Sunday, June 22, 2008

 

McCain's family beer business opposes MADD efforts

San Diego DUI attorneys note that Hensley & Co., one of the nation's major beer wholesalers, has brought the family of Cindy McCain wealth, prestige and influence in Phoenix, but it could also create conflicts for her husband, Sen. John McCain, if he is elected president in November.

Hensley, founded by Cindy McCain's late father, holds federal and state licenses to distribute beer and lobbies regulatory agencies on alcohol issues that involve public health and safety.

The company has opposed such groups as Mothers Against Drunk Driving in fighting proposed federal rules requiring alcohol content information on every package of beer, wine and liquor.

Its executives, including John McCain's son Andrew, have written at least 10 letters in recent years to the Treasury Department, have contributed tens of thousands of dollars to a beer industry political action committee, and hold a seat on the board of the politically powerful National Beer Wholesalers Assn.

Hensley has run afoul of health advocacy groups that have tried to rein in appeals to young drinkers. For example, the company distributes caffeinated alcoholic drinks that public health groups say put young and underage consumers at risk by disguising the effects of intoxication.

The involvement of McCain's family in federal regulatory issues could create a conflict of interest for a future McCain administration, according to advocacy groups and political analysts. McCain has recused himself for many years on alcohol issues in the Senate. As president, however, McCain would face far more difficulty distancing himself from an issue with such broad scope.

Cindy McCain holds the title of company chairwoman and controls about 68% of the privately held company stock with her children and the senator's son, according to records at the Arizona Department of Liquor License and Control. Cindy and John McCain keep their finances separate, and he has no stake or role in Hensley.

In an interview in May, she said she knew "everything that is going on" and communicated with her executive team every day. If her husband is elected president and she retains her role at Hensley, she will set a precedent for outside corporate activity by a first lady.

Political analysts said they were astounded that the presumptive Republican nominee had not already addressed the issue.

"You can't run a beer company out of the White House," said Samuel L. Popkin, a political science professor at UC San Diego. "You can't run any company from the White House. McCain is leaving a live hand grenade on the table, a major embarrassment."

Public interest groups that lobby on alcohol issues say it will clearly be inappropriate for the McCain family to continue running or owning the company if McCain is elected.

Indeed, apart from its potential to create a conflict of interest, the mere ownership of the beer distributor could turn off some social conservatives and those who object to alcohol use.

About a third of Americans abstain from alcohol, and half either abstain or consume less than a drink a month, according to the National Institute on Alcohol Abuse and Alcoholism.

For some, abstinence -- and a disdain for the industry -- is religion-based. Leaders of the Southern Baptist Convention, which has more than 16 million members, expressed "total opposition to the manufacturing, advertising, distributing and consuming of alcoholic beverages" in the church's most recent resolution on the matter.

"I am sure for some individual Southern Baptists, [the McCain family's involvement in the beer business] would be a concern," said Roger S. Oldham, vice president of Southern Baptist Convention relations.

A close look at Hensley shows that the company has opposed changes that critics of the beer industry say were intended to help Americans drink responsibly.

Public interest groups have petitioned the Treasury Department in recent years to require that every container of beer, wine or liquor carry a label disclosing the amount of alcohol in one standard serving.

The Center for Science in the Public Interest, the Marin Institute, the Consumer Federation of America and Mothers Against Drunk Driving, among others, assert that such information would help Americans drink responsibly and avoid drunk driving. The label would also contain nutrition information such as calories.

But the beer industry has argued that such labels would confuse consumers. With backing from Hensley and others, it has persuaded the Treasury Department to withdraw the alcohol content disclosure from any future label requirement.

Similar letters were written by Chief Executive Robert M. Delgado and other senior executives. Hensley executives have also contributed heavily to the National Beer Wholesalers Assn., which operates the nation's seventh-largest political action committee and has argued against the label. Delgado alone has donated more than $20,000 to the group since 2004.

Mothers Against Drunk Driving MADD said the organization would be watching carefully if a future McCain administration exercised influence on any alcohol issues.

www.SanDiegoDrunkDrivingAttorney.net/articles



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