Wife's beer company could cause headaches for McCain
In Congress, the Arizona senator has recused himself from alcohol issues, but as president that wouldn't be possible.
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 controversial alcohol issues that involve public health and safety.
The company has argued against such groups as Mothers Against Drunk Driving in fighting proposed federal rules that would require alcohol content information on every package of beer, wine and liquor.
Its executives, including McCain's son Andrew, have written at least 10 letters in recent years to the U.S. 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.
The company has also run afoul of health advocacy groups that have tried to rein in appeals to young drinkers. Hensley, for example, distributes caffeinated alcohol drinks that public health groups say put young and underage consumers at risk by disguising the effects of intoxication.
The involvement of his wife and children 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, recognizing the potential conflict. As president, however, McCain would face far more difficulty distancing himself from an issue with such broad scope.
Cindy McCain holds the title of chairwoman in the company 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 Licenses and Control. Cindy and John McCain keep their finances separate, and he has no interest or role in Hensley.
In an interview in May, she said she "knows everything that is going on," communicating with her executive team every day. She added that she does not need to be physically at the company headquarters to be in charge. So far, she has given no hint of what changes, if any, she envisions in the future.
"That's very premature," she said.
If her husband is elected president and she retains her current role at Hensley, she would set a precedent for outside corporate activity by a first lady.
