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Papers • MMBA |
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MLBA
Exec. Dir. For almost a year I have been meeting with police chiefs, mayors, public health officials, University researchers, legislators and even UPS to discuss the illegal shipment of alcohol. Some call the issue Direct Shipment others call it Internet bootlegging. Progress has been slow on getting government to understand the issue. Response depends on the individual's political and economic agenda. If you are a trucking company, you claim there is no issue because you want the money made off of the deliveries. If you are a lobbyist for the wine industry, you attack the three-tier advocate, you claim the issue is an attempt to side track the "real" issue which is the need to prohibit the sale of alcohol to minors. This position guarantees continued funding for your job and so called compliance. Unfortunately, while all these groups play their political games, technology keeps moving ahead. By the time public health officials figure it out, it might be too late. By the time public safety officials and politicians are ready to do something, lobbyists will be smiling all the way to the bank. What most likely will happen is the end of face to face sales of alcohol. The ability to card underage individuals and the ability to prevent serving obviously intoxicated people. If you think I am crying wolf, chew on these simple facts for a while. This summer, San Francisco Bay Area residents experimented with interactive television. Individuals were given Microsoft's WebTV Plus, a small cable box that sits on top of a television. The unit provided viewers the opportunity to order Domino's Pizza by simply pointing and clicking their remote control at enhanced television commercials. In a 10 hour period during a Star Trek marathon, an estimated 1,000 viewers ordered 140 free pizzas. In a follow up survey conducted by e-mail, 96% of those that participated in the test said they would buy pizza via television in the future. 98% said they would buy other products as well. So why not order a cold beer next time to go with the pizza. If you fall into the group of folks that still thinks this is not an issue, you probably think the technology is a few years away. Think again. This Fall "convergent programming" occurred nationwide. "Convergent programming" is an industry term for enhanced television commercials. These commercials let the viewer interact and in some cases receive a product. Game shows, children's programming and sporting events allow consumers the opportunity to take action during the commercial. So you figure people will just change the channel and not interact with the commercial? Well some investors think you are wrong. Some analysts are betting that this new interactive age will generate a $3.8 billion industry reaching 24 million households by the year 2004. And you thought your only competition was the liquor store or bar down the street. Still are not convinced? Check out what Microsoft is planning for its WebTV. Advertisers include IBM, Maytag, Ford and Warner Brothers for this fall. A competitor, Wink Communications based in California has signed up Procter & Gamble, AT&T, General Electric, Charles Schwab, and Levi Strauss. You say that this is not California and Minnesota will not operate the same way. Guess again. In this land of frozen winters, I recently exchanged my old cable box. My new box looks different. Words like Buy and Sel are on the front. Buy is obvious, but what am I going to Sel? Then I was told that Sel was short for select, which had nothing to do with selecting a television station. Sel was on the box to provide me a convenient way to order goods and services. How might I use this new Sel button. Maybe I could use it to connect to the Internet to go shopping at www.AsSeenIn.com. This web site features furnishings, clothing and props from television shows like 7th Heaven and Beverly Hills 90210, both produced by Aaron Spelling who is also a major shareholder in www.AsSeenIn.com. After watching the Spelling televisions shows, I decide I want to buy the sofa from scene one. Maybe the dress or suit worn by a new rising star in scene four. The possibilities are endless. For example, what if Aaron Spelling owns a winery and wants to market directly to television viewers. During one of his shows a certain wine is viewed being consumed by actors with several shots of the bottle and its label. The next thing you know, you the television viewer have the opportunity to order the same bottle of wine shipped directly to your home at the same price as your local liquor store. How is it possible that it is a lower or competitive price? The winery gets to collect the wholesale mark up, the retail mark up and the sales tax without liquor liability insurance. Clearly there is enough profit to cover the shipping costs. So maybe your response is that this is all to do about nothing, the FCC regulates television commercials promoting alcohol and the government will not let this happen. The government is supposed to stop illegal Internet sales and as you are reading this, consumers are ordering alcohol over the Internet. Whatever your views concerning the technological impact on the licensed beverage industry, one thing is certain, MLBA will be there leading the fight for Minnesota businesses. It is unfair to do "stings" of legitimate businesses and allow illegitimate commerce to occur that avoids dram shop liability, taxes, government regulation and sales to underage individuals. If you want your voice heard and are not a member of MLBA, please consider this an invitation to join. Pick up the phone and call Rhonda Baack at (651) 772-0910. As my old law professor and now Judge Jack Davies used to say to me, "the world is ruled by those that show up." |
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