Good afternoon.
My name is Catherine Paradis, and I am a Senior Research and Policy Analyst at the Canadian Centre on Substance Use and Addiction, or CCSA for short.
The CCSA was created by an act of Parliament to provide national leadership to address substance use in Canada. A trusted counsel, we provide national guidance to decision-makers all over the country by harnessing the power of research, curating knowledge, and bringing together diverse perspectives.
One of my roles at the CCSA is chairing the Postsecondary Education Partnership–Alcohol Harms, or PEP-AH, which brings together more than a third of Canada's post-secondary institutions. In this capacity, I have been working since 2014 to gain a better understanding of the student drinking culture on campuses across the country.
Unfortunately, I appear before you today in the wake of a heartbreaking tragedy, the death of Athéna Gervais, who was found lifeless in a stream behind her high school after drinking at least one can of the beverage FCKDUP during the lunch hour.
While the situation in Quebec has highlighted the link between the consumption of highly sweetened alcoholic beverages—so-called alcopop—and the health of young people, numerous American studies have shown that the availability of these products was also associated with various legal problems, including assault, mischief, uncivil conduct, drinking and driving, and underage drinking.
I am here this afternoon representing the CCSA and PEP-AH for two reasons. First, I want to share with you our recommendation for restricting access to alcopop. Second, I'd like to propose three points that should be addressed in order to better control the sale of alcohol in Canada, more generally.
Before arriving at a recommendation, the CCSA carried out research and asked several questions. The first question that came to mind was this. Why are highly sweetened alcoholic drinks, which are so clearly harmful and dangerous, so popular with young people?
Australian researchers had already asked themselves that very question. They demonstrated that the main reasons young people consume this type of product are sugary taste, of course, but also and above all, price.
In fact, economic availability is one of the main determinants of alcohol consumption and its associated problems. Studies have shown that the higher the price of alcohol, the lower the incidence of alcohol consumption and its associated issues. Inversely, the lower the price of alcohol, the higher the consumption of alcohol and its associated issues.
At the time of Athéna Gervais' death, the price of sugary alcoholic drinks in Quebec was as low as 74¢ per standard serving, which is far below the recommended reference price of $1.71.
In Canada, it is generally accepted that the economic availability, as well as the physical availability—that is, the number of points of purchase and their days and hours of operation—of alcoholic drinks are the responsibility of the provincial and territorial governments.
However, via its excise tax, the federal government has the power to ensure that alcohol is not sold at reduced prices. Until now, sweet and alcoholic beverages, which are produced through the fermentation of malt, have been taxed as though they were beer—the alcoholic beverage with the lowest tax. If sweetened alcoholic beverages were produced from spirits, their sale price would be higher. It is worth remembering that, under the Food and Drugs Act, alcohol products are subject to the specific requirements of their manufacturing methods. This means that Health Canada could impose manufacturing methods on producers of highly sweetened alcoholic beverages.
That brings me to our recommendation.
The CCSA recommends that Health Canada require the manufacturers of alcoholic beverages having a sweetness threshold of more than 5% to manufacture their products from ethyl alcohol rather than alcohol obtained from the fermentation of malt. I realize this recommendation might come as a surprise, but it would maximize public health and safety benefits, while not disadvantaging the alcohol sector as a whole.
Allow me to explain.
First off, were highly sweetened alcoholic beverages to be manufactured from ethyl alcohol, they would automatically be subject to the excise tax imposed on spirits, rather than that imposed on beer. For example, a can of FCKDUP made from ethyl alcohol would be subject to a tax of 82¢ per can, rather than the current malt alcohol tax of 18¢. In other words, these products' economic availability would be reduced.
Second, were highly sweetened alcoholic beverages to be manufactured from ethyl alcohol, they could not be sold at convenience stores, grocery stores, or Beer Store locations. They would be available only at publicly owned outlets such as the LCBO in Ontario and the SAQ in Quebec. As a result, their physical availability would be significantly restricted.
Finally, by adopting the sweetness threshold as the determining criterion for the type of alcohol to use in the production of highly sweetened alcoholic beverages, Health Canada would guarantee that the new Food and Drugs Regulations would apply exclusively to highly sweetened alcoholic beverages and would not impact other product categories, including strong beer.
The idea of placing highly sweetened alcoholic beverages in a higher taxation category has been explored and, in some cases, implemented in other regions of the world, notably Australia, Germany, the United Kingdom, Switzerland, as well as a number of U.S. states.
In countries where data is available, results suggest that, following the reclassification of highly sweetened alcoholic beverages as spirits, the consumption of these products was significantly reduced. Once the new tax was adopted in Australia, it led to a 28% drop in the sales of these products. In the United Kingdom, after highly sweetened alcoholic beverages were classified as distilled spirits, the price of these products increased dramatically and sales dropped 43% over four years.
With that recommendation put forward, the CCSA would like to take the opportunity presented by this consultation to issue a reminder that alcohol is no ordinary commodity.
In a few weeks, the CCSA and the Canadian Institute for Substance Use Research will release a report on Canadian substance use costs and harms. The report will reveal that alcohol-related costs are now higher than the costs associated with all other substances, including cannabis, opioids, and even tobacco.
This illustrates that alcohol should be made available in a responsible and ethical manner in order to reduce alcohol consumption and its associated problems.
To accomplish this, the CCSA proposes that three distinct areas be addressed by the government: the advertising of alcoholic beverages, the labelling of alcoholic beverages, and the National Alcohol Strategy.
The advertising of alcoholic beverages through traditional media influences the consumption of alcohol, particularly among young people. Over the past few years, the industry has turned to social media, where content is user-generated and therefore more effective because it gives the impression that it was produced by a real person, such as a peer, another young person, or a friend.
Currently in Canada, the only code governing the advertising of alcoholic beverages is the CRTC code—the Code for Broadcast Advertising of Alcoholic Beverages—which is outdated and somewhat obsolete, having last been updated in 1996. That means the code is older than the young people consuming the very products we are talking about.
In addition, advertising on web platforms slightly violates CRTC rules. A recent study we conducted with fellow researchers at the University of Victoria found that, on the Facebook and Instagram pages of the most popular student bars, an average of seven of the 17 CRTC rules were violated.
This shows the urgent need to review Canada's regulations respecting the promotion and advertising of alcohol, as well as their enforcement.
Now I will turn to labelling.
There is a broad consensus that nutrition information should be provided on a wider range of food products, including alcoholic beverages. For the sake of their health and safety, people should know how many drinks they are consuming. Were Canada to proceed with labelling of alcoholic beverages, standard drink labels could help consumers overcome the challenge of accurately monitoring their consumption in terms of standard drinks. Such labelling would contribute to a culture of moderation, because the labels would supplement other interventions of proven effectiveness that require the monitoring of personal alcohol intake.
In order to help consumers estimate their alcohol intake and be aware of the nutrient value, including the number of calories, of the alcoholic beverages they consume, there is an urgent need to review the way alcoholic beverages are labelled.
Finally, I'd like to discuss the National Alcohol Strategy.
Reducing alcohol-related harm in Canada requires a collaborative, multi-faceted, and long-term approach. The approach needs to deploy social marketing, community education, regulation, and enforcement activities, as well as other tactics.
To address this need, in 2007, the CCSA partnered with Health Canada and the Alberta Alcohol and Drug Abuse Commission to co-chair an expert working group, which developed 41 recommendations for a national alcohol strategy. Several initiatives stemming from these recommendations have been completed, while others are currently under way. Nevertheless, 11 years have passed since the Strategy was developed. Today, we are asking you to encourage all partners, including Health Canada, to pursue their involvement and invest in updating the Strategy.
In conclusion, the CCSA recommends that the physical and economic availability of highly sweetened alcoholic beverages be restricted through amendments to the Food and Drugs Act or by requiring that these beverages be produced from ethyl alcohol and classified as spirits rather than beer.
From a broader perspective of protecting the health and safety of Canadians, the CCSA proposes that the regulations governing the advertising and labelling of alcoholic beverages be reviewed and that the National Alcohol Strategy be updated.
Thank you for listening.