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Alcoholic Water

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I don't drink, and maybe it's me, but something about this isn't right.

Diageo Premieres Smirnoff Source

Friday May 11, 4:09 pm ET

By Lauren Shepherd, AP Business Writer

Diageo Marketing Smirnoff Source to Beer Drinkers, Looking to Avoid Spykes Controversy

NEW YORK (AP) -- Heeding the lessons of its U.S. rival, U.K.-based Diageo PLC is marketing a new citrus-flavored drink made with spring water and alcohol to young -- but not too young -- beer drinkers looking for something new.

The drink, called Smirnoff Source, is being released amid a controversy surrounding a malt liquor drink called Spykes made by Anheuser-Busch Companies Inc.

But unlike Anheuser-Busch, Diageo has attempted to squash potential opposition to its drink by courting alcohol policy advocates and making sure its bottles are clearly labeled as containing alcohol -- an issue that has dogged Spykes since it premiered in January.

Diageo began rolling out the drinks in 15 Northeast states May 1 and is previewing it in nightclubs, bars and liquor stores. The drink -- made with a mix of carbonated water and alcohol -- has about 115 calories in a 16-ounce screw-top bottle and sells for about $10 per four-pack. In a nightclub, one of the bottles could go for about $7.

Diageo is hoping the drink will turn drinkers who might typically reach for a Heineken Light or a Corona Light to a malt beverage.

"Consumers are now really starting to link 'lighter' with more premium occasions," said Michael Ward, Diageo's senior vice president in North America for innovation.

The drink tastes more like the soft drink Sprite than Heineken Light. But, Ward said, customers seem to like it so far.

"From all the consumer work we've done, we're cautiously optimistic for what we'll see in the marketplace," he said.

Beyond consumer work, the company has also done some public relations finessing. Charles Hurley, chief executive of advocacy group Mothers Against Drunk Driving and one of the fiercest critics of the Spykes drink, said he was contacted by Diageo to review the bottle's marketing materials and label.

"We see Spykes and Source to be two different issues," said Hurley.

Hurley said Spykes' packaging and marketing materials seemed to appeal to underage drinkers with its pastel colors and fruity flavors. The 2-ounce beverage comes in 8 flavors and can be added to beer or taken as a shot. The drink has 12 percent alcohol by volume and is made with caffeine, ginseng and guarana.

Anheuser-Busch has said critics misunderstand the behavior of underage drinkers who are looking for instant impact, not a 2-ounce bottle with the alcohol equivalent of one-third a glass of wine.

Earlier this week, however, 30 state attorney generals disagreed and sent a letter to the St. Louis company asking for Spykes to be off the market.

Source, meanwhile, "appears to be clearly labeled" and not geared to an underage market, Hurley said.

"It appears in our initial review to be appropriate marketing of a legal product," he added.

But not everyone is so sure. Kim Crump, manager of federal relations for the Center for Science in the Public Interest's alcohol policies project, said the pressure on alcohol companies to invent drinks for every taste and occasion can lead them to beverages that entice younger drinkers, who also drink the most.

"Clearly they have such a compelling interest to go after the entry-level drinker," Crump said. "But the real entry-level is age 13 or 14."

Crump said she was encouraged that Diageo clearly labeled their Source bottles as alcoholic drinks, but said she was concerned that the "pure spring water" aspect will lead younger drinkers to choose it, believing it to be a healthier alternative to beer or liquor.

Guy Smith, Diageo executive vice president, said the company wanted to be "abundantly clear" that the product contained alcohol. "This is not a designer water," he said.

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I passed this in the grocery store the other day, thought it was a bottle of watter then had to go back and look because i didn't think Smirnoff would market spring water. I don't get it and have questions of what the target market is...

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Hurley said Spykes' packaging and marketing materials seemed to appeal to underage drinkers with its pastel colors and fruity flavors.

All alcohol appeals to underage drinkers.

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RC, you hit the nail on the head. It doesnt matter what it looks like, underage drinkers will drink whatever they can get their hands on... even grain alcohol, I've seen people to it.

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It's in bottles that resemble water bottles?! NOT GOOD!

Or is it? I mean, if I bring some to work and......ah, never mind! tongue.gif

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We live in a free enterprise system right.

Did the same problem occur when Zima came out in the early 90's full force when it was a clear liquid, in a clear bottle?

Should we require all the companies that sell their soda products in bottles that are similiar shape and the familiar brown color of a beer bottle to stop?

What about candy cigarrettes?

How about the "high energy" drink "Cocaine" that's on the market right now?

This is a simple regulation problem not a promotional problem.

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