Four Loko is a popular drink containing the perfect blend of an estimated one cup of coffee and eight cups of beer. It's highly popular among college teens, even it's only sold to adults. Recently, the drink has been the subject of legal scrutiny, as law makers flat out banned the beverage in states such as New York, Massachusetts, and Washington, citing cases in which Four Loko was the cause of serious health damage.
When overly consumed, Four Loko causes one to lose sensation and a sense of the moment - a feeling set on a higher cloud than the typical drunk night out. Health officials fear the long term socital damage, as Four Loko drinkers may end up as night time drivers. But isn't this true of any strong substance? And for something consumed so greatly, should this not be considered as a revenue opportunity for cash strapped states?
Let's get to the first question. It is true that no one should drink and drive; but this also applies to being under the influence of any strong substance that impairs logic. Taking too many prescription meds, advils, too much red bull, coffee, or any other common stimulant or depressant, does not put you in a position to take on responsibility. This is the responsibility of the consumer; and knowledge of the consequences should persuade people to avoid any strong substance. Four Loko has been around since 2005, enough time to accumulate fatal cases or arrests resulting in its consumption; so far none. Recent hospitalization among minors who overly consume Four Loko - plenty.
The real problem is at the end of the supply chain. The neighborhood stores should not sell to minors, and Four Loko should not be consumed in excess, just as any alcohol beverage. A ban of this product makes matters worse.
Knowing that Four Loko will banned in several states starting in December, sales will dramatically increase as of now, as consumers stock up. By 2011, expect a thriving black market for Four Loko; one that has no limit, rules, or health concerns from the dealers. Best to keep this in the open, where there is responsibility of sale and consumption. The black market will drive up government's cos of enforcing the ban, drive away legal business, which will in turn equate to an opportunity loss in tax revenue.
Four Loko is based in Chicago. Manufacturing sites can move to 'banned states' to fuel the black market. States like NY lose manufacturing, distribution, and sales tax revenue. A Four Loko tax will cut supply and generate funds to help our budget woes and inform consumers about the health risks involved in over consumption of Four Loko.
With the tax, the price of Four Loko will increase above its current $3 level. This will force the company to sell the product in larger bottles to balance out the loss of recenue. An expensive, larger bottle will compete with the likes of Grey Goose - another popular party drink; one that is safer. Large groups of teens (who inevitably break the rules anyway), purchase Grey Goose with a sum of cash from all friends and the occasional designated adult. The bottle is then shared in small shots. These teens may be drunk, but they are well aware of their budget. There's always the case of going too far with any drink. The case is greater with Four Loko because of its cheap price, accessibility, and sense of bottle ownership of the consumer - opposed to 'shared shots' with a group.
Perhaps law makers should attend a local party and analyze the economics of teen consumption and make it work to better the state in which they reside. Instead, the price we will pay with a Four Loko ban will leave everyone needing a drink.
- Damanick Dantes
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