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Tuesday, June 16, 2009
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Broadcast Television Warms Up to Alcohol Advertising
Many of the major television networks, once hesitant to run distilled spirits advertisements, are now starting to warm to the idea of accepting ads from major players in the industry. Times are tough, and network advertising revenue is down about $250 million, or 4.2%, in the first quarter compared to last year, according to the New York Post. To make up for lost revenue, many local affiliates are actively searching for distilled-spirits advertising. Recent examples of the network’s new trend include a major tequila brand running ads during The Tonight Show with Conan O'Brien, and Absolut Vodka’s major spot on CBS during the Grammy Awards. Traditionally the major broadcast networks -- ABC, CBS, NBC and Fox – avoided running national ads for alcohol beyond wine and beer for fear of distancing viewers. This precedent looks to loosen as many networks advertising policies becoming increasingly flexible.
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Federal Alcohol Tax Hike Threat Diminishes
Recently proposed tax hikes may be less threatening than once thought, following comments from Senators leading the discussion. Senator Max Baucus, chairman of the Senate Finance Committee, said that proposed legislation to raise taxes on alcohol and carbonated “are on life support,” during an interview on CNBC. The Senator was referring to proposed legislation that could increase taxes on alcohol and non-diet soft drinks as a means of raising an estimated $1.5 trillion over the next decade for the ailing health care system. The proposed legislation would charge all beverages the same tax rate, based on their alcohol content. Under the plan, the federal tax on a six-pack of beer would rise from 33 cents to 81 cents. The tax on wine would increase from 21 cents per bottle to 70 cents. The tax on hard liquor would rise from $2.14 to $2.54 for a 750-milliliter bottle.
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Politicians Fine Tune National Menu-Labeling Legislation
Washington is closing in on the completion of legislation that would create national standards for menu labeling. The uniform national nutrition standard would be based on two bills: the Labeling Education and Nutrition, or LEAN Act, and the Menu Education and Labeling, or MEAL, Act. The new standard would preempt all existing state and local menu-labeling requirements and provide protective measures for operators against litigation over inaccuracy of nutrient content listed on menus. The measure would require chains with 20 units or more to post calorie counts for standard items on menus and menu boards. Standard menu items are defined as those available on the menu for at least 60 days per year and would not include daily specials. Operators would also we required to provide additional nutritional information upon request, including the fat, total fat, saturated fat, sugars, sodium, cholesterol, carbohydrates, dietary fiber and protein. Before the measure becomes federal law it will have to pass through the Senate and House.
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