand to increased liquor consumption in those markets.
Today's wine industry in the US is at a juncture in history unlike any it has ever experienced, facing complex challenges that are regional, national and global in scope. They include legal, political, and cultural developments. The next article "US Wine Market Liberalization by 2015: The Perfect Storm Forming" by John Hinman and Deborah Steinthal, details how the speed of change is accelerated by economic drivers, technological innovation, and forces of globalization. One thing is sure – by the year 2015, the wine and alcoholic beverage distribution system will be more efficient, and more unforgiving of failure, than it is today. Five interrelated dynamics identified and discussed in the article are: supply and demand pressures, producer consolidation, buyer consolidation, retail consolidation, market liberalization. Each is discussed under market opportunities and challenges. Ultimately, consumers are predicted to benefit – from the innovation created by the forces of competition, from better access to higher quality wines for the price, and from increased retail resources available to incentives to customer purchase behavior. The concluding remarks state that new wineries will continue to emerge; but the strong that survive will go about marketing and selling their wines in a more focused, segmented, and disciplined manner over the next decade than they have over the last. The consumer will also get more.
The case study "Indian Liquor Industry's 'Prohibited Growth': The Legal Environment" by R Muthu Kumar, provides insights into the profile of the Indian liquor industry over the decades. It offers scope to discuss the impact of regulations and taxation on the liquor industry, social concerns and the Indian liquor industry's future. As of 2004, Indian liquor consumption was significantly low (0.6 litres per head per year) compared to other countries like China and UK where the consumption was 20 and 100 litres respectively. Due to the Indian government's regulations and taxes, the growth had been restricted. The government had decided to lower the taxes in 2004. Analysts were skeptical over the further growth of the industry, despite deregulations, due to the social concerns.
"The Beer Industry Prepares to Tackle Big Challenges" by Gregg Glaser, is the sixth article of the book and it discusses the various challenges faced by the global (mainly US) beer sector. The top 10 US beer brewers with their market shares, and the top consumer countries are illustrated. The author talks of various aspects of this industry like: imports, taxation, competition, craft beers, advertising, etc. The main conclusion of this article is that distributors are under immense pressure from their leading suppliers to sell more of their beer in a declining market. With this pressure comes less of a focus on secondary and tertiary brands. Retailers have to be more amenable to newer products and new suppliers. Newer wine and spirits companies seem to have a much easier time with placement than beer. Whether beer continues to lose market share to spirits and wine is anyone's guess. The trade-on factor is real and won't go away. Younger drinkers continue to experiment with other beverages. Older drinkers may move away from beer. The thoughts of many industry analysts are summed up in a comment made by Bill Menezes, a senior counselor at Carmichael Lynch Spong: "The biggest factor in beer's overall decline is taste. The top brewers figure out how to mass produce beers that offer more taste excitement than spirits and wine, they'll continue losing share."
The Mediterranean countries had been the global leaders in wine production due to their moderate climate, which was ideal for viticulture. France, Italy, Spain and Germany were the established 'Old world' wine producing countries. The Indian wine industry established in the mid eighties with a growth rate of 30%, has been showing immense potential for growth. With some Indian brands winning awards at international wine competitions, Indian wines are increasingly being appreciated in the global market. The encouraging growth rate and the assiduous efforts being made by the local players and the government propel he industry to become a global entity. Apart from the policy changes to increase production, the quality of Indian wines also has to be constantly upgraded to meet international standards. The case "The Maturity in the Indian Wine Industry" by Jyotsna Jha traces the growth of the Indian wine industry, the various challenges faced by the nascent industry, the big players in the market and the efforts made by them to increase sales in both the domestic and the global market.
The first article in the second section is "The Commercial Value of Underage and Pathological Drinking to the Alcohol Industry" by Lynn Gilligan. Despite statements by the alcohol industry that it does not encourage or condone underage drinking and despite its rhetoric that adults should "drink responsibly," the economic realities of the industry paint a dramatically different picture. The author details how the behavior of children and teen pathological drinkers may destroy their own lives and injure or even kill others through alcohol related issues like aids, teen pregnancy, reckless driving, rape and other violence. The article recognizes the alcohol industry's financial conflict of interest. Its enormous profits from underage and pathological drinking make it reckless for our society to rely on the industry to curb such drinking. Thus, there is need for independent federal regulation of the industry's advertising and marketing practices. There is a plea to ban all beer and other alcohol advertising during broadcasts of events such as college games. Magazines, network and local radio, television and cable stations, and Internet sites should take steps to avoid exposing underage viewers to alcohol advertisements.
This whole article is detailed under the following headings: What is the commercial value of underage and pathological drinking? How many people are pathological drinkers? How much do underage and pathological drinkers consume? Public health implications and How to prevent pathological drinking must be made a national health goal.
Leadership to Keep Children Alcohol Free, a unique coalition of Governors' spouses, Federal agencies, and public and private organizations, is an initiative to prevent the use of alcohol by children of ages 9 to 15. This article is a guide that they recommend for use. "Keep Kids Alcohol Free: Strategies for Action" by National Institute of Health is the ninth article of the book. The article uses a lot of research data and facts to support its claims and recommendations. The age at which a person first uses alcohol is a powerful predictor of lifetime alcohol abuse and dependence. More than 40 percent of individuals who begin drinking before age 15 will develop alcohol abuse or alcohol dependence at some time in their lives. A few strategies that work in this direction have been identified as: reducing availability, improving law enforcement, changing social norms. Each strategy is elaborately discussed and websites and organizations that public may use are also given. A few steps effective for homes and schools are given. The suggestions are good first steps to begin one's campaign to prevent alcohol use by children in your own community. They will help you find out what your community is already doing and where additional efforts might be needed.
In addition to parenting behaviors, there are other ways in which parents may influence their adolescent's alcohol use. The aspects to be reviewed here, range from individual parental characteristics to broader contextual and cultural influences. This article "Parental, Family, and Broader Environmental Factors" by Australian Institute of Family Studies, thus turns to an examination now of the research on parental and family characteristics and their relationship with adolescent alcohol use. The following sections examine parental consumption of alcohol, risky parental alcohol use and alcohol dependence. There is also a detailed discussion about family structure, and family socio-economic background, the role of differing cultural norms and legal systems, and findings regarding indigenous adolescents. Laws concerning adolescent alcohol use can exert considerable influence on adolescent consumption and parental attitudes toward adolescent alcohol use. Studies conducted in the US examining the relationship between minimum legal drinking age and adolescent drinking have shown that lower legal age limits are associated with increases in adolescent drinking and adolescent traffic accidents. The studies reviewed in this article suggest that the pattern of Indigenous adolescent alcohol consumption differs from that of non-Indigenous adolescents. Those Indigenous adolescents who drink appear to consume alcohol at more risky levels.
The eleventh article "What Can Be Done?" by World Health Organization, gives growing evidence of the harmful effect of alcohol use combined with inadequate information on effective interventions which create a dilemma in public health. The article discusses divergent perspectives of stakeholders which have only added to the existing problems and resulting in now-on-now-off public health policies. The author claims that self-regulation can be promoted by using the mass media. This has been attempted by developing codes of advertising for and by the industry and the effectiveness of voluntary codes which are likely to be limited in developing countries because of lack of enforcement. The article also relates the taxation on alcoholic beverages with its retail price and its effect that can alter consumption decision and the effective mechanism to prevent the consumer's shifting towards cheaper illegal alcohol. It also says that alcohol publicity has the potential of promoting changes in attitudes and social values, including publicizing the desirability of social drinking to its viewers, which all encourage a higher consumption of alcohol and weakens the social climate towards effective alcohol control policies.
The next article "Tackling Alcohol-Related Problems: International Perspectives on Policy" by Iain K Crombie, Linda Irvine, Lawrence Elliott and Hilary Wallace starts with a discussion about how alcohol has made an impact on society over the years under its general benefits, demerits, and achieving the right balance. Designing an alcohol policy is a very important aspect and various outlines are given: the WHO policy blueprint, changing patterns of consumption, controlling supply-reducing demand, current aims of the policy. Policy documents suggest many interventions to tackle alcohol related problems and this aspect is elaborated with prominence of education, fiscal policy (a demand reduction strategy) drink driving measures, happy hours issue, advertising, legislation enforcement, voluntary codes, crimes, etc. The monitoring process of these laws is also quite elaborate and that concerns the value of short-term indicators as well as who monitors the cultural changes. The barriers to implementation identified include country-specific lack of enforcement of legislation, lack of cooperation in marketing by the alcohol industry, and a widespread acceptability of patterns of heavy drinking, particularly binge drinking.
The last article of the book is "The Globe – Launch of Indian Alcohol Policy Alliance" is a compilation of three separate presentations at the launch of IAPA. It talks about the Indian alcohol policy alliance and the necessity for such an alliance in India. The article begins by addressing a speech by Dr. S Arul Rhaj at the launch of the Indian Alcohol Policy Alliance in which he has seen alcohol consumption in India as a big threat for public health. The alliance will encourage and promote governmental and non-governmental efforts to prevent and reduce alcohol-related harm. The author evaluates the abuse of alcohol in various fields such as family, occupation, and finance. It also considers the importance of controlling the availability of alcohol, addressing specific social contexts and changing the social climate and attitudes towards drinking.
Conclusion
Investment funds and businesses want to expand beyond national borders to markets around the globe and increase the interconnectedness between markets. Globalization affects areas of society which have not traditionally been considered primarily as economical issues. Public health based alcohol policy is undoubtedly affected by globalizing market tendencies. The beverage alcohol industry has strongly striven towards globalization, which increasingly affects alcohol policy at local, regional and global levels. Considering the industry's size, structure and way of functioning, defense strategies for alcohol policy agendas must be developed globally. There is a need for creating sustainable models and codes for dealing with the industry, its aggressive marketing campaigns and its intervention in policy making. Experience has shown that the industry is a giant opponent that easily arms itself with popular public opinion as well as trustees in strategic positions. The alcohol beverage industry works and develops as business, as any other industry, with shareholders' interests as the leading directive. What is, however, characteristic of this specific industry is that the marketing defines, creates and forms the goods and their target groups, possibly more than any other industry in the world. Alcohol policy is sometimes even considered an unnecessary intrusion into peoples' personal lives. There is a need to start forming a code of practice on how research should deal with the industry. Research communities as well as practitioners acknowledge the importance of complying with the WHO-resolution on public health problems caused by harmful use of alcohol. It is important that actions support the statements of the resolution.
A global strategy should be outlined for this 'necessary evil' of society…at the earliest. All said and done, this industry will continue to grow with time.
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with warm regards
Harish Sati
Indira Gandhi National Open University (IGNOU)
Maidan Garhi, New Delhi-110068
(M) + 91 - 9990646343 | (E-mail) Harish.sati@gmail.com
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