AGs BUTT HEADS WITH ALCOHOL ENERGY DRINKS
Attorneys General from 29 states signed and released a letter yesterday asking the Alcohol and Tobacco Tax and Trade Bureau (TTB) to look into the formulation of alcohol energy drinks to determine whether they are properly classified as malt beverages under federal law. This includes drinks like Sparks, Bud Extra, and Liquid Charge. The Marin Institute is taking credit.
As we see it, the issue is double pronged. The AGs are asking the TTB to invest whether the above mentioned brands are making false claims of stamina and whether they should be classified as spirits instead of malt beverages.
From letter:
“These beverages [non-alcoholic energy drinks] are particularly popular with teens and young adults. Unfortunately, alcoholic beverage manufacturers have taken advantage of the youth appeal of these drinks by engaging in aggressive marketing campaigns for pre-mixed alcoholic energy drinks. These campaigns claim that such beverages increase a person’s stamina or energy level. However, they do not mention the potentially severe, adverse consequences of mixing caffeine or other stimulants and alcohol.”
ENERGIZING EFFECT IS MISLEADING. They claim the advertising scheme for Bud Extra, Sparks and Liquid Charge “imply an energizing or stimulating effect” which are “misleading health-related claims regarding the products’ effects, in violation of federal regulations.” Why is this misleading? Well, the AGs say that research shows the “energizing” effect produced by alcohol energy drinks is merely deceptive.
“As a result of consuming alcoholic beverages containing stimulants, intoxicated persons may falsely believe that they can continue to drink and function without impairment, even behind the wheel of a car,” said the letter.
Here are some of the advertising slogans included in the AGs’ letter:
Sparks : “Powered by Sparks.”
Bud Extra : “Who’s up for staying out all night?” “You can sleep when you’re 30.”
Liquid Charge : “A new power source for the 21st century”
Liquid Core : “Whether you are working a nine to five, pulling an all-nighter or just need a little extra help to keep you going after a long day on the slopes, Liquid Core provides you that charge.”
MALT BEVERAGE OR DISTILLED SPIRITS? Another problem, says the AGs, is the alcohol content in malt beverages – not just energy alcohol drinks – and their supposed lack of “resemblance to beer.”
“The products discussed in this letter are marketed as malt beverages and all have an alcohol content of 6% [which is the cut-off] or greater. Most alcoholic energy drinks and flavored malt beverages bear little resemblance to beer in taste or appearance. We question whether these products should be classified as malt beverages under federal law.”
SO WHY DO WE CARE? There are many spirits brands out there with caffeine, ginseng and/or taurine that could eventually come under fire. Also, don’t forget Diageo has several FMBs in the market and Beam Global has Starbucks Coffee Liqueur, for example.
PATRON XO CAFÉ. In an unfortunate coincidence, Patron XO Café was featured in the New York Times for what could be argued the very thing the AGs are after. A new marketing campaign for Patron XO is making its initial debut in San Francisco and New York, beginning in September.
In a piece in the New York Times, reporter Stuart Elliot says the new campaign is “inspired by the social culture that thrives on staying out late, which is fueled by energy drinks like Red Bull as well as other beverages like soft drinks.”
One of the slogans for Patron XO Café reads: “It’s 12 a.m. You’re ready to turn in. To the next club.”
Matt Carroll, vice president for marketing at Patrón Spirits, is quoted in the article saying the following: “‘Patron XO is a nice after-dinner drink, in front of the fire or at a Mexican café...[but] the consumer base for that type of product is much smaller...we’re going to fish where the fish are.’”
“‘The message is pretty simple: When everyone else is ready to turn in, you don’t have to shut it down,’” said Chuck Schiller, creative group head at Richards. “‘A perfect night can be extended in a way that isn’t Red Bull-ish.’”
There’s no denying that energy infused alcohol beverages are a huge hit right now. We just hope this doesn’t become a bigger issue with regulators.
We’ll keep you updated on how this plays out. Stay tuned...
As we see it, the issue is double pronged. The AGs are asking the TTB to invest whether the above mentioned brands are making false claims of stamina and whether they should be classified as spirits instead of malt beverages.
From letter:
“These beverages [non-alcoholic energy drinks] are particularly popular with teens and young adults. Unfortunately, alcoholic beverage manufacturers have taken advantage of the youth appeal of these drinks by engaging in aggressive marketing campaigns for pre-mixed alcoholic energy drinks. These campaigns claim that such beverages increase a person’s stamina or energy level. However, they do not mention the potentially severe, adverse consequences of mixing caffeine or other stimulants and alcohol.”
ENERGIZING EFFECT IS MISLEADING. They claim the advertising scheme for Bud Extra, Sparks and Liquid Charge “imply an energizing or stimulating effect” which are “misleading health-related claims regarding the products’ effects, in violation of federal regulations.” Why is this misleading? Well, the AGs say that research shows the “energizing” effect produced by alcohol energy drinks is merely deceptive.
“As a result of consuming alcoholic beverages containing stimulants, intoxicated persons may falsely believe that they can continue to drink and function without impairment, even behind the wheel of a car,” said the letter.
Here are some of the advertising slogans included in the AGs’ letter:
Sparks : “Powered by Sparks.”
Bud Extra : “Who’s up for staying out all night?” “You can sleep when you’re 30.”
Liquid Charge : “A new power source for the 21st century”
Liquid Core : “Whether you are working a nine to five, pulling an all-nighter or just need a little extra help to keep you going after a long day on the slopes, Liquid Core provides you that charge.”
MALT BEVERAGE OR DISTILLED SPIRITS? Another problem, says the AGs, is the alcohol content in malt beverages – not just energy alcohol drinks – and their supposed lack of “resemblance to beer.”
“The products discussed in this letter are marketed as malt beverages and all have an alcohol content of 6% [which is the cut-off] or greater. Most alcoholic energy drinks and flavored malt beverages bear little resemblance to beer in taste or appearance. We question whether these products should be classified as malt beverages under federal law.”
SO WHY DO WE CARE? There are many spirits brands out there with caffeine, ginseng and/or taurine that could eventually come under fire. Also, don’t forget Diageo has several FMBs in the market and Beam Global has Starbucks Coffee Liqueur, for example.
PATRON XO CAFÉ. In an unfortunate coincidence, Patron XO Café was featured in the New York Times for what could be argued the very thing the AGs are after. A new marketing campaign for Patron XO is making its initial debut in San Francisco and New York, beginning in September.
In a piece in the New York Times, reporter Stuart Elliot says the new campaign is “inspired by the social culture that thrives on staying out late, which is fueled by energy drinks like Red Bull as well as other beverages like soft drinks.”
One of the slogans for Patron XO Café reads: “It’s 12 a.m. You’re ready to turn in. To the next club.”
Matt Carroll, vice president for marketing at Patrón Spirits, is quoted in the article saying the following: “‘Patron XO is a nice after-dinner drink, in front of the fire or at a Mexican café...[but] the consumer base for that type of product is much smaller...we’re going to fish where the fish are.’”
“‘The message is pretty simple: When everyone else is ready to turn in, you don’t have to shut it down,’” said Chuck Schiller, creative group head at Richards. “‘A perfect night can be extended in a way that isn’t Red Bull-ish.’”
There’s no denying that energy infused alcohol beverages are a huge hit right now. We just hope this doesn’t become a bigger issue with regulators.
We’ll keep you updated on how this plays out. Stay tuned...
posted at 11:53 AM
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