four loko ban

Post image for Lessons from Four Loko: Don’t Be Too Good

That lawmakers are still wringing their hands about the alcoholic (formerly caffeinated) drink, Four Loko, reveals that their fears have nothing to do with possible side effects of mixing caffeine and alcohol. No, Four Loko’s great sin is that it is popular.

According to the Phusion Projects website, the company was founded by three college friends in 2005 who took out a small business loan and “put their financial resources on the line.” Four years later the company had 90 employees and annual sales of $144 million as of October 31, 2010, according to the Symphony IRI Group, a market research firm based in Chicago.

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Have a listen here.

Baylen Linnekin, author of the recent CEI On Point “Extreme Refreshment Crackdown: The FDA’s Misguided Campaign Against Alcohol Energy Drinks” and contributor to the food regulation blog Crispy on the Outside, looks at the recent push to ban alcoholic drinks that contain caffeine.

Baylen believes that regulators are over-reacting. Alcohol energy drinks typically contain no more caffeine than a cup of coffee, and their appeal to underage drinkers is overstated.