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Senator wants FTC probe into alcohol-energy drinks

By Cat Viglienzoni - July 12, 2010

A New York senator is calling for a Federal Trade Commission investigation into alcohol-energy drinks that he believes are targeting drinkers under the age of 21. The drinks have flashy colors and funky designs, which Senator Charles Schumer (D-N.Y.) thinks are a deliberate marketing ploy toward underage drinkers.

Schumer said the drinks are promoted with "grossly irresponsible" marketing designed to confuse parents and police. Beverages like Joose or Four Loko use small print to distinguish their alcohol content - up to 12 percent.

"They're putting out beverages that have three to four times the alcohol content of beer," he said. "They add caffeine to these drinks, which makes them more potent, and then they market them as if they were just regular energy drinks."

With their colorful, edgy can designs and flavors like grape and orange and prices as low as $2.50 a can, Schumer said the companies are designed to appeal to underage consumers.

"They seem to be marketed to young people," he said. "They seem to be wanting young people to take this stuff, even though it's potent and potentially dangerous."

But at least one of the companies, United Beverage Co. - which makes Joose - denies the accusation, saying they do not target anyone under the legal drinking age. They said they market nationally through beer distributors.

"We don't condone nontraditional marketing. We position our product toward at least the age of 21 and older," said Michael Mikhail, chief executive of United Brands Co. "We do not target college kids. We don't condone it."

The U.S. Food and Drug Commission has never explicitly approved the addition of caffeine to alcoholic beverages and told more than two dozen manufacturers it has begun to study whether it is unsafe and should be banned. The agency also pointed out the drink's rising popularity among college students and the potential health and safety issues associated with the combination of alcohol and caffeine.