Monday, August 5, 2019 www.nabca.org

• PA: Convenience and grocery stores selling upend • What to Say When You See a Pregnant Woman Drinking Lancaster County market for licenses Alcohol • NE: Health problems linger after beer sales end in Nebraska • The case for increasing alcohol taxes town • Asia: Philippines ‘Iron Lady’ Leads Push for Fair Alcohol Taxes

used for Miller’s Ale House, which opened in October CONTROL STATE NEWS 2018. PA: Convenience and grocery stores selling beer upend “I made a nice profit because of happenstance. It’s really Lancaster County market for liquor licenses that simple,” Gargano said. Rather, it was the result of a package of tweaks made Lancaster Online three years ago this month to the Prohibition-era By Chad Umble, Staff Writer Pennsylvania Liquor Code. August 4, 2019 The changes opened up beer and sales to a new class The Rutter's in Leola was the first convenience store in of corporate buyers — convenience and grocery store Lancaster County to sell beer. It debuted the sales in chains. October 2016. Since a fixed supply of liquor licenses is available for each In 2011, after more than 30 years in business, Joe Gargano county — and new buyers with deep pockets began decided to start selling beer from his small pizza shop at pursuing them — basic economics explains why prices the center of East Petersburg. more than doubled. Gargano bought the required restaurant liquor license That pushed prices to the point where many smaller from Doneckers Restaurant in Ephrata, which had closed operators, like Gargano, decided to cash out. three years earlier. At the same time, another set of changes created a Gargano said he paid the going rate for such licenses at possible alternative for small operators who feel shut out the time, which was around $125,000 — an amount that by the suddenly high costs of opening a traditional . had changed little in decades. “I think who’s lost out are the small, independent Adding beer brought some new faces who would often restaurateurs,” said Aaron Zeamer, an attorney with buy pizza, subs or stromboli and then grab a six-pack on Russell, Krafft & Gruber who specializes in liquor license their way out, Gargano said. transactions. “A chef who has been toiling in the industry But after about five years, Gargano said, his beer sales for a long time and wants to go out on his own, it’s really, began to attract a very different kind of customer — really difficult for them to do that and have a successful buyers who wanted his liquor license. model.” “I had brokers coming at me, I had people directly calling Law changes me,” added Gargano who said the calls, visits and mailings The liquor law changes that went into effect in August were coming weekly. 2016 followed years of efforts to privatize liquor sales in Gargano eventually sold his liquor license in 2017 to the Pennsylvania. While the updates that were rolled into Act developer of The Crossings at Conestoga Creek opposite 39 stopped short of privatization, they represented the Long’s Park. The mixed-use project includes a shopping biggest update since the 1930s. center anchored by Wegmans. Among many other things, Act 39 expanded hours at While Gargano did not disclose the price he got for the state-run Fine Wine & Good Spirits stores and allowed private sale, he said he received the going price at the time, which was around $350,000. The license is now 2

them to start selling lottery tickets, while holders of Cheryl Holt closed The Den outside Elizabethtown in May restaurant liquor licenses could sell wine for takeout. 2018 after she sold the license she bought for $150,000 “It was just kind of ‘throw a bunch of stuff in the bill, and for more than $350,000. The buyer was Sheetz, which see who passes it,’ ” said Melissa Bova, vice president of uses it at its store at 1158 River Road in Marietta. government affairs for the Pennsylvania Restaurant “I’m not going to lie. I wanted my retirement back. I put Association. “We were all trying to figure out what was in my retirement into this place,” Holt said when the bar it at the end of the day.” closed. “It really hurt me to take away the hometown bar. Bova said wine-to-go sales permitted under Act 39 I had so many regular customers.” prompted more grocery stores to begin selling beer and One regular at The Den was Michael Nichols, 49, of wine. Elizabethtown, who likened its closing to the “death of a In Lancaster County, Weis opened the first beer cafe at its cherished family member. Lititz store in 2013. “The Den was more than a neighborhood bar. It was the In a tweak that continues to have repercussions for gathering place,” said Nichols, a human resources restaurateurs in Lancaster County, the law clarified that manager who moved to Elizabethtown two years ago convenience stores that sold gas could indeed sell beer if from Dallas. In Dallas, such “mom and pop” bars didn’t they did it from a separate area. exist, he said. That change overturned a longtime prohibition on beer Nichols’ partner, David Neels, said his own loyalty to The and gas being sold at the same place, although Sheetz had Den is the reason he won’t buy beer or even stop for gas been selling beer by arguing that its stores were actually at the Sheetz in Marietta. restaurants. “I just drive by it now,” he said. “There’s a Rutter’s across “I think the grocery stores did help spark (price increases) the street. I usually stop in there.” but when convenience stores got the right to own the While restaurant liquor licenses typically change hands as liquor license — which most people realize is an R bars open and close, Zeamer said the influx of corporate (restaurant) license — that basically did jerk the prices owners fundamentally changes the historic churn of higher,” said Rich Hewitt, a broker who handles liquor licenses, where bars that are closing sell to others that are license sales in New Jersey and Pennsylvania. opening. The first Lancaster County convenience store to sell booze “Instead of selling a license, a larger corporate owner will was the Rutter’s in Leola. It began selling beer in October just shift it to another location,” he said. “We’re not going 2016 with a liquor license it acquired a year earlier for to see those licenses come back to the market, so it $230,000 from The in New Holland. (permanently) shrinks that pool of licenses that are While that seemed expensive at the time, prices would available for your local or neighborhood restaurants.” soon jump to around $400,000 as Sheetz and Turkey Hill Brewery/distillery alternative starting buying them. While Act 39 created a dynamic that has shrunk the “I don’t know that anybody foresaw how much it would number of available restaurant licenses in Lancaster impact the prices of licenses,” Zeamer said. County and driven up their price, it also created a possible Lancaster County impact workaround for small operators. With liquor-license offers that sometimes exceed what Act 39 allows Pennsylvania breweries or distilleries to sell their businesses are worth, many independent operators any other Pennsylvania-made beer, wine or liquor cashed out. alongside their own. “One of their biggest assets was the license, and when That means there’s a new opportunity to open a they got these big numbers, they sold,” Hewitt said. restaurant without the cost of a restaurant liquor license. Craig Harnish, who owned the Swan Hotel in Strasburg, “(Operators) see that as a way to get into the industry and closed the bar in March 2018 after selling his liquor be able to sell alcohol without having to then pay the cost license — for a price he didn’t disclose — to Weis for its of a restaurant license,” Zeamer said. Gap store. The restaurant, which opened in January at 3572 Lincoln “The bad part of it is, you lose the local bar,” he told LNP Highway East, features fresh-made pasta as well as when the bar closed. sandwiches and pizza. It also sells Pennsylvania-made 3 beer, wine and liquor because it operates as a retail amounts of alcohol near South Dakota's Pine Ridge Indian location for Paradise-based distillery Hillside Spirits. Reservation, public health officials are still trying to clean Thompson said the new arrangement is unique, although up the damage left by decades of alcohol abuse among she admits it would have been easier with a traditional tribe members. license. For example, customers still often ask for non- The stores in Whiteclay, Nebraska, faced intense criticism Pennsylvania such as Miller Lite, Coors Lite or Bud for selling millions of cans of beer annually, primarily to Light, she said. members of the Oglala Sioux Tribe. Native American Piccola Italian Bistro took a spot formerly occupied by activists and others who wanted the stores closed blamed Kinzers Station , which was owned by Thompson’s them for widespread alcoholism and cases of fetal alcohol parents, Michael and Judie Narducci. The Narduccis sold syndrome on the officially dry reservation. their liquor license to Primanti Bros. in January 2017. The problem has drawn the attention of state lawmakers Another restaurant that sells Pennsylvania beer, wine and and officials with the University of Nebraska Medical liquor without a restaurant liquor license is Shot and Center, but both acknowledge there's no easy fix. A Bottle. It opened in May 2018 on the ground floor of the delegation from the University of Nebraska Medical Griest Building in downtown Lancaster. Center will travel this week to Gordon, the largest Nebraska town near Pine Ridge, and the reservation itself Andrew Martin, who owns Shot and Bottle with his wife, to teach local educators, health officials and social Kate, said he originally just wanted to have a bottle shop workers how to identify signs of alcohol-related disorders that would sell Pennsylvania-produced , including in children. those made by his Thistle Finch Distillery, which he opened in Lancaster in 2013. "My biggest concern is that when a kid goes undiagnosed and goes through school without appropriate support, “When the law changed saying we’re allowed to sell beer they end up at a higher risk for alcohol consumption," said and wine as well, it made sense that we could open a Dr. Omar Rahman, a University of Nebraska Medical space that was more restaurant oriented,” he said. Center professor who treats children from the Whiteclay While Martin said he’d liked to be able to stay open past area remotely using telehealth video conferencing the mandated 11 p.m. closing time, the concept has been software. "They're going to have more difficulty securing successful, even though he can’t count on income from employment, socializing and making good decisions. My selling major brands. fear is it's simply going to feed the same cycle." “All the mass-produced lower-priced products that help a Cases of fetal alcohol syndrome and other alcohol-related traditional restaurant maintain their margins aren’t disorders are well-documented on Pine Ridge and many available to us,” he said. of the border towns in Nebraska and South Dakota, Yet Martin, whose Thistle Finch Distillery was the first although it's unclear how many cases originated with Lancaster distillery to open since Prohibition, said he purchases from Whiteclay beer stores. doesn’t think a restaurant like his is actually a cheaper Whiteclay, a village with a population of nine that touches way to get into the business. the reservation's southern border, sold the equivalent of “At least at the moment, a lot of people see opening a about 3.5 million cans of beer annually before the stores brewery or a distillery as a back door into being able to lost their liquor licenses in 2017. The town's streets are open their own restaurant or bar,” he said. “But for a lot cleaner now, most panhandlers have left and new of us, we’ve invested more money in creating a distillery businesses have taken root, but longtime residents and or a brewery than what a liquor license would have cost.” activists say alcohol is still making its way onto the reservation. It's not clear whether the amount has LICENSE STATE NEWS declined since the Whiteclay stores closed. The alcohol problem is especially daunting in the region NE: Health problems linger after beer sales end in because it faces a severe shortage of specialists who treat Nebraska town alcohol-related disorders, said Dr. Catherine Jones- Fairfield Citizen Hazledine, a clinical psychologist based in Rushville, Grant Schulte, Associated Press Nebraska, who maintains eight clinics throughout August 4, 2019 western and north-central Nebraska. LINCOLN, Neb. (AP) — Two years after Nebraska state Jones-Hazledine said symptoms of alcohol-related regulators shuttered four beer stores for selling excessive disorders are often confused with other conditions, such 4

as attention deficit hyperactivity disorder, which makes it "If our mission is to lead the world in transforming lives to harder to treat kids who have developmental problems create a healthy future for all individuals and because of exposure to alcohol in utero. Both disorders communities, then that transcends borders beyond just make it harder for children to concentrate and leave them the state of Nebraska," she said. prone to compulsiveness, hyperactivity and poor

decision-making. AR: State sees uptick in craft beers "Schools bear the brunt of a lot of that," Jones-Hazledine 2018 saw 85 more barrels produced than in previous said. "When kids have needs that go unaddressed, it year affects how well they can learn. That's why it's important Arkansas Online for schools to partner with providers out here." by John Magsam State Sen. Tom Brewer, of Gordon, whose district includes August 4, 2019 Whiteclay, said he's working with the University of Arkansas' craft brewers made nearly 37,500 barrels of Nebraska to try to bring more doctors, psychologists and suds in 2018, up slightly from the previous year, with a counselors to the region to help those affected by single Little Rock brewery accounting for almost 40% of alcoholism. He said the shortage is part of a larger the beer produced in the state, according to state data. problem around the reservation, where he grew up, and in rural western Nebraska. In 2018, Arkansas brewers operating under microbrewery restaurant permits reported brewing 15,220 barrels of "I think this could be a blessing in that area where it's hard beer, while those working under the small brewery to get doctors," said Brewer, a member of the Oglala permits made 22,265 barrels, for a total of 37,485 barrels. Sioux Tribe. The 2018 totals were up 85 barrels or less than 1% when Rahman, the director of genetic medicine at the compared with the previous year. A barrel of beer university's Munroe-Meyer Institute, said he hopes to contains 31 gallons. expand the use of telehealth clinics in the region so more The production numbers cited are based on reports to the children can see doctors in Omaha without having to drive Alcoholic Beverage Control Division of the Arkansas more than six hours one way. The university already has Department of Finance and Administration with some telehealth clinics in Gordon and Scottsbluff. adjustments. The numbers reported to the state reflect Rahman said the idea came from earlier listening sessions the amount of beer the breweries reported producing in with teachers from northwest Nebraska and the their Arkansas operations. reservation, many of whom said they didn't know how to Production numbers for Core Brewing and Distilling in help children they suspected of having an alcohol-related Springdale were adjusted upward for 2018 when a disorder. brewery spokesman said the numbers on the state report Some tribe members stressed the need for more alcohol were too low. Total production reported by the Arkansas and drug treatment facilities, but that isn't a feasible Democrat-Gazette for 2017 was adjusted downward option for the university right now, said Lisa Spellman, a when North Little Rock-based Flyway Brewing Co. said it University of Nebraska Medical Center spokeswoman and inadvertently reported too much Arkansas production in member of South Dakota's Rosebud Sioux Tribe. that year. Spellman said the university was able to open a genetics In 2017, Arkansas beer makers produced a total of 37,339 clinic in Gordon to help diagnose children with alcohol- barrels, with 13,883 barrels coming from microbreweries related disorders. She said a grant from the university's and 23,456 barrels made in small breweries. The 2017 College of Public Health helped pay for the educational numbers were a 37% jump from 2016. sessions in Nebraska and South Dakota, and university The 2018-19 Arkansas reports showed 13 microbrewery officials hope to keep working with residents in the area. restaurant permits and 37 small brewery permits while Spellman said the university was helping South Dakota the report last year included results from 16 operations tribe members because its mission is to assist all people, working under microbrewery restaurant permits and 31 including those who live outside of Nebraska. She pointed small brewery permits. to the University of Nebraska Medical Center's role in Sylvia Blain, executive director of the Arkansas Brewers detecting and mitigating the effects of biological weapons Guild said she hopes to develop a system where the and the creation of the National Ebola Training and organization will track production quarterly to get a Education Center, which has trained hundreds of military better picture of the state's growing craft beer industry. and health professionals. 5

The top beer producer in Arkansas was Lost Forty Brewery Marty Shutter, marketing manager at Ozark Beer Co., said in Little Rock with 14,250 barrels or 38% of the state's as Arkansas' craft beer industry matures, its primary total. Lost Forty's production was up 18% from 2017. customers are evolving as well. John Beachboard, owner of Lost Forty, said the beer- "As our market grows and competition tightens, the maker intends to continue expanding production but consumer becomes savvier, exploration becomes more doesn't have plans to distribute outside the state. He intentional and manifests as trying different breweries, projects production in the 15,000 to 17,000 barrel range versus the latest style from the same brewery," he said. for 2019. He said extra capacity would be used to make specialty INTERNATIONAL NEWS beers, which have proven popular. Beachboard said going forward Lost Forty was adding a new canning line and United Kingdom: Brits 'at risk of brain damage' as booze intends to add a patio and is expanding its entertainment and cannabis infused balloons hit UK clubs space. PARTYING Brits could be at risk from brain damage as new booze infused balloons take off in UK clubs, health experts Core Brewing remained the second-largest beer maker, have warned. with 4,800 barrels, up 9% from last year, and Ozark Beer Co. of Rogers held on to its third place spot with 4,077, a Daily Star 4% increase. Bike Rack Brewing of Bentonville ranked By Emma Parker fourth with 2,402 barrels, and North Little Rock's Flyway August 4, 2019 Brewing Co. placed fifth on the list with 2,157 barrels. British clubbers could be at risk from brain damage and In response to emailed questions, Lacie Bray, owner and other serious health problems if they dare to try booze business manager of Ozark Beer Co., said the brewery is infused balloons. on track to produce more beer in 2019. Gallery Nightclub in Maidstone is the first UK nightclub to "We only add capacity as the market demands it, and only serve up vaporised spirit in balloons. in small increments to maintain organic and responsible The club is using Alcohol Mist machines from American growth," she said. "We are always conservative with our company Vapshot to turn flavoured Ciroc vodka into a expectations, and never want to assume our sales will just fine mist. increase because we have more capacity. On the national It is claimed the balloons contain 1/60 of a shot but give level, we have seen many larger breweries get in trouble revellers the kick of two shots-worth of alcohol. with large-scale expansions based on anticipated sales The nightclub is even selling CBD infused balloons - the that never materialize. Slow and sustainable growth will legal part of cannabis - for partygoers to try. always be our path." Health professionals have warned Brits off the gimmick as The state's top five craft beer makers in 2018 accounted it could cause serious health problems due to the almost for 27,686 barrels or 73% of the state's total beer instant administration of alcohol into the bloodstream production. and brain. Bart Watson, chief economist for the Brewers Kent County Council’s Director of Public Health, Andrew Association, an organization promoting craft brewers, Scott-Clark said: “Inhaling vodka in balloons is definitely said it's typical for a growing craft beer market to see the something we would not advocate as it could be majority of production clustered around a few key extremely harmful both for short-term and long-term brewers. He said in most markets only a handful of heart. companies are in a position to significantly scale up production from year to year. “It provides almost instant delivery of alcohol to the bloodstream and the brain, bypassing the metabolism, "Growth isn't assured, and it's not cheap," he said. and the effects are felt very quickly. Nationally, beer producers made 194.2 million barrels in “The increased absorption can harm the brain and is a 2018, down less than 1%. Of that number, craft brewers particular hazard to teens and young adults, because their accounted for 25.6 million barrels, a 4% increase from last brains have not finished developing yet. year. U.S. revenue for all beer in 2018 was $114.2 billion with craft beers sales at $27.6 billion, a 7% gain over 2017. “When you smoke alcohol, it never passes through the stomach and so doesn’t cause vomiting, which can limit how much alcohol is absorbed - the effects therefore can be more serious.’ 6

Despite this, Gallery night club manager, Devon Modell, interview in her office in Manila. “They can increase taxes, insisted the vapour is completely safe. and no one will complain as long as it’s equitable.” Mr Modell said: “You are actually consuming such a small Family-Owned Business amount of alcohol and it leaves your body really quickly After taking over the family-owned business in 2004, so it is quite hard to get too drunk from it. Limpe-Aw, who’s tagged by local media as the industry’s “I have tried them myself and no one has had a bad “iron lady,” said she was questioned by male colleagues reaction in our club. about her knowledge on distilling processes and “The taste is quite strong so people normally have Alcohol techniques, which she said didn’t happen to men in her Mist after a few drinks. position. “We recently had a visit to renew our alcohol licence and “I was told that I’m an entrant in an old boy’s network, the inspector saw the Alcohol Mist equipment and did not and I have to prove myself worthy,” said Limpe-Aw, who say anything about it.” only drinks for research and development and not socially with colleagues. “Anywhere in the world, it’s an old boy’s network. If you’re a woman in a man’s world, you have to Asia: Philippines ‘Iron Lady’ Leads Push for Fair Alcohol work harder.” Taxes Limpe-Aw is attacking a growing list of challenges. Besides Bloomberg the tax issue, she’s guarding against a bevy of foreign By Siegfrid Alegado brands seeking to jump into one of the world’s fastest- August 4, 2019 growing alcohol markets. Olivia Limpe-Aw is leading a group of Philippine liquor Hamburg-based Statista estimates spirits account for billionaires in asking President Rodrigo Duterte for about two-thirds of the $9.2-billion Philippines liquor equitable treatment in his plan to raise liquor taxes. industry. As the economy expanded, Filipinos with more And she’s certain to have one tough battle as she leads spending power have turned to premium imported both the Southeast Asian nation’s oldest distiller and the brands by distillers such as Diageo Plc, according to IWSR industry at a time of rising alcohol taxes, challenges from Drinks Market Analysis. foreign brands and a debate over fairness. While imported brands accounted for less than a tenth of Congress this month will start debating proposed tax spirits consumption in the Philippines last year, IWSR data increases, after Duterte sought a law to help finance a shows volume grew 20% over five years compared with a free health-care program partly via taxing spirits. Finance 0.6% increase for domestic products. IWSR forecasts Secretary Carlos Dominguez wants it passed this year. annual market growth of 9% for imported spirits and 1.5% for homegrown ones until 2023. “It’s about having equal treatment,” Limpe-Aw said of the plan to overhaul Philippine taxes on alcoholic drinks that Destileria Limtuaco is trying to protect market share by she says deters the local liquor industry’s growth. producing premium spirits infused with tropical fruit flavors such as Philippines lime and mango, and She’s leading the Distilled Spirits Association of the marketing the company as a leader in the Filipino food Philippines -- a decade-old group she helped establish movement. It also pioneered selling packed into that includes billionaires Lucio Tan’s Tanduay Distillers small juice packets to cater to millennials. Inc., Ramon Ang’s Ginebra San Miguel Inc. and Andrew Tan’s Emperador Inc. Her family’s Destileria Limtuaco & Emperador and San Miguel Brewery Inc. in the past years Co. Inc. is the Philippines’ oldest distiller established in have also tried introducing premium variants yet with 1852. little success, IWSR said. Currently, distilled spirits such as gin and whiskey are “Always sharpen the saw,” Limpe-Aw said, adding that it’s slapped a tax of 20% of the retail price and a specific sum something she says women in male-dominated industries in pesos per proof liter. Meanwhile, only the latter is must do. imposed on beer and wine -- most of which are imported. “If they studied twice, I’ll study thrice,” she said. “If you The proposed measure would raise the rates using the want to be treated by men as their equal, you have to current tax structure. show them you’re the expert.” “You have to be very careful in designing tax structures, New Markets so you don’t kill one over the other,” Limpe-Aw, the first As Philippines distillers face a raft of challenges at home, female president of Destileria Limtuaco, said in an Destileria Limtuaco is looking overseas for growth. It plans 7

to add export markets that now include China, Japan, deliver positive outcomes in the online alcohol sale and Taiwan, South Korea, Malaysia and Thailand. delivery sector on behalf of retailers and consumers. Destileria Limtuaco is in talks with retailers to expand in “Through our close collaboration with various state and the U.S. -- so far it is only in California -- and is looking at territory governments, we have recently launched an entering the European market in the next five years, industry-wide, voluntary Code of Conduct to complement Limpe-Aw said, declining to identify the companies existing legislation for online alcohol sales and deliveries. involved. “Every year, we would want to add one market,” “The Code is designed to equip liquor retailers across the she said. country with the information and resources they need to While exports account for only about 4% of Destileria participate in the online alcohol sale and delivery sector Limtuaco’s sales last year, it had saved what was once the in a safe and responsible way. maker of the Philippines’ best-selling whiskey from “We are also promoting the Code and the benefits of bankruptcy in the 1990s. A labor strike in 1989 halted becoming a signatory through our Small Business Digital production for six months and wiped out its market share Champions project in partnership with the Federal at home. Government to assist small liquor retailers in ‘going Destileria Limtuaco won’t sell shares. digital’. “It works for us that we’re a family-owned company. “We look forward to continuing our proactive There’s nothing wrong with being private and consultations with Australian governments around the conservative,” Limpe-Aw said. Not being a public issue of online alcohol sales and deliveries whilst corporation makes the company more nimble and upholding our commitment to promoting safe and innovative as it doesn’t need to chase fast growth, she responsible retailing in this space.” said. PUBLIC HEALTH NEWS Australia: SA’s online delivery changes welcomed What to Say When You See a Pregnant Woman Drinking The Shout Alcohol by Andy Young The appropriateness of unsolicited advice. August 5, 2019 Psychology Today Proposed changes to online alcohol deliveries in South By Wendy L. Patrick, Ph.D. Australia have been welcomed by Retail Drinks Australia. August 4, 2019 The Liquor Licensing (Miscellaneous) Amendment Bill We have all seen it: an obviously pregnant woman 2019 was introduced into SA’s Parliament last week and smoking a cigarette, drinking a beer—or both. The sight should it be passed online alcohol deliveries (direct sales is upsetting, and perhaps you feel compelled to act. But transactions) in the state will be permitted between 8am assuming the woman is not carrying your child, or is not and 10pm. This represents a one-hour extension on the your daughter, sister, or best friend, what do you say? current time-frame and restrictions on the time of Answering this question might be easier in a personal dispatch for alcohol deliveries will also be removed. rather than professional setting, as one concerned Retail Drinks’ CEO Julie Ryan, said: “We welcome the server found out the hard way. introduction of this Bill into Parliament and thank the SA A cocktail waitress put her job in jeopardy when she Attorney-General for supporting Retail Drinks’ interfered with the drink order of a woman having recommendation to extend direct sales transactions of cocktails with friends.[i] She assumed the woman was alcohol across the state until 10pm, and to remove pregnant after overhearing her say she was “14 weeks restrictions on the time of dispatch of deliveries. along,” and decided to make a bold move. Instead of “These changes are a big win for both SA consumers serving the woman what she ordered, she had the seeking the added convenience and accessibility of online make her a virgin drink. alcohol deliveries as well as for the increasing number of The bartender must have been a talented mixologist, licensees choosing to operate in this space.” because the woman apparently did not notice the bait Ryan added that Retail Drinks was pleased to be able to and switch as she and her girlfriends ordered additional collaborate with state and territory governments to help rounds, even “getting rowdy” according to the waitress. But at the end of the evening, the conscientious cocktail 8

server was busted by the bill—which (accurately) listed and providing unsolicited advice, specifically, that the woman´s drinks as “virgin.” participants were more likely to give unsolicited advice to The waitress fessed up when questioned about the friends they felt closer to. They also found that such stealthy swap-out. When the supposedly pregnant advice was given very early on within the interaction in woman asked if she had ordered a non-alcoholic cocktail, about 70% of the cases. the waitress admitted she had not, but assumed that But what about offering advice to those who do not since she was pregnant, she would want one. This was express discontent? Like the pregnant woman indulging after assuming the woman was pregnant in the first place, during girls night out? Apparently, it depends on receiver and not “14 weeks” into a new job, relationship, exercise receptivity. routine, or diet. Reading Receptivity Were there other ways the server could handled the Unsolicited advice is commonly given, even expected, by situation? Asking about the pregnancy would be certain people, such as medical professionals. But is it awkward, as would offering alternative drink selections. ever well-received? But the mocktail switch-out illustrates a moral dilemma Stephen A. Buetow (1999) investigated the question of that raises a very practical question: when should we whether a general practitioner should offer unsolicited offer pregnant women unsolicited advice? advice to patients who smoke.[iv] He suggested that Pregnant Women and Unsolicited Advice before offering antismoking advice, a practitioner should Sherri Gordon, in a piece entitled “What to Say to People first assess patient receptivity and readiness for change. With Opinions About Your Pregnancy” (2019) examines The same rationale might apply to other settings. the all-too-common scenario of people feeling compelled So before you propose a healthy entree selection to your to offer unsolicited advice to pregnant women.[ii] She pregnant co-worker the next time the two of you are out begins by recognizing the temptation to bombard to lunch, consider whether your well-intentioned pearls pregnant women with “helpful” tips about how they of wisdom will also be well received. should handle their pregnancy, and lives after delivery. References Why motivates people to speak up? Gordon [i]https://www.mirror.co.uk/news/weird-news/waitress- acknowledges the unfortunate “sport” of online mom- sparks-controversy-after-sneakily-18786081 shaming, but also recognizes that many women genuinely want to share their own pregnancy experiences, while [ii]https://www.verywellfamily.com/what-to-say-to- others want to share vicariously in the excitement of the people-with-opinions-about-your-pregnancy-4174384. impending birth. [iii]Feng, Bo, and Eran Magen. 2016. “Relationship Gordon also advises pregnant women about a variety of Closeness Predicts Unsolicited Advice Giving in graceful ways to weather the uninvited onslaught of Supportive Interactions.” Journal of Social and Personal shared “wisdom.” One of the interesting points she raises Relationships 33 (6): 751–67. is the reality that in their quest to be helpful, it is as if [iv]Buetow, Stephen A. 1999. “Unsolicited GP Advice “people sometimes forget that there is a person with against Smoking: To Give or Not to Give?” Journal of feelings attached to that protruding belly.” Why do we Health Communication 4 (1): 67–74. behave like this? Research has some answers. Close Relationships and Unsolicited Advice DAILY NEWS Bo Feng and Eran Magen (2016) examined the The case for increasing alcohol taxes phenomenon of unsolicited advice in “Relationship Closeness Predicts Unsolicited Advice Giving in Business World Supportive Interactions.”[iii]They recognize that although By Carlos Jacinto giving advice is commonly one of the hallmarks of August 5, 2019 supportive interaction, it may not always have positive In one of the rare moments of this year’s State of the results. They note that it can sometimes harm both the Nation Address where President Rodrigo Duterte advice recipient, as well as the relationship. followed the speech written for him, he mentioned that In their study, they examined participant responses to one of his priority measures for the 18th Congress is friends who expressed discontent, but did not ask for raising the excise tax on alcoholic beverages. advice. They found a link between relational closeness 9

The alcohol tax increase is a reform that did not get up with marketing strategies that entice minors to try through the previous Congress. In the House of their products. Representatives, House Bill 8618 was approved on third In recent years, we have seen the rise of alcopops. reading, but the tax rates passed were significantly lower Alcopops are defined as pre-mixed alcoholic beverages than what the Department of Finance (DoF) proposed. In with an alcohol content of less than 10% alcohol by the Senate, a solitary hearing on the measure took place volume. Simply put, an mixed with flavors at the committee level, and that was it. The bill was never — think Smirnoff Mule, Tanduay Ice, or Bacardi Breezer. tackled in the plenary debates. Incorporating flavors into alcoholic beverages is an So how will I be affected by the alcohol tax? I personally effective way of encouraging a younger demographic to do not drink, but after asking some of my friends that do, start drinking. These flavors may take away the they all agree that drinking is a way for them to build apprehensions of some when it comes to drinking, since relationships and create fun memories to look back on. they would help mask the alcohol’s strong taste. Having said this, I would like to give two reasons why Alcopops have also become popular because of their raising alcohol taxes is a good move. affordability. In convenience stores, a bottle of any of the First, I mention the Universal Health Care (UHC) Act, brands mentioned only cost around P40. As a result, these which was signed into law earlier this year. During the are easily accessible to young drinkers. 17th Congress, the DoF stated that the first year of UHC Alcohol companies also use the packaging of their still lacks around P63 billion in order to be fully products to attract younger consumers. Recently, I came implemented. across a picture of what I had initially thought was a tetra To bridge this gap, the previous Congress passed an pack of a new brand of fruit juice. However, upon closer increase in tobacco taxes, another landmark health inspection I found out that this was actually a tetra pack reform recently signed into law. This measure is expected of a ready-to-drink cocktail, with an alcohol content of to generate around P15.7 billion in incremental revenue. 7%. In addition, should the alcohol tax rates proposed by the When I realized this, my curiosity turned into concern. DoF be approved, they are projected to raise P33.6 billion While the packaging comes with a small warning saying in its first year of implementation. that the drink was only appropriate for those 18 years old The funds collected from the alcohol and tobacco taxes, and above, the design of the tetra pack places a much together with the earmarking of 50% of the revenues larger emphasis on the flavor of the cocktail. from the tax on sugar-sweetened beverages, will go a long The reality is, a young child walking inside a grocery store way towards addressing the funding shortfall for the first could now be enticed by a tetra pack of ready-to-drink year of UHC, and for the succeeding years as well. cocktail, the same way that he/she would be enticed by a Second, increasing alcohol taxes will be effective in tetra pack of Zest·O orange juice. discouraging excessive consumption or binge drinking. In the future, we must consider coming up with According to the World Health Organization, alcohol is restrictions on the packaging of these products so that one of the leading causes of non-communicable disease, adolescents and young children are not easily tempted by including cancers of the oral cavity, pharynx, larynx, and their design. As far as regulatory measures go however, the liver, among others. Furthermore, the National raising the tax on alcohol is one that has been proven to Center for Health Marketing in the United States be the most effective in discouraging consumption. conducted a review of 14 different papers, all of which revealed that higher alcohol taxes led to a lower Data from the National Nutrition Survey show that the occurrence of motor vehicle crashes as well as of violence proportion of current drinkers among adolescents against women and children. decreased from 21.7% in 2008 to 14.9% in 2015. The 2012 sin tax law played a part in this. Significantly increasing Raising the tax to regulate alcohol consumption is the tax again will further decrease the prevalence of especially important for minors (those aged 18 and drinkers, young and old. below), as drinking alcohol at an early age is said to significantly hamper brain development, and may lead to As the 18th Congress begins its third week of work, the impaired memory and cognitive deficits that persist well push for passing the alcohol tax is off to an encouraging beyond adolescence. It is therefore alarming that despite start. House Majority Leader Martin Romualdez has these health hazards, some alcohol companies have come stated that the House of Representatives will pass the priority tax bills — including the alcohol tax — by the end 10

of the year. Romualdez himself, together with his wife made about its products, particularly assertions that they Yedda, authored a bill proposing such. Meanwhile, could help with a range of health issues including cancer. Senator Manny Pacquiao has refiled the alcohol bill that They are not the only trader preying on people who are at he had authored in the previous Congress. a vulnerable point in their life. The risks go beyond giving The first steps have been taken in order to pass this crucial false hope, which is bad enough, but the impact could see reform. In a year where multiple health measures have an individual reject conventional medicine in favour of a already been signed into law, I do hope that the 18th new but untested CBD product, making this literally a life Congress adds to the list of good health and tax legislation and death decision informed by unethical claims. the increase on the excise tax on alcoholic beverages. CBD businesses rightly have to be careful about how products are marketed in relation to health. If they cross the regulatory line from essentially promoting a food Is CBD marketing giving people false hope in the quest product to a health one, then licences are required. This towards the legalisation of cannabis? The health industry isn’t the only party guilty of giving false would mean the CBD product would have to go through hope in relation to medicinal cannabis, the government has the same lengthy procedure that a new medicine would also, perhaps unintentionally, pushed similarly idealistic be subject to before it is made available. This process is messages about health benefits costly and can take five to eight years, enough time to gather information about efficacy and potential adverse Independent effects. By Ian Hamilton August 4, 2019 But the health industry isn’t the only one guilty of giving false hope in relation to medicinal cannabis, the Cannabidiol (CBD) products are popping up everywhere government has, perhaps unintentionally, done the same from beauty products to drinks and more. Like the gold in terms of the way it has managed legal access to rush, we now have cannabis fever with the market medicinal cannabis. estimated to be worth £16bn over the next decade. Access has been permitted since last year, but only a few It’s part of a push seen this week by MP David Lammy, (mainly private) prescriptions have been issued. Such who is convinced that as we obtain sanctioned access to moves have resulted in a two-tier system where those medicinal cannabis, recreational access will and should with means can access prescriptions and those without surely follow. money are in the same position they were in before the But are we ignoring key issues in the industry? Without legislation was introduced. This inequity is not helped by business investment and know-how, for example, many the conflict of interest that some government ministers medicines and health products won’t make it to market. appear to have in relation to cannabis products. Victoria My fear is that in the quest towards decriminalisation, we Atkins the minister responsible for drugs policy, had to haven’t actually learned anything from the way similar withdraw from a debate about legalising cannabis after it industries, such as the tobacco and alcohol industries, emerged her husband is the managing director of British have historically operated. Many, for example, have made Sugar, which has a licence to grow cannabis. false claims about their products or have associated Issues with drug policy also goes beyond ministers having themselves with high profile sports as a way of softening a conflict of interests or business lobbying, however. their image and increasing sales. They have also been What’s particularly worrying is the opaque nature of proven to be adept at influencing policy in their favour, these relationships and, by extension, our inability to minimising restrictions to their products or lobbying for really ever know how much influence they have. The reducing the tax levied on them. alcohol industry has demonstrated how it has Where is cannabis legal in the US? manipulated research evidence by downplaying the risk https://www.independent.co.uk/voices/cbd-cannabis- of cancer that drinking causes, a link many people are still legalise-thc-weed-drugs-david-lammy-a9038626.html unaware of. But there are far more serious issues beyond corporate The other player involved in shaping policy and access to policy lobbying and minimising taxation. Recently the cannabis-based products is the pharmaceutical industry. Medicines and Healthcare products Regulatory Agency Again, it’s not always clear what the extent of their started flexing its muscles, issuing a warning to involvement is. Some suggest the industry has tried to Hempworx, a CBD and hemp firm, over medical claims it restrict access to cannabis-based products to maximise 11

sales of their traditional medicines. Others claim that it is trying to monopolise the emerging cannabis market. It may not be a surprise that such powerful groups are involved in the cannabis industry, but it might be to know that they tend to collaboratewhen there is a shared interest. We should expect the cannabis industry to follow what the alcohol and tobacco industry have been doing for years: sharing intelligence, cross industry share- holding, all with a common goal: maximising their market and profit. We won’t know for years the extent of these working relationships, but we do know what they’re working towards in the United Kingdom: full cannabis legalisation. Access to medicinal cannabis and CBDs is viewed as the first step in this process. Now would be a good time to clear those hazy eyes.

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