1. Alcohol Regulation: Let’s Get Off Tobacco Road James F. Mosher, JD The CDM Group, Inc. Alcohol IS Different Panel, 16 th Annual Symposium on Alcohol Beverage Law and Regulation, National Alcohol Beverage Control Association, March 9, 2009

2. Alcohol, Tobacco, and Illicit Drugs: Global Public Health and Safety Impact World Health Organization, 2002 * Disability Adjusted Life Years Lost SubstanceMortalityDALYs* Tobacco 4.9 million 59.1 million Alcohol 1.8 million 58.3 million Illicit Drugs.2 million 11.2 million

3. Every year 2,115 16-20 year olds die in drunk driving crashes

4. Tobacco Industry’s Marketing and Regulatory Strategies Market aggressively to young people Market aggressively to young people Manipulate product to make it more addictive and more attractive to youth Manipulate product to make it more addictive and more attractive to youth Deny the use of these marketing strategies Deny the use of these marketing strategies

5. Tobacco Industry’s Marketing and Regulatory Strategies Deny or minimize adverse health impacts Deny or minimize adverse health impacts Oppose all forms of market regulation Oppose all forms of market regulation Use Preemption to invalidate local and State public health regulations Use Preemption to invalidate local and State public health regulations Focus on individual and parental responsibility Focus on individual and parental responsibility

6. Alcoholic Energy Drinks: A Case Study

7. The Energy Drink Market: Youth Driven One in three teens are likely to use energy drinks compared to one in ten adults. Youth consumption is rapidly increasing.

8. The Sparks Formula Build on the energy drink market Build on the energy drink market Alcohol + caffeine = enhanced partying Alcohol + caffeine = enhanced partying

9. “Miller goes under the radar; Guerrilla marketing of malt beverage targets Generation Y” Milwaukee Journal Sentinel, December 2007 Generation Y: Those born between 1980 and 1995 (13-27 year olds) Advertising Age

10. Alcoholic Energy Drink Marketing Strategies Viral Marketing “The early adopters of Sparks were spending a significant amount of time on the Internet. We saw that and embraced it. We invited consumers to comment on the Website and post comments without editing them, creating a community of Sparks users who shared ideas and experiences." Minott Wessinger

12. Sample Web Postings by High School Students “im only 18 and i had a six pack of sparks in my room and my mom found it, but she had no idea and thought they were jus energy drinks.” “im only 18 and i had a six pack of sparks in my room and my mom found it, but she had no idea and thought they were jus energy drinks.” “Sparks plus any night.. or day.... classic is what i first tried on like prom night or something like it and i was hooked then plus came around and it was love at first sip” “Sparks plus any night.. or day.... classic is what i first tried on like prom night or something like it and i was hooked then plus came around and it was love at first sip”

13. At One San Diego Middle School… Teachers checked the campus during lunch to see how many young people were drinking energy drinks. They found that 12 of the 43 students with energy drinks were drinking alcohol. (Oct 2007)

14. Sparks Energy Drinks Total Sales (gallons)

15. The Jackpot McKenzie River sold Sparks to SAB Miller in 2006 for $220 million four years after its introduction.

16. Alcohol + Energy Drinks = Increased Risk of Injury Stimulants cause a reduced subjective feeling of intoxication S. E. Ferreira, Marco T. de Mello, S. Pompe´ ia,& M. L. Oliveira de Souza- Formigoni 2006. Alcohol effects on motor skills, judgment and mental acuity not affected by stimulants The result: Increased risk taking and increased risk of injury A “Wide Awake Drunk”

19. State Attorneys General Investigations Anheuser- Busch and MillerCoors agree to remove stimulants from Tilt, Bud Extra, and Sparks

21. Tobacco and Alcohol ARE Different Public Health Perspective Tobacco: Deter any consumption Alcohol: Accept moderate consumption in low risk settings low risk settings

22. Seeking Common Ground Regulators, public health, and industry should share a commitment to:  An orderly and well-regulated alcohol market that discourages youth consumption and deters youth access, binge drinking, and consumption in high risks settings;  A healthy, profitable, and responsible industry.