Introduction Accounting for over $120 billion of economic activity in 2010, the distilled spirits industry is a prominent piece of the beverage industry as a whole. The alcohol industry is growing rapidly in foreign markets, especially in countries such as China and Brazil. In the United States alone, this industry generates over 3.9 million jobs and contributed about $8.8 billion directly to state and local revenues (The Industry’s Role section, para. 1). Team TOTs will discuss the ethical issues that are prevalent in the distilled spirits industry, pressures facing the industry as well as investment policy recommendations that VTF should follow. Ethical Issues The challenges the distilled spirits industry face fall under two main categories, health and advertising. According to the National Institute on Alcohol Abuse and Addiction, the use of alcohol is the “third leading preventable cause of death” in the US (2014). The Centers for Disease Control and Prevention states that heavy alcohol abuse can lead to a number of health issues, including cardiovascular, neurological, psychiatric, and social problems, as well as cancer, liver disease, and sometimes death (2014). In addition to the consequences to consumers’ health and wellbeing, the industry must also manage the challenge of responsible marketing. Underage drinking is a serious, prominent issue in the US. Out of the 80,000 people who die each year from alcohol-related causes, 5,000 minors die from as a result of
• The awareness of alcohol consumption can be harmful to personal healthiness and society (drunk-driving, violation etc.) may have unfavourable effects on beer companies.
The stakeholder group that will gain most of the benefit from lowering the drinking age to 18 is the alcohol companies. In a sense, the stakeholders between ages 18 and 20 and alcohol companies go hand in hand. Because these young adults are, for the most part, eager to purchase alcohol, the potential skyrocket in sales for that age group would ensure massive profits for alcohol companies. This is made clear considering that underage drinkers in the United States consumed “an estimated 19.7% of the total alcohol consumed”
The goal of this report is to inform the reader of the recent events that
According to Andrew Herman, “Each year, 14,000 die from drinking too much. 600,000 are victims of alcohol related physical assault and 17,000 are a result of drunken driving deaths, many being innocent bystanders” (470). These massive numbers bring about an important realization: alcohol is a huge issue in America today. Although the problem is evident in Americans of all ages, the biggest issue is present in young adults and teens. In fact, teens begin to feel the effects of alcohol twice as fast as adults and are more likely to participate in “binge-drinking” (Sullivan 473). The problem is evident, but the solution may be simple. Although opponents argue lowering the drinking age could make alcohol available to some teens not
The question, "Is alcohol advertising the cause of underage drinking?" seems to flow through the minds of many American families. The answer to the question largely depends upon the families view on drinking in general. Some homes encourage drinking every once in a while, for social purposes; while others condemn it all together. The topic is very controversial with several factors weighing in such as religion, family background, and health. Despite the differing views, statistics have shown that underage drinking has reached a new height this past year. What is the cause of this rise in adolescent
Roughly 11 million young Americans consume alcohol, and an upsetting number of them drink way too much, for the purpose of my research, described as guzzling five or more drinks in a row, one or more times in a two-week period.
It is no secret that underage drinking is rampant in the United States. Though it’s illegal for anyone under the age of 21 to buy or possess alcohol, people under the age of 21 accounts for 17.5% of consumer spending for alcohol nationwide and 90% of that is consumed through binge drinking (Tracy). According to the 2012 National Survey on Drug Use and Health, about 9.3 million Americans between ages 12-20 report current alcohol consumption (Distillers Fighting). With alcohol being one the most commonly abused drugs and soon to pass tobacco on the cause of death list, the pose the questions that if lowering the drinking age could actually increase responsible alcohol intake.
Today, in the United States, alcohol is for many teenagers like opening Pandora’s Box, and “it ranks as the fourth leading preventable cause of death in the United States” (National Institute on Alcohol Abuse). Therefore, it is a very serious issue and is not that easy to act
There are many people, particularly college age students who drink alcohol. Most people do this socially, but some people over do it and become a danger to themselves and others. Drinking alcohol can also lead to many ailments which include, liver cancer, alcohol poisoning, brain determination. Though most people use it as a social tool, markets should stop selling alcohol after midnight because, drunken driving accidents are five times more likely to happen in early morning hours, people can over drink and get Alcohol poisoning, and alcohol disrupts one’s sleep.
The macro environment surrounding alcohol sales and consumption has generally been stable and has experienced incremental growth throughout history. In the United States, the number of per capita consumption of alcohol has declined slightly, but has consistently remained around 2.5 gallons, per person, per year. The lower class, specifically females in the lower class are responsible for a majority of alcohol consumption in the United States. The highest per capita consumption worldwide is as follows: Luxembourg, Ireland, France, Hungary, and Denmark, (the US ranks 22nd.) According to one article, “the beverage alcohol industry contributed over $21 billion directly to state and local revenues during 2010. Of that amount, distilled spirits accounted for over $8.8 billion or 41% of this direct revenue” (“Distillery Spirits”).
Exposure to alcohol advertising is an everyday occurrence. Alcohol advertising is persuasive not only to adults but to those who are too young to buy alcohol legally. Although parents and peers have a large impact on youth decisions to drink, marketing also has a significant impact by influencing the attitudes of parents and peers and helping to create an environment that promotes underage drinking. Alcohol companies focus billions of dollars on advertising their products and still claim that the effect is minimal. I pose a few questions that are; who are the targets of alcohol advertising? How does alcohol advertising affect the people targeted by alcohol companies? Finally what actions are being taken to
Teenagers and young adults are constantly bombarded with alcohol. From the funny beer commercials with the beautiful women who drink and from
Young people are considered to constitute the largest number of alcohol consumers and they account for a large portion of alcohol sales. This is despite the strict drinking laws that govern many countries as regards alcohol purchase and consumption. Underage drinking, which has been on the increase, is allegedly the major cause of alcohol-related problems facing the modern
For the purposes of this case analysis of E. & J. Gallo Winery, the wine industry is composed of all alcoholic beverages that contain between eight and twenty percent alcohol by volume. This distinction is based on the assumption that beer and the typical malt liquor contain less than eight percent alcohol by volume. The twenty percent limit is a result of state and federal tax and licensing laws. The three top competitors that are identified in this case study are E. & J. Gallo, Canandaigua and Mogen David.
Recently, there have been increasing trends of younger customers consuming alcoholic beverages. With improvements in economies, education and technology, younger