Call & Times

Liquor industry backs self-driving cars

- By CAITLIN DEWEY

Automakers and tech firms have long been the ones hustling to get self-driving cars on the street. But they've lately been joined by a surprise ally: America's alcohol industry.

In recent weeks, two industry groups — one representi­ng wine and liquor wholesaler­s, and another representi­ng large producers —have thrown their weight behind coalitions lobbying to get autonomous vehicles on the road faster.

Inherent in their support, analysts say, is an understand­ing that self-driving cars could revolution­ize the way Americans drink. Brewers and distillers say autonomous vehicles could reduce drunk-driving.

Without the need to drive home after a night at the bar, drinkers could also consume far more. And that will boost alcohol sales, one analysis predicts, by as much as $250 billion.

"It makes a lot of sense that the industry is interested," said Jim Watson, a senior beverage analyst at Rabobank, the multinatio­nal finance firm. "It's a win-win for them: Selfdrivin­g cars could boost alcohol sales and simultaneo­usly reduce drunk-driving."

Industry groups say they have kept tabs on this technology for years. On March 1, the Wine and Spirits Wholesaler­s of America, a group representi­ng nearly 400 U.S. alcohol brokers, officially joined the Coalition for Future Mobility, which has lobbied in favor of self-driving cars.

That same week, the Foundation for Advancing Alcohol Responsibi­lity — an industry-funded nonprofit that battles underage drinking and drunk driving — signed on in support of a pending bill that would speed the commercial­ization of self-driving vehicles. FAAR's members include Diageo, Pernod Ricard, Bacardi and Constellat­ion, four of the world's largest liquor and beer producers.

Both organizati­ons say they are concerned about drunk driving and public safety. The industry has long supported technologi­es that keep impaired drivers off the road, such as alcohol sensor monitoring and ignition interlocks, said Ralph Blackman, FAAR's president and chief executive.

But despite a steady, long-term decline in drunk driving rates, alcohol-related crashes still kill 28 people each day, according to the Centers for Disease Control and Prevention.

That statistic has been a black eye for the industry. It has also prompted some jurisdicti­ons to levy alcohol taxes and limit the density of bars and liquor stores, which reduces alcohol consumptio­n.

"Safety is a constant concern for us," said Craig Wolf, the president and chief executive of the wholesaler­s group. "When we see a new technology that could improve safety, we want to learn more about it and share our unique perspectiv­e."

Experts say there is some evidence that true self-driving cars would reduce DUIs. These differ significan­tly from the semiautono­mous cars currently on the market, which still require active input from a human driver. (In January, a San Francisco man was charged with a DUI, even though his semiautono­mous Tesla was set to "autopilot.")

Studies of ridesharin­g services such as Uber and Lyft, which give drinkers easy, affordable alternativ­es to driving their own car, have generally shown that they decrease drunk-driving accidents.

Similar observatio­ns have been made of public transit: When the Washington D.C. metro extended its hours, DUI arrests in nightlife districts fell. At the same time, other alcohol-related arrests in those areas jumped, probably because people stayed out later and drank more, said Brad Greenwood, a researcher at the University of Minnesota who studies the unintended effects of technologi­cal innovation­s.

"This is purely speculativ­e, but based on what we know, I do think drunk driving will go down [with the advent of self-driving cars]," Greenwood said. "And on the margins, I think some people will drink more, as well."

How much more people will drink remains to be seen. In September, analysts at Morgan Stanley published a blockbuste­r report suggesting that self-driving cars could increase global alcohol sales by as much as $250 billion, assuming that the cars prompt current drinkers to consume an extra two drinks per week.

Greenwood is skeptical that self-driving cars will inspire drinkers to imbibe significan­tly more: For most people, he points out, transporta­tion is probably not a major obstacle to drinking, particular­ly given the rise of services like Uber and Lyft.

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