BALTIMORE, March 31 /PRNewswire-FirstCall/ -- Diageo announced today its disappointment in seeing yet another setback in the serious issue of combating underage drinking. Last week, the Marin Institute issued a so-called "Action Alert" to the Maryland legislature that was replete with inaccuracies and mis- and disinformation about flavored malt beverages (FMBs). The "Alert" addresses a Maryland House bill (HB 879) that seeks to clarify the state's alignment with the federal standard when determining what constitutes a beer. This sound legislative policy maintains the regulatory status quo in the state and puts Maryland in line with the federal standard that is very well thought out and meticulously crafted only after significant industry research and an arduous rulemaking process. Marin's specious "Action Alert" not only served to perpetuate dangerous myths about a logical, common sense bill, but also made a mockery of the federal rulemaking process that established the well-founded regulation.
"Every time someone engages in inaccurate grandstanding for political or other reasons, the critical battle against underage drinking takes a step backwards," said Guy L. Smith, Executive Vice President, Diageo North America. He continued, "The Marin Institute is letting inaccuracies guide its thinking and, yet again, fails to offer any viable solutions to combating underage drinking. Underage drinking is a serious problem and we have to address it in a serious way. And the only way to do that is to base our policy on fact and research, not myths and purposeful deceptions."
FMBs -- also known as flavored beer -- should be taxed and sold just like traditional and other craft beers. These products have similar alcohol content as traditional beer, the majority of their alcohol is derived from malt according to the federal standard and, like all Diageo products, are strictly marketed to adults age 21 and older.
"The Marin 'Alert' perpetuates myths that are not only wrong but are counter productive," continued Smith.
The press release issued last week makes many claims that are misleading at best, and incorrect at worst. Some examples:
CLAIM: FMBs are "youth targeted ... " REALITY: False. The Federal Trade Commission conducted a thorough, months-long investigation on FMBs specifically and found "no evidence of targeting underage consumers in the flavored beer market." (FTC, Alcohol Marketing and Advertising, A Report to Congress, p. I, September 2003.) CLAIM: Accuses alcohol manufacturers of "deception and de facto tax evasion." REALITY: False. Diageo and other beverage alcohol manufactures abide by the Maryland state law that complies with the accepted federal regulation. There has been NO deception and NO tax evasion. In fact, the Marin Institute is proposing a giant tax hike that would unfairly tax adult consumers who legally purchase these products. The true deception here is Marin's claim that increasing taxes will effectively address the important issue of underage drinking. CLAIM: Taxing FMBs at a higher rate and raising the price will take it out of the reach of underage drinkers. REALITY: False. The fact is that 65% of underage drinkers get alcohol from adults they know. To effectively combat underage drinking, we need to demand that adults take responsibility for keeping out alcohol out of the hands of underage drinkers and more effectively punish those who don't. Higher taxes are not the answer.
Smith concluded, "Any way you look at this it's just one more thinly veiled tax hike that will hurt not only responsible consumers, but also the thousands of Maryland businesses that would no longer be able to sell FMBs if the state fails to regulate them as what they are: Beer."
About Diageo
Diageo (Dee-AH-Gee-O) is the world's leading premium drinks business with an outstanding collection of beverage alcohol brands across spirits, wines, and beer categories. These brands include Johnnie Walker, Guinness, Smirnoff, J&B, Baileys, Cuervo, Tanqueray, Captain Morgan, Crown Royal, Beaulieu Vineyard and Sterling Vineyards wines.
Diageo is a global company, trading in more than 180 countries around the world. The company is listed on both the New York Stock Exchange (DEO) and the London Stock Exchange (DGE). For more information about Diageo, its people, brands, and performance, visit us at http://www.diageo.com/.
Celebrating life, every day, everywhere, responsibly.
