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Related Experiment Videos

Company-Specific Revenues From Underage Drinking.

Raimee H Eck1, Pamela J Trangenstein2, Michael Siegel3

  • 1Johns Hopkins Bloomberg School of Public Health, Department of Health, Behavior and Society, Baltimore, Maryland.

Journal of Studies on Alcohol and Drugs
|June 8, 2021
PubMed
Summary

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Underage youth consumed over 8% of alcohol in the U.S. in 2016, generating billions in revenue for alcohol companies. This highlights the need for policies to curb youth drinking and recover industry profits for prevention programs.

Area of Science:

  • Public Health
  • Substance Abuse Research
  • Health Economics

Background:

  • Alcohol is the most commonly used illegal drug among U.S. high school students.
  • Underage drinking poses significant public health challenges and contributes to substantial economic activity within the alcoholic beverage industry.

Purpose of the Study:

  • To estimate the proportion of alcoholic drinks and sales revenue attributable to underage consumption in the U.S. for 2011 and 2016.
  • To identify the market share of alcoholic beverages consumed by underage individuals.

Main Methods:

  • Utilized national survey data to determine the number of underage drinkers, alcohol consumption volume, beverage preferences, and prices.
  • Incorporated Impact Databank data for total alcoholic drink sales.
  • Adjusted for underreporting and applied underage consumption percentages to sales data by beverage type and cost.

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Main Results:

  • Underage youth accounted for 11.73% of alcoholic drinks sold in 2011 and 8.6% in 2016.
  • Sales revenue from underage consumption was $20.9 billion (10.0%) in 2011 and $17.5 billion (7.4%) in 2016.
  • Three major alcoholic beverage companies held nearly half (43.5%) of the market share for beverages consumed by underage youth.

Conclusions:

  • Significant revenue for the alcoholic beverage industry is derived from underage consumption, despite industry commitments to prevention.
  • Policy interventions, such as alcohol taxes or industry-funded prevention initiatives, are recommended to recover these revenues and combat youth alcohol consumption.