Alcohol PointOfSale: Under the Regulators' Radar Prof Sandra Jones Director, Centre for Health Initi

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Alcohol Point-Of-Sale Under the Regulators'
Radar? Prof Sandra JonesDirector, Centre for
Health Initiatives Associate Dean (Research),
Faculty of Health Behavioural Sciences
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• We know that (price-based) alcohol promotions are
  associated with increased alcohol consumption,
  particularly among young people
• However, most of this research has been in the
  context of venue promotions
• What has been largely neglected in both research
  and policy is the nature, extent and effects of
• POS alcohol promotions in bottle shops and liquor
  stores
• non-price promotions

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• US studies have documented the extent, and
  correlates (but not effects) of POS alcohol
  promotions (CDC 2003 Harwood et al. 2003 Howard
  et al. 2004 Bray et al. 2007)
• One study found that for off-premise outlets
  (e.g., bottle shops) higher binge-drinking rates
  were correlated with
• the availability of large volumes of beer
• lower average price of a carton of beer
• interior and exterior advertising and
• promotions such as volume discounts, advertised
  price specials, or coupons (Kuo et al. 2003)

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• Several studies have shown an association between
  ownership of alcohol promotional items and
  subsequent drinking behaviours (McClure et al.
  2006 Hurtz et al. 2007 Henriksen et al. 2008)
• The limited evidence from the US into alcohol
  promotions, combined with the extensive research
  into tobacco POS promotions, suggests promotions
  may increase both short-term and long-term
  alcohol consumption

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Current system of alcohol advertising regulation

• Voluntary system of self-regulation
• AANA - Advertiser Code of Ethics (all forms of
  advertising)
• Advertising Standards Board (ASB) Claims Board
  (ACB) deal with complaints and breaches
• Alcohol industry separately developed its own
  code, Alcoholic Beverages Advertising Code
  (ABAC), complaints management system, and
  pre-vetting system
• Alcohol commercials may only be broadcast on
  television
• in M, MA or AV classification periods
  (8.30pm-5.00am plus 12.00-3.00pm on non school
  holiday weekdays) or
• as an accompaniment to the live broadcast of a
  sporting event on weekends and public holidays

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Alcohol Beverages Advertising Code

• .must not promote offensive behaviour, or the
  excessive consumption, misuse or abuse of alcohol
  beverages (only depict responsible and moderate
  consumption of alcohol beverages)
• must not have a strong or evident appeal to
  children or adolescents
• must not suggest that alcohol beverages may
  create or contribute to a significant change in
  mood or environment
• must not depict alcohol as a cause of or
  contributing to the achievement of personal,
  business, social, sporting, sexual or other
  success
• must not depict any association between alcohol
  and driving
• must not depict any association between alcohol
  and engagement in any sport (including swimming
  and water sports)
• must not challenge or dare people to drink or
  sample a particular alcohol beverage

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• Most Australian states currently have guidelines
  or codes of practice in relation to the promotion
  of alcohol for on-premise consumption (e.g. pubs
  and clubs).
• However, these relate to on-premise rather than
  to off-premise establishments
• There is currently no similar code of practice or
  specific regulations relating to point-of-sale
  promotions in off-premise establishments (e.g.
  bottle shops).
• The ABAC Code covers retailer advertisements and
  states that these must comply with the spirit
  and intent of the Code but are not subject to any
  process of prior clearance.
• However, the Code is silent on the issue of
  in-store advertising and promotions.

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POS Advertising

• Point-of-sale (POS) or Point of purchase (POP)
  advertising is displays and signage located where
  the consumer purchases the product. It includes
  posters, 3D items or functional items such as
  floor runners or rubbish bins. Point-of-purchase
  is the term often used in America

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POS Promotion

• Point-of-sale (Point-of-Purchase) promotions are
  promotions attached to the purchase of products
  that occur at the place of purchase. Promotions
  can include
• competitions (e.g. to win trips overseas or
  tickets to music festivals)
• free gifts (e.g. branded merchandise such as
  T-shirts, beach towels, cocktail shakers)
• price discounts
• additional units of alcohol free with the
  purchase of a specific quantity.

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• Small-scale audit/case study in the Wollongong
  CBD (internally funded - completed)
• Comprehensive study of metropolitan, regional and
  rural NSW (funded by NSW Health completed
  report in prep)
• Print (retail) advertising
• Bottleshop audits
• Exit interviews and follow-up calls
• Focus groups (16-17yo and 18-25yo)
• Comparative study of Perth and Sydney
  metropolitan areas (funded by ARC Jones,
  Allsop, Chikritzhs, Wakefield, Casswell
  commenced)
• Bottleshop audits
• Exit interviews and follow-up calls
• Focus groups (16-17yo and 18-25yo)
• Internet survey
• Experimental study

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How common are promotions?

• POS promotions were found to be ubiquitous, with
  499 promotions identified across 52 audits (i.e.,
  an average of 10 per outlet)
• The highest number of promotions were found in
  the rural and remote areas (Coffs Harbour,
  Shellharbour, and Dubbo), with almost double the
  number of promotions compared to Sydney, North
  Sydney, the Eastern Suburbs and Wollongong.
• 155 different promotions identified
• The most common type of promotion was a free gift
  with purchase, constituting more than 50 of
  promotions identified

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Price-based promotions

• On average, RTDs occupied more than 1/3 of the
  fridge space in each bottle shop and a
  substantially greater proportion of fridge space
  in the rural areas, and in bottleshops attached
  to pubs
• The majority of RTD promotions required the
  purchase of a multi-pack of either four or six
  units, with total standard drinks ranging from
  3.6 to 12.6
• Multi-pack pricing results in 4 drinks being
  cheaper than 3, and often 6 cheaper than 4 (with
  the cost per standard drink as low as 1.95)
• That is, following the dramatic increase in the
  price of alcopops, the average 13-17 year old
  (spending an average amount of 25.93) will be
  purchasing somewhere between 7 and 13 standard
  drinks (or as many as 18 standard drinks if they
  shop around for specials)

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Do promotions influence purchase?

• Exit interviews
• Very few participants spontaneously identified
  that they had purchased a specific type of
  alcohol as a result of a promotion, although 13
  spontaneously stated that it was due to a price
  reduction
• When prompted, one in four stated that they chose
  the brand because it was on special or associated
  with a promotion, and one in 10 that they
  purchased a specific quantity because of a price
  reduction or promotion
• Consequently, those who purchased a specific
  brand or quantity because of a price reduction
  reported that they purchased a significantly
  higher number of standard drinks

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• Focus groups (NSW)
• Unprompted recall of POS promotions was high,
  particularly among the older groups,
  predominantly for price (and price-volume) and
  free gift promotions
• While many participants initially stated that
  these promotions did not influence their
  purchasing or drinking decisions, on reflection
  most of them were able to recall (in considerable
  detail) promotions which they had participated in

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• There was a promotion not long ago, two bottles
  of Smirnoff for 50 dollars when one is usually 30
  (16-17, female, Dubbo)
• One of the pubs near Uni does this thing where if
  you buy a case they regularly have free beers
  that come with it. If you buy a case of a
  particular type of beer youll almost always, one
  brand at a time, will get it. All the college
  boys love it. (18-25, female, Sydney)

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• XXXX Gold had the cricket promotion, VB had the
  give it to Boonie.Ive got the VB dolls
  (18-25, male, Dubbo)
• I bought Cruisers for the big blow up bottles.
• Maybe the boonie, yes I bought a case of VB to
  get the Boonie.
• (18-25 males, Wollongong)

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• I saw one for cruisers once if you bought packs
  of cruisers you got a free bag. (And what about
  the cruisers, did you buy the 2 four packs?)
  Yep. (You just wanted the bag?) Yep. (Do you
  still have the bag?) Yep, oh, yeh, yeh I do. (And
  did you go in to get cruisers that day and just
  saw it there?) No, I saw it in a magazineNot a
  magazine, a catalogue, me and mum were reading it
  cos I was going to a party that night, so.
• (16-17, female, Dubbo)

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Price (and price-volume) discounts/Buy some, get
some free

• Unanimous agreement that price-related promotions
  were the most influential, and males in
  particular expressed the concept of a decision
  set from which they choose the cheapest brand.
• I think that with bottles of vodka and beer and
  drinks for younger people they are better off
  looking at promoting them by reducing the price
  or giving more for less because we are always
  watching our money and alcohol is a real luxury
  at that age. Whereas when you are older you
  would probably be more interested in a holiday or
  something. (18-25, female, Wollongong)

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Free gifts with promotion

• The word free clearly resonated, and promotions
  which offered free alcohol or free merchandise
  were generally appealing.
• At the time you do. Its more just a temporary
  thing, because its there and you wonder if you
  need a hat.
• Its an impulse thing.
• (16-17, male, Wollongong)
• I think everyone is like that. When you go
  through any brochure and it says free you have
  a look.
• Because youre getting something for nothing
  really.
• Just the word free and the way your mind reacts
  to it.
• Its like when do you get something for free?
• (18-25, male, Dubbo)

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• In the majority of the groups, participants
  expressed the view that they would be willing to
  increase the amount they purchased in order to
  obtain a desirable gift.
• Yeah, Id get it.
• For sure.
• Just stash it.
• Youre going to drink it anyway.
• (18-25, female, Sydney)

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• Younger female participants perceived ownership
  of alcohol-branded merchandise to be desirable
  and to convey social status, whereas for the
  older females the products were seen as uncool.
• Yes, to look cool to your friends
• Having alcohol brand stuff
• (So what does it say about the person?) Theyre
  kind of badder.
• It is hard to put into words, there are no rules,
  its not anything that is said, it is just common
  knowledge.
• (16-17, female, Wollongong)
• It would depend what it waslike it wouldnt be
  anything cool because it would have something
  like a Bacardi Bloater on it and you wouldnt be
  able to wear it because you would feel like a
  loser. (18-25, female, Dubbo)

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Competitions

• Competitions were the least influential type of
  POS promotion - perceived as requiring a large
  amount of effort for an unlikely reward.
• I wouldnt be influenced cos its like the
  chances of any of that happening wouldnt
  influence which one I would get.
• If that was something like a 1 in 10 chance and I
  would instantly win it and they would give it to
  you right there and then, then that would
  probably do it, but if you have to SMS and all
  this crap and youve got a 1 in a 1000 chance to
  win it then its not really going to do anything
  for you.
• (16-17, male, Sydney)
• you actually have to do stuff. (18-25, female,
  Sydney)

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Do promotions influence consumption?

• Follow-up interviews
• gt500 interviews (across the three studies)
• A statistically significant association between
  the number of standard drinks purchased and
• a) buying a brand because of a special discount
• b) buying a greater quantity because of a special
  discount
• More importantly, a significant association was
  observed between being influenced to buy a larger
  quantity of alcohol because of a promotion and
  the number of standard drinks actually consumed
  in the next sitting

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• Focus groups
• Id share it.
• Im pretty greedy so Id consume it.
• Id probably give it to a mate or save it for
  another day.
• Id be more inclined to drink both of them
  because one is free.
• Youd be celebrating.
• (18-25, male, Dubbo)

• When youve got it there in front of you, you
  keep pushing yourself,
• oh another one.
• Yeah.
• (16-17, female, Sydney)

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But wait, theres more

• Increasingly, we see POS alcohol promotions that
  are offered outside of alcohol outlets (i.e., POS
  for other products)
• This started with branded alcohol-flavoured food
  products (chips, chocolates, pizza, icecream)

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• 2004 Free alcohol with CD purchases (Diageo
  Australia)
• vouchers for a Smirnoff Ice Double Black for any
  customer who buys more than 20 of CDs at Sanity
  (could be used at any BWS stores)
• OLGR sting found teenagers as young as 15 were
  given free vouchers
• Diageo ordered to end the promotion or stores
  would face fines of 5500 and potential loss of
  liquor licence

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• 2007 Woolworths
• Purchase 60 of alcohol, get a 20c/litre fuel
  discount voucher
• Public outcry in Alice Springs
• Woolworths spokeswoman first time the national
  promotion was run, and it will be reviewedcan't
  rule out whether the campaign will run in Alice
  Springs again
• 2007 Free alcohol with a car!
• Buy a Ute at Harrigan Ford Yallah (South Coast,
  NSW) and they will throw in a PALLET OF BEER....

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Conclusion

• POS alcohol promotions are widespread and varied
• Young people have high recall of alcohol POS
  promotions
• POS promotions increase purchase quantity and
  consumption
• BUT responses to individual promotions vary by
  type
• Price/quantity promotions are particularly
  popular with the extra alcohol seen as bonus
  
• Promotions which offer free alcohol or free gifts
  encourage young people to purchase a different
  brand, or a greater quantity, of alcohol.
• Competition-based promotions are the least
  popular (and thus the least likely to influence
  purchase and consumption decisions)

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Where to from here?

• Many of these promotions fall outside the scope
  of ABAC and are under the radar of the
  regulators
• Who should be responsible for monitoring and
  regulating?
• How can we be pro-active in addressing new
  strategies?
• Some things we could consider
• Not allowing multi-pack pricing that makes it
  cheaper to buy a larger quantity of alcohol
• Not giving away free alcohol with purchase
• Not allowing promotions that are associated with
  sporting events
• Not tying desirable gifts to high-volume
  purchase (e.g., 2 x 4-packs) to drive increased
  consumption