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The Blurring of Alcohol Categories (PDF) 4401 Ford Avenue, Suite 700, Alexandria, VA 22302-1433 Tel: (703) 578-4200 Fax: (703) 850-3551 www.nabca.org The Blurring of Alcohol Categories The Blurring of Alcohol Categories William C. Kerr, Ph.D. Deidre Patterson, M.P.H. Thomas K. Greenfield, Ph.D. Alcohol Research Group Prepared for the National Alcohol Beverage Control Association (NABCA) June 2013 National Alcohol Beverage Control Association. ©All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. TABLE OF CONTENTS Drink Alcohol Content......................................................1 Differential regulation and taxation by beverage type........2 Defining beer, wine and spirits products: Current definitions and recent changes........................7 Beer........................................................................7 Wine....................................................................10 Spirits..................................................................13 New products, especially flavored malt beverages with high alcoholic strength, have complicated beverage type definitions for both consumers and regulators.............................15 New and older products that blur beverage type definitions.........................................................15 More diverse beer products ...........................................15 What forces are driving these trends?.............................16 Conclusion......................................................................16 References......................................................................17 Drink Alcohol Content The US standard drink contains 0.6oz of ethanol. This is also 14 grams of ethanol and is equivalent to 12oz of beer at 5% alcohol by volume (%ABV), 5oz of wine at 12%ABV or 1.5oz of spirits at 40%ABV. Other countries also have a national standard drink or unit size with alcohol contents ranging from 8 to 23.5 grams of ethanol (Turner, 1990). This means there is not an international standard drink size for alcoholic beverages. One major difficulty in determining or communicating information about standard drink or unit pour sizes is the variability of %ABV within beverage types. A 2.8%ABV beer like Miller 64 has half the alcohol of a 5.6% beer like Sierra Nevada Pale Ale and 1/3 the alcohol of an 8.4% beer, similar to some malt liquors. This makes it difficult to provide a common pour size for beer. Similarly, wines vary widely such that a US standard drink would require a 6oz pour at 10%ABV, a 5oz pour at 12%ABV and a 4oz pour at 15%ABV, all fairly common alcohol levels in wines. Figures 1, 2 and 3 illustrate the differing pour sizes for a standard drink at varying %ABV levels for beer, wine and spirits. Figure 1: Figure 2: 1 Figure 3: Because drinkers cannot easily discriminate between %ABV levels in drinks, labeling of %ABV and standard drinks (or per container) would allow drinkers to track their intake. Understanding and adhering to drinking guidelines, moderating alcohol intake to insure a blood alcohol content (BAC) that is legal for driving, or limiting alcohol intake for other health, safety or personal reasons all involve accurately tracking alcohol intake. (Kerr and Stockwell, 2012) Drink alcohol content varies by beverage type, context and a variety of demographic and individual factors. Studies have found that wine and mixed spirits drinks have the most alcohol in bars and restaurants, averaging about 1.5 US standard drinks, while shots of spirits and bottled beers have the least, about 1 standard drink. (Kerr et al., 2008) Drinks poured at home are more variable than bar drinks. Beer and wine pours tend to be smaller than a standard drink on average while spirits pours are consistent and include some very large drinks. (Kerr et al., 2009) Differential regulation and taxation by beverage type In the US, alcohol taxes are usually levied in terms of dollars per beverage gallon. In some cases rates differ by %ABV category, for example a higher rate on spirits above 50%ABV in California, but mostly they do not. Some states also have additional ad valorem taxes (as a % of price like the sales tax) that often apply only to on-premise sales, but in a few states, such as Maryland with a 3% rate, these taxes apply to on-premise and off-premise sales of all beverage types and in some states, such as Tennessee, there are both premise type and beverage-specific ad valorem taxes. The Federal spirits tax, at $27 per ethanol gallon, is the only case where the tax is on alcohol content rather than beverage volume. In contrast, many other countries tax beer and spirits in terms of alcohol content. Control states mainly use mark-ups on the producer price, including federal tax, rather than beverage volume based taxes. Beer is typically taxed at the lowest rates with wine in the middle and spirits at the highest rates. Many states allow beer to be sold in supermarkets, convenience stores, gas stations or drug stores where spirits are not allowed. Six control states (Iowa, Maine, Michigan, Ohio, West Virginia and Wyoming) allow spirits to be sold in grocery stores or gas and convenience stores. A few states like, California, also have on-premise beer and wine only licenses. 2 Differential regulation and taxation by beverage type (cont.) Table A: US State and Federal Beer Tax Rates per Std. Drink by %ABV % ABV State 2.8% 4.2% 5% 5.9% 7.5% Alabama $0.176 $0.117 $0.098 $0.083 $0.066 Alaska 0.179 0.119 0.100 0.085 0.067 Arizona 0.027 0.018 0.015 0.013 0.010 Arkansas 0.027 0.026 0.022 0.018 0.014 California 0.033 0.022 0.019 0.016 0.013 Colorado 0.013 0.009 0.008 0.006 0.005 Connecticut 0.032 0.021 0.018 0.015 0.012 Delaware 0.027 0.018 0.015 0.013 0.010 District of Columbia 0.015 0.010 0.008 0.007 0.006 Florida 0.080 0.054 0.045 0.038 0.030 Georgia 0.142 0.095 0.080 0.068 0.053 Hawaii 0.156 0.104 0.087 0.074 0.058 Idaho 0.025 0.017 0.014 0.012 0.009 Illinois 0.031 0.021 0.017 0.015 0.012 Indiana 0.019 0.013 0.011 0.009 0.007 Iowa 0.032 0.021 0.018 0.015 0.012 Kansas 0.030 0.020 0.017 0.014 0.011 Kentucky 0.013 0.009 0.008 0.006 0.005 Louisiana 0.054 0.036 0.030 0.025 0.020 Maine 0.059 0.039 0.033 0.028 0.022 Maryland 0.015 0.010 0.008 0.007 0.006 Massachusetts 0.018 0.012 0.010 0.009 0.007 Michigan 0.033 0.022 0.019 0.016 0.013 Minnesota 0.013 0.017 0.014 0.012 0.009 Mississippi 0.054 0.036 0.030 0.025 0.020 Missouri 0.010 0.007 0.006 0.005 0.004 Montana 0.023 0.016 0.013 0.011 0.009 Nebraska 0.052 0.035 0.029 0.025 0.019 Nevada 0.027 0.018 0.015 0.013 0.010 New Hampshire 0.050 0.033 0.028 0.024 0.019 New Jersey 0.020 0.013 0.011 0.010 0.008 New Mexico 0.069 0.046 0.038 0.033 0.026 New York 0.018 0.012 0.010 0.009 0.007 North Carolina 0.089 0.059 0.050 0.042 0.033 North Dakota 0.027 0.018 0.015 0.013 0.010 Ohio 0.030 0.020 0.017 0.014 0.011 3 Table A (cont.) % ABV State 2.8% 4.2% 5% 5.9% 7.5% Oklahoma $0.060 $0.045 $0.038 $0.032 $0.025 Oregon 0.013 0.009 0.008 0.006 0.005 Pennsylvania 0.013 0.009 0.008 0.006 0.005 Rhode Island 0.018 0.012 0.010 0.009 0.007 South Carolina 0.129 0.086 0.072 0.061 0.048 South Dakota 0.045 0.030 0.025 0.021 0.017 Tennessee 0.023 0.016 0.013 0.011 0.009 Texas 0.032 0.022 0.019 0.016 0.012 Utah 0.069 0.046 0.038 0.033 0.026 Vermont 0.044 0.030 0.025 0.021 0.034 Virginia 0.043 0.029 0.024 0.020 0.016 Washington 0.044 0.029 0.024 0.021 0.016 West Virginia 0.030 0.020 0.017 0.014 0.011 Wisconsin 0.010 0.007 0.006 0.005 0.004 Wyoming 0.003 0.002 0.002 0.002 0.001 Control Average $0.046 $0.031 $0.026 $0.022 $0.018 License Average $0.044 $0.030 $0.025 $0.022 $0.017 Federal $0.097 $0.065 $0.054 $0.046 $0.036 US Average $0.045 $0.030 $0.026 $0.022 $0.017 Chart A: US State and Federal Beer Tax Rates per Std. Drink by %ABV (Table A) 4 Table B Table B: US State and Federal Spirits Tax Rates per Std. Drink by %ABV % ABV State 17.0% 40.0% 47.2% 75.5% Alabama $0.122 $0.052 $0.044 $0.028 Alaska 0.069 0.150 0.127 0.079 Arizona 0.008 0.004 0.003 0.002 Arkansas 0.069 0.029 0.025 0.016 California 0.091 0.039 0.033 0.041 Colorado 0.063 0.027 0.023 0.014 Connecticut 0.124 0.053 0.045 0.028 Delaware 0.100 0.064 0.054 0.034 District of Columbia 0.041 0.018 0.015 0.009 Florida 0.062 0.076 0.064 0.059 Georgia 0.105 0.044 0.038 0.024 Hawaii 0.165 0.070 0.059 0.037 Idaho 0.179 0.076 0.064 0.040 Illinois 0.020 0.053 0.045 0.028 Indiana 0.074 0.031 0.027 0.017 Iowa 0.142 0.060 0.051 0.032 Kansas 0.069 0.029 0.025 0.016 Kentucky 0.053 0.023 0.019 0.012 Louisiana 0.069 0.029 0.025 0.016 Maine 0.084 0.036 0.030 0.019 Maryland 0.041 0.018 0.015 0.009 Massachusetts 0.112 0.047 0.040 0.025 Michigan 0.197 0.084 0.071 0.044 Minnesota 0.139 0.059 0.050 0.031 Mississippi 0.100 0.042 0.036 0.022 Missouri 0.006 0.002 0.002 0.001 Montana 0.103 0.044 0.037 0.023 Nebraska 0.103 0.044 0.037 0.023 Nevada 0.036 0.042 0.036 0.022 New Hampshire -0.029 10.012 -0.011 -0.007 New Jersey 0.121 0.052 0.044 0.027 New Mexico 0.167 0.071 0.060 0.038 New York 0.070 0.075 0.064 0.040 North Carolina 0.158 0.067 0.057 0.036 North Dakota 0.069 0.029 0.025 0.016 Ohio 0.165 0.070 0.059 0.037 5 Table B (cont.) % ABV State 17.0% 40.0% 47.2% 75.5% Oklahoma $0.153 $0.065 $0.055 $0.035 Oregon 0.288 0.122 0.104 0.065 Pennsylvania 0.050 0.021 0.018 0.011 Rhode Island 0.103 0.044 0.037 0.023 South Carolina 0.075 0.032 0.027 0.017 South Dakota 0.108 0.046 0.039 0.024 Tennessee 0.121 0.052 0.044 0.027 Texas 0.066 0.028 0.024 0.015 Utah 0.145 0.062 0.052 0.033 Vermont 0.159 0.068 0.057 0.036 Virginia 0.197 0.084 0.071 0.044 West Virginia 0.027 0.011 0.010 0.006 Wisconsin 0.090 0.038 0.032 0.020 Wyoming 0.033 0.014 0.012 0.007 Control Average $0.125 $0.053 $0.045 $0.028 License Average $0.102 $0.052 $0.044 $0.029 Federal $0.127 $0.127 $0.127 $0.127 US Average $0.109 $0.053 $0.045 $0.029 Chart B: US State and Federal Spirits Tax Rates per Std.
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