Australia Taxes RTDs Like Spirits
The Australian government has raised taxes on RTDs (ready-to-drinks) by 70% as a way to curb binge drinking among teenagers. The tax hike is effective immediately. Under the increase, RTDs will be taxed at the same rate as spirits, from $39.36 per liter of alcohol content to $66.67.
The new initiative is a part of Australian Prime Minister Kevin Rudd’s $53 million strategy to curb alcohol abuse. The government claims teenagers prefer RTDs, although the industry maintains 80% of the RTD market is young men over 25 who drink spirits mixed with cola.
Lion Nathan, Coca Cola Amatil and Foster’s Group distribute several RTD brands, and will likely be hard hit by the new tax.
The increase is expected to raise more than $2 billion in extra revenue over the next four years, which will reportedly be used to fund Australia's largest ever investment in preventive health, focusing on alcohol, smoking, diet and exercise.
RUTH’S CHRIS CEO FIRED
Craig Miller was ousted last week as chairman, ceo and president of Ruth’s Christ Steak House Inc. Ruth’s Chris confirmed in a statement that Miller had left the company but did not give a reason. Miller told the Orlando Sentinel that he was fired.
"I'm shocked," Miller told the Sentinel in a telephone interview late Thursday. "It's not every day you get terminated without cause."
"I'm not sure why the board decided to do this, but they did," he said.
According to the Sentinel, the board was displeased with Miller’s financial stewardship.
Miller said he was told last Wednesday (April 23) by the board.
The company, meanwhile, said it had hired a firm to begin an immediate search for Miller's successor. In the interim, Ruth's Chris has formed an executive committee that will provide leadership through the transition. The steakhouse chain also said Robin Selati, a managing director with Madison Dearborn Partners, the company's largest shareholder, will return to the role of chairman of the board. Selati held the position from April 2005 until September 2006.
To read more background, click here.
PENN. CONSIDERS WINE VENDING MACHINES
The Pennsylvania Liquor Control Board is considering proposals for a contractor to operate up to 100 wine kiosks throughout the state. Comparable to a refrigerated vending machine, the kiosk would hold up to 500 wine bottles and would be placed in grocery stores and similar locations. The kiosk has security identification measures such as fingerprints and biometric readings, according to the AP. Users would have to register and purchases would have to be made with credit card, debit card or PLCB gift card.
The five-year contract proposal calls for the kiosks to be operated at no cost to the state or Liquor Control Board. Vending machines selling alcoholic beverages have been in use in Japan, Singapore and some European countries, but security issues and restrictive liquor laws have made their development and use elsewhere limited.
RECESSION BEHAVIOR CREEPS INTO ALCOHOL
An article in the New York Times says Americans are finding “creative ways” to cut costs on routine items like clothing and grocery, including alcohol.
Sales of inexpensive domestic beers, like Keystone Light, are up. Sales of higher-price imports, like Corona Extra, are down, according to IRI data. Some consumers, meanwhile, are skipping alcoholic beverages altogether.
“The number of people ordering an alcoholic drink fell to 31% last month from 42% last summer, according to a survey of 2,500 people conducted by Technomic, a restaurant industry consulting firm,” according to the article.
WSD BRIEFS:
VINOSHIPPER.COM now offers 350 wines from over 100 wineries located in 13 states. VinoShipper.com is responsible for all of the compliance reporting and taxes for its clients when shipping directly to consumers.
CEO OF NY STATE LIQUOR AUTHORITY resigned last week. Joshua Toas, known as a tough reformer, will depart May 22.
Until tomorrow, Megan
“To sit in the shade on a fine day, and look upon verdure is the most perfect refreshment.”
Jane Austen
--------- Sell Day Calendar ----------
Today's Sell Day: 20
Sell days this month: 22
Sell days this month last year: 21
This month ends on a: Wed.
This month last year ended on a: Mon.
YTD sell days Over/Under: 0
WINE & SPIRITS DAILY
Subscribe or check back issues at: www.winespiritsdaily.com
Send news and comments in confidence to: megan@winespiritsdaily.com
© 2008 Wine & Spirits Daily, all rights reserved. May quote with attribution.
The new initiative is a part of Australian Prime Minister Kevin Rudd’s $53 million strategy to curb alcohol abuse. The government claims teenagers prefer RTDs, although the industry maintains 80% of the RTD market is young men over 25 who drink spirits mixed with cola.
Lion Nathan, Coca Cola Amatil and Foster’s Group distribute several RTD brands, and will likely be hard hit by the new tax.
The increase is expected to raise more than $2 billion in extra revenue over the next four years, which will reportedly be used to fund Australia's largest ever investment in preventive health, focusing on alcohol, smoking, diet and exercise.
RUTH’S CHRIS CEO FIRED
Craig Miller was ousted last week as chairman, ceo and president of Ruth’s Christ Steak House Inc. Ruth’s Chris confirmed in a statement that Miller had left the company but did not give a reason. Miller told the Orlando Sentinel that he was fired.
"I'm shocked," Miller told the Sentinel in a telephone interview late Thursday. "It's not every day you get terminated without cause."
"I'm not sure why the board decided to do this, but they did," he said.
According to the Sentinel, the board was displeased with Miller’s financial stewardship.
Miller said he was told last Wednesday (April 23) by the board.
The company, meanwhile, said it had hired a firm to begin an immediate search for Miller's successor. In the interim, Ruth's Chris has formed an executive committee that will provide leadership through the transition. The steakhouse chain also said Robin Selati, a managing director with Madison Dearborn Partners, the company's largest shareholder, will return to the role of chairman of the board. Selati held the position from April 2005 until September 2006.
To read more background, click here.
PENN. CONSIDERS WINE VENDING MACHINES
The Pennsylvania Liquor Control Board is considering proposals for a contractor to operate up to 100 wine kiosks throughout the state. Comparable to a refrigerated vending machine, the kiosk would hold up to 500 wine bottles and would be placed in grocery stores and similar locations. The kiosk has security identification measures such as fingerprints and biometric readings, according to the AP. Users would have to register and purchases would have to be made with credit card, debit card or PLCB gift card.
The five-year contract proposal calls for the kiosks to be operated at no cost to the state or Liquor Control Board. Vending machines selling alcoholic beverages have been in use in Japan, Singapore and some European countries, but security issues and restrictive liquor laws have made their development and use elsewhere limited.
RECESSION BEHAVIOR CREEPS INTO ALCOHOL
An article in the New York Times says Americans are finding “creative ways” to cut costs on routine items like clothing and grocery, including alcohol.
Sales of inexpensive domestic beers, like Keystone Light, are up. Sales of higher-price imports, like Corona Extra, are down, according to IRI data. Some consumers, meanwhile, are skipping alcoholic beverages altogether.
“The number of people ordering an alcoholic drink fell to 31% last month from 42% last summer, according to a survey of 2,500 people conducted by Technomic, a restaurant industry consulting firm,” according to the article.
WSD BRIEFS:
VINOSHIPPER.COM now offers 350 wines from over 100 wineries located in 13 states. VinoShipper.com is responsible for all of the compliance reporting and taxes for its clients when shipping directly to consumers.
CEO OF NY STATE LIQUOR AUTHORITY resigned last week. Joshua Toas, known as a tough reformer, will depart May 22.
Until tomorrow, Megan
“To sit in the shade on a fine day, and look upon verdure is the most perfect refreshment.”
Jane Austen
--------- Sell Day Calendar ----------
Today's Sell Day: 20
Sell days this month: 22
Sell days this month last year: 21
This month ends on a: Wed.
This month last year ended on a: Mon.
YTD sell days Over/Under: 0
WINE & SPIRITS DAILY
Subscribe or check back issues at: www.winespiritsdaily.com
Send news and comments in confidence to: megan@winespiritsdaily.com
© 2008 Wine & Spirits Daily, all rights reserved. May quote with attribution.
posted at 2:26 PM
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