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AGs Slam Alcoholic Energy Drinks, Marketing of 'Spykes'
May 11, 2007

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News Feature
By Bob Curley

A group of 29 state attorneys general is calling on Anheuser-Busch to change the youth-friendly packaging and marketing of its Spykes caffeine-infused alcohol drinks as well as warning consumers about the dangers of mixing alcohol and energy drinks -- singling out the company's TILT and Bud Extra products for criticism.

In a May 10 letter to Anheuser-Busch chairman August Busch IV, the AGs harshly criticized the company for its marketing of alcoholic energy drinks, particularly Spykes. Noting research showing that mixing alcohol and beverages containing large doses of stimulants like caffeine could lead drinkers to underestimate their level of intoxication, the AGs wrote, "In light of this information, Anheuser-Busch's development and promotion of a variety of alcoholic energy drinks, including 'Spykes,' a flavored malt beverage that contains 12 percent alcohol by volume, as well as caffeine, guarana, and ginseng, is particularly distressing.

"Spykes exhibits all the indicia of a youth-oriented 'starter drink,' while posing the additional risks that arise from combining energy drinks with alcohol," the letter stated. The AGs noted that the product is being promoted online with free ringtone and wallpaper downloads that primarily appeal to adolescents, on a website with no meaningful barriers to youth access. The state law-enforcement officials called on Anheuser-Busch to, "at a minimum," add consumer warnings to its product packaging about the danger of mixing alcohol and energy drinks.

"In our view, the labeling for Spykes is inadequate, and the content of its advertising is irresponsible, reflecting a basic disregard for consumer safety and welfare," the letter stated, adding, "Although we find Spykes, with its fruit and chocolate flavors, high alcohol content, stimulants, and colorful, miniature packaging to be the most objectionable of Anheuser-Busch's alcoholic energy drinks, we are also disturbed by the company's production and advertising of another caffeinated malt beverage, "TILT," and a caffeinated beer, "Bud Extra."

"Given the documented health and safety risks of consuming alcohol in combination with caffeine or other stimulants, Anheuser-Busch's decision to introduce and promote these alcoholic energy drinks is extremely troubling," the letter continued. "Young people are heavy consumers of nonalcoholic energy drinks, and the manufacturers of those products explicitly target the teenage market. Promoting alcoholic beverages through the use of ingredients, packaging features, logos and marketing messages that mimic those of nonalcoholic refreshments overtly capitalizes on the youth marketing that already exists for drinks that may be legally purchased by underage consumers."

The AGs said Anheuser-Busch's promotion of these products called into question its assertion that the company is committed to preventing underage drinking and being part of the solution to fighting alcohol abuse and drunk driving.

"At a minimum, a responsible marketing plan would include a warning about the risks of mixing energy drinks with alcohol and would ensure that each product was packaged in containers large enough to display warnings legibly and to deter concealment by underage youth," the AGs wrote. "Such a plan would also employ effective age-verification methods for entry into branded Internet websites and for delivery of remote-sale purchases, and it would prevent products likely to be favored by teenagers from being sold in venues such as grocery stores and convenience stores.

"Finally, a responsible marketing plan would not direct its focus at young people who have just reached the legal drinking age, without regard for the tremendous appeal that a product's composition, packaging and advertising may also have for underage youth."

Busch Says Spykes 'Misunderstood'

In a statement responding to the AGs letter, Francine I. Katz, Anheuser-Busch's vice president of communications and consumer affairs, said that "those who criticize Spykes fundamentally misunderstand the behavior of many illegal underage drinkers. They drink for instant impact. The fact that Spykes are sold in 2-ounce bottles and have a total alcohol content equivalent to only one-third of a glass of wine makes it much less likely that illegal underage drinkers will choose Spykes as opposed to similarly colored and similarly flavored products that are 70 to 80 proof hard liquor."

"If the attorneys general believe that 50-ml bottles are a problem because their size makes them easily concealable, this standard should apply not just to malt-based products, but to hard liquor as well," said Katz. "If such a uniform standard were the rule, Anheuser-Busch would be happy to comply."

Katz also questioned why the AGs were criticizing Spykes but not caffeinated liquor products, such as Starbucks Coffee Liqueur, or fruit-flavored liquor products. "One would think that if there were going to be a double standard applied, it would favor the lower alcohol content products, not the type of hard-liquor products made by Beam Global and other hard liquor manufacturers," she said.

Katz said the "facts just don't bear out" charges that Spykes is targeted at underage drinkers, saying, "Of-age adults like these flavors."

"[T]he simple fact remains that Spykes are intended for adults 21 and older who enjoy sweet, fruit and chocolate-flavored cocktails and alcohol beverages," she said.

Typically, a letter such as that sent by the AGs to Busch on May 10 represent a shot across the bow -- often a followup to private consultations between law-enforcement officials and corporations that have proven fruitless. If unanswered, such letters can be followed by legal action, although in many cases companies and the AGs will reach some sort of settlement or agreement before the parties wind up in court.

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