Punitive taxes will not solve harmful drinking

Tackling problem drinking by raising alcohol taxes is not efficient and will “simply force people to drink at a difference price point”, warns the CEO of the Distilled Spirits Council of the US (Discus).

Speaking to The Spirits Business last month, Peter Cressy, current president of Discus, explained education is the way forward if the drinks industry wants to promote social responsibility.

He argues politicians are too often influenced by “bad science” in their efforts to combat harmful drinking habits.

“We have a duty to ourselves to push back against advocacy groups and researchers that grab onto poorly researched surveys and push them in an effort to curtail market access or advertising, or raise taxes,” he said.

“We have to expose that as bad science and not an appropriate way to solve those problems.

“The industry has been serious about responsibility for decades, but I’m very pleased that during my time here there’s been further enhancement of that; a tougher code with dedication on the parts of companies to promote moderation.

“Continuing this serious emphasis on social responsibility and moderation is essential.”

He continued to connect the promotion of social responsibility with Discus’ on-going work to achieve spirits cultural acceptance and generate a more even playing field with wine and beer producers.

For example, just 38 US states permit the sale of spirits on Sundays either locally or throughout the state, while others such as Minnesota, Texas and Oklahoma allow beer and wine to be sold on Sundays, but not spirits.

“All the policy officials need to recognise that alcohol is alcohol, whether it’s beer, wine or spirits,” Cressy explained.

“There’s a certain parochialism in America which is formed form the leftover messages from Prohibition.

“All beer, wine and spirits need to be treated equally going forward.”

For the full interview with Cressy, see the June issue of The Spirits Business magazine.