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Prilim. Report of Senator Alcoholism & Drug Abuse Committee on High Alcohol Flavored Malt Beverages

Prilim. Report of Senator Alcoholism & Drug Abuse Committee on High Alcohol Flavored Malt Beverages

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Published by Rich Azzopardi
Senator Jeffrey D. Klein, chairman of the New York State Senate Standing Committee on Alcoholism and Drug Abuse, today announced the issuance of a legislative subpoena against the makers of Four Loko as part of the Committee's ongoing investigation into high alcohol Flavored Malt Beverages and their availability to minors.

The subpoenas to Chicago-based Phusion Projects will be seeking information regarding the manufacturing, distribution and marketing of Four Loko.
Senator Jeffrey D. Klein, chairman of the New York State Senate Standing Committee on Alcoholism and Drug Abuse, today announced the issuance of a legislative subpoena against the makers of Four Loko as part of the Committee's ongoing investigation into high alcohol Flavored Malt Beverages and their availability to minors.

The subpoenas to Chicago-based Phusion Projects will be seeking information regarding the manufacturing, distribution and marketing of Four Loko.

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Published by: Rich Azzopardi on Jun 03, 2011
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02/13/2013

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Preliminary Findings of the New York State Senate Standing Committee onAlcoholism and Drug AbuseFlavored Malt Beverages and New York State’s YouthJune 2011Senator Jeffrey D. KleinChairman
 
I. Introduction
The HearingOn April 12, 2011, the New York State Senate Committee on Alcoholism and Drug Abuse,
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chaired by Senator Jeffrey D. Klein, held a public hearing to gather information on the possibleharmful effects of high alcohol content flavored malt beverages (hereinafter “FMBs”),
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 particularly on New York State’s underage drinkers. Testimony was presented by fifteenwitnesses, including Commissioner Arlene González-Sánchez of the New York State Office of Alcohol and Substance Abuse Services (OASAS), Chairman Dennis Rosen of the New York State Liquor Authority, and Commissioner Thomas Farley of the New York City Department of Health. Also in attendance were experts from law enforcement, community groups, and the foodindustry, , as well as the convenience store industry and the Flavored Malt Beverage Coalitionwho gave testimony on the distribution, marketing and the effect of flavored malt beverages on New York State as a whole.
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While the list of invited speakers was designed to offer a balancedfield of opinion on a wide variety of issues concerning this topic, ranging from economic tohealth and safety aspects, a notable absence were FMB manufacturers, such as Phusion ProjectsLLC, a group well known for spearheading the popularity of FMBs among youth.What are Flavored Malt Beverages?FMBs are sweetened and flavored malt-based drinks with high alcohol content. They aregenerally sold for $2 to $3 for a 22 ounce can, containing several servings of alcohol. They havesimilar packaging to non-alcoholic energy drinks or iced teas, are sold in convenience stores-often alongside similar looking non-alcoholic beverages, and are otherwise marketed in a manner that may be attractive to minors. Phusion’s version of the drink, Four Loko, for example, has a12 percent alcohol content, while an average beer generally has a 4 to 5 percent alcohol content.The can is a flashy and colorful design. The contents are sweet and flavored with pop cultureflavorings such as Watermelon, Blue Raspberry, Lemonade and Grape. They are sold inconvenience stores, which are more accessible to underage drinkers and where valididentification is often more easily overlooked than in a liquor store, where similarly packagednon-alcoholic drinks are not also sold.Valuable Omission From HearingThere was time allotted in the schedule for manufacturer attendance to help to arrive at the proper definition of FMBs and to give testimony on this topic. Although they are certain to haveexclusive expertise on the process to manufacture FMBs, all manufacturers declined theinvitation to testify. Phusion went so far as to post a letter addressed to Senator Klein on their 
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The New York State Alcoholism and Substance Abuse Committee is chaired by Senator Klein and also includesSenators Shirley Huntley (ranker), John J. Bonacic, Roy McDonald, Kemp Hannon, and Neil Breslin. Also inattendance were Senators Charles Fuschillo (Ch., Transportation Committee), Diane Savino (Ch., Children andFamily Committee) and David Carlucci.
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Note that FMBs may also be generally referred to as “alcopops.”
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A full list of presenters and their testimony is available at http://www.nysenate.gov/event/2011/apr/12/allow-committee-fully-explore-high-alcohol-flavored-malt-beverages-proliferation-a. Also note that the Flavored MaltBeverage Coalition does not represent many of the high alcohol content flavored malt beverages which were thesubject of the hearing.
 
website stating the reasons for declining the invitation.
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Citing “concern[] that the hearing maynot be a fair and balanced discussion of the important issues being considered”, Phusionaddressed some of the hearing topics in its public letter, including ease of youth access, or marketing strategies, and packaging that may be attractive to teens and other youth. Such topicswere also discussed by the speakers at the hearing. But they could not speak to the directmarketing plan of Phusion or the manufacturing process. Nor could they field difficult questionsintended for FMB manufacturers and marketers. The primary products that were in question areas follows:
Product Manufacturer Size (fl oz) Alcohol by Volume Flavors Price PointBlastPabst Brewing Company 23.5 12% Strawberry, Lemonade,blueberry, pomegranate, grape,raspberry, watermelon$2.50/canFour Loko Phusion Project / Drink Four Brewing Company11.2 bottle32 canBottle: 8%MaXed: 10%Can: 12%Lemonade, cranberrylemonade, lemon lime, grape,fruit punch, watermelon,orange, blue raspberry$2.29/ canAlso available insix and twelvepacksTilt Anheuser-Busch 16 or 24 Red: 12%Blue: 11%Green: 10%Red:Cherry/orange/lime/tropicalfruitBlue: RaspberryGreen: Lemon lime citrus$1.50/canJoose United Brands Company,Inc.12Bottle23.5CanBottle: 8.5%Can: 9.9% or 12%“User Friendly” Bottle: Grape,mango, cherry lime,razlemondae, green apple;Can: lemonade, lime, mango,lemon tea, strawberry,watermelon, fruit punch$1.99-2.49 per canAlso available insix and twelvepacksCore Charge BeverageCorporation23.5 or 32cans12% Triple berry, strawberry,lemonade, spiked punch, grape,orange$2.29/canSparks Miller Brewing/ SteelBrewing Company16 6, 7, and 8% Citrus, Fruit Flavor,blackberry, cherry/berry,lemon stinger$2.29/can
II. Basis for the Hearing
Incidents surrounding the abuse of consuming flavored malt beverages came to light when, inAugust 2010, Senator Klein was approached by the Mayors and Police Chiefs of Bronxville andTuckahoe relaying to him that in one month’s time three local teens had been rushed to hospitalemergency rooms after consuming Four Loko. The local police chiefs, in conjunction with the
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 Letter to Senator Klein
, Phusion Media Room, April 12, 2011. Available athttp://www.phusionprojects.com/media_lettertoklein.html.

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