Flavored Alcoholic Beverages and the Youth Market: Are State Laws Being Violated?
Background
Flavored Alcoholic Beverages (FABs) (also called alcopops, Ready-To-Drink beverages, or Flavored Malt Beverages) denote a relatively new category in the alcohol market. Developed and distributed mostly by distillers, they are often produced through licensing arrangements with brewers. Many FABs carry distilled spirits’ brand names (e.g., Smirnoff Ice, Bacardi Silver, and Skyy Blue). FABs are produced as follows: a liquid is derived from malt and it is filtered to remove most or all taste, odor, and alcohol. “Flavoring” is then added to the liquid, which includes distilled alcohol. Although the beverages contain distilled alcohol (in some cases with most or all brewed alcohol removed) the alcohol industry distributes these products as malt beverages. This classification has three main advantages for distillers that make it easier for them to market alcohol products to underage drinkers. Beer is: (1) advertised on electronic media; (2) taxed at substantially lower tax rates; and (3) available in a greater number of retail locations, particularly those likely to be frequented by underage drinkers.