Rather, Italians consume wine and, to a minor extent, other alcoholic beverages. Among alcoholic beverages, wine pervades most private and public spheres of life. It constitutes a basic ingredient of the Italian material culture as much as grapevines are an omnipresent component of the landscape" (Heath, 1995 p. 156).
This does not mean that everyone in Italy drinks wine, or any kind of alcohol, though. For instance, an analysis of alcohol consumptions trends across 15 European countries showed that abstinence rates, like consumption rates, tend to vary from country to country. According to Bloomfield and her colleagues (2003), "Among women, the rate of abstention was highest in Portugal and lowest in Denmark. Among men, the abstention rate was highest in Italy and lowest in Denmark" (p. 95). A study by Hupkens and her associates (1993) involving 12 EU member countries determined that Spain had the highest frequency of drinking for men, Italy had the highest frequency for women, and Ireland had the lowest frequency for both genders (cited in Bloomfield et al., 2003 at p. 96). Other researchers have determined that among various European countries, Italy had the highest daily drinking rates (see further analysis in Part B below).
Czech Republic.
According to one authority, "In the Czech Republic, beer is consumed the way wine is consumed in Mediterranean countries: regularly, on an almost daily basis, with meals [but] the manner of consumption was more important than the type of beverage" (Rehm, Gmel, Sempos and Trevisan, 2003 p. 39). In 2000, the International Research Group on Gender and Alcohol conducted a comparison among men and women in 10 countries in an effort to identify gender differences in drinking. Based on comparable measures constructed from the data sets collected in the study countries, the group found that lifetime abstention for both men and women was highest in Israel (ages 18-40 years) and lowest in the Czech Republic (Bloomfield et al., 2003). Likewise, a study by Wilsnack and associates (2000) was based on a sample of 10 countries and found the highest frequencies of drinking (i.e., number of drinking occasions in a month) among Dutch women and Czech men and the lowest frequencies among Estonian women and men (cited in Bloomfield et al., 2003 at p. 96).
Part B: (Comparative Market Attractiveness Analysis).
Because of the fundamental differences in drinking patterns that exist in different countries, there is no single best instrument that provides a basis for measuring consumption patterns and identifying dynamic preferences among consumers (Bloomfield, Stockwell and Rehn, 2003). Nevertheless, the relationship between the marketing function and the demand for alcoholic beverages represents fairly stable percentage of total consumer budgets for all countries other than the United States; for example, 6-8% is expended on alcohol products based on the experience of Australia and the United Kingdom (Fisher, 1993). In spite of this apparent stability in the relationship between marketing and demand, it is important to keep in mind that market structure differs dramatically according to the location; for example, as Fisher points out, "Australians show a marked preference for beer whereas Britons more often drink spirits" (p. 116). With regards to advertising, this author identifies three primary conclusions:
Advertising does increase demand slightly for the beverage advertised usually in a 10:1 proportion (i.e., a 10% increase in advertising yields a 1% increase in demand).
Due to the beverage substitution effects, advertising affects market structure through category switching; thus an increase in advertising of one beverage type will increase the share for that category, but there will be compensatory declines in other categories.
Given the interrelationships between beverage type consumption, the direct effects of advertising are dissipated system-wide such that the net effect of advertising on absolute alcohol consumption is negligible or nonexistent (Fisher, 1993).
A comparison of various demographic and economic metrics for the four countries under consideration herein is provided in Table 1 and illustrated in Figure 1 through 3 below.
Table 1.
Comparison of Respective Demographic and Economic Metrics: Ireland, Sweden, Italy and Czech Republic.
Metric
Ireland
Sweden
Italy
Czech Republic
Per capita income
Median age
34.3 years
41.1 years
42.5 years
39.5 years
Population
Excise tax
Excise tax represents major source of government income; however, in real terms, the excise tax has declined since the early 1980s. Excise tax is adjusted each year to keep pace with inflation. Spirits (over 70 proof) were taxed at 38.7% per glass and 66% per bottle of whiskey.
Extraordinarily high excise taxes.
Excise tax is imposed on spirits is based on the quantity of alcohol they contain (not applied to wine). Spirits (over...
The rules and regulations are designed to level the competition and to disrupt advantages of a country based on price and favored tax status. All of the countries in the union must abide by these tax and trade regulations. In January of 2004, Denmark and Sweden were forced to remove import restrictions on alcohol purchased for personal consumption (EPHA, 2007). A recent decision by the European Court of Justice (ECJ)
However, the Act of Union in 1707 that combined England, Wales, and Scotland into the United Kingdom had a profound effect on the production of Scotch Whiskey (Beverage Testing Institute, 2007). The English government levied heavy taxes on Scottish whiskey, while lowering taxes on English gin (Beverage Testing Institute, 2007). This resulted in a boom in illegal stills across the country. Many present-day producers have their origins in these
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