Management 1035 Week 7 - Alcohol in Business

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Questions and Answers

What was the primary aim of William III when promoting gin production in England?

To support French wine merchants

To boost domestic alcohol production (correct)

To decrease alcohol consumption

To increase import taxes

What significant political action did William III take concerning alcohol in England?

He imposed heavy tariffs on French wine and brandy (correct)

He banned all foreign alcohol imports

He allowed free trade for spirits

He imposed heavy tariffs on gin production

Which key historical example is associated with colonialism and mercantilism in the context of alcohol?

Gin consumption in England

Wine popularity in France

Rum and its trade during colonial times (correct)

Whiskey production in America

What role did tariffs play in the rise of gin consumption in England?

They rendered gin less expensive than other spirits Signup and view all the answers

What was the primary ingredient used to create gin during its early development?

Juniper berries Signup and view all the answers

How did the gin craze in England affect public behavior?

It caused widespread public drunkenness Signup and view all the answers

Which of the following statements about gin's introduction to England is true?

It became popular due to tariffs on brandy Signup and view all the answers

Which beverage was gin originally derived from before its popularization in England?

Genever Signup and view all the answers

What role did European subsidies play in the global wine industry?

They helped maintain the competitiveness of OW producers. Signup and view all the answers

Which emerging market is expected to become a significant consumer and producer in the wine industry?

China Signup and view all the answers

What key strategy are both NW and OW countries adopting to stay competitive in the wine industry?

Focusing on sustainability and innovation. Signup and view all the answers

What trend has occurred in terms of wine consumption in Europe?

Declines in per-capita consumption. Signup and view all the answers

What does the global wine industry reveal about competitive dynamics between OW and NW producers?

Both sets of producers coexist with gradual competition changes. Signup and view all the answers

What severe consequence resulted from excessive gin consumption as depicted in 'Gin Lane'?

Moral outrage leading to execution Signup and view all the answers

What major legislation was enacted in 1751 in response to problems associated with gin consumption?

The Gin Act Signup and view all the answers

How did the British Empire influence the popularity of gin in the 19th century?

Through colonial expansion and the introduction of new recipes Signup and view all the answers

What was the primary location for rum production during the colonial era?

Caribbean Signup and view all the answers

In what year did British sailors begin receiving rum rations?

1731 Signup and view all the answers

What event led to the significant increase in demand for rum production in Cuba?

The rise of the Bacardi family Signup and view all the answers

What role did the Women's Christian Temperance Union play in the prohibition movement?

Pushed for prohibition due to alcohol's social harms Signup and view all the answers

What was a key economic argument against prohibition during its movement in Canada?

Money spent on alcohol could benefit other economic activities Signup and view all the answers

What was the primary reason for Wilfred Laurier's inaction regarding the prohibition issue?

Fear of backlash from both English and French Canadians Signup and view all the answers

What cultural drink originated from the mixing of gin and quinine during British colonialism?

Gin and Tonic Signup and view all the answers

What conflict arose from the nationalization of Bacardi's distilleries during the Cuban Revolution?

Compensation for seized properties Signup and view all the answers

What was one of the primary motivations for the prohibition movement linked to women's rights?

To address the effects of male drinking on women Signup and view all the answers

What was a significant social perception of alcohol consumption during the Prohibition era?

Alcohol consumption was believed to harm social integrity Signup and view all the answers

What is a primary driver for the marketing of spirits like whiskey and rum?

Historical background and brand image Signup and view all the answers

What are the two primary methods used to regulate alcohol advertising?

Voluntary Codes of Conduct and Legal Regulations Signup and view all the answers

What was one of the key provisions of France’s Évin Law?

Mandatory health warnings on advertisements Signup and view all the answers

What challenge do smaller jurisdictions face regarding alcohol regulations?

Enforcement difficulties against large multinationals Signup and view all the answers

How did the LCBO initially create an unappealing buying experience for alcohol?

By designing stores to resemble banks and requiring permits Signup and view all the answers

What was a key reason for the public’s mixed reaction to the opening of the LCBO?

Concerns over the complexity of government monopolies Signup and view all the answers

What strategy did the LCBO employ to mitigate alcohol abuse among its customers?

Implementing a vetting and permit system for purchases Signup and view all the answers

What was a notable impact of France’s Évin Law on alcohol consumption?

Alcohol consumption remained less affected due to lobbying Signup and view all the answers

What connects the challenges faced by MNEs in alcohol advertising globally?

Tension between health-driven regulation and industry lobbying Signup and view all the answers

Which of the following was a criticism leveled against the LCBO during its initial operational phase?

The permit system was seen as discriminatory Signup and view all the answers

In the context of alcohol advertising, what is a significant issue with voluntary codes of conduct?

They are often ignored due to limited enforcement Signup and view all the answers

What reform occurred within the LCBO system during the late 1950s?

Increased accessibility to wine displays Signup and view all the answers

What was the primary motivator for the introduction of the Évin Law?

Public health concerns related to overconsumption Signup and view all the answers

What percentage of Canadians voted for prohibition during the referendum?

51.3% Signup and view all the answers

Which province had total prohibition until 1948?

Prince Edward Island Signup and view all the answers

What was one of the motivations for enacting prohibition laws during World War I?

To conserve grain for food supplies Signup and view all the answers

What allowed doctors to prescribe alcohol during the prohibition period?

A government loophole Signup and view all the answers

What was a notable consequence of soldiers returning home to a prohibition era?

Increase in organized crime related to alcohol Signup and view all the answers

Which was one of the major impacts of prohibition on the alcohol industry?

Underground operations by companies Signup and view all the answers

What was the purpose of the Liquor Control Board of Ontario (LCBO) established in 1927?

To manage and control alcohol sales Signup and view all the answers

What unintended consequence of prohibition was noted?

The rise of organized crime Signup and view all the answers

How did the economic impact of the 18th Amendment in the U.S. affect Canada?

Job losses in breweries and related industries Signup and view all the answers

Which statement about the role of multinational enterprises (MNEs) in the alcohol market is true?

They often acquire local breweries to control markets. Signup and view all the answers

What marketing strategy did AB InBev employ to strengthen its dominance in the alcohol market?

Focusing on acquisitions of other companies Signup and view all the answers

What change occurred in the LCBO's role over time?

From strict control to promoting moderate consumption Signup and view all the answers

What was a contributing factor to the decline of certain crimes during prohibition?

Social changes impacting domestic violence rates Signup and view all the answers

What aspect of prohibition had a significant impact on social norms in Canada?

Enhanced acceptance of organized crime around alcohol Signup and view all the answers

What major transformation occurred in 1969 at LCBO?

The establishment of a self-service store Signup and view all the answers

Which criticism was levied against the self-service model introduced by LCBO?

It might result in slower service and increased theft Signup and view all the answers

What initiative was launched during the modernization of LCBO in the mid-1980s?

Introduction of gift certificates Signup and view all the answers

What role did historian Donald Creighton play in the context of LCBO during the 1970s?

He criticized employees for their lack of knowledge Signup and view all the answers

Which marketing approach did Australia utilize to boost its position in the wine market?

Targeted international marketing campaigns Signup and view all the answers

How did the Old World (OW) wine producers respond to the rise of New World (NW) competitors?

By emphasizing quality and heritage Signup and view all the answers

What demographic change contributed to the shifting dynamics in the wine market?

Emergence of new consumers with varied preferences Signup and view all the answers

Which of the following factors was crucial for NW wine producers in gaining market share?

Advances in viticulture and enology Signup and view all the answers

What was a significant shift in market dynamics observed from the 1980s to the 2000s?

Rapid growth in NW exports, particularly from USA and Australia Signup and view all the answers

What challenge does the contemporary LCBO model present for future businesses?

It may serve as a template for marijuana retailing Signup and view all the answers

What was one outcome of the Project Image initiated in the 1980s?

More advertising and modern store designs Signup and view all the answers

What type of product knowledge was notably lacking among specific LCBO staff during the 1970s?

Familiarity with wine regions and vintages Signup and view all the answers

Which characteristic did New World wine producers emphasize to appeal to modern consumers?

Affordable, easy-to-drink wines Signup and view all the answers

What was one of the primary exports' trends from the 2000s to 2010s among Old World countries?

Increase in the production of sparkling wines Signup and view all the answers

Study Notes

Week 7 Management 1035 - Alcohol and Business

Course is titled "Management 1035" and is in week seven.
Theme for the week is "Alcohol, the Business of Alcohol."
Readings, tutorials, and group presentations are planned, covering various aspects of alcohol as a business.

Alcohol's Historical Context

Alcohol's presence is deeply connected to human history and global commerce.
It's a political product, influenced and influencing trade, society, and governance.
Understanding the current global market requires historical context.

Case Study 1: The History and Politics of Gin

Gin's origins trace back to the Dutch creation of "Genever."
William III of England popularized gin, promoting domestic production over French imports, using tariffs.
England experienced a gin craze, marked by excessive consumption and social problems ("Gin Lane" illustration).
The Gin Act of 1751 aimed to regulate gin production, responding to the social crisis.
Gin later saw resurgence in the 19th century, linked to colonialism and the invention of gin and tonic.

Case Study 2: The Political Nature of Rum

Rum is a distilled product from molasses, significant to colonial economies.
It was central to the mercantilist triangle, crucial within colonial systems.
Rum was especially important for British naval tradition, with daily rations for sailors (until the 1970s).
Rum's colonial origins and American alternatives (whiskey, bourbon) contributed to early American alcohol history.
The Bacardi family's Cuban rum was important: impacted by the Cuban Revolution and exile, creating a political fallout.

Prohibition and its Global Impact

Prohibition aimed at controlling alcohol's perceived negative societal impacts through restrictions on manufacture, storage, transportation, and sale.
Often driven by moral beliefs in Western nations (England, US, Canada).
Canada's prohibition faced political challenges, with different groups holding varying views.
WWI saw temporary prohibition in Canada to conserve resources, tied to the war effort.
The end of Prohibition saw increased crime related to alcohol trafficking but also a decline in other crimes.

Alcohol Marketing and Industry Dynamics

The alcohol market is largely controlled by multinational enterprises (MNEs).
MNEs dominate marketing, branding, and distribution, often through mergers and acquisitions (i.e., AB InBev).
International regulation of alcohol advertising differs across nations. France's Évin Law provides an example of stringent regulations.
This creates a dynamic tension between profit interests and public health.

LCBO: History and Evolution

The Liquor Control Board of Ontario (LCBO) was established after Canadian prohibition in 1927.
Initial stores were designed to minimise appeal, emphasising regulated sales and responsible consumption.
Strict procedures and a permit system existed to control alcohol consumption, revealing societal influences of temperance movements.
There was a gradual shift from strict controls, introducing self-service elements and modernising retail design.
These adaptations resulted in a commercially more customer-friendly environment over time.

Global Wine Industry Dynamics

The global wine industry has undergone significant changes, with emerging economies catching up to traditional leaders.
Traditional European dominance is declining, influenced by changing consumption patterns and greater distribution networks.
"Catch-up" dynamics include innovative productions and adaptation to local consumer markets and opportunities to challenge traditional producers.

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Description

Explore the intricate relationship between alcohol and business in this Management 1035 quiz for week seven. Delve into the historical context and political implications of alcohol, focusing on case studies like the rise of gin in England. Assess the transformation of alcohol from a social issue to a commercial product.