Tobacco Industry

Issues and Opportunities facing the alcohol industry:

Many brewers and manufacturers are facing a noted and also a serious threat to their businesses. The Senate Finance Committee in Washington, DC is considering a proposal to set forth an increase in the excise tax for alcoholic beverages ($16/proof gallon) as part of healthcare reform deliberations.  This proposal would actually triple the excise tax for 4.5% ABV beer and impose much higher excise tax rates for higher ABV beers. If this proposal comes to pass, there are many small brewery businesses that will suffer, some will close and consumers will by far face higher prices and reduced choice in the marketplace. A $1 per case excise tax increase could possibly cost the consumer at least $1.69 due to consecutive mark-ups as the case moves from brewer to wholesaler to retailer (Brewers Association, 2009).

It has been suggested to many Brewers Association members that they contact his or her Senators to express their opposition to the proposal and the association’s leadership has been actively engaged in building and working on the case against such an excise tax increase, also submitting a letter to the Senate Finance Committee in which they will outline opposition as well (Brewers Association, 2009).

Other issues facing the alcohol industry include groups across the nation that has organized against the alcohol industry. Most of this is spurred by growing concerns over drunk driving, under-age drinking and alcohol-related crime, these groups -- made up of parents and educators, churchgoers and community activists -- have been pressing for higher taxes, restrictions on advertising and crackdowns on problem outlets.

On a positive note, many manufacturers have developed alcohol abuse prevention policies in an effort to focus on the hazards of underage drinking, alcohol related accidents and alcohol abuse. The industry has entered the prevention arena aggressively within communities,...