Wine Economics and Policy 9(2): 3-21, 2020 Firenze University Press www.fupress.com/wep ISSN 2212-9774 (online) | ISSN 2213-3968 (print) | DOI: 10.36253/web-8189 Wine Economics and Policy Citation: Azzurra Annunziata, Lara Agnoli, Riccardo Vecchio, Steve Char- ters, Angela Mariani (2020) The Influence of Alcohol Warning Labels on Consum- ers’ Choices of Wine and Beer. Wine Economics and Policy 9(2): 3-21. doi: 10.36253/web-8189 Copyright: © 2020 Azzurra Annunziata, Lara Agnoli, Riccardo Vecchio, Ste- ve Charters, Angela Mariani. This is an open access, peer-reviewed arti- cle published by Firenze University Press (http://www.fupress.com/wep) and distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distri- bution, and reproduction in any medi- um, provided the original author and source are credited. Data Availability Statement: All rel- evant data are within the paper and its Supporting Information files. Competing Interests: The Author(s) declare(s) no conflict of interest. The Influence of Alcohol Warning Labels on Consumers’ Choices of Wine and Beer Azzurra Annunziata1,*, Lara Agnoli2, Riccardo Vecchio3, Steve Charters4, Angela Mariani5 1 University of Naples Parthenope, Department of Economics and Legal Studies, Via Amm. F. Acton, 38 - 80133 Napoli, Italy, Email: azzurra.annunziata@uniparthenope.it 2 Burgundy School of Business, Université Bourgogne Franche-Comté, Dijon, France, Email: lara.agnoli@bsb-education.com 3 University of Naples Federico II, Department of Agricultural Sciences, Napoli, Italy, Email: riccardo.vecchio@unina.it 4 Burgundy School of Business - Université Bourgogne Franche-Comté, Dijon, France, Email: steve.charters@bsb-education.com 5 University of Naples Parthenope, Department of Economics and Legal Studies, Napoli, Italy, Email: mariani@uniparthenope.it *Corresponding author Abstract. This study aims to analyse the influence of alternative formats of health warnings on French and Italian Millennial consumers’ choices of beer and wine. Two Discrete Choice Experiments were built for wine and beer and two Latent Class choice models were applied in order to verify the existence of different consumer profiles. Results show that young consumers’ choices for wine and beer are influenced by fram- ing, design and visibility of warnings. In both countries, the acceptance of warnings is higher for beer than for wine and in both cases consumers show higher utility for a logo on the front label: on the neck with a neutral message in the case of beer; on the front, without a message for wine. Latent Class choice models highlight the exist- ence of different consumers’ groups with different levels of warning influencing their choices. In order to apply policies conducting to health benefits, our results suggest the need to focus on young individuals to communicate the risks of alcohol abuse through targeted messages and, more generally, to make them aware of the potential negative effects of excessive consumption of both wine and beer. Keywords: alcohol warning labels, wine, beer, Discrete Choice Experiment, Latent Class. 1. INTRODUCTION Considering that the harmful use of alcohol is the third leading cause of mortality and morbidity of population globally (WHO, 2018), many public health and consumer associations are urging the implementation of mandatory health warning labels on alcoholic beverages. Several stud- ies have highlighted that a large share of drinkers worldwide have an inac- 4 Azzurra Annunziata, Lara Agnoli, Riccardo Vecchio, Steve Charters, Angela Mariani curate knowledge of the potential risks associated with alcohol consumption (Stockwell et al., 2016). The World Health Organization suggests that the presence of warn- ing labels on alcohol containers could be considered an important first step in raising awareness and it could have a longer-term utility in helping to establish a social understanding of the harmful use of alcohol (WHO Europe, 2017; Eurocare, 2016). Indeed, labelling infor- mation is widely recognized as a means to constantly deliver a clear message to consumers at the point of pur- chase, or at the time of use, by promoting awareness, comprehension, and subsequent behavioural changes in line with the message content (Jarvis and Pettigrew, 2013). However, alcohol warning labels (AWL) are cur- rently used in 31 countries. They are often limited to the dangers of drinking when pregnant or drinking and driving, but the potential harm of excessive alco- hol consumption could be extended to include other health conditions (WHO, 2010). Although Europe is the region with the highest per capita consumption of alco- holic beverages in the world, warning labels are still not required in the majority of Member States, and there are significant differences in national legislation among the countries that have introduced mandatory warnings (WHO Europe, 2017). Much research has shown that support for health warnings on alcoholic beverages among consumers is high (Annunziata et al., 2019; Annunziata et al., 2016; Blackwell et al., 2018; Thomson et al., 2012; Greenfield et al., 2007), while other scholars have questioned the effi- cacy of alcohol warning labels in influencing drinking behaviour and concluded that evidence of their influence on changing behaviour is limited (e.g. Brennan et al., 2016; Coomber et al., 2015; 2018). Instead of analysing the effectiveness of AWL in reducing abusive consumption behaviours, this paper aims to analyse the influence of alternative formats of AWL on Millennial consumers’ choices of alcoholic bev- erages (wine and beer) by extending the results of a pre- vious research carried out in Italy and France (Annun- ziata et al., 2019). Specifically, this paper aims to verify 1) the influence of alternative formats of AWL on Millennial consum- ers stated choices of wine and beer; 2) the existence of different segments of consumers with different level of influence of AWL when choosing wine and beer. To this purpose a Discrete Choice Experiment (DCE) and Latent Class choice models (LCM) were realized in Italy and France. The choice to analyse these two coun- tries lies in their different regulations about AWL. Start- ing from 2007, mandatory warnings are imposed in France to inform consumers about the dangers associated with the consumption of alcoholic beverages during preg- nancy, with a statement or a specific pictogram. In Italy a voluntary and unregulated approach exists, with the mar- ket offering bottles of alcoholic beverages with and with- out warnings and with a heterogeneity of warnings. The decision to analyse Millennial generation con- sumers stems from the awareness that they are recognised as a particularly risky population segment, especially considering that heavy episodic drinking is constantly increasing among these individuals worldwide (Calafat et al., 2011). Furthermore, this generation represent a seg- ment of growing interest for marketing researchers both in the wine and beer markets (Agnoli et al., 2011; de Mag- istris et al. 2011; Rivaroli et al. 2019). Compared with pre- vious research, the originality of the current paper lies in the application of the choice experiment to two alcoholic beverages and the comparison of the outcomes. Wine and beer were chosen as the objects of inves- tigation of this study as: i) they are the most consumed alcoholic beverages in France and Italy (Table 1); ii) they are the most frequently consumed alcoholic beverages by Millennials in the two analysed countries (Euromonitor International, 2020; Agnoli et al., 2011); iii) wine is asso- ciated to tradition in both countries, while beer is more linked to Northern European consumption patterns (Agnoli et al., 2018), and this can give rise to differences in the acceptability of AWLs in these two alcoholic bev- erages, with relevant implications. The paper is organised as follows: a brief overview of existing literature is presented in the first section; subsequently, a detailed description of the methodology and stimuli applied in the DCE is provided; then results from the DCE and Latent Class Analysis are presented and a discussion of the core implications is offered. 2. LITERATURE BACKGROUND The current study builds on the growing research prompted by insights of behavioural economics and Table 1. Consumption of alcoholic beverages in France and Italy, million litres, 2010-2019.     France Italy 2010 2019 2010 2019 Wine 2,466 2,157 2,550 2,395 Beer 1,909 2,151 1,634 1,706 Spirits 395 367 158 138 Source: Euromonitor International (2020). 5The Influence of Alcohol Warning Labels on Consumers’ Choices of Wine and Beer the dual process theory (see, among others, Camerer and Loewenstein, 2004; Evans, 2008; Kahneman, 2011). Indeed, disentangling the relationship between con- scious and unconscious elements in behaviour and decision-making, scholars have proved that consum- ers’ choices are influenced by several contextual fac- tors as social and environmental elements as well as cognitive shortcuts, emotions, and habits. Therefore, researchers have proposed to modify the choice archi- tecture to alter individuals’ behaviour for the good, i.e.: nudging people to do the right thing (Thaler and Sun- stein, 2008). In particular, nudges are “any aspects of the choice architecture that alters people’s behaviour in a predictable way without forbidding any options or sig- nificantly changing their economic incentives” (Thaler and Sunstein, 2008, p. 6). Based on this premises several policy makers have favourably embraced the use of gen- tle prompts and suggestions to increase healthier behav- iours; also relying on high citizen support compared to other interventions - as taxes (Reisch et al., 2017). Recent evidences provided by cigarettes warnings suggests that labels that present health-aligned information may nudge behaviour that are in line with individuals’ health goals, reducing consumption (e.g. Noar et al., 2016). Questions remains, however, around the possibility that similar label-based nudges can be effective also on alco- holic beverages. Several studies suggest that AWLs may improve knowledge and attitudes regarding the harmful conse- quences of alcohol consumption among adults (Annun- ziata et al., 2017; Wigg and Stafford, 2016; Vallance et al., 2017), while little impact on changing drinking behav- iour was found (Glock et al., 2013; Brown et al., 2016). According to Al-Hamdani (2015) and Coomber et al. (2015), the limited impact of AWLs in changing behaviour is connected to the weak content of warnings and their poor visibility. In this regard, Agostinelli and Grube (2002) suggest that in order to improve the poten- tial of warning labels in influencing behaviour, the key elements are label design and how well the information and messages on labels are targeted at their intended audience. Indeed, several studies suggest that warning mes- sage framing, label design, format and visibility are cru- cial elements in determining health warning effective- ness and encouraging healthier behaviours (Blackwell et al., 2018; Al-Hamdani and Smith, 2017a; Knai et al., 2015; Krischler and Glock, 2015; Jarvis and Pettigrew, 2013). Many studies found that pictorial health warnings are more effective than text-based warnings and enhance warning recognition (Hassan and Shiu, 2018; Kersbergen and Field, 2017; Wigg and Stafford, 2016). Al-Hamdani and Smith (2017a) suggest that combined text and image warnings have a stronger effect on alcohol consum- ers than the use of text only. Considering warning vis- ibility, Kersbergen and Field (2017) reveal that increas- ing the visual salience by using graphic warnings as well as front-of-pack labelling might be more effective in attracting and maintaining consumers’ attention. Al- Hamdani and Smith (2017b) found that plain packaging warning increases the likelihood for correct recognition. In relation to the message framing, specific rather than general health warnings were rated as more effec- tive, and led to greater risk perceptions (Miller et al., 2016; Pettigrew et al., 2014; Creyer et al., 2002). Jarvis and Pettigrew (2013) found that negatively framed mes- sages had the highest utility whereas a positive message (about drinking and driving) could generate a boomer- ang effect. In addition, Blackwell and colleagues (2018) reported that participants of their study are more moti- vated to drink less after viewing negatively framed mes- sages. Pettigrew et al. (2014) compared warnings with the wording ‘increases risk’ versus ‘can cause’ and found that the ‘increases risk ’ wording was more convincing and more believable than the ‘can cause’ wording. Fur- thermore, Pettigrew et al. (2014) have examined the use of quantitative information in alcohol warnings and showed that quantitative messages performed poorly in terms of believability. Krischler and Glock (2015) showed that warning statements formulated as questions are more effective, especially among young adults, while Branco and Kaskutas (2001) found that warning labels that employ scare tactics can be perceived as overstating the risks and are not believable. Annunziata et al. (2019) found that the level of vis- ibility of the warnings currently carried by wine bot- tles in Italy and France is low and that consumers tend to prefer the “no warning option” attaching more utility to neutrally framed messages, even if some differences between Italian and French consumers exist. Other researches highlighted that the extent to which the warning is read and elaborated by individu- als is linked to the personal relevance of the message and individual motivation to actively respond, suggest- ing that tailored and targeted warning labels may be bet- ter received compared to generic ones (Hassan and Shiu 2018; Wogalter, 2006; Argo and Main, 2004). In this regards other evidences revealed that tar- geted messages should be particularly useful among populations where there is great heterogeneity. The use of customised messages seems to be more effective than generic ones, especially considering individual alcohol- related beliefs, gender or age (Robertson et al. 2017; 6 Azzurra Annunziata, Lara Agnoli, Riccardo Vecchio, Steve Charters, Angela Mariani Miller et al. 2016; Jarvis and Pettigrew, 2013; Creyer et al., 2002; Wright et al., 2008). With reference to the latter, Argo and Main (2004) argue that age correlates negatively with warning perception, in particular young adults tend to perceive themselves as invulnerable to the negative consequences of risky behaviours. Jarvis and Pettigrew (2013) found that the messages with the great- est utility differed across gender. Furthermore, concern- ing the drinking behaviour, Cryer et al. (2002) reported that drinking frequencies (i.e. binge or non-binge drink- ing) strongly affect the perception of different warnings on alcoholic beverages among students. Jarvis and Pettigrew (2013) found that for those who report higher consumption of alcohol, negative health messages had the highest utility. Further, Miller and col- leagues (2016) found that high-risk drinkers perceived the warning labels to be less effective in altering drink- ing behaviours than light-to-moderate drinkers. Robertson and colleagues (2017) found that heavy drinkers are more sensitive to alcohol warnings relat- ed to concerns for self (e.g. liver damage) while lighter drinkers to warning related to potential risk for others (as violence). Previous research has also found that the effective- ness of alcohol warning messages is influenced by dif- ferent type of drink (e.g. wine, beer, vodka) (Thomson et al., 2012). In particular, messages matched with the type of drink were more relevant and acceptable to con- sumers, suggesting the need to further assess the inter- action between the type of drink and the warning mes- sage but also to be cautious in generalising their results to other types of alcoholic beverages (Hassan and Shiu, 2018;Wright et al., 2008). 3. MATERIAL AND METHOD 3.1 Questionnaire and measurements A consumer survey was conducted in order to reach the research objectives. Beyond the collecting data on socio-demographic characteristics, the questionnaire included information about alcohol consumption habits, selected from the Alcohol Usage Questionnaire (AUQ) developed by Mehrebian and Russell (1978) (Table 2). After assessing the level of attention paid to health warn- ings, the questionnaire asked about what effects health warnings have on respondents and their attitude towards alcohol, drawing from the readiness to change question- naire developed by Kersbergen and Field (2017). Respond- ents were then asked to express their level of concern for some short and long-term side effects from alcohol con- sumption (Vecchio et al., 2017; Coomber et al., 2017). 3.2 Discrete Choice Experiments design Respondents were also subject to two Discrete Choice Experiments (DCEs) (Louviere and Woodworth, 1983), depicting the hypothetical choice of a bottle of wine and beer. In order to avoid to sensitise respond- ents to warning contents, the DCEs were introduced to respondents before the section asking for the effects of health warnings. The two DCEs include the same alternatives and attributes, selected considering the literature on health warnings and designed to test if consumer preference for wine and beer are influenced by the framing, design and visibility of different warnings (Table 3). Two non-man- datory warnings about a short- and a long-term effect of alcohol on health have been selected as alternatives of the designs, plus a no-warning alternative. The choice to select the risk of brain damage as the long-term effect and the risk from drinking and driving as the short-term effect was suggested by the literature (Jarvis and Petti- grew, 2013; Kaskutas and Greenfield, 1992; Coomber et al., 2017). These warnings have been graphically depicted on the label, and they could assume big size or small size and be placed on the neck or on the front label for beer, and on the front or the back label for wine, as in previous research (Al-Hamdani, and Smith, 2017b; Al-Hamdani, and Smith, 2015; Wigg and Stafford, 2016). Alcohol by volume is another attribute emerged as important in the literature (Jarvis and Pettigrew, 2013) and low, medium and high levels have been selected for beer according to general standards and for wine according to the specific grape variety involved in the hypothetical choice, Caber- net Sauvignon. The choice of this grape variety is given by the fact that it is the most widespread grape variety in Europe (Eurostat, 2017). A textual message for the two selected warnings has also been included as an attribute of the DCEs, neutrally or negatively framed as in previous studies on the sub- ject (Jarvis and Pettigrew, 2013; Krischler and Glock, 2015; Miller et al., 2016) or not included in the label (Table 4). These alternatives, attributes and levels have been statistically combined in order to compose the experi- ment designs for this study. A full factorial design including each possible combination of the elements composing the design would have given rise to an enor- mous number of hypothetical choice situations. In order to show respondents with only a subset of possible choices, efficient fractional factorial designs were built with the software package Ngene (Rose and Bliemer, 2009; ChoiceMetrics, 2018). This class of designs aims to give rise to results generating parameter estimates with 7The Influence of Alcohol Warning Labels on Consumers’ Choices of Wine and Beer Table 2. Collected data and measurement. Topic Variable Measure References Socio-demographics Gender 1 if male, 0 if female   Age Years of education Continuous (from 18 to 40) Total years of education Alcohol consumption habits Consumption frequency from 1 (never) to 5 (every day) Alcohol Usage Questionnaire (AUQ) (Mehrebian and Russell, 1978) Inebriation frequency in the last six months from 1 (never) to 5 (more than 5 times) Alcoholic beverages consumption in % % of beer consumption % of still wine consumption % of sparkling wine consumption % of spirits consumption % of ready to drink consumption Attention towards labels and AW Front label Back label Health warning Scale from 1 to 5 Degree of attention towards information currently reported on front and back label (Mueller et al., 2010; Annunziata et al., 2016) Discrete choice experiments for wine and beer Effects of health warnings Decreased consumption Multiple choice question, single answer 1 if is the case, 0 otherwise   Thought about decreasing consumption Discussed with friends on risks Thought about the risks No effect Attitudes towards alcohol Do not think to drink in excess Likert scale from 1 to 5 Readiness to change questionnaire (Kersbergen and Field 2017) Like to drink and sometimes drink too much Trying to drink less Think that friends drink too much Concerns about the consequences of alcohol abuse Lack of coordination and slower reflexes Likert scale from 1 to 5 Concerns for long and short-term effects of alcohol intake (Vecchio et al., 2017; Coomber et al., 2017) Reduced concentration Motor vehicle, bicycle and pedestrian accidents Injuries associated with falls, accidents, violence Alcohol poisoning   Harm to unborn babies Obesity Brain damage Liver/Stomach problems Heart and blood disease 8 Azzurra Annunziata, Lara Agnoli, Riccardo Vecchio, Steve Charters, Angela Mariani as small as possible standard errors. In order to reach this goal, they need to be fuelled by prior information on these parameters. ‘Priors’ to build two efficient designs were drawn from a pilot study involving 50 consumers from France and Italy and analysing their hypothetical choices of wine and beer. The efficient designs adopted in this study drove the allocation of alternatives, attrib- utes and levels in the hypothetical choice scenarios of respondents and they were selected because they mini- mised the expected D-errors1 (Ferrini and Scarpa, 2007; Scarpa and Rose, 2008; Sándor and Wedel, 2001). The final designs included 12 choice scenarios composed of three bottles each. In order to rationalise the response time to the questionnaire, three blocks of four choice scenarios were created adopting the blocking procedure. In this way, each respondent faced the choice of the pre- ferred bottle of beer among four groups of three bottles and the choice of the preferred bottle of wine among four groups of three bottles each. The choice scenarios were graphically represented to facilitate choice, adopting fictitious brands to avoid the conflicting impacts of knowledge and perceptions over real brands (Delmas and Lessem, 2017). For the beer choice task we applied only images of the front label (Fig. 1a), while for the wine choice task we used both 1 The D-error is an aggregate measure drawn from the asymptot- ic variance-covariance (AVC) matrix of the variables in the design. It is estimated according to the following equation: D-error = [Det(Ω(β, xtj)]1/K]where Ω is the AVC matrix of the variables in the design (xtj), β is the vector of estimated coefficients, j is the alternative, t is the choice task and K is the number of estimated coefficients. Table 3. Alternatives, attributes and levels of the DCEs. Design components  Levels Beer Wine Alternatives Logo 1. Long-term health warning (Risk of brain damage) 2. Short-term health warning (Risk from drinking and driving)     3. No logo Attributes I. Logo position 1. Neck 1. Back label 2. Bottle 2. Front label II. Logo size 1. Big 2. Small III. Alcohol by Volume 1. Low (3%vol.) 1. Low (11.5%vol.) 2. Medium (5%vol.) 2. Medium (12.5%vol.)   3. High (7%vol.) 3. High (13.5%vol.) IV. Message 1. Neutrally framed 2. Negatively framed 3. No warning message Table 4. Frame of the text messages associated with the warnings. Message Risk of brain damage Risk from drinking and driving Neutrally framed Keep your brain healthy. Lower your alcohol intake To be safe, do not drink and drive Negatively framed Every drink of alcohol harms your brain Drunk driving kills Figure 1. An example of choice task for wine and beer. 9The Influence of Alcohol Warning Labels on Consumers’ Choices of Wine and Beer front and back labels (Fig.1b). In line with the habits of Millennials, the hypothesised consumption situation is a dinner with friends (Mueller and Charters, 2011). 3.3 Modelling approach Data collected through the discrete choice experi- ment where analysed applying Multinomial Logit (MNL) models (McFadden, 1974) and Latent Class (LC) Choice Models (Greene and Hensher, 2003). MNL models assume that all respondents behave in the same way and present the same preferences, with a choice probability described as follows: (1) where n is the individual, who assesses for t times j alternatives and chooses alternative i. Following the ran- dom utility theory (Thurstore, 1927) Vnit is the part of the utility observed by the researcher, as discrete choice models assume that utility is a stochastic function, com- posed of a deterministic part, the function of the attrib- utes of the good, and a stochastic part. As reported in equation (1), the deterministic part of the utility can be written as: Vnit=β'xnit (2) where β is a vector of estimated coefficients and xnit are the attributes of alternative i of the t choice which com- pose the utility of individual n (Train, 2009). LC models create C latent classes grouping respond- ents with similar underlying preferences. Respondents are therefore assigned to a class up to a probability and given membership of a given class c, the probability of respondent n’s sequence of choices yn over the T choice occasions, is: where yn=(in1;in2,…,inTn) (3) MNL models are applied in this study to analyse the influence of alternative formats of AWL on Millennial consumers stated choices of wine and beer. LC models were applied to identify different segments of consumers with different level of influence of AWL when choosing wine and beer. Following the theory of Lancaster (1966), according to which the utility of a good is given by the attributes composing the good itself, in our models for the choice of wine and beer the utility of consumer n belonging to the latent class c can be explained as follows: Unjt|c=β1|clogonit+β2|csizenit+β3|cpositionnit+β4|c messagenit +β5|cABVnit (4) where logo is a nominal variable composed by three lev- els/logos (risk of brain damage, from drinking and driv- ing and no logo); size is a binary variable assuming value 1 if the logo is big, 0 if it is small; position is a binary variable assuming value 1 if the logo is on the front label and 0 if it is on the back label/neck of the bottle; mes- sage is a binary variable assuming value 1 if the warning message is neutrally framed on the label, 0 if it is nega- tively framed and ABV is a continuous variable repre- senting the three levels of alcohol by volume (low, medi- um and high) of the experimental design. The emerged latent classes were characterised intro- ducing socio-demographic and behavioural character- istics of respondents as covariates in the model. Data analysis was conducted using the software LatentGOLD (Vermunt and Magidson, 2013). 3.4 Data Collection In line with other studies analysing wine and beer consumption and involving young respondents, the questionnaire was submitted online to a convenience sample of Millennials from France and Italy in 2018 (Vecchio, 2013; Szolnoki and Hoffmann, 2013). Respond- ents were recruited through social networks, blogs, forum and the word of mouth. There is no common agreement among scholars defining the boundaries of Millennial generation. Some Authors consider this generation as born between 1981 and 1999 (Brosdahl and Carpenter, 2011; Bolton et al., 2013), others between 1980 and 2000 (Macky et al., 2008) or between 1978 and 2000 (Lancaster and Still- man, 2002; Thach and Olsen, 2006). In the present study individuals were screened to be born between 1978 and 2000 and to be of the legal age limit to drink alcoholic beverages at the time of the survey administration. The final sample is composed of 659 individuals, 394 from Italy and 265 from France (Table 5). The sample is well balanced between male and female and is mostly composed of the younger segment of Generation Y. Half of the Italian part of the sample comes from the South, while half of the French sample comes from the Cen- tre of France. As the French and the Italian education systems are different, a continuous variable was drawn explaining the years of education for each respondent 10 Azzurra Annunziata, Lara Agnoli, Riccardo Vecchio, Steve Charters, Angela Mariani and highlighting a similar education level for the two segments. 4. RESULTS 4.1 Preferences for warning labels on wine and beer Two MNL models were applied to understand dif- ferent influences of AWL in the choice of wine and beer by Millennial respondents. Figure 2 shows that the most important elements driving consumer’s choices for beer are a warning logo, alcohol by volume and warning message explaining the consequences of alcohol intake. Concerning wine, the presence and typology of warning logo is still the most important element, with a higher degree of importance than beer, and it is followed by the position of the logo and by the warning message. These results are in line with the study by Al-Hamdani (2014), highlighting the strong inf luence of pictorial health warnings on consumers. For beer, positive utility is associated with the logo warning about the risks of drinking and driving, which is actually common on the bottles of beer both in Italy and France, depicting a focus on the short-term side effect of alcohol intake. A lower but still positive utility is regis- tered if no logo is depicted on the label. Concerning wine, people associate positive utility to a bottle with no logo, and the logo about the consequences of alcohol on brain decreases consumer utility, as it does with beer (Table 6). Unlike other studies (Pham et al., 2018; Al-Hamdani and Smith, 2017b), a clear preference does not emerge in consideration of the logo size for both alcoholic bever- ages. Concerning the position, consumers prefer a logo on the neck of the bottle for beer and on the front label for wine. When it comes to choosing a bottle of beer, people prefer to be informed about the possible negative con- sequences of consumption, but with a neutrally framed message. When it comes to choosing wine, they prefer no warning message. In both cases a negatively framed message decreases consumers’ utility, in line with stud- ies by Al-Hamdani and Smith (2017a, 2017b). The alcohol by volume indication results in a sig- nificant impact on consumers only for beer, and with a positive sign. Two Latent Class choice models were run to analyse the hypothetical choices for both the alcoholic beverages and better explain these differences and understand con- sumers’ preferences. The identification of latent classes aims to highlight differences in preferences and influ- ences of health warning labels among young consum- ers. Despite being considered as a unique cohort, this generation is composed by a heterogeneous group of consumers, also in the light of the large age group that characterise it (Bucic et al., 2012; Agnoli et al., 2018). It becomes therefore important to identify these heteroge- neities and characterise them according to their drink- ing behaviours and perceptions towards AWLs. 4.2 Latent class choice model for beer The five-class solution was selected as the optimal to explain consumers’ choices of beer, in line with the data fit criteria (Ferrini and Scarpa, 2007) (Table 7). After estimating the latent class model, socio-demographics and behavioural characteristics collected through the survey questionnaire have been included in the estima- Table 5. Socio-demographic characteristics of the sample.     Sample (N=659) Italy (n=394) France (n=265) n % n % n % Gender Male 286 43.4 168 42.6 118 44.5 Female 369 56.0 226 57.4 143 54.0 Age class 18-24 years old 397 60.2 195 49.5 202 76.2 25-31 years old 197 29.9 141 35.8 56 21.1 32-40 years old 65 9.9 58 14.7 7 2.6 Area of residence North 208 31.6 154 39.1 54 20.4 Centre 152 23.1 20 5.1 132 49.8 South 245 37.2 219 55.6 26 9.8 Mean S.D. Mean S.D. Mean S.D. Years of education 14.8 1.6 14.3 1.8 15.6 1.0 Figure 2. Attribute importance for beverages, full sample. 11The Influence of Alcohol Warning Labels on Consumers’ Choices of Wine and Beer tion as covariates (Table 8). This allowed the study to characterise classes also in the light of their alcohol con- sumption habits, effects of health warnings, attitudes towards alcohol and concerns about the consequences of alcohol abuse. This last aspect was included in the model as a single variable composed by the sum of the different items depicting individual’s concerns about the conse- quences of alcohol abuse. Latent class 1 (LC1) is composed of 28% of respond- ents and bases its choice on alcohol content, whose importance accounts for one third of the total util- ity. In particular, the utility of this LC increases with the increase of the alcohol by volume. The warning logo is the second most important attribute driving choice and con- sumers belonging to this class prefer a bottle of beer with no logo. Anyway, a bottle with a logo informing about the negative consequences of drinking and driving is posi- tively perceived, differently from a logo informing about the negative effects of alcohol on brain. When a logo is present, they prefer it small and on the neck of the bot- tle. They prefer a bottle of beer with no warning message and negatively framed messages impact negatively on util- ity. This class particularly includes French male respond- ents, who do not consume alcoholic beverages very fre- quently, who declare that warnings about the negative consequences of alcohol on health have no impact on Table 6. Multinomial Logit estimation for choice of wine and beer, full sample.     Beer Wine Coeff. S.E. Wald p-value Coeff. S.E. Wald p-value Logo                     Brain damage -0.544 *** 0.036 246.598 0.000 -0.693 *** 0.039 339.748 0.000 No driving 0.318 *** 0.030 0.050 0.033 No logo 0.226 *** 0.037 0.644 *** 0.041 Logo size Big vs Small -0.054 0.054 0.996 0.320 -0.094 0.061 2.339 0.130 Message Negatively framed -0.163 *** 0.045 15.728 0.000 -0.141 *** 0.046 10.376 0.006 Neutrally framed 0.144 *** 0.043 0.031 0.048 No message 0.019 0.041 0.109 *** 0.046 Logo position Label vs Neck -0.159 *** 0.054 8.622 0.003 Front vs Back label 0.383 *** 0.061 39.050 0.000 Alcohol by volume 0.085 *** 0.013 45.827 0.000 -0.011 0.025 0.200 0.650 Goodness of fit                     Observations 2636 2636 Cases 659 659 Log likelihood -2,689.476 -2,611.704 R² 0.073         0.1019         * p<.10; **p<.05; ***p<.01. Table 7. Data fit criteria for alternative Latent Class Models for beer choice.   Log Likelihood BIC AIC CAIC N. Parameters R² Multinomial Logit -2689.4759 5424.387 5392.952 5431.387 7 0.073 2-Class -2380.1775 4857.716 4790.355 4872.716 15 0.367 3-Class -2311.849 4772.985 4669.698 4795.985 23 0.445 4-Class -2266.5442 4734.301 4595.088 4765.301 31 0.517 5-Class -2227.7592 4708.657 4533.518 4747.657 39 0.604 6-Class -2206.0983 4717.261 4506.197 4764.261 47 0.642 12 Azzurra Annunziata, Lara Agnoli, Riccardo Vecchio, Steve Charters, Angela Mariani Ta bl e 8. E st im at es o f L at en t C la ss c ho ic e m od el fo r be er a nd c la ss c ha ra ct er is at io n (n =6 59 ). La te nt c la ss LC 1 LC 2 LC 3 LC 4 LC 5 La te nt c la ss s iz e 28 % 24 % 22 % 19 % 7% R ² 38 % 7% 8% 14 % 68 %   A I C oe ff. SE A I C oe ff. SE A I C oe ff. SE A I C oe ff. SE A I C oe ff. SE Lo go 27 % 51 % 51 % 39 % 2% B ra in d am ag e -0 .9 19 ** * 0. 12 4 -1 .0 72 ** * 0. 32 3 0. 64 0 ** * 0. 13 8 -3 .9 80 ** * 1. 34 6 -0 .1 76 0. 25 7 N o dr iv in g 0. 26 8 ** * 0. 11 1 1. 54 4 ** * 0. 16 5 0. 49 5 ** * 0. 11 7 -1 .7 79 1. 19 7 0. 14 9 0. 22 8 N o lo go 0. 65 1 ** * 0. 11 9 -0 .4 71 ** 0. 24 0 -1 .1 35 ** * 0. 16 9 5. 75 9 ** * 2. 29 9 0. 02 7 0. 32 6 Lo go s iz e 10 % 11 % 1% 9% 14 % B ig v s Sm al l -0 .6 20 ** * 0. 18 7 0. 57 8 ** 0. 27 2 -0 .0 35 0. 11 6 2. 31 4 1. 67 7 2. 17 1 1. 65 2 Lo go p os iti on 6% 10 % 15 % 12 % 13 % L ab el v s N ec k -0 .3 72 ** 0. 18 6 0. 50 2 ** 0. 29 6 -0 .5 28 ** * 0. 13 9 -3 .0 65 * 1. 71 9 -2 .0 72 1. 65 5 M es sa ge 24 % 19 % 20 % 24 % 9% N eg at iv el y fr am ed -0 .7 93 ** * 0. 16 9 0. 42 2 * 0. 25 4 -0 .0 47 0. 12 5 0. 67 8 1. 76 3 -0 .9 33 ** * 0. 35 5 N eu tr al ly fr am ed 0. 16 6 0. 12 4 0. 12 6 0. 16 6 0. 37 9 ** * 0. 12 2 -3 .3 23 3. 42 3 0. 43 1 0. 33 0 N o m es sa ge 0. 62 8 ** * 0. 13 5 -0 .5 47 0. 19 6 -0 .3 31 ** * 0. 11 1 2. 64 5 1. 84 5 0. 50 2 0. 34 3 A lc oh ol b y vo lu m e 33 % 0. 48 4 ** * 0. 05 6 9% 0. 11 8 ** 0. 05 7 12 % 0. 10 8 * 0. 05 6 15 % -0 .9 50   0. 74 6 62 % -2 .4 23 * 1. 44 2 So ci o- de m og ra ph ic s I ta lia n -0 .8 16 ** * 0. 19 0 0. 27 1 0. 19 9 0. 83 6 ** * 0. 25 6 -0 .5 34 ** * 0. 18 6 0. 24 4 0. 29 5 M al e 0. 74 2 ** * 0. 17 9 -0 .1 22 0. 19 0 -0 .1 75 0. 21 5 0. 06 8 0. 18 3 -0 .5 14 * 0. 30 2 A ge -0 .0 31 0. 02 3 0. 01 2 0. 02 2 0. 05 0 ** * 0. 02 2 -0 .0 06 0. 02 2 -0 .0 26 0. 03 4 A lc oh ol c on su m pt io n ha bi ts C on su m pt io n fr eq ue nc y -0 .2 68 ** * 0. 12 9 0. 35 1 ** * 0. 13 3 0. 22 5 * 0. 11 7 -0 .1 64 0. 11 4 -0 .1 44 0. 19 6 D ru nk fr eq ue nc y in th e la st 6 m on th s -0 .1 28 0. 08 1 0. 55 5 ** * 0. 08 9 -0 .0 90 0. 07 8 0. 20 1 ** * 0. 07 3 -0 .5 38 ** * 0. 16 8 B ee r co ns um pt io n vs o th er a lc oh ol ic s -0 .0 04 0. 00 5 0. 01 4 ** * 0. 00 6 0. 00 4 0. 00 5 -0 .0 04 0. 00 4 -0 .0 10 0. 00 7 Eff ec ts o f h ea lth w ar ni ng s D is cu ss ed w ith fr ie nd s on r is ks -0 .0 82 0. 42 9 0. 08 7 0. 38 7 -0 .2 10 0. 42 1 0. 82 7 ** 0. 39 8 -0 .6 22 0. 78 8 D ec re as ed c on su m pt io n -0 .6 90 * 0. 39 7 -0 .0 59 0. 34 1 0. 53 4 * 0. 29 2 -0 .5 82 0. 45 5 0. 79 7 * 0. 40 9 N o eff ec t 0. 92 1 ** * 0. 17 0 -0 .1 32 0. 20 2 0. 31 6 * 0. 18 0 -0 .7 33 ** * 0. 30 8 -0 .3 72 0. 33 4 Th ou gh t a bo ut th e ri sk s -0 .2 34 0. 23 0 0. 32 0 * 0. 19 2 -0 .4 72 ** 0. 24 0 0. 32 5 0. 21 5 0. 06 1 0. 32 5 Th ou gh t a bo ut d ec re as in g co ns um pt io n 0. 08 5 0. 31 8 -0 .2 16 0. 33 5 -0 .1 68 0. 33 3 0. 16 3 0. 35 3 0. 13 7 0. 46 9 A tt itu de s to w ar ds a lc oh ol D o no t t hi nk to d ri nk in e xc es s -0 .2 57 ** * 0. 08 2 -0 .1 48 0. 09 3 -0 .1 15 0. 08 4 -0 .0 08 0. 08 4 0. 52 7 ** * 0. 16 7 L ik e to d ri nk a nd s om et im es d ri nk to o m uc h 0. 37 3 ** * 0. 08 1 -0 .3 18 ** * 0. 09 7 -0 .0 57 0. 08 7 0. 13 8 * 0. 07 8 -0 .1 37 0. 12 9 T ry in g to d ri nk le ss -0 .0 70 0. 08 0 -0 .0 91 0. 08 8 -0 .0 70 0. 08 1 -0 .1 59 * 0. 08 2 0. 39 0 ** * 0. 10 2 Th in k th at fr ie nd s dr in k to o m uc h -0 .0 87 0. 08 2 0. 00 5 0. 08 7 0. 01 4 0. 07 9 0. 05 2 0. 08 0 0. 01 6 0. 11 9 C on ce rn a bo ut th e co ns eq ue nc es o f a lc oh ol a bu se a   -0 .0 30 ** * 0. 01 1   0. 04 3 ** * 0. 01 3   0. 00 0   0. 01 0   -0 .0 14   0. 01 0   0. 00 1   0. 01 8 N ot e: L C =L at en t C la ss ; A I= A tt ri bu te I m po rt an ce ; S E= st an da rd e rr or ; * p <. 10 ; * *p <. 05 ; * ** p< .0 1; a th is v ar ia bl e is g iv en b y th e su m o f t he it em s co m po si ng th e to pi c. 13The Influence of Alcohol Warning Labels on Consumers’ Choices of Wine and Beer their behaviour as they are not concerned about the con- sequences. Despite not consuming alcoholic beverages fre- quently, they admit to drinking too much sometimes. LC2’s utility is strongly driven by the warning logo. They prefer the warning logo related to risks of drink- ing and driving in big size on the front label of a bot- tle of beer. However, their utility is also positively driven by the alcohol content of a beer. No clear socio-demo- graphic characterisation emerges for this class. They consume alcoholic beverages frequently, and beer is their favourite drink. In the last six months they have fre- quently felt drunk, but they do not think that they drink too much. They are concerned about the negative effects of alcohol abuse on health. LC3, comprising 22% of respondents, is also strong- ly driven by the warning logo when choosing a bottle of beer and its utility is higher when there is a warning logo on the label. Respondents in this class prefer the warning about the negative effects of alcohol on brain and in a second instance on the negative consequences of drinking and driving. Their utility is positively influ- enced by a logo on the neck label and a neutrally framed warning message. This class is more likely to be com- posed of Italian respondents and respondents belonging to the higher age segment of the generation. This class particularly includes individuals that do not think about the risks when faced with a health warning. Differently from LC2 and LC3, the utility of indi- viduals associated to LC4 (19% of respondents) decreases when any kind of logo is included on the beer label, and when a logo is present, it is preferred on the neck label. This class more likely includes French people who state that they have had frequent episodes of drunkenness in the last six months. Warning labels have an effect on the behaviour of this class, including discussing with friends the risks of alcohol intake. LC5 (7% of the sample) is strongly driven by the alco- hol content and it prefers low-alcohol beers. The warning logo has little influence on its choice, and respondents from this class do not want to have a warning message negatively framed on the label. This class includes more women, people who do not tend to be involved in risky consumption behaviours and who tend to decrease con- sumption when they see a health warning label. 4.3 Latent class choice model for wine A Latent Class analysis was applied also to analyse the wine choice of respondents and a four-class solution was selected as optimal according to the data fit criteria (Table 9). LC.I (35% of the sample) is strongly driven by the logo when choosing wine and in particular any logo included on a wine label decreases their utility (Table 10). The logo about brain damage depresses the utility of individuals from this class more than the ‘drinking and driving’ one. Their utility is positively correlated with the alcohol content of a bottle of wine. French and male respondents are more likely to belong to this latent class. They do not consume alcoholic beverages frequently but when they drink, they tend to drink too much so that they feel drunk. This segment more probably includes respondents who declare to reduce consumption when they see the health warnings, but also some respondents for who these warnings have no effect or do not think about the risks. They are not concerned about the nega- tive effects of alcohol on health. LC.II (33% of the sample) is driven both by the logo and the warning message when choosing a bottle of wine. Individuals from this class prefer to see no logo, but if a logo is present they prefer the ‘no driving’ one as the logo on brain damage depresses their utility. They prefer a small logo, posted on the front label of the bot- tle. They prefer to have no warning message accompany- ing the logo on the label and a negatively framed mes- sage depresses their utility. The alcohol by volume of a bottle positively drives their choice. This class is more likely composed of female from the younger segment of the generation, who frequently consume alcoholic beverages even if they do not think to drink too much, and who declare that alcohol warnings have no effect on their behaviour as they are not concerned about the risks of alcohol abuse. Table 9. Data fit criteria for alternative Latent Class Models for wine choice.   Log Likelihood BIC AIC CAIC N. Parameters R² Multinomial Logit -2611.704 5268.844 5237.409 5275.844 7 0.102 2-Class -2230.962 4559.286 4491.925 4574.286 15 0.434 3-Class -2150.245 4449.777 4346.490 4472.777 23 0.532 4-Class -2109.622 4420.456 4281.243 4451.456 31 0.584 5-Class -2088.329 4429.797 4254.658 4468.797 39 0.616 14 Azzurra Annunziata, Lara Agnoli, Riccardo Vecchio, Steve Charters, Angela Mariani Ta bl e 10 . E st im at es o f L at en t C la ss c ho ic e m od el fo r w in e an d cl as s ch ar ac te ri sa tio n. La te nt c la ss LC .I LC .II LC .II I LC .IV La te nt c la ss s iz e 35 % 33 % 19 % 13 % R ² 88 % 17 % 64 % 32 %   A I C oe ff. SE A I C oe ff. SE A I C oe ff. SE A I C oe ff. SE Lo go 50 % 35 % 49 % 40 % B ra in d am ag e -3 .0 58 ** * 0. 98 3 -0 .8 89 ** * 0. 14 8 -0 .2 48 0. 21 7 1. 05 9 ** * 0. 23 7 N o dr iv in g -1 .1 92 * 0. 61 2 0. 30 2 ** * 0. 09 4 2. 15 6 ** * 0. 42 6 -0 .5 80 ** * 0. 23 9 N o lo go 4. 24 9 ** * 1. 46 5 0. 58 7 ** * 0. 12 7 -1 .9 08 ** * 0. 55 1 -0 .4 79 ** 0. 24 1 Lo go s iz e 9% 11 % 5% 7% B ig v s Sm al l 1. 27 7 0. 83 4 -0 .4 65 ** * 0. 18 0 0. 44 8 0. 27 4 -0 .3 02 0. 23 3 Lo go p os iti on 1% 20 % 3% 11 % L ab el v s N ec k -0 .0 82 0. 57 3 0. 86 7 ** * 0. 18 0 0. 20 9 0. 22 0 0. 44 7 * 0. 25 7 M es sa ge 35 % 25 % 18 % 19 % N eg at iv el y fr am ed 2. 36 9 1. 78 3 -0 .5 68 ** * 0. 13 5 0. 21 1 0. 22 7 0. 36 0 0. 23 0 N eu tr al ly fr am ed 0. 37 9 1. 74 8 0. 10 3 0. 10 0 0. 65 0 ** * 0. 25 7 -0 .4 28 0. 27 5 N o m es sa ge -2 .7 49 3. 40 8 0. 46 5 ** * 0. 12 3 -0 .8 61 ** * 0. 29 9 0. 06 9 0. 18 7 A lc oh ol b y vo lu m e 5% 0. 37 2 * 0. 22 0 8% 0. 16 1 ** 0. 00 8 25 % -1 .0 43 ** * 0. 35 8 23 % -0 .4 62 ** * 0. 16 1 So ci o- de m og ra ph ic s I ta lia n -0 .5 78 ** * 0. 20 6 0. 06 1 0. 24 6 0. 23 8 0. 28 6 0. 27 9 0. 40 5 M al e 0. 34 7 ** 0. 17 2 -0 .3 62 * 0. 21 4 0. 01 8 0. 21 8 -0 .0 03 0. 28 3 A ge -0 .0 16 0. 01 9 -0 .0 44 * 0. 02 3 0. 00 5 ** * 0. 02 2 0. 05 5 ** 0. 02 7 A lc oh ol c on su m pt io n ha bi ts C on su m pt io n fr eq ue nc y -0 .2 41 ** 0. 11 5 0. 23 0 * 0. 13 8 0. 33 4 ** * 0. 14 0 -0 .3 22 0. 20 7 D ru nk fr eq ue nc y in th e la st 6 m on th s 0. 22 2 ** * 0. 08 1 0. 14 2 0. 10 1 -0 .1 27 0. 10 4 -0 .2 37 0. 16 2 B ee r co ns um pt io n vs o th er a lc oh ol ic s 0. 00 5 0. 00 4 0. 00 6 0. 00 4 -0 .0 03 0. 00 6 -0 .0 09 0. 00 7 Eff ec ts o f h ea lth w ar ni ng s D is cu ss ed w ith fr ie nd s on r is ks -0 .3 73 0. 33 2 -0 .3 44 0. 43 3 0. 02 3 0. 38 4 0. 69 3 0. 46 9 D ec re as ed c on su m pt io n 0. 62 9 ** * 0. 28 2 -0 .2 25 0. 57 5 -0 .3 98 0. 44 3 -0 .0 06 0. 54 6 N o eff ec t 0. 43 5 ** * 0. 19 2 0. 69 0 ** * 0. 24 1 -0 .1 97 0. 26 4 -0 .9 28 ** 0. 44 5 Th ou gh t a bo ut th e ri sk s -0 .4 50 ** * 0. 19 8 0. 05 0 0. 23 2 0. 20 0 0. 20 5 0. 20 0 0. 23 9 Th ou gh t a bo ut d ec re as in g co ns um pt io n -0 .2 41 0. 28 9 -0 .1 72 0. 37 1 0. 37 2 0. 30 7 0. 04 1 0. 39 6 A tt itu de s to w ar ds a lc oh ol D o no t t hi nk to d ri nk in e xc es s 0. 10 4 0. 06 8 0. 14 2 * 0. 08 2 -0 .0 76 0. 08 1 -0 .1 70 * 0. 10 1 L ik e to d ri nk a nd s om et im es d ri nk to o m uc h 0. 00 7 0. 08 3 0. 01 4 0. 09 7 -0 .1 14 0. 11 5 0. 09 3 0. 16 1 T ry in g to d ri nk le ss 0. 08 5 0. 06 8 0. 03 2 0. 08 6 -0 .1 53 0. 09 9 0. 03 6 0. 09 8 Th in k th at fr ie nd s dr in k to o m uc h -0 .0 25 0. 06 9 -0 .0 18 0. 08 3 0. 00 6 0. 09 1 0. 03 8 0. 10 9 C on ce rn a bo ut th e co ns eq ue nc es o f a lc oh ol a bu se   -0 .0 32 ** * 0. 01 0   -0 .0 34 ** * 0. 01 2   0. 00 5   0. 01 3   0. 06 0 ** * 0. 01 7 N ot e: L C =L at en t C la ss ; A I= A tt ri bu te I m po rt an ce ; S E= st an da rd e rr or ; * p <. 10 ; * *p <. 05 ; * ** p< .0 1 a th is v ar ia bl e is g iv en b y th e su m o f t he it em s co m po si ng th e to pi c. 15The Influence of Alcohol Warning Labels on Consumers’ Choices of Wine and Beer LC.III (19% of the sample) is driven by the logo and the alcohol content when choosing a bottle of wine. Differently from the previous two classes, individuals from this class prefer to see a warning logo on the wine label, and in particular the one connected to the risks of drinking and driving. Their utility increases also when a warning message accompanies the logo, when the mes- sage is neutrally framed. They choose wine based on low alcohol content. These individuals are more likely to belong to the older age segment of Millennials and be frequent consumers of alcoholic beverages. LC.IV (13% of the sample) includes respondents who want to be warned about the negative consequences of alcohol on the brain when choosing a bottle of wine. They want the logo on the front label and low alco- hol content for wine. The older segment of Millennials is more likely to belong to this latent class, who think about the risks when faced with a warning label and who are worried about the consequences of alcohol on health. 5. DISCUSSION The introduction of health warnings on the label of alcoholic beverages is a topic of renewed interest in the field of consumer studies, due to the current debate on its mandatory or voluntary nature. Alcohol labelling issues are highly controversial due to the clash between different interests. On one side, there is the industry goal to increase sales volumes (and not costs) and on the other side, there is public interest in protecting consum- ers’ health and right to be informed. Alcohol industry actors lobby for voluntary or self-regulatory initiatives and frame alcohol consumption issues as a part of their corporate social responsibility practices (McCambridge et al., 2018; Mialon and McCambridge, 2018). In this regards, it is useful to recall the fierce debate occurred among EU policy makers and the wine industry for the introduction of mandatory labelling of potentially aller- genic substances in wine, including sulphites2 . As well as the ongoing discussion related to the ingredients and nutritional labelling for alcoholic drinks for which the spirits and beer sectors signed in 2019 a Memorandum of Understanding3. 2 Regulation (EU) No. 579/2012 required mandatory labelling of a vari- ety of allergenic substances in wine. 3 Following the submission of the industry self-regulatory proposal on the provision of nutrition and ingredients listing from the European alcoholic beverages sectors, during the 2019 a series of bilateral dia- logues with the sectors’ representatives took place to encourage their commitment. As a consequence, representatives of the spirits and brew- ery industries signed the Memorandum of Understanding in which they With reference to health warnings, according to sev- eral research, current experience of voluntary alcohol warning in England (Petticrew et al., 2016), Australia (Coomber et al., 2018; O’Brien, 2019) and New Zea- land (Tinawi et al., 2018) failed to inform individuals of health implications of alcohol consumption. If a self- regulatory approach prevails on mandatory standard- ised labelling, best practices for warning labels should be developed taking into account the results of the numer- ous studies that have analysed the impact of design and placement of health messages on alcohol labels; together with sector specific aspects. In this scenario, the present study contributes to the literature by deepening the analysis of the influence of alternative formats of health warnings on French and Italian Millennial consumers’ choices of beer and wine. Overall, our results confirm that AWL effects on consumer choices of wine and beer are influenced by the alcoholic beverages considered suggesting the need to consider the interaction between the type of drink and the warning message (Thomson et al., 2012; Wright et al., 2008). Indeed, for beer a positive utility is associated with the option of logo warning on the risks of drinking and driving, while for wine consumers attach more util- ity to the ‘no-warning option’, confirming the results of previous study conducted in Italy and France (Annun- ziata et al., 2019). This difference could be due to the fact that wine is still considered as a traditional product in both coun- tries and it is not considered as transgressive, or linked to harmful and risky behaviours (Agnoli et al., 2018); on the contrary, wine is often touted for its potential health benefits (Higgins and Llanos, 2015). In this regard, sev- eral studies in Mediterranean countries reveal that wine consumption among Millennial consumers is decreas- ing for the shift in the preferences towards other prod- ucts such as beer and spirits (Marinelli et al., 2014; De Magistris et al., 2011). In addition, specifically for wine, a range of studies has investigated the use of different information sources and indicated that in-store or in- restaurant sources are most valued (Atkin, Nowak, and Garcia, 2007; Atkin and Thach, 2012). Considering t he warning content, consumers attached a negative utility to the brain damage logo, for both beer and wine. This could be due to the fact that as shown by previous research young consumers are not very interested in potential long-term effects of alcohol (Annunziata et al., 2017; Annunziata et al., 2019; Jones and Parri, 2010; Jones and Parri, 2009). Indeed, these commit over the coming years, to voluntary provide nutritional infor- mation and the list of ingredients for spirits and beer (even if in differ- ent manners). 16 Azzurra Annunziata, Lara Agnoli, Riccardo Vecchio, Steve Charters, Angela Mariani consumers perceive themselves as not personally vulner- able to the long-term consequences of alcohol consump- tion at this point in their lives, attaching more impor- tance to the short-term consequences of their decisions (Coomber et al., 2017). Furthermore, the current study points out that the preference for the drinking and driving logo on beer could be linked to a strong public awareness of the prob- lem of alcohol-related car accidents, but also to the fact that the beer industry is already involved in various pub- lic campaigns against drinking and driving4. The present results also confirm that framing, design and visibility of AWL affects consumers’ choices of wine and beer and the impact varies in relation to alcoholic beverages considered. In particular, with reference to the warning visibility, consumers prefer to have a logo on the neck of the beer bottle; while for wine it should be on the front label. In relation to beer, our result is interesting con- sidering that, according to recent research, most beer bot- tles already carry warning labels on the back (GfK, 2014). While, concerning wine, when warnings are available, they are usually located on the back label. Considering that Pab- st et al. (2019) in a recent study reveal that the back label plays a minor role in the wine buying decision, according to our results, moving the logo on the front label could increases the warning visibility and effectiveness. The size of the logo, according to current results, does not seem to be an influential attribute, contrarily to findings of other researchers (Pham et al., 2018; Al- Hamdani and Smith, 2017b). Concerning the message framing, results show that in the case of beer, consumers tend to choose a bottle with a neutrally framed message, while for wine they prefer the option without a message. However, negatively framed messages reduce consumers’ utility for both alcoholic beverages, confirming that this type of message could have a stronger emotional impact on consumers choices (Al-Hamdani and Smith, 2017a; Al-Hamdani and Smith, 2017b). In this regard, Sillero- Rejon et al. (2018) found for beer that very stringent health warnings were judged to be more effective, lead- ing to a greater motivation to reduce alcohol consump- tion, as well as greater avoidance and reactance. Results from the LC models confirm the existence of different groups of young consumers whose choices are differently influenced by different AWL. According to previous research, our results show that these groups are characterised by different drinking behaviours and aware- ness of social and health risks related to alcohol consump- tion (Annunziata et al., 2017; Scholes-Balog et al., 2012). 4 For a review of main educational campaign promoted by Worldwide Brewing Alliance see http://ec.europa.eu/health/ph_determinants/life_ style/alcohol/Forum/docs/alcohol_lib6_en.pdf Overall, the results reveal once more that consumer preferences diverge among beer and wine. Taking into account beer, two classes of consumers show a higher utility for the bottle with warning labels (LC2 and LC3, 46% of total sample), but at the same time these con- sumers hold significant differences in consumption pat- terns. While, LC2 included heavy beer drinkers, worried about the consequences of alcohol abuse and preferring the presence of warning on drinking and driving, LC3 included consumers with moderate consumption habits, who assign a positive utility to both warning logos but prefer the ‘brain damage’ warning. Considering socio- demographic variables, a higher number of older Mil- lennials are included in this group. Conversely, LC1 and LC4 (47% of sample) are characterised by a higher con- centration of consumers that do not want any warning logo on beer. In particular, LC1 (the most numerous) consumers are not worried about the consequences of alcohol abuse and strongly believe that health warnings have no effect. Men are the majority in this group. Considering wine, a clear preference emerges towards a label without any warning. Specifically, the biggest groups LC.I and LC.II (which together represent 68% of sample) include consumers who are not worried of the consequences of alcohol abuse and consider health warnings ineffective. Conversely, consumers in the other two classes (32% of respondents) that attach a positive utility to warnings on the label, are worried about the negative effects of alcohol, and consider health warnings as effective. Both groups have a high presence of older Millennials. In brief, our results extend previous findings, high- lighting that the older segment of Millennials with a moderate consumption behaviour tend to be influenced by the presence of AWL in their choices of alcoholic beverages, while this influence is weaker among young- er Millennials (Creyer et al., 2002; Wright et al., 2008). Overall, Millennials are little concerned about the con- sequences of alcohol abuse and the only two groups that claim to be worried fall among those who prefer the bottle with the warning. Therefore, in line with other research (Comber et al., 2015), our results suggest that warnings can be a useful tool to spread more knowl- edge and awareness of the short- and long-term negative health and social effects of alcohol abuse. 5. CONCLUSION This study analyses the influence of alternative for- mats of AWL on Millennials’ beer and wine choices, in order to provide further insights to the current debate 17The Influence of Alcohol Warning Labels on Consumers’ Choices of Wine and Beer on the introduction of health warnings on alcoholic bev- erages’ labels. Despite it does not focus on the analysis of the effectiveness of health warnings policy in reducing abusive consumption behaviours, current results should be valuable for producers, providing practical indica- tions on the influence of alternative formats of labels on young consumer choices. In brief, findings highlight that the inf luence of AWL on the choice of wine and beer by Millennial con- sumers are driven by the type of alcoholic beverage and are affected by framing, design and visibility of warn- ings. In the two Mediterranean countries considered – Italy and France - the acceptance of warnings is higher for beer than for wine and in both cases consumers show an higher utility for a logo on the front label: on the neck with a neutral message in the case of beer; on the front, without a message for wine. From a consumer behaviour point of view, the results confirm the existence of different segments of individuals in relation to their choices of alcoholic bev- erages with AWL, also characterised by different drink- ing behaviours and awareness of the social and health risks related to alcohol consumption. In particular, the older segment of Millennials with moderate consump- tion behaviour, a group which is to some extent worried about the negative effects of alcohol, chooses the bot- tle of beer with warning labels. The same is true, but with a lesser extent, when they chose a bottle of wine. The awareness of alcohol related health risks and the preference for bottles carrying warning labels is weak- er among younger Millennials. Thus, in order to apply policies fostering health benefits, our results suggest the need to focus on young Millennials, effectively com- municating the risks of alcohol abuse through target- ed messages. In addition, and more generally, policies should increase young adults’ awareness of the potential negative effects of excessive consumption of both wine and beer. Some segments of Millennials declared that they are not affected at all by health warnings on the labels of wine and beer. This could be also a consequence of the excess of labelling information, in particular for wine, where labels are already very detailed, often including sensory descriptions and food pairings suggestions. In order to avoid overloading consumers with too many stimuli on the label, a valid alternative could be repre- sented by providing detailed health related information online, using for example QR codes or specific links to websites that provide useful information about alcohol and drinking combining on-label and on-line informa- tion. Furthermore, companies should be stimulated to insert the website link in their general advertisements. Moreover, considering that current results under- line that Millennials, regardless of age, are not very concerned about the long–term consequences of alcohol abuse, more extensive education and information cam- paigns are needed aiming to inform young individu- als about the potential negative consequences of alco- hol intake, which go beyond the effects on driving and on pregnant women. This type of interventions can be more effective if combined with the use of warnings on the label, specifically rotating negative framed messages. Finally, considering that the awareness of alcohol-relat- ed health risks is weaker among younger Millennials and that they mainly drink alcoholic beverages during weekends in out-of-home contexts (Bazzani et al., 2020), new tools should be developed to provide information in this contexts, as posters in bars and stores, and adver- tisements; together with tools designed to explain how responsible drinking messages translates into actual drinks (such as the pocket-sized unit calculator intro- duced by UK drink-aware campaign). The results of our analysis cannot be generalised as they are hardened by several limitations. First, the use of self-reported measurements is prone to generate social desirability bias; second the use of a convenience sam- ple does not allow inferences on the populations of the two countries; third, the study analyses stated choices of respondents, which can be in line or not with actual choices when called to buy a bottle of wine (or beer) in everyday life. 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