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McCain may have conflict brewing

His wife owns a beer distributor that has engaged in lobbying.

June 22, 2008|Ralph Vartabedian, Times Staff Writer

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.


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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.

"We strongly oppose any proposal that would back a display of alcohol content in terms of fluid ounces or pure alcohol per 'standard serving,' " wrote Andrew McCain, the senator's son. The 2005 letter was sent to the Alcohol and Tobacco Tax and Trade Bureau, a unit of the Treasury Department. Andrew McCain is chief financial officer at Hensley and owns 6.8% of the stock, according to Arizona records.

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.

'High-wire act'

McCain has avoided problems in the Senate by recusing himself on alcohol issues, according to executives at the Distilled Spirits Council, the liquor industry's trade association.

"Sen. McCain has been very, very fair to this industry," said Frank Coleman, senior vice president for the council. "He stays an arm's length away from issues that benefit the family business."

While that has worked for McCain as senator, a president can not recuse himself or his administration from public policy issues as broad as alcohol, which is regulated by agencies including Treasury, the Federal Trade Commission, Health and Human Services, and Transportation.

"It is going to be a very difficult high-wire act for the McCain family," said Bruce Lee Livingston, executive director of the Marin Institute, a nonprofit alcohol industry watchdog group in San Rafael. "The big question is how much access the beer industry is going to have to the White House. You would expect the president and first lady to be concerned about alcohol abuse and alcoholism. The first lady and the president need to have a bright line between the White House and the alcohol industry."

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