April 20, 2018 Tobacco & Alcohol Control Unit Department of Health Hawkins House Hawkins Street Dublin 2, Ireland. Telephone: 00 353 1 635 4000 Fax: 00 353 1 635 4552 Email: alcohol@health.gov.ie Website: http://www.health.gov.ie Subject: Public Health (Alcohol) Bill 2015 (TRIS Notification 2018/22/IRL, January 19, 2018) To Whom It May Concern: The Distilled Spirits Council of the United States (“The Council”) is a national trade association representing the leading producers and marketers of distilled spirits products in the United States. The Council’s member companies export to more than 130 countries worldwide, including Ireland. We are pleased to have the opportunity to provide comments on the amended Public Health (Alcohol) Bill 2015, specifically focusing on the new and modified provisions. However, we also reiterate the concerns we raised previously regarding the proposed labeling requirements, which have been retained in the current draft. Our ongoing concerns regarding to the proposed minimum unit price provision, narrow positive list of approved elements that may be featured in an advertisement, structural separation, and differential treatment between classes of beverage alcohol products are detailed in our previous submission dated September 7, 2016, which is attached for your convenient reference. As we have previously indicated, we fully support the public health objective of encouraging moderate alcohol consumption by individuals of legal drinking age who choose to drink and combating alcohol abuse in all forms. Some individuals of legal drinking age should not consume alcohol at all, but abstain, and we support that decision. We respectfully submit that the proposed additional requirements in this initiative will not advance Ireland’s objective of reducing alcohol abuse. To effectively address the harmful use of alcohol, evidence-based and effective solutions must be pursued and the focus of our collective endeavors. The available scientific research makes clear that targeted interventions, such as early screening and education, are the most effective tools to reduce underage drinking and excessive consumption. Targeted interventions are flexible and identify patterns of drinking and behaviors that may be associated with the harmful consequences of over-consumption. As noted on the webpage of Distilled Spirits Council • 1250 Eye Street, NW • Suite 400 • Washington, D.C. 20005 • (202) 628-3544 • DistilledSpirits.org Page 2 of 7 April 20, 2018 Ireland’s Health Service Executive, which is under the Ministry of Health, there is “international evidence” supporting targeted interventions and “that there are great benefits to be had from this type of prevention programme.” Numerous studies consistently support the efficacy of brief individual motivational interventions to prevent underage drinking and reduce the quantity and frequency of heavy drinking and alcohol-related problems. Our specific concerns regarding the proposed new labeling requirements are detailed below. I. LABELING The revised Article 12 of the proposal introduces three additional labeling requirements all of which would be unique to the Irish market. Specifically, the labels of beverage alcohol products must bear: 1) a warning that alcohol causes cancer; 2) a warning about the dangers of alcohol consumption; 3) a warning about the consumption of alcohol when pregnant; 4) details to a website to be developed by the Ministry of Health; 5) a list of the quantity of grams of alcohol per container; and 6) the energy value expressed in kilojoules and kilocalories per container. According to Article 12(10)(a), at least one-third of the label must be covered by the three health warnings. When issuing implementing regulations under Article 12(11), the Minister of Health is required to take “into account any expert research available to him or her on the effectiveness of including the” aforementioned provisions on beverage alcohol labels. A. Warning Statements Under Article 12 (1)(i) and (iii) beverage alcohol containers must bear warnings about “the danger of alcohol consumption” and “the direct link between alcohol and fatal cancers.” As noted above, the Council fully supports the collective public health objectives of encouraging moderate, responsible consumption. It is critically important that statements reflect the body of scientific evidence. The Council questions the appropriateness of the proposed warning statement concerning cancer since it does not reflect the body of scientific evidence regarding the consumption of alcohol. The science regarding cancer and alcohol consumption is far from settled despite hundreds of epidemiological studies that have researched this issue. Cancer is a complex disease that is not entirely understood, and research continues. The causality of alcohol and cancer cannot be determined upon the basis of epidemiological studies. Further, the existing epidemiological studies cannot and do not account for the multitude of confounding factors. Many factors contribute to the risk of every type of cancer, including family history of cancer, genetics and various lifestyle and environmental factors. It is noteworthy that all cancers for which alcohol consumption is a risk factor also occur in the absence of drinking. For most individuals, moderate/responsible consumption is consistent with a healthy lifestyle and the majority of those who choose to consume beverage alcohol do so responsibly and in moderation. The scientific literature shows that, compared to abstention, moderate alcohol Distilled Spirits Council • 1250 Eye Street, NW • Suite 400 • Washington, D.C. 20005 • (202) 628-3544 • DistilledSpirits.org Page 3 of 7 April 20, 2018 consumption is associated with a lower risk of heart disease and other potential health benefits, such as reduced risk of Type 2 Diabetes. In addition, the body of scientific literature also shows that moderate alcohol consumption is associated with reduced risk of all-cause mortality among middle-aged and older adults. In its 2013 Alcohol Awareness Month release, the National Institute for Alcohol Abuse and Alcoholism (NIAAA), the U.S. government’s lead agency on alcohol issues, stated: “Most adults who drink do so responsibly with no harm to their health. In fact, for some people, drinking moderately is associated with a variety of potential health benefits including a decreased risk of coronary artery disease, heart attacks, and certain types of strokes.” Accordingly, Ireland’s Ministry of Health has established sensible alcohol consumption guidelines, thereby assisting adult consumers who choose to drink in making responsible and educated choices regarding their alcohol consumption. Specifically, the Ministry of Health has defined a standard drink to contain approximately ten grams of alcohol and issued low-risk guidelines for beverage alcohol consumption of up to 17 standard drinks in a week for men and 11 for women. The requirement to include statements concerning cancer and the danger of alcohol consumption that do not differentiate between moderate and excessive alcohol consumption is inconsistent with the Ministry of Health’s guidelines on the responsible consumption of alcohol, and may confuse adult consumers who choose to drink responsibly. Similarly, in the United States, the U.S. Departments of Agriculture and Health and Human Services jointly release the Dietary Guidelines for Americans, which provide nutrition information and advice for choosing healthy eating patterns. The Dietary Guidelines for Americans have been published jointly every 5 years since 1980 and serve as the basis for federal nutrition policy in the United States. Since the Dietary Guidelines were originally published, they have included a section on moderate alcohol consumption. A copy of the 2015 Guidelines is available at: https://health.gov/dietaryguidelines/2015/resources/20152020_Dietary_Guidelines.pdf. Specifically, the 2015 Dietary Guidelines state, “If alcohol is consumed, it should be consumed in moderation – up to one drink per day for women and up to two drinks per day for men – and only by adults of legal drinking age.” Additionally, it notes, “For those who choose to drink, moderate alcohol consumption can be incorporated into the calorie limits of most healthy eating patterns.” The Guidelines define a standard drink -- or a one drink-equivalent -- as 1.5 ounces of 80-proof distilled spirits (40% ABV), 5 ounces of wine (12% ABV) and 12 ounces of regular beer (5% ABV). The Guidelines point out that each of these standard drinks contain 14 grams (0.6 fluid ounces) of pure alcohol. The Scientific Report of the 2015 Dietary Guidelines Advisory Committee concluded that moderate consumption of alcohol is shown to be a component of “a beneficial dietary pattern in most studies.” A copy of the Scientific Report of the 2015 Dietary Guidelines Advisory Committee is available at: https://health.gov/dietaryguidelines/2015-scientific-report/pdfs/scientific-report-of-the-2015dietary-guidelines-advisory-committee.pdf. Distilled Spirits Council • 1250 Eye Street, NW • Suite 400 • Washington, D.C. 20005 • (202) 628-3544 • DistilledSpirits.org Page 4 of 7 April 20, 2018 Moreover, the WTO’s Agreement on Technical Barriers to Trade states that “available scientific and technical information” should be considered when establishing technical regulations with public policy objectives, such as protecting public health and safety. We urge that the entire body of scientific literature and research regarding beverage alcohol consumption be taken into account in determining the appropriateness of any proposed warning statements. Many lifestyle choices carry potential risks and benefits, and the consumption of alcohol is no exception. There have been numerous studies over the years regarding alcohol and health. Studies have found that excessive drinking may cause serious health problems and has been associated with an increased risk of certain types of cancer. Studies also have reported an association between moderate alcohol consumption and an increased risk of breast cancer. According to the American Cancer Society, “[c]ompared with non-drinkers, women who have one alcoholic drink a day have a very small increase in risk” of breast cancer. (American Cancer Society, Lifestyle-related Breast Cancer Risk Factors, September 2017) For many adults of legal drinking age, moderate alcohol consumption can be part of a well-balanced lifestyle. Various health authorities and medical studies have found that moderate consumption of alcohol may be associated with certain health benefits for some adults, including a protective effect against cardiovascular disease and diabetes. As reflected in the 2016 U.S. Surgeon General’s Report on Alcohol, Drugs and Health, “the 2015-2020 Dietary Guidelines for Americans indicate that moderate alcohol use can be part of a healthy diet, but only when used by adults of legal drinking age.” The distilled spirits community does not recommend that people drink alcohol for potential health benefits, and urges adults who choose to drink, to do so responsibly and in moderation. We are committed to promoting the moderate consumption of our products and encouraging responsible choices about alcohol. We respectfully submit that the proposed warning statements that alcohol causes cancer and the danger of alcohol consumption not be adopted because they will lead to unnecessary confusion instead of providing evidence-based and clear information to consumers. In the United States, all beverage alcohol products are required to have the following statement on their containers: GOVERNMENT WARNING: (1) According to the Surgeon General, women should not drink alcoholic beverages during pregnancy because of the risk of birth defects. (2) Consumption of alcoholic beverages impairs your ability to drive a car or operate machinery, and may cause health problems. This requirement was imposed by the Alcoholic Beverage Labeling Act of 1988. By having the same statement, consumers receive consistent, uniform and clear information regarding the health hazards that may result from the consumption or abuse of beverage alcohol products. This statement is broad in scope and provides consumers with a non-confusing reminder of such hazards. Distilled Spirits Council • 1250 Eye Street, NW • Suite 400 • Washington, D.C. 20005 • (202) 628-3544 • DistilledSpirits.org Page 5 of 7 April 20, 2018 To that end, we respectfully urge Ireland to consider the adoption of the warning statement used in the United States. B. Ministry of Health Website Article 12(1)(vi) requires the labels of beverage alcohol products to contain “details of a website” to be established and maintained by the Minister of Health “providing public health information in relation to alcohol consumption.” The Council respectfully requests that the government of Ireland take into account the same scientific rationale and facts regarding the health warning statement discussed above, which are equally applicable, as the Ministry of Health develops and maintains its website moving forward. C. Grams of Alcohol and Energy Content Requirement Article 12(7)(a)(i) requires the quantity of grams of alcohol in a container and Article 12(7)(a)(ii) requires the energy value expressed in kilojoules and kilocalories in a container to appear on the label. The Council seeks clarification regarding the rationale behind requiring the quantity of grams of alcohol to be provided. Grams of alcohol is not a measure that is understood by consumers. With regard to the requirement to list the energy content, in March 2017 the European Commission invited the European beverage alcohol sector in accordance with EU Regulation 1169/2011 to develop a harmonized self-regulatory proposal to provide this information to consumers. We understand that the European Commission is currently reviewing the proposals, which were submitted in March 2018. In light of this, we respectfully request that Ireland defer any action on these matters until after the European Commission has completed its review and agreed upon next steps with the EU spirits sector. If such information is made mandatory, the Council urges Ireland to require such information to be provided per standard serving size, and not per container. A standard drink in Ireland is 10 grams of alcohol. A requirement to provide such information by “container” does not provide consumers with the basic information of the alcohol content in a serving of distilled spirits, wine, or beer in a manner to measure and moderate their drinking to help them make responsible consumption decisions. D. Unnecessary Obstacle to the Free Movement of Goods Through the EU Internal Market In our view, if adopted, the labeling requirements that at least one-third of the label must be covered by the three warning statements and to include a list of grams of alcohol and its energy content per container would create unnecessary obstacles to trade and contravene the EU’s obligations under Article 2.2 of the WTO Technical Barriers to Trade Agreement. Distilled Spirits Council • 1250 Eye Street, NW • Suite 400 • Washington, D.C. 20005 • (202) 628-3544 • DistilledSpirits.org Page 6 of 7 April 20, 2018 Moreover, they would introduce a significant barrier to the free movement of goods through the EU internal market. It is common international practice to have a single front label for internationally-traded spirits and to permit the use of a supplemental label or sticker to be applied to containers in order to provide information that is required only in the country where the product is marketed. Under the labeling requirements for distilled spirits sold in the EU, there is no requirement for warning statements on beverage alcohol products. Some Member States, such as France and Lithuania, have enacted national warning label requirements and provide that it may be applied via sticker and it may appear on the front or back of the container. In the United States, the required warning statement may appear “on the brand label, or separate front label, or on a back or side label, separate and apart from all other information.” Furthermore, Article 8.2.1 of the Codex General Standard for the Labelling of Prepackaged Foods (CODEX STAN 1-1985 (Rev. 1-1991) specifically addresses the use of stickers, which states “If the language on the original label is not acceptable, to the consumer for whom it is intended, a supplementary label containing the mandatory information may be used instead of relabeling” [emphasis added]. In that regard, the Council urges Ireland to eliminate the requirement that one-third of the label be covered by the three warning statements and provide for the use of a supplemental label or sticker that may be applied anywhere on the package. II. BROADCAST ADVERTISING RESTRICTIONS Article 19 introduces new broadcast advertising restrictions that prohibit all alcohol advertising on television between 3:00am and 9:00pm, and on the radio on weekdays between 12:00am and 10:00am or 3:00pm and 12:00am. Ireland’s broadcast restrictions on advertising will not reduce the harmful use of alcohol. The overwhelming body of scientific evidence and empirical evidence shows that advertising does not cause an individual to begin drinking or to abuse alcohol. These proposed restrictions will have a disproportionate impact on companies that have brands that are not currently available in Ireland and will make it difficult for such products to compete with brands already established the Irish market. For the reasons stated above, the Council respectfully requests that the proposals related to advertising broadcast restrictions not be adopted. CONCLUSION Finally, the Council seeks Ireland’s assurances that it will re-notify the proposal and notify any implementing regulations pertaining to labeling of beverage alcohol to the World Trade Organization’s Technical Barriers to Trade Committee, consistent with its international obligations. Under the WTO’s Agreement on Technical Barriers to Trade, mandatory labeling Distilled Spirits Council • 1250 Eye Street, NW • Suite 400 • Washington, D.C. 20005 • (202) 628-3544 • DistilledSpirits.org Page 7 of 7 April 20, 2018 requirements are considered technical regulations, and therefore must be notified to the TBT Committee. The TBT Agreement provides that the notification should be made in a manner which provides a reasonable time for other governments and stakeholders to provide comments in writing, to discuss these comments, and take these comments into account before it is finalized. Notification will ensure that all interested stakeholders will have an opportunity to provide valuable and pertinent input regarding the proposals. Thank you again for the opportunity to provide comments on the revised proposal, and we would be pleased to amplify and/or clarify any of these points as needed. The Council looks forward to providing additional input as Ireland develops its implementing regulations. Respectfully submitted, Christine LoCascio Senior Vice President International Issues and Trade Attachment Distilled Spirits Council • 1250 Eye Street, NW • Suite 400 • Washington, D.C. 20005 • (202) 628-3544 • DistilledSpirits.org DISTILLED SPIRITS COUNCIL September 7, 2016 Tobacco Alcohol Control Unit Department of Health Hawkins House Hawkins Street Dublin 2, Ireland. Telephone: 00 353 635 4000 Fax: 00 353 1 635 4552 Email: alcohol?lhealthgomie Website: Subject: Public Health (Alcohol) Bi112015 (GIT June 9, 2016) To Whom It May Concern: The Distilled Spirits Council of the United States (?The Council?) is a national trade association representing U.S. producers, marketers, importers, and exporters of distilled spirits products. The Council?s member companies export to more than 130 countries worldwide, including Ireland. We are pleased to have the opportunity to provide you with our comments regarding the proposed Public Health (Alcohol) Bill 2015 (ii, WTO Noti?cation June 2, 2016). At the outset, we fully support the public health objective of encouraging moderate alcohol consumption by individuals of legal drinking age who choose to drink and combating alcohol abuse in a_ll forms. Some individuals of legal drinking age should not consume alcohol at all, but abstain, and we support that decision. According to of?cial Revenue data and Central Statistics Of?ce population data, consumption of alcohol in Ireland has fallen approximately 25 percent over the past 15 years. In addition, underage consumption of alcohol has also fallen according to a variety of studies: 0 The European School Survey Project on Alcohol and Drugs has reported that, between 1999 and 2011, underage drinking in Ireland has declined across all metrics and that average underage drinking is lower in Ireland when compared with other European countries surveyed; The European Journal on Public Health Report found that Irish teenagers? weekly intake of alcohol went down by 35% from 2006 to 2010; and II The Irish Department of Health?s Health Research Centre survey of over 13,000 children found decreased levels of alcohol consumption and drunkenness from 2010 to 2014. We respectfully submit that the proposed requirements in this initiative will not advance Ireland?s objective of reducing alcohol abuse. To effectively address the harmful use of alcohol, evidence-based and effective solutions must be pursued and the focus of our collective endeavors. In fact, the available scienti?c research makes clear that targeted interventions, such as early screening and education, are the most effective tools to reduce underage drinking and excessive consumption. Targeted interventions are ?exible and identify patterns of drinking and behaviors that may be associated with the harmful consequences of over-consumption. According to the World Health Organization (WHO), providing information Distilled Spirits Council 1250 Street. NW Suite 400 Washington, DC. 20005 (202) 628-3544 DistilledSpirits.org Page 2 of 8 September 7, 2016 and life skill programs tailored to teenagers have been shown to be effective in reducing abuse. Improved knowledge about drinking patterns and outcomes can help young people at risk for abuse to modify behaviors. As discussed below, our key concerns with the proposal are with regard to labeling, minimum unit pricing, advertising and marketing, the structural separation of alcohol in mixed retail outlets, and the potential discrimination between classes of product categories in regulations governing sales or supply procedures. I. Labeling Article 1 1 of the proposal introduces ?ve new labeling requirements unique to the Irish market. Speci?cally, the labels of beverage alcohol products must bear a health statement, pregnancy health warning statement, details regarding a website to be developed by the Ministry of Health, list the quantity of grams of alcohol by container, and the energy value expressed in kilojoules and kilocalories per container. When issuing implementing regulations under Article 11(10), Article 11(1 1) requires the Minister of Health to take ?into account any export research available to him or her on the effectiveness of including the? aforementioned provisions on beverage alcohol labels. The Council seeks Ireland?s assurances that it will notify any implementing regulations pertaining to labeling of beverage alcohol to the World Trade Organization?s Technical Barriers to Trade Committee, consistent with its international obligations. Under the Agreement on Technical Barriers to Trade, mandatory labeling requirements are considered technical regulations, and therefore must be noti?ed to the TBT Committee. Noti?cation will ensure that all interested stakeholders will have an opportunity to provide valuable and pertinent input regarding the proposals. The Council?s preliminary thoughts and key concerns regarding the speci?c labeling proposals are provided below. The Council looks forward to providing additional input as Ireland develops its implementing regulations. Warning Statement: Under Article beverage alcohol containers must bear a warning to ?inform the public of the danger of alcohol consumption.? As noted above, the Council fully supports the collective public health objectives of encouraging moderate, responsible consumption. It is critically important that statements re?ect the body of scienti?c evidence. For most individuals, moderate/responsible consumption is consistent with a healthy lifestyle and the majority of those who choose to consume beverage alcohol do so responsibly and in moderation. The scienti?c literature shows that, compared to abstention, moderate alcohol consumption is associated with a lower risk of heart disease and other potential health bene?ts, such as reduced risk of Type 2 Diabetes. In addition, the body of scienti?c literature also shows that moderate alcohol consumption is associated with the lowest all-cause mortality among middle?aged and older adults. A 2011 report from the U.S. Centers for Disease Control and Prevention (CDC) cited moderate alcohol consumption as one of four key healthy lifestyle behaviors. In its 2013 Alcohol Awareness Month release, the National Institute for Alcohol Abuse and Alcoholism the U.S. government?s lead agency on alcohol issues, stated: ?Most adults who drink do so responsibly with no harm to their health. In fact, for some people, drinking moderately is associated with a variety of potential health bene?ts including a decreased risk of coronary artery disease, heart attacks, and certain types of strokes.? (E attached references nos. 1-23.) Moreover, the Agreement on Technical Barriers to Trade states that ?available scienti?c and technical information? should be considered when establishing technical regulations with public policy objectives, such as protecting public health and safety. To that end, we urge that the entire body of scienti?c literature and research regarding beverage alcohol consumption be taken into account in terms of the appropriateness of any proposed warning. Page 3 of 8 September 7, 2016 Ministry of Health Website: Article 1 requires the labels of beverage alcohol products to contain ?details of a website? to be established and maintained by the Minister of Health ?providing public health information in relation to alcohol consumption.? The Council respectfully requests that the government of Ireland take into account the same scienti?c facts regarding the health warning statement discussed above, which are equally applicable, as the Ministry of Health develops and maintains its website moving forward. Grams of Alcohol and Energy Content Requirement: Article requires the quantity of grams of alcohol in a container and Article 1 1(c)(iv) requires the energy value expressed in kilojoules and kilocalories in a container to appear on the label. The Council seeks clari?cation regarding the rationale behind requiring the quantity of grams of alcohol to be provided. Grams of alcohol is not a measure that is understood by consumers and we understand that the EU is currently considering whether beverage alcohol should, in the future, be subject to nutrition labeling. In our view, if adopted, these two labeling provisions would create unnecessary obstacles to trade and contravene the obligations under Article 2.2 of the WTO Technical Barriers to Trade Agreement. Moreover, they would introduce a signi?cant barrier to the free movement of goods through the EU internal market. Speci?cally, companies will be forced to re-label or repackage products destined for the Irish market. Companies exporting to the EU, therefore, will have to make special production runs for product destined for Ireland, thus inhibiting the free movement of goods within the internal market. If separate runs are not possible, the Irish label may have to be applied to products that will be marketed elsewhere in the EU. Such additional requirements would act as a barrier to trade, as well as a barrier for U.S. producers seeking to export to Ireland. Imposing such a labeling requirement would result in signi?cantly increased costs for U.S. spirits exporters. For example, in addition to the costs associated with special production runs, companies exporting product speci?cally labeled for Ireland will necessarily be required to keep separate inventories. In addition, this requirement would severely limit the opportunities for exporters to reallocate product from other EU markets to Ireland in response to customers? requests, creating inef?ciencies and increased operating costs. Therefore, the Council urges Ireland not to adopt a national requirement on grams of alcohol and energy value as it would create a barrier to the internal EU market. Nevertheless, if such mandatory information is required, the Council urges Ireland to require such information to be provided per standard serving size, and not per container. A standard in Ireland is 10 grams of alcohol. A requirement to provide such information by ?container? does not provide consumers with the basic information of the alcohol content in a serving of distilled spirits, wine, or beer in a manner to measure their drinking and help them make responsible consumption decisions. 11. Minimum Unit Pricingr Article 10 proposes a minimum unit price (MUP) of ?0.10 per gram of alcohol. As noted above, a standard drink in Ireland is 10 grams of alcohol. After three years, the Minister of Health may increase the MUP, but there is no provision for a decrease even if the expert advice in Article 10(5) might suggest one. The Council is concerned that the proposal is inconsistent with EU jurisprudence. In December 2015, the Court of Justice of the European Union ruled that Scotland?s proposed MUP for beverage alcohol is a restriction on trade that a government cannot impose if there are less restrictive ways of achieving the same end. It does not appear that Ireland has considered other measures to curb alcohol abuse. Such an approach will n_ot be effective in reducing alcohol abuse and instead will primarily impact moderate, responsible drinkers. Page 4 of 8 September 7, 2016 Moreover, higher prices have little to no impact on addressing the harmful use of alcohol. In fact, responsible consumers are most sensitive to prices and are the ones that cut back the most when prices rise. On the other hand, studies repeatedly have shown that the small percentage of chronic abusers are affected little by price. To the extent that increased prices unduly affect moderate drinking patterns of responsible adults, potential health bene?ts associated with moderate consumption would be jeopardized. In addition, the establishment of the MUP would, at the very least, adversely impact the conditions of competition in the Irish market by requiring producers to make the draconian choice of either accepting a price rise or changing the speci?cations of their branded-products so that they can be legally sold at existing prices. In essence, the Irish government?s measure would set compositional requirements that would be contrary to the requirements under the Spirits Drinks Regulation (110/2008) and lead to the creation of an arti?cially competitive environment that, among other things, would serve as a barrier to entry for certain imported products. Speci?cally, any imported products that currently are sold at lower price points than their domestically- produced equivalents may be barred from realizing any competitive advantage once the minimum pricing scheme is in effect. Indeed, it would appear that the only way an imported product would be able to maintain a competitive price would be to lower the alcohol content. As you may be aware, a reduction in alcohol content is not an option for a number of important categories of spirit drinks due to the minimum alcohol content requirements that are established under the EU Spirit Drinks Regulation (110/2008). In the case of whisky, for example, which is by far the largest category of US. spirits exports to Ireland, the EU Spirit Drinks Regulation establishes a minimum alcohol content of 40% so a reduction in alcohol content is not possible. For these reasons, the Council respectfully requests that Ireland remove the MUP provision from the proposal. Advertising The Council and its members are fully committed to responsible advertising directed to legal purchase age adults in an appropriate manner. Our members do n_ot market their products to underage consumers. We fully support efforts to strengthen regulatory measures to ensure adult consumers are receiving accurate information about the products. The proposal includes a narrow positive list of approved elements that may be featured in an advertisement. Speci?cally, the allowed elements in an advertisement would be limited to images of the container, region of production, production process, premise where it is manufactured, brand name, corporate name, corporate emblem, an objective description of the ?avor, color and smell of a product, and information whether the product is intended to be diluted with a non-alcoholic beverage. Thus, the proposal would ban, for example, images of adult consumers enjoying beverage alcohol products with other adult consumers while eating food with a bottle of water in view. Ireland?s restrictions on advertising will not reduce the harmful use of alcohol. The overwhelming body of scienti?c evidence and empirical evidence shows that advertising does not cause an individual to begin drinking or to abuse alcohol. This body of scienti?c literature spans decades. For example, the 2004 National Academy of Sciences Report "Reducing Underage Drinking - A Collective Responsibility" recognizes that ?a causal link between alcohol advertising and underage alcohol use has not been clearly established. The 2000 Department of Health and Human Services? (HHS) Special Report to Congress concluded that, when all of the studies are considered, Page 5 of 8 September 7, 2016 the results of the research on the effects of alcohol advertising are not conclusive. HHS found that ?[t]he bulk of this research supports the claim that alcohol advertising reallocates consumption among brands or beverage types.? Ten years earlier, HHS reached the same conclusion in its 1990 Special Report to Congress: "Research has yet to document a strong relationship between alcohol advertising and alcohol consumption." Recent studies further underscore the decades of research showing that alcohol advertising does not cause consumption. Rather, it drives brand choice among different alcohol products. For example, a 2015 study analyzed the relationship between annual alcohol advertising expenditures and per-capita sales of beer, wine and spirits in the US. from 1971-2012. Over a 40-year span, the researchers found that per-capita alcohol consumption remained essentially constant, with changes occurring only between the three beverage alcohol categories beer, wine and distilled spirits. Conversely, during the same timeframe, alcohol advertising media expenditures increased almost 400 percent. The researchers concluded that advertising is a means to gain market share and ?[p]roposals to restrict or curtail truthful, commercial messages about a legal product work against rational public policy.? The researchers also underscored that ?the outcomes of this study can be used to inform relevant public policy discussions regarding alcohol beverage advertising.? (E attached references nos. 24-27.) Restricting or banning advertising is not a harm reduction initiative. While supporting the Irish government?s objective to reduce harm, restrictions on advertising content and placement will not meet the Government?s objectives to impact the misuse of alcohol and only will serve to compromise a producers? ability to promote its products to adult customers in Ireland. For the reasons stated above, we urge that the proposals related to advertising not be adopted. IV. Structural Separation According to Article 20, within one year, alcohol advertising and all alcohol sales are restricted to a single area in the store that must be separated from the rest of the premises by means of a physical barrier through which the alcohol products and advertising are not readily visible from the outside. It is inaccurate to suggest that separating beverage alcohol products behind a barrier will decrease the harmful consumption of alcohol given the various determinants of alcohol-related harm. This provision will have a disproportionate impact on companies that have brands that are not currently available in Ireland and will make it virtually impossible for new products to enter the Irish market. Accordingly, the Council respectfully requests that Ireland remove the requirement that beverage alcohol products and advertisements be separated from other items in a retail outlet by a physical barrier. V. Different Treatment Between Classes of Beverage Alcohol Products According to Article the Minister of Health may issue different regulations relating to the sale and supply of beverage alcohol products based on the ?class or classes of alcohol products.? It is true that distilled spirits tend to have higher alcohol content than beer and wine. The Council is concerned that, if certain classes of beverage alcohol are treated differently and given favorable treatment, it sends the incorrect message that such products are non-intoxicating and do not need to be treated similarly. The US. federal government?s approach with regard to alcohol-related public policy is established under the Dietary Guidelines for Americans issued by HHS and the Department of Agriculture (USDA). The Guidelines reaffirm that a standard drink of beer, wine and distilled spirits each contain the same amount of alcohol. There is no beverage of moderation, only the practice of moderation. Page 6 of 8 September 7, 2016 Accordingly, the Council respectfully requests that Ireland treat all classes of beverage alcohol products, (wine, beer, and distilled spirits) the same with regard to regulations relating to the sale and supply of beverage alcohol products. We appreciate your thoughtful consideration of our views, as well as your efforts to reduce the harmful use of alcohol. Thank you again for the opportunity to provide comments on the proposal, and we would be pleased to amplify and/or clarify any of these points as needed. Respectfully submitted, Miro/M were Christine LoCascio Senior Vice President, International Issues and Trade The Distilled Spirits Council of the United States Page 7 of 8 September 7, 2016 REFERENCES: 1. 2. 10. ll. 12. 13. 14. 15. 16. Ford ES, Zhao G, Tsai J, Li C. (2011) Low-risk lifestyle behaviors and all-cause mortality: ?ndings from the National Health and Nutrition Examination Survey Mortality Study. Am Public Health. 101(10): 1922-9. 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