Marin Institute Data Predicts Dramatic Drop in Youth Consumption if European-Style Alcohol Tax Rates Are Applied in California

Contact: Michael Scippa, 415-548-0492; Pete Ratajczak 415-257-2488; both with the Marin Institute

SAN RAFAEL, Calif., June 6 /Standard Newswire/ -- Big Alcohol corporations are grossly under-taxed for alcopops contributing to the underage drinking epidemic. Marin Institute released preliminary data today showing that significant decreases in underage drinking would result from proper taxation of alcopops.

This data is based on the experience of three European countries - the United Kingdom, Switzerland, and Germany - that have increased taxes on alcopops out of concern over underage drinking. Each of these countries has experienced dramatic reductions in alcopops consumption, as well as in underage drinking more generally. Specifically:

• In the United Kingdom, once alcopops were properly classified as distilled spirits in 2002, prices increased dramatically. Alcopops sales then dropped by 43 percent over four years.

• In Switzerland, the government created a new alcohol category to address youth consumption of alcopops; the tax increased to four times that of spirits. Following this increase, imports of alcopops dropped by about 60 percent.

• In Germany, in 2004, the government also created a new alcohol classification and increased alcopops taxes over spirits. The following year, alcopop sales dropped a whopping 75 percent. Most importantly, alcopop consumption went down 50 percent among teenagers because, according to one survey, "alcopops became too expensive."

"We have every reason to believe that California would experience a similar drop in youth consumption, possibly as much as 50 percent," said Michele Simon, Marin Institute Research and Policy Director. "Such a dramatic decline would put a significant dent in the underage drinking epidemic, potentially saving many lives."

The State of California should follow the lead of these governments that have placed youth above the profiteering of the alcohol industry. "Every day that the Board of Equalization continues to misclassify alcopops only supports Big Alcohol's contribution to underage drinking in California," added Simon.

Marin Institute will release the complete results of its analysis on the impact of properly classifying alcopops as distilled spirits in July. This study will include: 1) predicted decline in youth consumption; 2) projected cost savings to the state of California; and 3) estimated number of lives saved and injuries and other harms averted.