September 2008 – Corporations and Health Watch

New Reports on Food, Alcohol and Tobacco Marketing

Posted on September 25, 2008 by Corporations and Health Watch

In the last few months, government and advocacy organizations have released new reports on the impact of tobacco marketing, inequities in how grocery chains serve low-income neighborhoods, and the alcohol industry’s compliance with its own voluntary guidelines. To help readers keep up, we summarize some of this summer’s publications and provide links to the full reports.

As elected officials, public health researchers and advocates increasingly recognize that corporate policies and practices have a major influence on health, Corporations and Health Watch readers may have trouble keeping up with the many reports on the subject. Since these reports often appear in the “gray literature” and are not centrally indexed, it’s easy to miss information that could inform research or practice. To assist readers in this task, CHW summarizes a few recent reports; we do not review their claims or assess their methodologies.

Bloomberg M. Press Release: Mayor Bloomberg and Shaquille O’neal Announce New Food Standards For City Agencies, September 19, 2008.

On September 19th, New York City Mayor Michael R. Bloomberg and NBA basketball player Shaquille O’Neal announced the launch of New York City’s new food standards designed to improve the nutritional quality of the 225 million snacks and meals served by City agencies each year. These standards make New York City the first major US city to establish nutrition standards for all food purchased or served by city agencies. The new standards cover snacks and meals served in places such as schools, senior centers, homeless shelters, child care centers, after school programs, correctional facilities, public hospitals and parks. The standards mandate City agencies to serve only healthier beverages such as skim or 1 percent milk (with exceptions for babies), phase out deep frying, include two servings of fruits and vegetables in every lunch and dinner, lower salt content and increase the amount of fiber in meals.

Blue Ribbon Commission on L.A.’s Grocery Industry and Community Health. Feeding our Communities. A Call for Standards for Food Access and Job Quality in Los Angeles Grocery Industry. Los Angeles, July 2008. Available in [pdf]

The Alliance for Healthy and responsible Grocery Stores, a city-wide Los Angeles coalition of 25 community, faith-based, labor, and environmental organizations last July released “Feeding Our Communities: A Call for Standards for Food Access and Job Quality in Los Angeles’ Grocery Industry”. Based on public hearings in which residents, industry experts, academics, workers and clergy gave testimony regarding the practices of L.A.’s grocery industry, the report describes the growing disparities between the industry’s treatment of L.A.’s better off and poor communities. The report presents evidence that LA supermarket chains ignore and mistreat the area’s low-income communities. The Alliance expects to propose citywide legislation that would establish uniform standards for grocery stores in Los Angeles, ensuring that low income neighborhoods receive more equitable treatment.

Federal Trade Commission. Marketing Food to Children and Adolescents A Review of Industry Expenditures, Activities, and Self-Regulation. A Report to Congress. Washington, D.C.: Federal Trade Commission, July 2008. Available in [pdf]

From the FTC press release on the report:
“The Federal Trade Commission today announced the results of a study on food marketing to children and adolescents. The report, Marketing Food to Children and Adolescents: A Review of Industry Expenditures, Activities, and Self-Regulation, finds that 44 major food and beverage marketers spent $1.6 billion to promote their products to children under 12 and adolescents ages 12 to 17 in the United States in 2006. The report finds that the landscape of food advertising to youth is dominated by integrated advertising campaigns that combine traditional media, such as television, with previously unmeasured forms of marketing, such as packaging, in-store advertising, sweepstakes, and Internet. These campaigns often involve cross-promotion with a new movie or popular television program. Analyzing this data, the report calls for all food companies “to adopt and adhere to meaningful, nutrition-based standards for marketing their products to children under 12.”

Kolish ED, Peeler CL. Changing the Landscape of Food and Beverage Advertising: The Children’s Food and Beverage Initiative in Action. Arlington, VA: Council of Better Business Bureaus, July 2008. Available at: www.nestle.com

From the Executive Summary:
During July through December 2007, the six companies scheduled to implement during this period, Campbell Soup Company, The Coca-Cola Company, the Hershey Company, Kraft Foods Global, Inc., Mars, and Unilever, successfully implemented their pledges in which they committed either to not engage in child-directed advertising or to feature only better-for-you products in child-directed advertising.

No child-directed advertising. Based on our review, Coca-Cola, Hershey and Mars did not engage in child-directed advertising as they had pledged.
Advertising only for better-for-you products. Based on our review, Kraft limited all, and Campbell and Unilever limited virtually all, of their child-directed advertising to better-for-you products as specified in their pledges.

Campbell reported, and the BBB separately observed, that during the initial start up period, it had overlooked removing, primarily on its child-directed company-owned websites, a relatively small amount of content that referenced or displayed products that do not (or did not then) meet its nutrition guidelines. These problems have been remedied. Its television advertising, which represented a substantially larger amount of its media expenditures, was otherwise compliant with its pledge.

The BBB found that Unilever, while otherwise fully in compliance, had overlooked removing a couple of products, out of many, from its child-directed company-owned website. It has corrected this issue.

During July through December 2007, Burger King Corp., Cadbury Adams, General Mills, Kellogg Company, McDonald’s, and PepsiCo began the process of implementing their pledges. Many of them, ahead of schedule, implemented their pledges to a significant degree by limiting or changing what they advertised to children, or by early implementation of other parts of their pledges, such as product placement commitments.

Langlois, A. and Crossley, R. Proof of the Pudding: Benchmarking Ten of the World’s Largest Food Companies’ Response to Obesity and Related Health Concerns. New York: JP Morgan, April 2008. Available in [pdf]

In April 2008, JP Morgan Limited released a report in which it evaluated ten major food companies against a best practice framework developed by Insight Investment and the International Business Leaders Forum ‘HEAL’ partnership, published in 2007: ‘A Recipe for Success’.

The report includes the key components of a comprehensive corporate response to consumer health and obesity challenges. All companies were initially evaluated on the basis of their public disclosure and assigned a score for the quality of reporting: sources used included annual reports, SEC filings, corporate responsibility reports or similar, websites.

Researchers offered to meet with managers of all the companies to discuss initial findings and provide a comprehensive explanation of their strategies and program. Seven companies took the opportunity to meet while Cadbury, Heinz and Kraft were not in a position to meet. Final analysis and score for performance completed on the basis of additional information provided in company meetings. Companies sent final provisional scores and offered the opportunity to review and provide additional information, which several did.

Marin Institute. Why Big Alcohol Can’t Police Itself A Review of Advertising Self-regulation in the Distilled Spirits Industry. Marin Institute, September 2008. Available in [pdf]

In this September 2008 report, the Marin Institute analyzes the Distilled Spirits Council of the United States (DISCUS) Code of Responsible Marketing Practices reports from 2004-2007. The Federal Trade Commission relies upon a system of voluntary self-regulation to ensure responsible marketing practices by the alcohol industry. This report publishes for the first time a systematic review of the DISCUS oversight process, and concludes that the process is inherently biased and consistently fails to protect the public from irresponsible advertising.

National Cancer Institute. The Role of the Media in Promoting and Reducing Tobacco Use. NCI Tobacco Control Monograph Series. No 19. Washington DC, National Institutes of Health, July 2008. Available in [pdf]

src=”uploads/images/old_archives/img/clip_image012_0000.gif” alt=”Role of the Media in Promoting and Reducing Tobacco Use” hspace=”10″ vspace=”5″ width=”131″ height=”197″ align=”right” />Summarized from page vii of report: This 684 page report is the most current and comprehensive distillation of the scientific literature on media communications in tobacco promotion and tobacco control. It synthesizes findings from the disciplines of marketing, psychology, communications, statistics, epidemiology, and public health and was compiled by five scientific editors, 23 authors, and 62 external peer reviewers. The report has six main parts. Part 1 frames the rationale for report’s organization and presents the key issues and conclusions of the research as a whole and of the individual chapters. Part 2 explores tobacco marketing—the range of media interventions used by the tobacco industry to promote its products, such as brand advertising and promotion, as well as corporate sponsorship and advertising. This section also evaluates the evidence for the influence of tobacco marketing on smoking behavior and discusses regulatory and constitutional issues related to marketing restrictions. Part 3 explores how both the tobacco control community and the tobacco industry have used news and entertainment media to advocate their positions and how such coverage relates to tobacco use and tobacco policy change. The section also appraises evidence of the influence of tobacco use in movies on youth smoking initiation. Part 4 focuses on tobacco control media interventions and the strategies, themes, and communication designs intended to prevent tobacco use or encourage cessation, including opportunities for new media interventions. This section also synthesizes evidence on the effectiveness of mass media campaigns in reducing smoking. Part 5 discusses tobacco industry efforts to diminish media interventions by the tobacco control community and to use the media to oppose state tobacco control ballot initiatives and referenda. Finally, Part 6 examines possible future directions in the use of media to promote or to control tobacco use and summarizes research needs and opportunities.

United Food and Commercial Workers International Union. The Two Faces of Tesco. Washington, D.C.: United Food and Commercial Workers International Union, June 2008. Available in [pdf]

From the press release for the report:
In June 2008, the United Food and Commercial Workers Union, a US union representing 1.3 million workers in the retail food market, launched a UK campaign to expose The Two Faces of Tesco. The report examines how Tesco operates in the United Kingdom, its home base, and the United States, and compares Tesco policies and rhetoric with its practices.

At a London press launch chaired by UK Member of Parliament Jon Cruddas the union said that it is stepping up a campaign already begun in the United States to shame Tesco to talks on union recognition and employee pay and benefits.

The UFCW seeks to represent some of the lowest-paid and least secure retail workers in the USA, more than half of whom are women, and has been seeking talks with Tesco for two years since the world’s third-largest retailer announced its entry into the US grocery market. All attempts have so far fallen on deaf ears, reports the UFCWU, and Tesco launched its chain of Fresh & Easy supermarkets in 2007 as non-union stores. UFCW says that it is seeking the chance for dialogue, to build the same constructive partnership that Tesco enjoys in the UK with the shop workers’ union USDAW.

EcoDriving USA The Auto Industry’s Response to Low Car Sales, High Gas Prices, Climate Change… and the 2008 Election Campaign Debates on Energy Policy

Posted on September 25, 2008 by Corporations and Health Watch

This month CHW profiles EcoDriving, an auto industry campaign launched over the summer when driving prices were at their highest. Our report describes the campaign, analyzes the auto industry’s motivation for launching it now and looks at the presidential candidates’ stance on energy policy.

The US Department of Transportation announced that Americans drove 53 billion fewer miles on US roads this year compared to last year,¹ a record decline attributed to the soaring price of gasoline. To capitalize on this trend and to forestall or weaken new federal fuel economy standards, the Alliance of Automobile Manufacturers, the trade group of the American, auto companies and dealers, and two US governors are recommending drivers become individually responsible for their carbon emissions and start “driving green.”

EcoDriving USA, a new auto industry campaign, seeks to inspire consumers to get back into car showrooms and behind the wheel. California Gov. Schwarzenegger, a sponsor of the campaign, says “We hear a lot of ideas from politicians about lowering the gas prices and fighting global warming, whether it’s biofuels, offshore drilling or nuclear power. But none of those will affect the gas prices right now. Only you can do that.” Ecodriving USA urges drivers to join the “ecodriving movement.”

Many agree that reducing demand for gas will help keep pump prices down, but as new evidence links carbon dioxide (CO2) emissions to health and environmental problems, will asking drivers to become responsible for their own fossil fuel emissions be enough?

EcoDriving USA

The campaign hopes to shift consumer habits from driving less, a trend that worries the auto industry, to driving with tactics that can reduce carbon dioxide (CO2) emissions. For example, EcoDriving suggests drivers avoid jackrabbit starts, maintain good tire pressure, leave excess cargo at home, and take advantage of synchronized traffic lights. EcoDriving USA advocates staying on the road with a website full of fuel-saving checklists, a CO2 calculator and a ‘Virtual Road Test’ that allows users to try EcoDriving tips from their computer. Users can learn a few money saving tricks and will also have a chance to learn about the latest fuel efficient models being produced by EcoDriving partners, including BMW, Chrysler, Ford, General Motors, Mercedes-Benz, Mitsubishi, Toyota and Volkswagen. According to EcoDriving USA, their ecodriving tips can save consumers about 15% in fuel expenses.

Some critics are not enthusiastic about EcoDriving. Motor Trend calls its website “redundant, as tips fall short of being revolutionary.”² In fact, the campaign’s fuel-saving advice is virtually identical to recommendations made by several others, including the US Department of Energy, Environmental Protection Agency, and Energy Efficiency and Renewable Energy at http://www.fueleconomy.gov. Ecodriving, or hypermiling, was first introduced by the online fuel economy forum http://www.cleanmpg.com as a combination of driving techniques, that when followed can help to maximize fuel economy.

Human-generated CO2 emissions and health

In 2007 Intergovernmental Panel on Climate Change (IPCC) Fourth Assessment report summarized the latest evidence that links human-generated greenhouse gases and global climate change. Other recent reports have spelled out the health implications. For example, a study published this year in Geophysical Research Letters shows a correlation between CO2 emissions and human mortality. The study’s principal investigator, Mark Jacobson says, “The study is the first specifically to isolate carbon dioxide’s effect from that of other global-warming agents and to find quantitatively that chemical and meteorological changes due to carbon dioxide itself increase mortality due to increased ozone, particles and carcinogens in the air.”³

The Environmental Protection Agency’s (EPA) newly released Analyses of the Effects of Global Change on Human Health and Welfare and Human Systems describes human health, settlement and welfare vulnerabilities in this country. The report, says that the US can expect health effects that are “very likely to accentuate the disparities already evident in the American health care system,” with the poor, elderly, disabled and uninsured to bear much of the global climate change burden.⁴

While the report does not respond to specific CO2 emission scenarios, much of the analysis is based on science showing health risks in specific areas and regions. Urban areas, for example, are known to have high CO2 emissions which increase health risks, but the report goes beyond by warning that “the impacts of higher temperatures in urban areas and likely associated increases in tropospheric ozone concentrations can contribute to or exacerbate cardiovascular and pulmonary illness.”⁴

Fuel economy standards, changes and ‘new’ plans

The US and other large emission polluters are often the target of proposed fuel emission standards change. And with good reason. Using the most current numbers available from the Energy Information Administration (EIA), the US is the largest importer and consumer of oil. For example:

In 2007, the US consumed over 9.2 million barrels of motor gasoline per day, almost three times more oil than any other country.
The US was responsible for the worlds most extensive tailpipe pollution, unloading about 1.9 billion metric tons of CO2 emission in 2004 (three times more than industry, electrical power, residential and commercial CO2 emissions combined) according to the Pew Center on Global Climate Change.

Changing this pattern, however, requires changing more than drivers habits. In the US, fuel economy is regulated by CAFE (Corporate Average Fuel Economy) standards which are enforced by a combined effort of the National Highway Traffic Safety Administration (NHTSA) and the Environmental Protection Agency (EPA). While CAFE places the production of fuel efficient vehicles on automobile manufactures, CAFE standards themselves are determined on a federal level by the Secretary of Transportation.

The most recent changes to fuel efficiency standards came with the new energy bill in late 2007, which calls for a 40% increase (to 35 mpg) in CAFE standards to be realized by 2020. But the Union of Concerned Scientists says Bush administration proposals for achieving the new energy goal leave loopholes for the auto industry and fails to utilize new technologies. Jim Kliesch, a senior engineer with the Clean Vehicles Program said, “Automakers today have technology sitting on their shelves that could cost-effectively improve fuel economy… We could blow the doors off 35 mpg with conventional technology alone, but [the] proposal would leave us stuck in second gear.”⁵

Energy Policy and the 2008 Presidential Campaign

Policy change that would include reductions in CO2 emissions is a part of each major party Presidential candidates’ energy platform. Senator Obama’s ‘New Energy for America Plan‘ proposes a 4% per year increase in CAFE standards and an 80% reduction in greenhouse gas emissions by 2050. Senator McCain’s ‘Lexington Project‘ calls for enforcing existing CAFE standards and a 60% reduction in greenhouse gas emissions by 2050. While McCain’s plan calls for significant tax cuts for corporations, Obama’s plan seeks to penalize oil companies with a windfall profit tax. For an in depth analysis of industry influence in Obama and McCain’s energy plans see OpenSecrets ‘Power Struggle: Energizing the Presidential Race‘ and Center for American Progress ‘The True Cost of McCain’s Oil Industry Subsidies for Every State.’

Changing Energy Policies and Driving Habits?

While the Presidential candidates debate energy policy, auto makers and dealers are competing for fewer and fewer new car buyers.⁶ As the industry looks to regain momentum, EcoDriving USA, may be just the marketing technique needed to move customers into the showroom. The campaign’s main sponsor, The Alliance of Automobile Manufacturers (AAM), says it’s on board with the new energy bill. Dave McCurdy, AAM President and CEO says “Congress has set an aggressive, single, nationwide standard and automakers are prepared to meet that challenge. This proposal represents an important mile marker on the road to at least 35 miles per gallon by 2020.”⁷ Like other industries that have changed tactics after losing regulatory battles, the auto industry now seeks to reframe the debate on fuel efficiency and climate change to more individual terms.

As a blogger from the National Resources Defense Council, Roland Hwang, says the EcoDriving USA campaign is limited because it diverts attention from the need for a federal policy response. “It is clear that EcoDriving programs will never fully replace the need for stricter fuel economy or CO2 standards, especially since we need much deeper cuts in CO2 emissions to solve global warming and break our dependence on oil.”⁸

More broadly, Ecodriving illustrates the power of industry to mobilize its resources to frame health and environmental issues. Just as Coke and Pepsi propose more physical activity as an antidote to sweetened-beverage induced obesity, Philip Morris urges action against youthful smoking (making it more appealing to youth) and alcohol makers call for “responsible drinking”, the auto industry’s call for ecodriving puts the burden for change on individuals rather than corporations.

References

1. U.S. Department of Transportation. August 13, 2008American Driving Reaches Eighth Month of Steady Decline. Available at: http://www.fhwa.dot.gov/pressroom/fhwa0817.htm.

2. Evans, Scott. Auto manufacturers, government take up hypermiling, change name to EcoDriving. Motor Trend. Aug 19 2008. Available at: http://wot.motortrend.com/6285851/green/auto-manufacturers-
government-take-up-hypermiling-change-name-to-ecodriving/
index.html.

3. Jacobson, MZ. On the causal link between carbon dioxide and air pollution mortality. Geophys Res Lett. 2008;35. Available at: http://www.agu.org/pubs/crossref/2008/2007GL031101.shtml.

4. Analyses of the Effects of Global Change on Human Health and Welfare and Human Systems. Environmental Protection Agency. 2008, p. 18. Available at: http://cfpub.epa.gov/ncea/cfm/recordisplay.cfm?deid=175644.

5. New Fuel Economy Proposal Starts Strong, Then Puts on the Brakes: Pace Set in Proposal’s Final Years Would Cause Fleet to Fall Short of Legally Required Minimum, Science Advocacy Group Warns. Union of Concerned Scientists. Press Release. April 22, 2008. Available at: http://www.ucsusa.org/news/press_release/new-fuel-economy-
proposal-star-0111.html.

6. Bunkley N. U.S. car sales fall sharply in August, but some see signs of respite. International Herald Tribune. Sept 3, 2008. Available at: http://www.iht.com/articles/2008/09/03/business/04auto.php.

7. Automakers respond to new nationwide fuel economy proposal. Alliance of Automobile Manufacturers. Press Release. April 22, 2008. Available at: http://www.autoalliance.org/index.cfm?objectid=7724C605-1D09-
317F-BB29B57A30F2D182.

8. Hwang R. Saving Fuel Through “EcoDriving” Can Help Cool Off Oil Prices. Natural Resources Defense Council. Aug 18, 2008. Available at: http://switchboard.nrdc.org/blogs/rhwang/tags/showtag.php?tag=
ecodriving.

Photo Credits:
1. futureatlas.com
2. Bitpicture
3. post406

Alcopops: State by State Battle to End Corporate Tax Fraud

Posted on September 25, 2008 by Corporations and Health Watch

Simon Rosen and Michele Simon from the Marin Institute describe how Alcopops, sweetened alcohol beverages, slip through a US corporate tax loophole, allowing the drinks to be marketed like beer. They call for the reclassification of alcopops as an alcohol spirit and provide an analysis of the potential health benefits of such a change.

Simon Rosen, MA, is a research analyst and Michele Simon, JD, MPH is the director of research and policy at Marin Institute, an alcohol industry watchdog group based in San Rafael, California

Alcopops are a relatively new product category in the United States. The alcohol industry labels the youth-friendly products “flavored malt beverages” to take advantage of more favorable tax rates for beer. Beer is taxed at much lower rates than are distilled spirits in the U.S. and is often sold in grocery and convenience stores, making it more widely available. Interestingly, in other countries, manufacturers do not call alcopops “malt beverages,” and indeed some companies proudly market their products as containing spirits. For example, while Smirnoff Ice is touted for containing vodka in the United Kingdom, the exact same brand in the U.S. is labeled as a malt beverage. No matter where they are sold, alcopops are sweetened, often bubbly and fruit-flavored, and designed to resemble soda pop or other soft drinks. Alcopops fuel the underage drinking epidemic by serving as a transition for young people from soft drinks to alcohol.

The proper regulatory classification in the U.S. for these products has become a matter of policy debate in recent years. Testing by the federal government in 2003 determined that the majority of the alcohol in alcopops is obtained from distilled spirits (1). Also, the drinks are often branded with spirit names, such as Smirnoff and Bacardi. Moreover, according to the U.S. Alcohol and Tobacco Trade and Tax Bureau (TTB), these drinks:

[E]xhibit little or no traditional beer or malt beverage character. … Brewers … remove the color, bitterness, and taste that are generally associated with beer. … This leaves a base product to which brewers add various flavors, which typically contain distilled spirits, to achieve the desired taste profile. (1).

Nevertheless, at the federal level, alcopops are classified as flavored malt beverages and taxed at the lower beer rate. A 2005 compromise ruling by TTB allows industry to make alcopops with up to 49 percent of the alcohol derived from distilled spirits, with the rest coming from beer, and still take advantage of the more lenient beer classification. (2) By making products that don’t taste or look like beer, and are not called beer, while still convincing regulators to classify alcopops as beer (making them more readily accessible to youth), the alcohol industry is engaging in a deceptive charade that can best be described as tax fraud. And that has sparked a national controversy.

Correcting the Deception: Reclassifying Alcopops as Spirits

U.S. states have independent legal authority to classify alcohol products. Thus, all 50 states have their own laws that define the different categories of alcohol. Some state laws are in conflict with the federal ruling because in many states, the distinction between what can be labeled a beer and a spirit is clear, and the law does not allow for the 49/51 percent hybrid that the federal government has created.

Until recently, all states followed the federal government in classifying alcopops as beer. But thanks in large part to public outcry by advocates concerned with underage drinking, states have begun to reconsider this policy. Thus far, Maine, California, and Utah have decided to reclassify alcopops as distilled spirits and several other states are considering doing so. Essentially these states are correcting the error of regulators having misclassified alcopops for years.

Saving Lives and Money with Higher Alcopops Taxes

Because U.S. states tax distilled spirits at far higher rates than beer, correct classification would significantly increase the tax on the products. The exact change would differ considerably between states. In Oklahoma, for example, the increase would be $5.16 per gallon, but in others, such as South Dakota, the tax rise would be much smaller, only 65 cents per gallon. However in all states, taxes would increase, which could prove highly effective in reducing alcopops consumption, particularly among youth. (3) The academic literature shows that increasing taxes and prices causes drinkers to purchase and drink less alcohol. (4)

Germany, Switzerland, Denmark, France, the U.K., and most recently Australia have all significantly increased the tax on alcopops in the last few years, and other nations (such as the Netherlands and Finland) have considered proposals to do so.

For those countries for which data are available (Germany, the U.K., and Switzerland), the results suggest that alcopops consumption fell heavily after the taxes increased, and that decreased sales of alcopops were not substituted by other alcoholic beverages. (5, 6, 7)

Given the availability of these European consumption data, the Marin Institute research department undertook an analysis of each U.S. state to determine the cost savings, both in terms of lives and money. We determined the total impact nationally, if every state that could do so made the corresponding tax change. Assuming that drinkers in the U.S. respond similarly to tax increases as in other countries (and we have no reason to believe they wouldn’t), our results showed that taxing alcopops as spirits could significantly help curb underage drinking and its related costs. In New York for example, taxing alcopops as spirits could reduce consumption by 28 percent, saving 7 lives and $150 million in underage drinking costs annually. In the largest state, California, consumption levels would drop 35 percent and 21 lives and $437 million would be saved each year. Every state would see a significant impact.

While 29 states may be incorrectly taxing alcopops as beer instead of spirits, we limited our analysis to the 22 non-“control states” where the tax increase could be calculated. (About 18 “control states” have government monopolies over some alcoholic beverages, and in these states, a change in classification would be less predictable.) By excluding control states from our analysis, we are underestimating the potential national impact.

If alcopops were correctly taxed as spirits by all the states we examined, consumption would fall on average by 26 percent, and could prevent more than $1.5 billion in underage drinking costs, 72 deaths and more than 59,000 incidents of harm from underage drinking nationally (i.e., crime, high-risk sex, traffic collisions, etc.).

In addition, in the control states, reclassification to spirits would not only increase prices, but also greatly reduce distribution and availability of alcopops as they could be sold only through state-run liquor stores. Research suggests the impact of removing alcopops from convenience stores and supermarkets is likely to be highly effective in reducing both consumption and alcohol related problems. (8) Several control states are considering this policy change, with Utah leading the way by successfully reclassifying alcopops as distilled spirits in early 2008.

Racing Against a Powerful Industry

The policy reasons to correctly classify alcopops as distilled spirits are clear—underage drinking can be reduced, lives saved, and costs prevented. However, states have to act quickly because the alcohol industry is flexing its lobbying muscle to rewrite state laws. So far, under severe pressure from the alcohol industry, at least seven states that were incorrectly taxing alcopops as beer have passed laws to change the definition of alcopops to match the federal ruling allowing hybrid products, and therefore will maintain the status quo. The remaining states that can still make the correction must do so before the alcohol industry gets to the state legislatures to change the law in its favor. So we are engaged in a state-by-state race to protect youth.

In the spring of 2008, despite a valiant effort by advocates, a political battle over how to define alcopops in Maryland was lost. If industry continues on this path, the ability for the remaining states to reclassify alcopops will be severely threatened. At least twenty-one states currently have laws that indicate alcopops should be correctly classified as distilled spirits and not beer, and taxed and sold accordingly. These states must act now. Policymakers in Maine, California, and Utah have already demonstrated that the political will exists to make this critical change. Other U.S. states should waste no time in following their lead by stopping industry’s alcopops fraud.

References

(1) U.S. Department of the Treasury, Alcohol and Tobacco Tax and Trade Bureau. Federal Register, March 24, 2003. Notice No. 4. Vol.68, No. 56. Online: http://www.ttb.gov/alcohol/rules/ttbnotice_no4.pdf.

(2) U.S. Department of the Treasury, Alcohol and Tobacco Tax and Trade Bureau. Flavored Malt Beverage and Related Regulatory Amendments, 70 Federal Register 1 (January 3, 2005) (codified 27 CFR Parts 7 and 25).

(3) Grossman, M., Chaloupka, F.J., Saffer, H., Laixuthai, A., Effects of Alcohol Price Policy on Youth: A Summary of Economic Research. Journal of Research on Adolescence 4(2): 347-364. 1994.

(4) Chaloupka, F.J., Grossman, M., Saffer, H., The Effects of Price on Alcohol Consumption and Alcohol-Related Problems. Alcohol Res. Health 26(1): 22-34, 2003.

(5) Bundeszentrale für gesundheitliche Aufklärung [BZgA], Alkoholkonsum der Jugendlichen in Deutschland 2004 bis 2007 [Consumption of Alcohol by young people in Germany 2004 to 2007]. Bundeszentrale für gesundheitliche Aufklärung. 2007.

(6) Her Majesty’s Revenue and Customs, UK trade info Alcohol Factsheet. Crown Copyright. 2007.

(7) Swiss Alcohol Board, 2007

(8) Babor TF, Caetano R, Casswell S, Edwards G, Giesbrecht N, Graham K, Grube J, Gruenewald P, Hill L, Holder H, Homel R, Osterberg E, Rehm J, Room R and Rossow I (2003) Alcohol and Public Policy: No Ordinary Commodity; Research and Public Policy. Oxford University Press.

Photo Credits:
1. Cian O’Donovan

Restoring Scientific Integrity in Washington 2009

Posted on September 25, 2008 by Corporations and Health Watch

CHW covers the recent Washington conference, Rejuvenating Public Sector Science, where scientists, congress people, commissioners and others convened to address the need for scientific integrity in public policy development. This report covers the conference and takes a look at the presidential candidates’ plans to restore science to the national policy process and re-establish guidelines for ethical science.

One of the most alarming casualties of the last eight years has been the integrity of the science used by the White House and its agencies to guide public policy. On issues from climate change to reproductive health, energy policy to endangered species, food protection to drug safety, this Administration has manipulated, covered up or censored the work of government scientists and government scientific advisory panels at the Food and Drug Administration, the Environmental Protection Agency, the National Marine Fisheries Service, the US Centers for Disease Control and Prevention, and the National Aeronautics and Space Administration.

At a recent Center for Science in the Public Interest’s (CSPI) conference, Rejuvenating Public Sector Science, Representative Brad Miller, Chairman of the Investigations and Oversight Subcommittee on the House Science Committee, noted that the Bush Administration “celebrates secrecy as a virtue”; muzzles global warming experts; overruled the FDA on emergency contraception; eliminated a scientific committee at Health and Human Services that did not align with the Administration’s ideology and replaced them with industry insiders; closed part of the Environmental Protection Agency’s library network; and censored the Surgeon General.

Several recent reports document the scope of the problem. A survey of government scientists by the Union of Concerned Scientists found that of the 900 EPA researchers who responded, 60 percent reported at least one incident of political interference in the last five years and nearly 100 scientists reported direct interference from the White House. In a recent article in Mother Jones, Chris Mooney, author of The Republican War on Science, described the “pernicious neglect” of government science and the weakening of rules that limited industry influence on government scientists.

William Hubbard, former Senior Associate Commissioner at the Food and Drug Administration and a speaker at the recent CSPI conference, argued that our current system is “out of kilter.” He listed a litany of problems including weak congressional support, demands for an ever higher burden of proof, an increase in de novo decision making, non-scientists making science decisions, diminished credibility of scientists, and reduced morale among those who do want to restore a less politicized form of science.

A new Administration in Washington will have the opportunity to restore scientific integrity—and whoever is elected will have some assets to bring to this battle. Multiple Senators and Congressmen have fought for public interest science—Senator Boxer has helped to create higher EPA standards, Senator Grassley has proposed rules to reduce conflicts of interest, and both Congressmen Dingel and Waxman have sought to document the Administration’s interference with science and the failure of Congress to follow science.

Moreover, Merrill Goozner, Director of CSPI’s Integrity in Science program, has noted how “greater exposure [to scientific manipulation] has led to greater disclosure.” Oil companies are now advertising what they’re doing about global warming and Exxon recently announced that they are going to stop funding global warming deniers, Goozner stated. “The tide is turning on scientific integrity”, he said, as “congressional oversight is making itself felt on Capitol Hill.” And it will be up to the next President of the United States to continue this restoration process. A new Administration, Congressmen Miller stated, “will not be the end for a need for vigilant protection of public sector science.”

Hubbard calls for decisions that are driven by science and made by scientists, congressional and public support for scientists, reduced political appointees at the agency level, support for whistleblowers, presidential leadership and a revisiting of rulemaking procedures.

The Candidates

In a recent National Public Radio All Things Considered interview, both presidential candidates said they will “restore integrity to federal science agencies.” Senator Obama’s adviser called the Bush Administration’s years a “war on science” and vowed that his Administration would have increased transparency. McCain’s adviser stated how, “He [McCain] has always felt that sound science is a foundation of good public policy,” and that “He believes deeply that the science should be the science.”

Their presidential campaign websites reveal some additional general information on government oversight.

Senator Obama’s website lists three ethics problems, two of which relate to scientific integrity:

Lobbyists Write National Policies: For example, Vice President Dick Cheney’s Energy Task Force of oil and gas lobbyists met secretly to develop national energy policy.
Secrecy Dominates Government Actions: The Bush administration has ignored public disclosure rules and has invoked a legal tool known as the “state secrets” privilege more than any other previous administration to get cases thrown out of civil court.

His plan to fix these problems includes specific actions to shine the light on Washington lobbying and federal contracts, tax breaks and earmarks, to bring Americans back into their government and to free the Executive branch from special interest influence.

Senator McCain’s website has government reform sub-sections entitled:

Seal the Pork Barrel
Stop the revolving door and restore ethics
Democracy is Not for Sale

The website claims that, “As President, John McCain would shine the disinfecting light of public scrutiny on those who abuse the public purse, use the power of the presidency to restore fiscal responsibility, and exercise the veto pen to enforce it.” It also states that, “As President, John McCain will see to it that the institutions of self-government are respected pillars of democracy, not commodities to be bought, bartered, or abused.”

Looking Ahead

As a relatively unchecked issue for the past eight years the bar for scientific integrity is at an all time low. It will be up to the public and to the government oversight committees to hold the next Administration accountable for their words and actions. With an unprecedented climate crisis, high childhood obesity rates, many approved drugs found to have unexpected and serious side effects and an increase in health disparities between the better off and the less well off, it is crucial that both the public and policy makers receive accurate science. Scientific integrity is crucial to a sound policy process. As Congressmen Miller reinforced at the CSPI conference, the “manipulation of science is fundamentally incompatible with a democratic debate.”

Photo Credits:
1. NARA/EPA via pingnews
2. teamaskins
3. jurvetson
4. jim.greenhill

Month: September 2008