Alcohol Industry: Gin and Rum Overview

Alcohol Industry - Gin Craze

• Gin, a spirit flavored with juniper berries and herbs, was popular in the 16th century.
• The Dutch created genever, later shortened to gin, by the British.
• Gin was inexpensive and politically influenced.
• King William III of England imposed high tariffs on French brandy and wine, also granting tax breaks to British gin distillers.
• Gin became very popular and was also abused.
• An anti-alcohol movement arose in reaction to the abuse and high cost.
• The Gin Act of 1751 restricted the production of gin to larger establishments like inns and taverns, leading to widespread public complaints.

Alcohol Industry - Rum

• Rum is a distilled liquor produced from molasses, a byproduct of sugar manufacturing.
• Rum's popularity grew in the 17th and 18th centuries.
• Large sugar plantations were formed.
• The British navy provided sailors with a daily "ration" of rum.
• American producers were discouraged from offering similar drinks to the British.

Alcohol Industry - Prohibition

• Prohibition was a global movement—the practice or act of forbidding by law the manufacture, storage, transportation, sale, and possession of alcoholic beverages.
• Prohibition movements were based on beliefs of Protestant churches and on economic arguments over loss of jobs.
• Proponents: prohibitionists were successful in the USA in 1920, using the 18th Amendment, and alcohol remained illegal until 1933. Repeal with 21st Amendment
• Opponents: Canada's similar movements
• The Canadian Temperance Act, or Scott Act (1878), gave local governments the power to prohibit the sale of alcohol.
• The 1898 Quebec referendum opposed prohibition, which led to a decision against prohibition.

Alcohol Industry - Wine Industry

• Until the 1980s, European countries like France and Italy primarily dominated the international wine market.
• The United States and Australia's market shares have increased.
• The European Union strongly subsidized wine production in member countries from 1957, protecting domestic markets from foreign competition.
• Wine production has been heavily subsidized in Europe since the formation of the European Common Market.

Alcohol Industry - LCBO

• The LCBO (Liquor Control Board of Ontario) was created in 1927 in Ontario to establish a government monopoly on liquor distribution.
• The LCBO originally had a complex system involving permit books and other processes.
• The LCBO gradually transitioned to a modern retail experience with more customer-friendly aspects.
• The LCBO originally had a "permit book" or "passport" system and pass cards but these were discontinued in 1962 and 1958 respectively.

Alcohol Industry - General

• Alcohol consumption in most countries is generally regulated.
• Many governments strive to discourage excessive drinking while balancing profit with potential health concerns.
• Many large multinationals (MNEs) dominate the alcohol market's business.