In The Blogs

Alcopops

| Mon Mar. 16, 2009 7:50 AM PDT

Last year California decided to raise taxes on "alcopops," sweet alcoholic drinks that are largely designed to appeal to teenagers. But guess what? No new taxes have flowed into state coffers:

Beverage makers admit they aren't paying the new taxes. They say they don't have to because they have reformulated the drinks — more than 6,000 varieties — to transform them into simple beers by limiting the amount of distilled spirits they contain.

They won't explain how. The formulas, they say, are trade secrets. And beverage-industry officials and federal regulators say there are no tests to determine how much distilled spirits the drinks contain.

....Board member Bill Leonard, who voted against the initial tax hike, said that although he is curious about how the industry managed to change thousands of drink formulas in a year, "it is probably impossible for us to ever figure out whether the formula is what they say it is."

I have to admit that my first reaction when I read this story was to laugh. I know, I know: that's totally inappropriate. It's a serious issue. Etc. But the brazenness on display here is really something, isn't it? If the alcopop business ever fizzles out, maybe industry executives can all find jobs at AIG instead.

Advertisement

Kevin Drum is a political blogger for Mother Jones. For more of his stories, click here.

Comments

This reminds of Japan, which

Submitted by g. powell on Mon Mar. 16, 2009 8:14 AM PDT.

This reminds of Japan, which has a very complicated tax governing alchohol. Beer, which is defined according to malt content, was taxed at a relatively high rate. Brewers eventually developed low-malt products that were not legally defined as beer, so they were taxed at a lower rate. Taxes were eventually raised on those products, so brewers developed no-malt "beer", which taxed an even lower rate. It tastes like shit, but doesn't cost that much. I don't blame the executives at all, their behavior is rational and in the interest of the consumer. Just tax the alchohol content. It's simple.

How they do it

Submitted by SRW1 (not verified) on Mon Mar. 16, 2009 8:22 AM PDT.

Yea, to determine how much alcohol is in a beverage (with the help of ADH) is so tricky that we got to practice it in biochemistry basics. If Mr Leonard is really so curious as to how "the industry managed to change thousands of drink formulas in a year", I'd venture a guess: There is a procedure called dilution. Can take on the shape of an endless series of variations, all of them are top secret.

Better yet, tax beverages

Submitted by g. powell on Mon Mar. 16, 2009 8:27 AM PDT.

Better yet, tax beverages according to both sugar and alchohol content, no loopholes. That way these sweet alcopops targeted at kids get hit twice.

Unhopped beer

Submitted by PeakVT on Mon Mar. 16, 2009 8:48 AM PDT.

Unhopped beer is pretty bland, so it's quite plausible that they are using it as a base. And there are yeast strains that can push the unaltered ABV above 12%. As a society we don't really educate our kids about alcoholic beverages from a gastronomic perspective. So it's no surprise the alcopop sluge appeals to them (especially women - a lot of guys seem to think choking down bad beer is manly).

PeakVT has it right

Submitted by Brad Warbiany (not verified) on Mon Mar. 16, 2009 10:48 AM PDT.

The question isn't how much alcohol is in the drinks, it's how much "distilled spirits" are in them. Thus, as PeakVT points out, they can keep the alcohol content just as high by raising the ABV of the initial malt beverage and adding less distilled spirits. Likewise, there are plenty of tests to detect how much "alcohol" is in a liquid. What is probably not possible or easy to test is whether that alcohol came from the initial malt fermentation or whether it came from the spirits produced by a distillation process. Then there's one other question. Depending on the way the tax law is written, they may be adding a smaller proportion of a higher-proof distilled spirit, and separately adding more water to dilute. If the restriction is based upon the quantity of spirit added and not its alcohol content, it could be easy to get around this with nearly no reformulation of recipe.

That is hilarious. Which is

Submitted by Anonymous (not verified) on Mon Mar. 16, 2009 9:23 AM PDT.

That is hilarious. Which is funnier...(a) they magically reformulated everything, or (b) there is no test to determine how much alcohol is in them?

add water

Submitted by flubber (not verified) on Mon Mar. 16, 2009 9:28 AM PDT.

They probably weren't too far above the cut-off for beer vs. spirits categorization, so they, you know, added water.

The bigger take away from

Submitted by John Hansen (not verified) on Mon Mar. 16, 2009 9:36 AM PDT.

The bigger take away from this story is it just shows that governments who wish to change behavior MUST become more totalitarian. In order to get money from the beverage people they must either keep creating new laws to plug loopholes, or take away the right of the manufacturers to have any secret recipes. Either way increases the reach of the public sphere into the lives of private individuals. This is why the government should only be used as a last resort to create the world that we want. It is why socialized medicine, socialized housing, etc... any project aimed at making things fair by the power of the state, must carry with it more government intervention. i am in no way a libertarian and surely recognize that there are valid parts of modern society which are at their best when run by the public sector ( roads, defense, border enforcement to name a few ), but I think some on this site never quite understand that government service necessarily implies less freedom. Its okay if you really think that the sacrifice of freedom is worth the gain from government control, but please understand the trade offs.

"sweet alcoholic drinks that

Submitted by Anno-nymous (not verified) on Mon Mar. 16, 2009 9:48 AM PDT.

"sweet alcoholic drinks that are largely designed to appeal to teenagers" Is that true? I think of teenagers as drinking the same stuff that college kids drink -- beer, vodka + fruit juice, etc. I thought the "alcopops" were designed to appeal to women of any age (and, incidentally, guys like me who happen to think they're delicious). If they show up at high school/college parties it's because the hosts are trying to attract girls, not teenagers. >>The sugary beverages had long been taxed as flavored beers. But state authorities reclassified them as liquor, raising the levies on a six-pack by a factor of 16 to match the rate consumers pay on vodka, rum and other distilled spirits. Incidentally, aren't these drinks *actually* flavored beers? Like, in a literal sense, that's what it means to be a "flavored malt beverage"? I guess the legislature can reclassify flavored beers as not flavored beers for tax purposes, but it would seem to make sense just to raise the taxes on flavored beers. Or, my preferred solution, not raise the taxes one specific class of beverage at all....

JH, I love freedom as much

Submitted by thersites on Mon Mar. 16, 2009 9:54 AM PDT.

JH, I love freedom as much as the next guy, but if in exchange for a slight decrease in the booze vendors' freedom we can have a lower number of teenagers slaughtering and maiming themselves (and others) on the highways every year, it just might be worth it.

Raising the tax on Mike's

Submitted by Jesse (not verified) on Mon Mar. 16, 2009 3:56 PM PDT.

Raising the tax on Mike's Hard Lemonade and Smirnoff Ice won't stop teenagers from drinking. What it will do is get them to pay more for their drinks (not much more, since they're likely already paying a premium to have someone over 21 buy it for them), or get them to switch to something else (like making their own "hard lemonade" out of vodka and lemonade). If you want to reduce teenagers "slaughtering and maiming themselves", you need to teach responsible drinking, not just raise the price of alcohol. And the way to do that is *not* to treat alcohol as a mystical forbidden fruit that's restricted to adults (and thus a way for teenagers to feel more adult if they can gain access to it).

Yeah, Right

Submitted by Keith G on Mon Mar. 16, 2009 9:57 AM PDT.

So you are telling me that we can remotely analyze the make up of dust gathered on Mars, but California cannot find a test to figure what is in a Smirnoff Strawberry Cruiser? Right.

Really, there was distilled alcohol in there?

Submitted by Quicksand (not verified) on Mon Mar. 16, 2009 11:00 AM PDT.

Huh, I was under the impression that these were all "malt beverages" (i.e., based on near-flavorless fermented beer-like stuff) all along, with just the names of the spirits attached for marketing. Was there really a change?

As a bourbon-drinking woman

Submitted by Anonymous (not verified) on Mon Mar. 16, 2009 11:06 AM PDT.

I'm insulted by the idea that women in general like these things. I would hazard that the real market for these is "people with terrible palates," "adults who still eat CocoPuffs," and "people who like American cheese."

I agree entirely, however...

Submitted by Godless Heathen on Mon Mar. 16, 2009 3:25 PM PDT.

These are marketed toward the female population of idiots with no taste, as the men are consumed by their love of natural ice and generally enjoy making fun of men who drink "girl drinks" like lemonades and coolers. Sadly for me, Belgian double ales are "girl drinks" even though they are usually almost twice as strong as Coors Light. Oh well, 'tis why I drink at home instead of around idiots.

Actually, the reformulation

Submitted by Mo MacArbie (not verified) on Mon Mar. 16, 2009 12:04 PM PDT.

Actually, the reformulation was probably pretty trivial. Most of the alcohol already was coming from malt. However some of the alcohol was added as part of the flavoring. Like how you can get drunk off of vanilla if you want, because they use alcohol to extract the flavor. The new law considered everything that got more than 0.5% alcohol from such flavorings as distilled spirits. This didn't just (fail to) affect the big breweries. You know that brewpub down the street that aged some of its beer in old bourbon barrels? Sorry, that's liquor now. Think of the children!

So that's why they don't ever carry the same...

Submitted by Crissa (not verified) on Mon Mar. 16, 2009 1:46 PM PDT.

I was wondering why all the labels changed quickly, without any net change in the names or advertisements. I'd look for one I liked, and a few months later it was gone. Really damn annoying, it is. Just tax the damn stuff the same across the board. If it's a drink, it's a drink. If it's in an n-ounce bottle or can, it gets the deposit. I rather prefer the ones without the malted content, but that explains why I can't get the liquor-and-juice mixes anymore.

Anonymous bourbon-drinking

Submitted by Anonymous (not verified) on Mon Mar. 16, 2009 2:28 PM PDT.

Anonymous bourbon-drinking woman: Where were you thirty years ago, when I needed you? Too late, now. I expended my liver for the love of a scotch-swilling tramp.

let me take a stab at this

Submitted by walter66 (not verified) on Mon Mar. 16, 2009 4:37 PM PDT.

to raise the alcohol level in the base malt beverage you need to start with a higher specific gravity (more sugar). Never heard the one about different yeast. Here in Ohio you can buy low proof spirits from the grocery store. To get the higher proof you need to go to the liquor store. The flavoring in spirits comes frome what it's made from and what it's aged in so a lower proof spirit has basically the same flavor as a higher proof spirit. So I would think that to bypass the taxes you would increase the fermented alcohol in the malt beverage and use a low proof spirit. The alcohol in spirits is exactly the same as the alcohol in the malt beverage. You can tell how much alcohol is in the drink using an hydrometer, you just couldn't tell if it was from the spirits or from the malt beverage. Something tells me that this re-formulation is just something that the beverage companies are telling the tax man and daring him to prove the're wrong

Anonymous bourbon-drinking woman

Submitted by keith (not verified) on Mon Mar. 16, 2009 5:14 PM PDT.

What's wrong with American cheese? Just as bourbon is a very nice American whiskey, there are some fine cheddars out there, every bit as good as their English cousins, or even better. Perhaps you're referring to "processed American cheese food"? Even that has its place in mac 'n' cheese -- you can make yours with cheddar and parmasiana reggiano, or you can use velveeta. But I wouldn't recommend matching your small batch bourbon with velveeta on ritz crackers.

English Cheese?

Submitted by TS (not verified) on Mon Mar. 16, 2009 6:06 PM PDT.

ABDW: "there are some fine cheddars out there, every bit as good as their English cousins, or even better." Bad comparison. England isn't exactly a country renowned for its cheese. That's like saying American coffee is as good as English coffee. Seriously, there is some very good American cheese available now. (Just two words: Humboldt Fog.) That processed stuff has its place in cooking, I guess, but please don't call it cheese.

Rado watches
Tag Heuer watches
Tudor watches
U-boat watches
Vacheron Constantin watches
Rolex watches
Rolex Air-King watches
Rolex Datejust II watches
Rolex Datejust watches
Rolex Submariner watches
Yachtmaster watches
Rolex Day-Date II watches
Rolex Daytona watches
Rolex Explorer watches
Rolex GMT watches
Rolex Sea-Dweller watches
Rolex Day Date watches
Rolex Masterpiece watches
Rolex Milgauss watches

Rolex Datejust II

Submitted by Rolex Day Date (watches) replica (not verified) on Sun Nov. 8, 2009 11:11 AM PST.

tagged as:

solution

Rolex Datejust II watches
Rolex Datejust watches
Rolex Submariner watches
a href="http://www.cartierwatches.us/">replica watches
A.Lange & Sohne watch for sale
Audemars Piguet watch for sale
a href="http://www.dearwatches.com/rolex-watches-rolex-masterpiece-c-72_7.html">Rolex Masterpiece watches
Rolex Milgauss watches
Rolex Prince watches

Glashutte watch for

Submitted by Rolex Prince (watches) replica (not verified) on Sun Nov. 8, 2009 11:22 AM PST.

tagged as:

solution

Glashutte watch for sale
http://www.iwcwatches.us/Graham/
Hermes watch for sale

a href="http://www.cartierwatches.us/Rado/">Rado watch for sale
Tag Heuer watch for sale
Tudor watch for sale
Tudor watch for sale
U-Boat watch for sale
Vacheron Constantin watch for sale

Maurice Lacroix

Submitted by Lady-Watches (not verified) on Fri Nov. 13, 2009 7:53 AM PST.

Maurice Lacroix replica
Montblanc replica
movado replica
omega replica
oris replica
Panerai replica
Patek Philippe replica
Piaget replica
Rado replica
Tag Heuer replica
Tudor replica
U-boat replica
Vacheron Constantin replica
Rolex replica
Rolex Air-King replica
Rolex Datejust II replica
xxx replica
Rolex Submariner replica
Lady replica
Longines replica

Breguet replica Breitling

Submitted by Franck Muller (not verified) on Fri Nov. 13, 2009 7:54 AM PST.

Breguet replica
Breitling replica
Burberry replica
Concord replica
croum replica
DeWitt replica
ebel replicaFerrari replica
Franck Muller replica
Glashutte replica
Graham replica
Hermes replica
Hublot replica
IWC replica

Jaquet droz replica
Lady replica
Longines replica
Louis Vuitton replica

You're bound to be on that

Submitted by Anonymous (not verified) on Fri Nov. 13, 2009 7:23 PM PST.

You're bound to be on that curve and not somewhere on either end of it. The subject of computer power supplies can be a rather funny one. replica Maurice Lacroix
replica Montblanc
replica movado
replica omega
replica oris
replica Panerai
replica Patek Philippe
replica Piaget
replica Rado
replica Tag Heuer
replica Tudor
replica U-boat
replica Vacheron Constantin
replica Rolex

U-boat replica Vacheron

Submitted by Anonymous (not verified) on Fri Nov. 13, 2009 10:23 PM PST.

U-boat replica
Vacheron Constantin replica
Rolex replica
Rolex Air-King replica
Rolex Datejust II replica
xxx replica
Rolex Submariner replica
Yachtmaster replica
Rolex Day-Date II replica
Rolex Daytona replica
Rolex Explorer replica
Rolex GMT replica
Rolex Sea-Dweller replica
Rolex Day Date replica
Rolex Masterpiece replica
Rolex Milgauss replica

ugg boots uk

Submitted by ugg boots uk (not verified) on Mon Nov. 16, 2009 11:26 PM PST.

Eliminating the need for the extra trouble to wear ugg boots uk 、ugg boots sale, in the extreme sports, look for happiness in life, with Christian Louboutin and nike sb showed off your tall body, do not worry about being laughed at, dancing new style Christian Louboutin shoes、ugg boots london and ugg boots sale. The flavor of life that is colorful, there are Classic tall boots 、ugg sale、ugg london and nike dunk also used fear to creep away money from your pocket Mody ? Love beauty, you might even love Christian Louboutin Boots。

replica Omega

Submitted by Anonymous (not verified) on Tue Nov. 17, 2009 7:18 AM PST.

I know that many people had a special liking for Tiffany necklaces. However, when you buy, be sure to keep a clear head, you can buy the best necklace.Now I will introduce five steps following for you to refer.
replica Franck Muller
replica Gucci
replica IWC
replica Longines
replica Louis Vuitton
replica Omega
replica Panerai
replica Patek Philippe
Perhaps, a replica Tiffany jewelry is enough to make you enjoy the good life. I never thought I must have a real Tiffany jewelry, as long as our investment direction is right, we win.