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Crackdown on malt drinks
This is an archived article that was published on sltrib.com in 2007, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Liquor control commissioners bypassed the Utah Legislature on Friday and took the first steps to restrict the sale of flavored malt beverages to state liquor stores.

The vote by the five-member Alcoholic Beverage Control Commission was unanimous in drafting a rule to remove flavored malt beverages from grocery and convenience store shelves.

"The rule is within our authority to make," said Commissioner Bobbie Coray. "We don't need to run to the Legislature for every little thing."

Besides, added Commissioner Kathryn Balmforth, the Legislature is "a meat grinder" that in the past has been unduly influenced by the liquor industry.

Utah House Speaker Greg Curtis said that to take an action based on what the Legislature "may or may not do is unwarranted."

"We have unique and restrictive liquor laws that the liquor industry prefers we don't have," Curtis said in a telephone interview. "That does not show we are somehow beholden."

Jim Olson, president of the Utah Food Industry Association, said he would not comment until he sees the final rule. But he said his group "wants malt beverages to continue to be sold in grocery stores."

Switching the beverages to the state's 38 liquor stores and 100 package agencies in resorts and small towns would increase the prices substantially.

The state markup on distilled spirits is 86 percent. Final approval also would make Utah the first state to restrict the sale of flavored malt beverages to state-controlled stores.

Flavored malt beverages, such as Smirnoff Ice, Jack Daniel's Original Hard Cola and Bacardi Silver, are made from a malt beer base to which flavors containing distilled alcohol are added. Regular beer now sold in stores would not be affected.

Utah Attorney General Mark Shurtleff has long advocated that because the beverages contain distilled spirits, sales should be restricted and the drinks should be taxed at the higher rate. None of the flavored malt beverages contain more than 3.2 percent alcohol, the same requirement for beer sold in grocery stores.

"These drinks are not beer and should not be sold like beer," said Shurtleff. "Unfortunately most of these drinks are being consumed by kids, and the alcohol industry needs to stop the deception concerning the way these drinks are manufactured and marketed."

The commission also drafted a rule requiring labels on flavored malt beverages to clearly state they contain alcohol. Currently, Utah allows liquor labels that have been approved by the federal government. But anti-drinking groups have charged that some labels on malt beverages and energy drinks are misleading.

Commissioners in turn, approved a rule that would require malt beverages to have in capital letters and bold type the words "beer" or "alcoholic beverage." They also approved other label requirements such as type size, plain background designs and horizontal lettering.

Panel wants them out of grocery stores
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