(Doc.1) If gin were to be restricted, the sale, production, and profit of beer would greatly increase. But, for businesses that sale gin, the production of gin would decrease and those businesses would make no profit. More commonly, individuals would argue against the restriction of gin when dealing with the economy. Daniel Defoe defended gin by stating: “…distilling of grain is one of the most essential things to support the landed interest.” (Doc.2)
Callie Pawlowski A History of the World in 6 Glasses Tom Standage In A History of the World in 6 Glasses, it shows how different drinks can make an impact and change cultures. People used to worship the drinks that are now around us every day. Some drinks showed social classes and importance such as wine. Others showed the way to industrial improvements and raising power by making money, as tea did for Great Britain. The key drinks that this book was about were beer, wine, sprits, coffee, tea, and Coca-Cola.
The original aim of Prohibition was to “reduce crime and corruption.1” The idea behind this was that by decreasing alcohol consumption, the amount of drunken crimes would go down, and decrease the crime rate. This is true to an extent as petty crimes such as vagrancy, swearing and mischief did decrease due to Prohibition2. However this is overshadowed by the fact that Prohibition created the problem of bootlegging. As liquor was no longer legally available, the public was practically forced by the government to turn to gangsters for supplies. As this industry was so vastly popular in demand, it became vastly profitable for gangsters, and as Thornton says, “criminal groups organise around a steady source of income provided by victimless crimes such as consuming alcohol.”3 This is a very useful source as Thornton is one of America’s experts on the economics of illegal drugs4, so he can inform about the way the criminal gangs avoided Prohibition, and sold alcohol illegally.
The energy beverage companies are targeting same group of people as Red Bull and it is hard to make significant increase in profit. To make more profit companies should target diverse types of consumers to differentiate your company from the other companies in the same branch. The heavy consumers of energy beverages are consist of males between 12 and 34 ages. In this market is high brand loyalty which means that average consumer is limiting his/her choice to only 1.4 different brands. The convenience stores and supermarkets are the dominant off-premise retail channels for energy beverages.
They can do somehow a better job in making sound investments and control the marketing with their products. I see that there were some challenges from some years especially when PepsiCo and Coco-Cola were at a war to compete each other with their businesses. Coca-Cola and PepsiCo are a few years apart, but both of them are well known and have such popularity with people drinking their sodas. Coca-Cola has been trying to surpass PepsiCo in their annual sales; however, from review, PepsiCo somehow has the highest number in their annual sales than Coca-Cola. PepsiCo has shown the best current ratio and is able to pay off their debts, which Coca-Cola does not have that and is struggling to pay off their debts.
The Alcoholic Republic, written by W. J. Rorabaugh, provides his readers with an engaging and enlightening perspective on drinking during the early Republic. He is an Associate Professor of History at the University of Washington who recognized that many people do not realize that during this time in history, the consumption of alcohol was the greatest. Drinking was an accepted part of the American life and pervaded American Society. Rorabaugh argues that drinking patterns during the late 1700s and early 1800s were a sign of certain social and psychological traits that can be attributed to the drastic social and economic changes put into motion by the Market Revolution. Thus, the high consumption of alcohol was not random in nature, but rather was a reflection of the dynamics of the New Republic.
1. Why was it important for Coke to reposition the brand away from being a "diet" brand and towards a mainstream "aspirational" perception? Pepsi Max, Coke Zero’s biggest competitor, was heavily discounted and as a result Coke Zero was up to 58% more expensive. Considering that 75% of cola is sold on price promotions, Coke Zero needed something to justify the price premium to be able to successfully compete. Coke Zero’s communication strategy was taste-led in a category which was already suffering from the stigma of perceived bad taste.
To expand alcohol consumption, lowering the drinking age would provide a huge economic boost in multiple ways. Since the economy is not doing very well, business profits are also suffering. Once the law changes, business incomes will increase significantly because more people in this country will be legally able to purchase alcohol. For instance, it will be helpful to the music industry. There will be more individuals attending bars, concerts, and shows that are required to be the legal age.
This is the reason why the alcohol-related visit to hospital doesn't really reduce even after the heavy tax. As a result of the change to other alcohol drinks, the demand of other alcohol drinks say rum-coke will increase. More consumers are willing to buy it at the same price , while the supply curve doesn't change. The price of rum-coke will be pushed up and the amount of consumer will increase fromQ3 to Q4. This shows that, the other effect of the tax will be the increase of both price and quantity demand of other alcohol
More liquor will be sold to the patrons, which will increase the amount of money the government can make. An alternative policy is to legalize drinking but drive up the monetary price though new taxes. As long as young adults' alcohol demand is at least somewhat responsive to price, taxation can reduce consumption by as much as the current legal drinking age of twenty-one does. (Donald Kenkel, Acess my Library,3) If eighteen year olds do not have legal access to even a beer in a public place, they are ill equipped to deal with the responsibilities that come with drinking when they do have the right. Local business will also do better by being able to sell alcohol to more people as well.