This study found that despite the alcoholic beverage industry’s stated commitment to reducing underage alcohol use, significant revenues appear to accrue from this activity.

This presents an opportunity to enact and enforce policies—such as alcohol taxes—that recover these revenues from the industry and use them to help achieve the goal of preventing youth alcohol consumption.

Author

Raimee H. Eck, Pamela J. Trangenstein (email: ptrang@email.unc.edu.), Michael Siegel and David H. Jernigan

Citation

Eck, R., Trangenstein, P., Siegel, M. and Jernigan, D., 2021. Company-Specific Revenues From Underage Drinking. Journal of Studies on Alcohol and Drugs, 82(3), pp.368-376.


Source
Journal of Studies on Alcohol and Drugs
Release date
09/06/2021

Company-Specific Revenues From Underage Drinking

Abstract

Objective

Alcohol is the most commonly used illegal drug among U.S. high school students. This study aimed to estimate the proportion of alcoholic beverages and sales revenue accruing to alcoholic beverage companies that were attributable to underage consumption in 2011 and 2016.

Method

This study used national survey data to estimate the number of adult and underage past-30-day alcohol users, median volume of alcohol consumed, beverage preferences, and alcohol price by beverage type. The study used Impact Databank to determine the total number of alcoholic beverages sold. After adjusting for underreporting, the researchers applied the percentage of alcohol reported to be consumed by underage youth on surveys to the alcohol sales data by beverage type and assigned a beverage-specific cost.

Results

Underage youth consumed 11.73% of the alcoholic beverages sold in the U.S. market in 2011 and 8.6% in 2016. Total sales revenue attributable to underage consumption was $20.9 billion (10.0%) out of a total of $208.0 billion in 2011 and $17.5 billion (7.4%) out of $237.1 billion in 2016. Three alcoholic beverage companies represented nearly half (44.7%) of the market share of beverages consumed by underage youth.

Conclusions

Despite the alcoholic beverage industry’s stated commitment to reducing underage alcohol use, significant revenues appear to accrue from this activity. This presents an opportunity to enact and enforce policies—such as alcohol taxes or required company funding of independently managed youth alcohol prevention initiatives—that recover these revenues from the industry and use them to help achieve the goal of preventing youth alcohol consumption.


Source Website: JSAD