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MGMT 1035 > Final MGMT 1035: Week 7 > Flashcards

Final MGMT 1035: Week 7 Flashcards

Alcohol Industry

1
Q

What was an early example of the impact of trade politics and unintended consequences in alcohol policy?

A

Gin

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2
Q

When was the Gin Craze?

A

16th century England

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3
Q

What was alchool mixed with in the early years?

A

juniper berries and other herbs, , both for flavouring and medicinal purposes

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4
Q

What’s “genever”?

A

16th century Dutch, British shortened to gin (its the Dutch gin)

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5
Q

Who placed a large tariff on French brandy and wine, he also gave tax breaks to British distillers of gin?

A

William III, King of England in the late 1600s

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6
Q

Who introduced gin to the British?

A

the Dutch king William III – better known as William of Orange

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7
Q

Who stops the French from making gin?

A

William III, King of England

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8
Q

What year was the GIN ACT?

A

1751

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9
Q

What happened when the British obtained a license to produce gin?

A

lead to drunkenness in all of England, became inexpensive, led to backlash that included temperance movements and new government licensing to control production

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10
Q

What was the Gin Act of 1715?

A

It introduced stricter licensing requirements and taxes on gin, making it more expensive and less accessible, leading many to drink beer instead.

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10
Q

When did gin recover as a popular drink and why?

A

1800s, Gin became popular again when mixed with quinine water as an anti-malaria potion for British Troops, creating the classic “gin and tonic.”

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11
Q

What led the British to drink beer?

A

Gin Act 1751

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12
Q

what is rum distilled from, and when did it rise to popularity?

A

Rum is distilled from molasses, a byproduct of sugar manufacturing, and rose to popularity in the late 1600s and 1700s.

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13
Q

How did sugar plantations contribute to rum production?

A

Large sugar plantations in the Caribbean required cheap labor, leading to an increase in African slave imports to support rum production.

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14
Q

What was the British Royal Navy’s tradition regarding rum?

A

British sailors received a daily ration of a pint of Jamaican rum starting in 1731. The tradition lasted until the 1970s and also applied to the Canadian Navy.

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15
Q

How was rum political in history?

A

The British restricted rum production in colonies, discouraging American producers, who turned to whiskey instead (Navigations Act 1651: restricted colonies from trading)

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16
Q

Who founded Bacardi, and what was its early significance?

A

Bacardi was founded by Facundo Bacardi and became a supplier of rum to Spanish royalty in the 1880s from its Cuban facilities.

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17
Q

What is the historical significance of “Cuba Libre”?

A

The drink, made with rum and Coke, symbolized freedom but took on a new meaning after the Cuban Revolution. Translates to “Free Cuba”

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18
Q

What happened to Bacardi after the Cuban Revolution, 1959?

A

Fidel Castro seized Bacardi’s distilleries, prompting the Bacardi family to flee and establish new facilities in Puerto Rico and other locations, growing into a global rum producer.

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19
Q

Why does Bacardi’s history remain politically significant?

A

The Bacardi family continues to seek compensation for seized properties, influencing U.S.-Cuba politics, including the embargo upheld by Cuban-American communities.

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20
Q

Prohibition?

A

the act or practise of forbidding by law the manufacture, storage, transportation, sale, possession, and consumption of alcoholic beverages

especially in the US between 1920 and 1933

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21
Q

Protestant movement in Quebec?

A

Strong Protestant influence promoting moral reform in Quebec during the 1800s.
Advocated against alcohol consumption, tying it to broader societal and moral issues.

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22
Q

Key Canadian Organizations in the 1800s

A
  1. Dominion Alliance for the Total Suppression of the Liquor Traffic:
    Focused on eliminating alcohol use and its associated harms. (established in 1877 in Canada that lobbied for prohibition of alcohol)
  2. Women’s Christian Temperance Union (WCTU):
    Advocated for temperance (restrain from alcohol) and women’s societal rights. (saw alcohol as the cause of societal problems like crime, violence, poverty, domestic assault, and divorce, 1874)
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23
Q

Temperance Movement and Women

A

The temperance movement was connected to the fight for women’s voting rights, arguing that:
Alcohol abuse had severe negative effects on women and families.
Giving women the right to vote would empower them to advocate against liquor and influence social reform.

a women-led movement; freedom from alcohol and abusive men were themes

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24
Q

Temperance Movement impact on Prohibition?

A

The temperance movement directly influenced policies around prohibition and women’s suffrage.

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25
Q

Key legislation in Politics of Prohibition

A

Scott Act:also known as Temperance Act, act passed 1878, repealed 1984

Allowed for local governments to implement prohibition policies (local option laws).
Aimed to provide communities with the ability to ban alcohol sales within their jurisdictions.

Local Option:
Gave municipalities control over liquor licensing and prohibition measures.
Empowered communities to tackle alcohol issues based on local needs.

26
Q

What Prime minister was known for his association with drinking?

A

Sir John A. Macdonald

27
Q

Which government held the 1898 referendum on prohibition?

A

The Wilfrid Laurier Government, elected in 1896, held the referendum.

28
Q

Why did the Laurier government decide to hold a referendum on prohibition?

A

They had a lot of support for prohibition but also strong opposition from Quebec.

29
Q

What were the results of the 1898 referendum?

A

278,380 people voted for prohibition.
264,693 people voted against it.

30
Q

Which province overwhelmingly voted against prohibition?

A

Quebec, with 80% voting no.

31
Q

What action did Laurier take after the 1898 referendum?

A

Laurier did nothing about prohibition.

32
Q

Why was prohibition a complex issue for Canada’s economy?

A

The alcohol industry employed a lot of people.

33
Q

Who removed the rum ration and with what?

A

Tim Cook, tea
have a negative response

34
Q

What are the effects of prohibition?

A

The closing breweries, distilleries, and saloons led to the elimination of thousands of jobs and in turn thousands more jobs were eliminated for barrel makers, truckers, waiter, and other related trades

35
Q

When does prohibition end and by what province?

A

1927, Ontario when LCBO opened (gov. monopoly under tight controls)

36
Q

Why did Canada become a tourist destination?

A

prohibition remained on alcohol for the US

37
Q

LCBO stand for?

A

Liquor Control Board of Ontario) was designed to tightly control and monitor alcohol purchases, fostering an experience that was meant to discourage excessive drinking.

38
Q

What were LCBO’s policies?

A

customers pass moral screening to get permit books that recorded all their purchases

39
Q

What’s the “interdiction list”?

A

If a clerk deemed a purchase excessive, it could be refused, and customers could lose their permits and be added to it

40
Q

What were the store setups like for LCBO?

A

banks with clerks behind wire grills; purchases were discreetly packaged in brown paper bags to avoid public display.

41
Q

What changes did Andy Brandt make to the LCBO?

A

Larger store layouts
Demo kitchens
Product education
Launch of the Food & Drink magazine

42
Q

What modern elements were introduced under Project Image in the 1980s?

A

Gift certificates
Advertising
Specialty stores

43
Q

What major change happened to LCBO stores in 1969?

A

he first self-service store opened, allowing customers to pick products directly.

44
Q

What replaced permit books for alcohol purchases between 1958–1965?

A

Wallet cards, and limited wine displays and catalogues were introduced.

45
Q

Who controls most of the global alcohol market?

A

A few large multinational enterprises (MNEs), with AB InBev being the largest, generating $45.6 billion in revenue in 2017.

46
Q

How was AB InBev formed, and what percentage of global beer sales does it control?

A
  • Formed through mergers, starting with Ambev and Interbrew in 2004.
  • Acquired Anheuser-Busch (2008), Grupo Modelo (2012), and SABMiller (2014).
  • Controls one-third of all beer sales worldwide.
47
Q

What makes alcohol MNEs different from other multinationals?

A

rely heavily on heritage brands and name recognition rather than technology, with brand familiarity driving sales.

48
Q

What is the key tension in the alcohol industry?

A

The tension lies between health concerns over alcohol consumption and the industry’s need for profit through increased sales.

49
Q

What are the two methods to restrict alcohol advertising?

A
  1. Voluntary codes of conduct from producers are one
    a. Restrictions by law or regulation is the other
  2. Voluntaries are much less effective than regulatory
50
Q

What is the Loi Evin in France?

A

A law restricting alcohol advertising to product-specific information and requiring health warnings, banning ads on TV, in cinemas, and at cultural or sports events.

51
Q

What is brand stretching in alcohol marketing?

A

It involves associating alcohol brands with non-alcoholic products

52
Q

How do Old World wine producers maintain their leadership?

A

OW producers leverage terroir, quality-focused innovations, and premium branding to command high prices and sustain market leadership.

53
Q

When advertising alcohol in France what was allowed?

A

Messages and images should refer only to the qualities of the products such as degree, origin, and composition, means of production, and patterns of consumption A health message on each advertisement to the effect that ALCOHOL ABUSE IS DANGEROUS TO HEALTH.

54
Q

Who are the New World Producers?

A

Australia, USA, Chile, South Africa, New Zealand, and Argentina

55
Q

How did the New World Producers succeed?

A

adopting a consumer-focused approach, consistent quality, and large-volume production, meeting supermarket demands for premium wines at lower prices.

56
Q

What was the significance of the 1976 Judgement of Paris?

A

It marked a turning point where California wines outperformed French wines in a blind tasting, boosting New World producers’ credibility.

57
Q

What’s history and Development has always been influenced by politics?

A

Rum

58
Q

Why did the the federal government stopped the manufacture and importation of liquor in March 1918?

A

On March 11, 1918 the Canadian Government passed the War Measures Act, enacting federal prohibition as a temporary war measure. This act prevented the importation, manufacture, distribution or sale of alcohol for the duration of the war and for one year afterward.

59
Q

Which Prime Minister wanted to get rid of the rum ration for soldiers in Canada?

A

Robert Borden (1914-1918)

60
Q

What was the Liquor Control Act and who was apart of it?

A

Premier Howard Ferguson, stated the Act was to allow people exercise a God given freedom under reasonable restrictions

61
Q

What was the purpose of LCBO?

A

to “promote temperance sobriety, personal liberty, and above all, to restore respect for the law.”

62
Q

How was AB InBev created?

A

when Ambev and Interbrew merged in 2004

63
Q

Catch-Up Theory

A

Developing countries can “catch up” economically if they build on technological congruence and social capabilities (e.g., institutions and skilled labor

MGMT 1035 (2 decks)

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