Erik Owens

Source: https://irishliquorlawyer.com/ April 16, 2024 Status-Amended April 11, 2024, placed on calendar for third reading Issuance of a third-party retail delivery license. This bill would drastically change the status quo of retail delivery in Illinois. A retailer could no longer rely on independent contractors to deliver alcohol. All third-party delivery companies must now be licensed under the bill and the exemption, which would allow an 18 year old to make deliveries would be removed. The new bill would consider delivery personnel, as alcohol servers and would require all personnel to be BASSET certified. Delivery could only be performed for off-premise retailers, delivery for manufacturers and on-premise retailers is prohibited. The delivery fee is limited to what one could charge for non-alcoholic products and fee can’t be calculated as a percentage of alcoholic liquor sales. The third-party delivery service is required to perform background checks on employees and must carry liability insurance. The licensee would also be subject to the same Illinois of value regulations as the other three-tiers and the bill restricts them from maintaining an ownership interest in another licensed tier. In addition, this bill would change the types of cocktails that are permitted to be delivered. Containers filled and labeled by the manufacturer and secured by its original unbroken seal would not be permitted. The bill would prohibit third-party retailer licensees from delivering cocktails. SB 3358 Status- April 5, 2024 committee deadline established by May 3, 2024. This bill creates a distillery shipper’s license for class 1 (under 50K production) or class 2 (under 100K production) craft distillers. The shipping amount would be limited to 12 cases per year. It also provides rights for a distilling pub to ship, to deliver alcohol within 12 hours from the time it leaves a distilling pub premises and to transfer product. SB 2756 Status-April 5, 2024 committee deadline established by May 3, 2024. creates a class 3 craft distiller license and distiller showcase permit, increases the production limits for a distilling pub licenses from 5,000 to 10,000 gallons. The spirits show case permit would allow a craft distiller to transfer product from its premises to a designated site for a special event. Beer and wine maintain these privileges, spirits do not, this is a parody play. Creates a class 3 craft distiller license for those manufacturing less than 100,000 gallons, the license would allow for 5,000 gallons of self-distributed product, full retail privileges at its facility, and the ability to transfer 5,000 gallons worth of product. Status SB 3161-At the subcommittee on liquor-committee deadline to make it out by May 3, 2024. Attempts to implement the Uniform Alcohol Direct-Shipping Compliance Act into Illinois law. Would require fulfilment houses and other third-party providers register with the state and requires them to adhere to record and compliance requirements, even though the registration requirement is constitutionally suspect. Would allow Illinois to prosecute its own licensees if they believe they violate the shipping laws of another state. Illinois authorities would judge according to the laws of the state they believe was violated. SB 3245 Status- At the subcommittee on liquor-committee deadline to make it out by May 3, 2024. It would expand full retail privileges to a Class 1 and Class 2 Brewers by allowing them to sell wine and spirits. Presently, their sales are limited to beer, cider, or mead. Allows a brewer to contract with a management company to run its operations, even if the management company holds a retail license. Any agreement must be approved by the ILCC and the contact cannot be utilized as a way to get around providing a prohibited thing of value.

Source: https://www.thespiritsbusiness.com/ By Ted Simmons , April 11, 2024 With a TTB decision still pending, American single malt producers are wondering when their style will be formally recognised. American single malt producers are becoming frustrated at the time the Alcohol and Tobacco Tax and Trade Bureau, otherwise known as the TTB, has been taking to formally recognise the whiskey style. In July 2022, the American Single Malt Commission submitted guidelines to the TTB in an effort to define the nascent category. The proposed rules specified that to be labelled American single malt, a whiskey must be made from 100% malted barley; distilled entirely at one distillery; mashed, distilled, and matured in the United States; matured in oak casks of a capacity not exceeding 700 litres; distilled to no more than 80% alcohol by volume; and bottled at 40% alcohol by volume or higher. A 60-day commenting period ended in September 2022, and members of the commission and the producers are left wondering whether the prolonged silence from the TTB is normal governmental procedure or whether there is a more serious issue to deal with. Official ruling Gareth Moore, CEO at Virginia Distillery Co, which has been making American single malt since 2015, says there is the perception of controversy because an official ruling has yet to be made. “Trying to explain to somebody that government processes take this long, people don’t believe you,” Moore says, noting that he read all 186 comments submitted to the TTB, a vast majority of which were in support of the guidelines. The delays have slowed some of the momentum behind American single malt, especially as producers of the style try to convince distributors and retailers that a stamp of legitimacy is forthcoming. “We’re kind of left in this purgatory of having no idea if it’s going to happen, but the public perception is that it’s not simply because of the long time that it’s been taking,” Moore adds. The TTB said it anticipates issuing a final rule on the proposal this year, but notes there are competing priorities and unforeseen events that may affect its budget and/or scheduling. “We recognise there is significant interest in this rulemaking, and are actively working on the issue,” Tom Hogue, congressional liaison for the TTB, says. “The rulemaking process is, by its nature, deliberative, not fast. I would not read further into it.” Whether the delays have been intentional or not, there is a sense that this November’s presidential election may result in further postponement. Tyler Pederson, master distiller at Seattle’s Westland Distillery, which has been making American single malt since 2011, says that while the company will continue to operate with or without TTB approval, the pending guidelines remain a topic of discussion for the American Single Malt Commission, which has grown to 150 members. “If it’s already been this challenging to get over that last final mile, under the conditions that we’ve had, the election year is only going to create more distractions for the TTB,” Pederson said. “We’re going to start poking the TTB with campaigns that are a little more provocative to remind them, hey, this is still an issue.” When not if While there is some anxiety among American single malt producers regarding the delays, there is an overwhelming notion that recognition is inevitable, a case of when not if. St George Spirits in Alameda, California, has been making single malt since 1998, with master distiller Lance Winters saying he actually prefers that the TTB take its time. “I’d rather have them take their time and get it right rather than rush into it and then we have to go back and try to get it changed,” Winters says. “I don’t need that category to be able to sell our stuff. And so it can take the time that it needs to.” Winters notes that without financial impetus, there isn’t any real incentive to move the bill along. “The wheels of bureaucracy turn fairly slowly. And that’s what we’re seeing on this,” he adds. As for explaining American single malt to consumers, a challenge that a legal definition would address, Winters says he’s been having that conversation for 25 years, and that most consumers don’t even know what defines single malt by itself, let alone American single malt. “I think the solution is just being fully transparent on a label, saying what your product is, what it’s made from, how it’s aged, where it comes from. That’s what’s really meaningful to the consumer, more than are you following this and that federal regulation,” Winters says. Still, for risk-averse distributors and retailers, legitimacy matters. “We’re not changing our positions, we’re not changing our messaging, but it is not ringing as true with our distributors and accounts that this is going to be a category to get behind,” Moore says. But that’s not to say that progress has not been made. Perhaps a better indication for the longevity of American single malt is the fact that brands such as Jack Daniel’s, Jim Beam, and Bulleit have all released variations in the past year, each with its interpretation of the style. Some producers are ageing their whiskey in new charred oak, consistent with Bourbon and other American styles. Innovation and variance While the guidelines are intentionally broad, allowing for innovation and variance, Winters suggests that perhaps they are open-ended, noting that there is no minimum barrel-size requirement, allowing some producers to use small-format barrels. “We’ve got far too many distillers putting whiskies in 10 gallon barrels and saying that they’re rapid-ageing it,” Winters says. “If the goal here is one of preserving quality in the name of American single malts, there’s more work that needs to be done before this is completely codified.” These producers share an optimism that approval is coming, but perhaps not necessary for the category to thrive. Pederson notes that TTB approval is mostly for wholesalers and retail partners, and Winters agrees, saying the issue is really about knowing where to place their whiskeys on the shelf. “If your product is going to die, it’s going to die. If your product is going to thrive, it’s going to thrive,” Winters says. “It’s not going to live or die on the definition of American single malt being etched in stone by the federal government.”

Source: https://irishliquorlawyer.com/ April 10, 2024 In a recent piece by New York health advocates, they went after any proposed consumer friendly changes to the New York liquor system. They stated that “any efforts to expand alcohol access in the name of consumer convenience, or private profit, should be suspended indefinitely.” They attempt to strengthen their position by relying on stats that alcohol related deaths increased 29% from 2017 to 2021. In their opinion “ Legalizing alcohol shipping direct to the home will not only pour gas on the fire that is threatening public health, but it will also contribute to increased underage consumption.” They further rely on regulator reports from South Carolina, Tennessee, Oklahoma, Texas, Massachusetts, and Vermont, which show that wine packages were delivered without age verification. Next, they take aim at cocktails-to-go, while citing to a federal study that indicates cocktails-to-go contributed to spikes in alcohol consumption. Finally, they stated that allowing shipping to homes and allowing wine in grocery stores, will lead to increase sales and consumption and will be a threat to women and adolescent’s health. The claims analyzed If we are going to have a sincere discussion about the health impacts of alcohol and whether more avenues of obtaining alcohol should be shut off, then we need to perform a more thorough analysis. Let’s look at some of the claims the CDC report they cite makes. The CDC, which lost a lot of credibility during COVID, states that during the peak of COVID years there was a 23% increase in the number of deaths from alcohol abuse. The report discusses what the CDC believes are the symptoms of the problem. “During the peak of the COVID-19 pandemic in 2020–2021, policies were widely implemented to expand alcohol carryout and delivery to homes, and places that sold alcohol for off-premise consumption (e.g., liquor stores) were deemed as essential businesses in many states (and remained open during lockdowns). General delays in seeking medical attention, including avoidance of emergency departments**** for alcohol-related conditions††††; stress, loneliness, and social isolation; and mental health conditions might also have contributed to the increase in deaths from excessive alcohol use during the COVID-19 pandemic.” The CDC makes the claim about to-go-cocktails helping contribute to an increase in alcohol abuse without any data to back up their assertions. Finally, they take aim inadvertently at government shutdown policies, which coincided with the worst years in alcohol abuse numbers. But somehow, they can’t bring themselves to study whether causation exist between the COVID lockdowns and deaths from alcohol abuse. Next, the article takes aim at DTC shipping. Specifically, how it will put alcohol into the hands of adolescents and how state stings have uncovered minors ordering alcohol and a lack of age verification by common carriers. First, minors are not utilizing the internet to purchase alcohol. The Supreme Court concluded this in 2005 in Granholm and a recent VinoShipper study with extensive data proved this out. Second, the stings where minors have purchased alcohol online, do not reflect the reality of things, as the VinoShipper study demonstrates. These artificial setups do not account for that minors would need to utilize their parents credit card to purchase, which is a big deterrence for purchasing online, and they would need to wait for days and hope they are not age verified by the common carrier driver. As for recipients not being age verified, often times if someone looks well above 21, whether it is in the store or at the door, they are not going to be age verified. It is common sense looking like Uncle Jesse from the Dukes of Hazzard almost guarantees you won’t be carded. Finally, their claim that allowing increased shipping and wine in grocery stores will lead to health threats, seems more aimed at protectionism. There is no hard data to back this point up. Many states over the years have increased avenues on where you can purchase alcohol, and some have expanded the days in which you can purchase alcohol. Neither of these openings has led to significantly adverse impacts on society. Winery shipping increased since Granholm, no evidence was presented that direct wine shipping led to excessive alcohol abuse. This seems aimed at stopping the expansion out-of-state wine retailer and supplier shipping and aimed at allowing the sale of wine in grocery stores. Conclusion Alcohol abuse is a serious matter, which deserves a serious discussion. However, any position which aims to stop advancement should provide data to support its conclusion. Doing otherwise does a disservice to everyone involved.

by Marshall Griffin | Apr 5, 2024 A bill being weighed by a State House committee would allow Missouri companies that make distilled spirits to ship their products directly to customers’ homes. Current state law allows licensed wine producers to ship up to two cases of wine per month directly to Missouri customers. The bill sponsored by State Rep. Jeff Knight, R-Lebanon, would allow Missouri makers of bourbon, vodka, and other distilled spirts to do the same. Don Gosen, co-owner of Copper Mule Distillery in Hermann, testified in favor of the bill during a public hearing Tuesday at the Missouri Capitol. Read more: https://www.missourinet.com/2024/04/05/missouri-house-bill-would-allow-direct-shipment-of-distilled-spirits-to-customers-homes/#

Click here: https://www.shipmyspirits.org/take-action/NY This message is from ADI member Kim Wagner, owner of Stoutridge Winery & Distillery Hello Friends, I've connected with some of you in the last few weeks, but many of you haven’t heard from me in years (maybe decades). So why now? What’s up? I’ll cut to the chase. You will remember that Steve and I bought a farm in 2000, planted a vineyard, opened a winery in 2006, and then launched a craft distillery in 2017. Stoutridge Distillery and Winery makes award-winning spirits and wine, and we welcome guests to our tasting room every week. The challenge is that NY State liquor laws are very restrictive. Unlike wineries that can take internet orders and ship products to you at home, distilleries can only sell directly to consumers in our tasting room. The NY craft distillers have been working for more than 10 years to get the same shipping privileges wineries got in 2005. For the first time, we are making progress with the NY Legislature and now we need consumers (aka voters) to make their voices heard. The 2024 NY Legislative session ends the first week in June, so IT’S GO TIME! If you vote in NY, please click this link (or the button) and tell your NY Assemblymember and Senator that distilleries need shipping parity with wineries. It’s super easy based on your zip code so you don’t even have to know the name of your representatives. If you don’t vote in NY but know someone who does, please forward this message to them. In the late 1990’s FreeTheGrapes.org organized consumers to advocate for Direct to Consumer (DTC) shipping for wineries and now there are 47 states where consumers can order direct from the manufacturer and have it delivered to their home. Now ShipMySpirits.org is doing the same for craft distillers. Thank you in advance for helping small distillers (and our small family business) get parity with wineries in New York. DTC shipping has allowed the small wineries to survive (in fact more than 80% of the wineries in the US are dependent on DTC shipping). We are hoping that DTC shipping will do the same for small distilleries. Warmly, -Kim

https://bartenderspiritsawards.com/en/blog/insights-1/spirit-of-innovation-a-dialogue-with-erik-owens-president-of-the-american-distilling-institute-748.htm In conversation with Malvika Patel, Editor and VP, Beverage Trade Network Exploring the Evolution and Innovation in Craft Distilling Erik Owens, President of the American Distilling Institute (ADI), is at the forefront of the craft distilling movement in the United States. With a background in biology and biotech, Erik brings a unique perspective to the industry. From his early days brewing beer to leading ADI, Erik has witnessed the growth and evolution of craft distilling. In this exclusive interview, Erik shares insights into the challenges and triumphs of the industry, the impact of ADI, and his vision for the future of craft spirits. CAN YOU TELL US ABOUT YOUR JOURNEY FROM BREWING BEER AT BUFFALO BILL'S BREWERY TO BECOMING THE PRESIDENT OF ADI? HOW DID YOUR EARLY EXPERIENCES INFLUENCE YOUR CAREER PATH? ADI was founded by my father Bill Owens, who was revolutionary in three careers. First, he was a fine art photographer who documented 1970’s Californian suburbia. His photographs are in museums around the world and are still exhibited today. In 1983, He took his love of homebrewing and created Buffalo Bill’s Brewery, the first brewery since prohibition to serve draught beer in an onsite tap room. In 2003 he founded the American Distilling Institute, predicting the burgeoning craft distillery movement would follow the trajectory of craft brewing. Image: Dan and Nancy Garrison from Garrison Brothers Distillery with Erik Owens at ADI Craft Spirits Conference ADI WAS FOUNDED IN 2003 WHEN THERE WERE ONLY ABOUT 25 CRAFT DISTILLERIES IN THE US. HOW HAVE YOU SEEN THE INDUSTRY EVOLVE SINCE THEN, AND WHAT ROLE HAS ADI PLAYED IN ITS GROWTH? In 2003 there almost wasn’t a cohesive craft distilling industry. Just 60 people attended our first ADI conference in 2004 at St. George Distillery in Alameda, California. Today, there are more than 2,700 distilleries in the U.S., and over 1,800 distillers, vendors, and industry professionals attend our annual conference. In 2004, there was very little technical distilling information available in this country. Practical guidance on how to install a still, how to run it, and how to make good spirits was in short supply. The first craft distillers in the United States were passionate entrepreneurs running small family-owned businesses, often manufacturing spirits from local raw materials. Many were farmers looking to add value to their crops. It was nearly impossible to get a loan or raise capital from local investors. Worst yet, local fire and zoning departments had no idea what was needed to safely run a distilled spirit plant. Image: ADI Conference Today, the landscape is much more diverse and dynamic. Craft distilleries range from small family-owned businesses to larger firms. Some distillers distill their own spirits, and some put their own fingerprints on sourced spirits. There are importers and exporters, independent bottlers, and many other types of craft spirit business models. Many of the 60 attendees at the first ADI conference have gone on to become the foundation of the industry. ADI has played a key role by providing ongoing continuing education resources, including workshops, masterclasses, and webinars, and hosting the largest craft distilling conference in the nation. ADI publishes Distiller Magazine, a quarterly trade magazine about craft distilling, and publishes specialty books on craft distilling through our publishing arm, White Mule Press. We also engage politically to support legislation that benefits the industry. AS THE PRESIDENT OF ADI, WHAT ARE YOUR PRIMARY RESPONSIBILITIES, AND WHAT ARE YOUR KEY OBJECTIVES FOR THE ORGANIZATION? My primary responsibilities include representing ADI in the community, from visiting distilleries to attending major allied trade conferences like DISCUS, WSWA Brewers Association, and the Unified Wine Conference. I also oversee internal operations, set strategy, and develop new initiatives that link to ADI’s overarching mission: To help small, independently owned distilleries succeed. Image: 2024 ADI Conference in Baltimore—a catalyst for collaboration and innovation HOW DOES ADI SUPPORT ITS MEMBERS, PARTICULARLY SMALL TO MID-SIZED DISTILLERIES, AND WHAT RESOURCES DOES IT PROVIDE TO HELP THEM SUCCEED? ADI supports members through our focus on continuing education, information exchange, and relationship building within the industry. Our annual conference is the largest gathering of craft distillers in the world, with dozens of speakers each day and the largest trade show floor in the industry. We publish Distiller Magazine, a quarterly trade magazine reporting on important issues in the industry and offering practical, actionable information that informs and inspires. We offer multi-day workshops taught by industry experts on specific topics hosted by distilleries around the country. Founded in 2007, our International Spirits Competition has given written feedback from all judges to all entries since day 1, which has helped new entrants improve their products. White Mule Press publishes specialty books on distilling industry topics, from how to start a distillery and how to make great apple brandy, to sophisticated topics in distillery finance. We also host the ADI Forums, the “town square” of craft distilling, where distillers can share ideas, ask each other questions, sell equipment, look for jobs, and tap into the community in many different ways. Image: ADI members at the 20th annual ADI Craft Spirits Conference. THE CRAFT DISTILLING INDUSTRY HAS FACED CHALLENGES SUCH AS REGULATORY ISSUES AND COMPETITION FROM LARGER DISTILLERIES. HOW HAS ADI ADVOCATED FOR ITS MEMBERS AND HELPED NAVIGATE THESE CHALLENGES? In the early days of craft distilling in the United States, distillers faced a highly fragmented regulatory environment with different rules in every state. Some states were more permissive, while others were (and even continue to be) extremely strict about what distilleries can and cannot do. During the period of most intense state legislative activity, ADI operated a state law tracking system to give distillers at-a-glance visibility into the laws of each state. We also supported distillers in lobbying their state legislatures to change those laws. As a result, state-by-state legislative environments have improved dramatically, although there is still lots of work to be done. Another major issue in the last 20 years was Federal excise tax reduction. Before the Craft Beverage Modernization Act was initially (and temporarily) enacted in 2017, the federal excise tax on distilled spirits was about $20 per proof gallon. The idea to lobby for reduced Federal excise taxes was born at an ADI conference in 2008. Over the next nine years, ADI participated in congressional visits to lobby for the extension, published editorials, and supported legislative engagement to achieve this vision. In 2020, the tax reduction was finally made permanent. Many of our members estimate that the change allowed them to save tens of thousands of dollars each year, which they reinvested in labor and equipment for their distilleries. ADI'S ANNUAL SPIRITS COMPETITION IS THE OLDEST CRAFT SPIRITS COMPETITION. CAN YOU TELL US ABOUT THE SIGNIFICANCE OF THIS COMPETITION FOR CRAFT DISTILLERS AND THE INDUSTRY AS A WHOLE? Founded in 2007, our International Spirits Competition has given written feedback from all judges to all entries since day 1, which has helped new entrants improve their products. Best-in-class winners not only receive the recognition and satisfaction of excellence but are also guaranteed meetings with distribution and retail partners including Southern Glazers, TotalWine, Binny’s and Specs. Image: An episode of "Voices of Distilling", host Ronnell Richards sits down with Kenny Coleman. WHAT TRENDS DO YOU SEE SHAPING THE FUTURE OF CRAFT DISTILLING, AND HOW IS ADI PREPARING ITS MEMBERS TO ADAPT TO THESE CHANGES? Craft distillers are facing an increasingly competitive market. Increased competition comes not just from other craft distillers, but from major multinational beverage companies who have taken cues from craft distillers and begun focusing on ingredient provenance, creative barrel finishes, out-of-the-box blending, and other techniques popularized by small producers. ADI helps craft distillers compete more effectively with a wide range of continuing education to learn skills and techniques in high demand today. For instance, our annual three-day Blending, Maturation, and Warehousing workshop builds critical skills related to barrel storage, blending, and product creation — essential for producers of grain-to-glass or sourced aged spirits. Many craft distillers are transitioning to column still systems to increase capacity, or even launching operations with column stills installed on day 1. In response, we now offer a three-day column distillation course that equips participants with the skills they need to run these complex systems efficiently and effectively. Our annual conference is also a valuable way for craft distillers to future-proof their businesses. Our trade show floor — the largest in the industry — serves as a showcase for innovation in the sector. Distillers can smell distillates made with new yeast strains, taste the products of new rapid maturation systems, learn about innovative new lending and finance opportunities, and handle new bottle and label materials. Image: New Liberty Distillery took home the Bubble Cap award at the ADI Craft Spirit Conference in St. Louis back in September HOW DO YOU BALANCE INNOVATION AND TRADITION IN THE CRAFT DISTILLING INDUSTRY, AND HOW DOES ADI SUPPORT DISTILLERS IN EXPLORING NEW TECHNIQUES AND FLAVORS? We strive to balance innovation and tradition in all of our continuing education programming. Our goal is simply to equip distillers with new tools and knowledge, including traditional knowledge mostly lost in the United States due to prohibition. It’s up to them to use those tools to follow their ideas and instincts and develop new products. Much of our content, including Distiller Magazine, our weekly newsletter, workshops, and conference breakout sessions, is driven by craft distiller feedback, ideas, and curiosity. We always strive to accommodate innovative new product categories at our International Spirits Competition. For example, we recently added a new RTD/RTS category, and are closely monitoring emerging categories like American agave spirits. WHAT ADVICE DO YOU HAVE FOR ASPIRING CRAFT DISTILLERS LOOKING TO ENTER THE INDUSTRY? Become a sponge for knowledge. The first few years have a steep learning curve. In general, craft distillers are a welcoming and collaborative bunch. Attend an ADI conference and meet as many people as you can. You’ll find most will be happy to share their experiences, their expertise, and their hard-won knowledge with you. Find ways to gain hands-on experience. That might be an ADI workshop, a local college or university course, or an internship at another local craft distillery. Participate in the ADI forums, and read Distiller Magazine to develop a sense of what’s happening in the industry today. If you’re starting a business, pay special attention to choosing your location. Regulatory environments can differ immensely between even neighboring counties. 2024 BARTENDER SPIRITS AWARDS: THIS A UNIQUE OPPORTUNITY FOR YOUR SPIRITS. This a unique opportunity to present your spirits to America's top Bartenders. This is where award-winning bartenders, mixologists and bar managers curate top spirits that are suitable for on-premise channels. CONCLUSION: Erik Owens' journey from brewing beer to leading the American Distilling Institute reflects the spirit of innovation and perseverance that defines the craft distilling industry. Through ADI, Erik continues to champion the growth and success of craft distillers, ensuring that their voices are heard and their spirits are celebrated. As the industry evolves, Erik remains committed to preserving its rich traditions while embracing new opportunities for creativity and excellence.

Distilling tourism created jobs, generated consumer spending and resulted in millions in tax revenue for Texas AUSTIN – Researchers at Tourism Economics, a subsidiary of Oxford Economics, today released “Economic Impacts of Distillery Tourism in Texas,” a new study highlighting the significant economic impact tourism to Texas’ 188 distillers made in 2022 (most recent available data). The results of this study show the scope of the impacts of distillery tourism in terms of on-site and off-site spending by distillery visitors, as well as the total economic impacts of distillery tourism, including total business sales, employment, labor income and fiscal (tax) impacts. “The booming growth of Texas distilleries in the last decade has contributed significantly to local and state economies,” said Michael Mariano, head of economic development at Tourism Economics. “Texas distillers are playing a critical role in the state’s economy not only by generating sales, but by increasing tourism and the many industries positively impacted by visitors.” Key findings from the study show Texas distillery tourism generated: A total economic impact of $831.7 million in the statewide economy 2,089,000 visits to Texas distilleries $459.4 million in total on-site and off-site spending by non-local distillery visitors 7,700 total jobs $42.5 million in total state & local tax revenues “The COVID-19 pandemic was tough on Texas distillers and the Texas tourism industry as a whole,” said Mike Cameron, president of the Texas Distilled Spirits Association. “Still, Texas makes terrific spirits and that draws visitors from near and far to the state. We are ecstatic that consumers are visiting our distilleries, sampling our products and falling in love with Texas distilled spirits. Supporting our local distilleries by supporting laws that help us compete in the marketplace has great benefit for the state.” The study estimates non-local distillery visitors spent $112.8 million on food and beverage, $106.9 million on lodging, $91.0 million on retail, $78.7 million on entertainment and recreation, and $69.9 million on transportation (including gasoline purchases). “This study makes clear that continued growth of the Texas distilling industry presents great opportunities for the state, and that the collective economic contributions of these small businesses could be even greater if antiquated laws restricting spirits sales were updated,” said Andy Deloney, senior vice president & head of state public policy at the Distilled Spirits Council of the United States. “Unfortunately, there are many obstacles Texas distillers face when operating in the state with less market access, restricted sales days and higher taxes. Given the popularity of Texas distilleries and their important role in the state’s economy, these outdated laws simply don’t make sense. It’s time to modernize Texas alcohol laws to help support this growing industry and spirits consumers throughout the state.”

HB 4231 & SB 492 allow local option elections to authorize seven-day spirits sales COLUMBIA, S.C. – Today, the South Carolina Craft Distillers Guild (SCCDG) and the Distilled Spirits Council of the United States (DISCUS) sent a joint letter to the South Carolina Senate Judiciary Committee as its subcommittee considered HB 4231 and SB 492, bills to allow seven-day spirits sales through local option elections. South Carolina is one of only six states in the country that prohibits the retail sale of distilled spirits on Sundays. “While distillers can be open on Sundays, they are unable to sell their products to consumers. Many craft distillers in South Carolina make the decision to close on Sundays because it’s not fiscally sound to keep the doors open,” said Scott Blackwell, president of SCCDG. “For those that decide to stay open, disappointed consumers are forced to go home empty handed when visiting on Sundays without realizing they were prohibited from buying a bottle on that day.” Alabama, Mississippi, North Carolina, South Carolina, Texas and Utah are the only remaining states that prohibit Sunday sales. “Across the country, states have modernized their marketplace regarding alcohol sales laws, and since 2002, 22 states have passed laws permitting Sunday sales year-round,” said Andy Deloney, senior vice president and head of state public policy for DISCUS. “Alcohol is already available for sale on Sundays at restaurants and bars, and beer and wine are allowed to be sold on Sunday as well. Permitting package stores and distilleries to sell distilled spirits on Sundays after local ballot box decisions simply gives adult consumers more convenience and accommodates tourists and visitors to South Carolina.” The two organizations have also been spearheading a consumer-led campaign to encourage South Carolinians to make their voices heard at the Capitol. In less than a week, the campaign powered by DISCUS’ Spirits United, has generated more than 1,000 letters to legislators so far. “We encourage any adults in South Carolina who want to see this outdated ban removed to join us at BootTheBan.org,” said Deloney.

RICHMOND, Va. – Today, the Distilled Spirits Council of the United States (DISCUS) and The Virginia Restaurant, Lodging & Travel Association (VRLTA) applauded Virginia Governor Glenn Youngkin for signing HB 688, making Virginia the 26th state to permanently allow cocktails to-go in support of businesses and consumers. Cocktails to-go for takeout and delivery in Virginia were set to expire July 1, 2024. Under the legislation, cocktails to-go can be sold from bars, restaurants and distilleries. “Virginia consumers, restaurants, bars and distilleries can all toast to the fact that cocktails to-go are here to stay in Virginia,” said Andy Deloney, senior vice president and head of state public policy at DISCUS. “During the pandemic, cocktails to-go were a critical source of revenue for many businesses, and now, the increased convenience and stability they offer is permanent. We applaud the Legislature and Governor Youngkin for supporting Virginia businesses and consumers by making cocktails to-go permanent.” Since the beginning of the pandemic, 26 states, including Virginia, and the District of Columbia have enacted laws to permanently allow cocktails to-go, and seven others have enacted laws that allow cocktails to-go on a temporary basis. Numerous states are still considering cocktails to-go legislation. “Permanence for cocktails-to-go is a great win for Virginia’s ABC-licensed restaurants,” said Eric Terry, president and CEO of VRLTA. “We are grateful to have worked with DISCUS and a broad coalition of stakeholder partners to bring it across the finish line, and happy to see the broad bipartisan support that the bill received. Virginia now joins twenty-five other states as well as the District of Columbia in making this common-sense policy permanent.” The distilled spirits industry is committed to responsibility and encourages moderation for adults who choose to drink alcohol. Cocktails to-go are intended for home consumption. Laws governing alcohol consumption must always be observed. BACKGROUND States that signed legislation to make cocktails to-go permanent into law: Arizona, Arkansas, Connecticut, Delaware, Hawaii, Indiana, Iowa, Florida, Georgia, Kansas, Kentucky, Louisiana, Maine, Michigan, Missouri, Montana, Nebraska, Ohio, Oklahoma, Oregon, Rhode Island, Texas, Virginia, Washington, West Virginia, Wisconsin and the District of Columbia have all made COVID-era cocktails to-go measures permanent. States that signed legislation to allow cocktails to-go on a temporary basis into law: California (expires December 31, 2026), Colorado (expires July 1, 2025), Illinois (expires August 1, 2028), Massachusetts (expires April 1, 2024), New Jersey (TBD), New York (expires April 9, 2025) and Vermont (expires July 1, 2025) passed legislation to allow cocktails to-go on a temporary basis.

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From the Irish Liquor Lawyer https://irishliquorlawyer.com/liquor-industry-insights/wswas-recent-study-will-harm-the-industry/?trk_msg=DPBPVJGCQ514H45G2BNCV5LHKK&trk_contact=MV0SDR9KT4M4I30B5GO4428L1O&trk_sid=Q2NICTR8FID3JBQSP377P26P34&trk_link=1CL09ONOIQJKV81SB8E2OGKDOS WSWA put out another report that will no doubt be used as propaganda to stop and in some cases reverse direct-to-consumer (DTC) shipping for manufacturers and retailers. WSWA conducted its own poll in partnership with Morning Consult, which shows that 25% of adults they surveyed, who purchased alcohol from an online vendor or manufacturer were not age verified. WSWA goes onto make the claim that DTC shipping is supported by a 10% (based on their surveyed audience) radical fringe of society and with the dangerous 25% failure rate, people should be majorly concerned about the advance of DTC shipping on behalf of this radical fringe group. The study goes onto spout stats such as 76% of American adults are concerned about the age verification process when purchasing product online. And that 60% of adults identified increased risked to underage access as a concern, and 85% agree that online vendors should be held to the same standard as a brick-and-mortar location. Finally, the study spewed stats about consumer choice, which are meant to make DTC advocates a radical minority that represents a great outlier. The stats pertain to where people like to purchase alcohol. Under the study, 65% purchase from grocery stores, 64% from the liquor store, 47% from bars and restaurants and only 10% from online vendors and 9% from manufacturers. Problem with the methodology Unlike the VinoShipper study, which provides great detail to prove its conclusions, the WSWA detail provides us no background data. To illustrate, in the oral argument in the 1st Circuit’s Rhode Island wine retailer shipping case, Anvar v. Dwyer, the Rhode Island attorney stated that the plaintiff admitted in deposition that she was not asked by the common carrier driver for an ID. The state intended to drive the point home that DTC shipping is dangerous and people are not being verified and this could lead to minors getting their hands on alcohol. Alex Tanford in rebuttal simply answered that she is 70 years old. It drives home the point, people that are senior citizens are generally not age verified and not age verifying a 70-year-old does not mean minors are more likely to get their hands on alcohol. It is common sense that if someone looks like Uncle Jesse from the Dukes of Hazzard, they are probably not being age verified whether it is in a brick-and-mortar or by common carrier. What WSWA does not do is provide details in its study on the age demographic of the 2,200 U.S. Adults it surveyed, and whether the 25% crowd were senior citizens or a demographic of 21–25-year-olds. Second, the data does nothing to demonstrate that the 25% failure rate of adults surveyed will lead to minors getting increased access to alcohol via DTC shipping. The survey contacted 2,200 adults; an adult is someone over 18 in general terms. If the survey provided responses to how age compliance fared for the 18-20 crowd, and what the compliance rates were for age verification, we might be able to take this study seriously. Unfortunately, WSWA like the Wizard of Oz, will not let us see behind the curtain, yes transparency matters! The 10% radical fringe argument suffers from the same faults as the 25% age verification failure rate does. We don’t know the surveyed demographic. If those surveyed were at the higher age bracket that did not grow up with technology that would matter, however, this crucial piece of information is missing. So, the argument that the DTC market only is supported by 10% of society is not credible. What is missing is concerning If minors gaining access to alcohol is a major concern, then I believe WSWA misses the boat on some glaring but important issues. In the VinoShipper study, they utilize Substance Abuse and Mental Health Services (SAMHSA) data to track retail licensees that failed minor compliance stings. (Substance Abuse and Mental Health Services Administration (n.d.) Underage Drinking Prevention and Enforcement 2021, SAMHSA, https://www.samhsa.gov/, accessed December 2022) Unlike the WSWA study that surveyed adults, the SAMSHA stats look at selling directly to minors and whether retailers attempted to age verify them. According to the SAMSHA stats, Delaware and Pennsylvania retailers sold to minors without age verifying more than 25% of the time. I will allow the reader to judge whether these glaring failures of the system were left out by WSWA because the brick-and-mortar retailers purchase through the three-tier system. VinoShipper v. WSWA study The VinoShipper study came to a radically different conclusion than the WSWA study. VinoShipper’s study concluded that minors were not utilizing online purchasing to obtain alcohol. VinoShipper utilized independent data from IDology a 3rd party age verification software provider to conclude that out of the 633,985 registered buyers only 943 purchases were attempted by minors. Attempted minor purchases represented .15% of all attempted purchases. Unlike WSWA’s data, VinoShipper utilizes an independent third party and does not rely on in-house data. Further, it produces data from government agencies and maintains citations to independent sources. WSWA’s data comes from an non-independent source and it provides no citations to independent third-parties. If transparency and independence is crucial in a study’s credibility and reliability, then we must question WSWA’s results and conclusions. Another interesting point to note, WSWA tried to diminish VinoShipper’s study being stating that “What Gray and Harrison fail to mention is that these 1.05 million shipments are a drop in the bucket (only 2%) of the total 41 million-plus DTC wine shipments nationwide, according to the Sovos 2023 Direct-to-Consumer Shipping Report.[1]” If 2% is so small to make a study uncredible, then I think WSWA has just questioned the efficacy of its own study. WSWA claims it contacted 2,200 U.S. adults. According to the U.S. Census Bureau in 2020 there were 258.3 million adults in the U.S.[2] WSWA’s surveyed number represents .00085% of the population. Maybe WSWA should put an asterisk around its own study. Why this study is so harmful We can dismiss the methodology and the conclusion it raises; however, we should not dismiss the harm the study will cause. Many legislators do not know liquor issues well, they are inundated with numerous subject matters, and often times learn the issue from a well-paid lobbyist. We should learn from Wisconsin that a DTC open state can become a DTC closed state through effective lobbying and the stroke of a pen. This study will no doubt be used as propaganda and passed out to unknowing legislators as the gospel on the impact of DTC shipping. Further, attacks on DTC access for producers could not come at a worse time. Alcohol manufacturers experienced their worst year since 1991.[3] DTC access for manufacturers opens up sales and expands markets that otherwise would not become available. Since Granholm the number of wineries in America has doubled and DTC shipping has led to growth. For the spirits industry the lack of DTC shipping options is hurting growth potential. A niche distillery in Oregon may have a cult following across the country. Suppose this demand is for 10 cases in a state. The volume is not enough to make it profitable for the in-state wholesaler to take on this distillery. However, the distillery could expand its brand and sales and develop the market through DTC sales. Without DTC access the distillery is losing sales and potential growing market share. Conclusion Minor access to alcohol and DTC shipping are serious issues and should be addressed. Nobody wants to see minors getting access to alcohol, but providing suspect studies on DTC shipping and ignoring in this study, the failures of brick-and-mortar stores on selling to minors, is irresponsible and does not serve a greater purpose. Further, trying to shut down DTC markets, which provide a market to grow for suppliers that a wholesaler will not take on, is harmful. Especially when our liquor industry is going through tough days, advocating to shut off markets through suspect studies will only harm an industry that is suffering a downturn. [1] https://www.wswa.org/news/wswa-responds-recent-stories-efficacy-dtc-alcohol-shipping [2] https://www.census.gov/library/stories/2021/08/united-states-adult-population-grew-faster-than-nations-total-population-from-2010-to-2020.html#:~:text=Population Under Age 18 Declined Last Decade&text=In 2020%2C the U.S. Census,from 234.6 million in 2010. [3] https://www.wine-searcher.com/m/2024/01/us-alcohol-industrys-worst-year-since-1991

As South Korean culture grows increasingly popular, top bartenders are reaching for the country’s best-known spirit to amp up drinks. Source: https://www.bloomberg.com/ March 6, 2024 When Uno Jang was growing up in South Korea, his go-to drink was the soju bomb—a shot glass of soju dropped into a large beer mug and then chugged. Now, as creative director at Jigger & Pony in Singapore (No. 14 on the World’s 50 Best Bars list), Jang has updated his old standby. The Korean Boilermaker is made by mixing hop-infused craft soju with carbonated mineral water, a splash of rye whiskey, pear eau de vie and passion fruit syrup. The cocktail is served with an L-shaped cocktail stir that raises and lowers a large, rectangular ice cube to produce the frothy head of a freshly drawn beer. It’s one of the most popular drinks on Jigger & Pony’s menu. Soju is experiencing surging demand at top bars and restaurants around the world. The oft-maligned Korean spirit is typically derived from fermented rice but can be made from such other grains as wheat, barley and corn—or starches like sweet potato—with an average ABV of 20%. Unlike the most available brands, which have a neutral, grain alcohol taste, finely-crafted sojus often show savory notes like those of mushroom and hazelnut. The spirit is best known for the artificially flavored, sweetened versions invariably produced by South Korea’s largest soju producer, Jinro, whose green bottles litter many a late-night karaoke room. Jinro doesn’t just dominate the soju market, it’s the world’s top liquor brand. Parent HiteJinro Co. took in approximately $1.13 billion in revenue from soju in 2022. That year, Jinro became the first liquor brand to sell more than 100 million cases, up from 65.3 million a decade ago. The Korean Boilermaker at Jigger & Pony in Singapore was inspired by soju bombs.Photographer: Lauryn Ishak Jinro’s dominance resulted from decades of austerity in rice production and distribution that made it difficult to produce quality soju. In 1965, South Korea’s government banned the use of rice in alcohol production in response to widespread famine following the Korean War. The regulatory hurdle came as a blessing in disguise for large companies such as Jinro and Lotte Corp., leading them to mass-produce the spirit with ethanol-based distillates made from cheap commodity starches like tapioca and sweet potato. The move away from traditional, small-batch products spurred creation of a commoditized soju for mass consumption. Now, craft distilleries such as Tokki, whose Black Label soju features in Jang’s boilermaker, are reaping the rewards of increased cocktail bar demand by returning to more artisanal production methods and ingredients such as rice and nuruk—the traditional Korean fermentation starter used for alcohol—to produce higher-quality spirit. “The influence of K-pop and K-culture amplifies interest in Korean products like soju,” says Jang. “It attracts a more global audience eager to explore all facets of Korean lifestyle.” The skyrocketing popularity of Korean cuisine, from kimchi to barbecue to fried chicken, has also created a halo effect for Korean spirits. Tokki Soju was founded in Brooklyn, New York, in 2014 by Brandon Hill, who with Chief Executive Officer Douglas Park moved operations to Chungju, Korea, in 2020. The company has enjoyed a 90% compound annual growth rate over the past seven years and in one year nearly doubled its production, from 29,000 cases in 2022 to 54,000 cases in 2023. It sells 375 ml and 750 ml bottles for prices that range from about $25 to $60. Its products feature at seven of the World’s 50 Best Bars, including New York’s Double Chicken Please (No. 2) and Overstory (No. 17) and at Argo in Hong Kong (No. 34). Coqodaq, Manhattan’s new Korean fried chicken hotspot, features Tokki Black Label in the Amondeu, a soju-accented riff on the traditionally gin-based Army & Navy. “Different sojus can be used flexibly as either neutral lower-ABV spirits or higher-proof grain-forward spirits that truly stand out in cocktails,” says Sondre Kasin, principal bartender of Coqodaq’s parent company, Gracious Hospitality. As former bartenders, Tokki’s Hill and Park see value in promoting their brand at high-profile cocktail venues. “Our strategy has always been to target the top-tiered restaurants and bars,” says Park. An additional label winning attention in the US is a collaboration between Brooklyn’s Hana Makgeolli, which makes premium-quality fermented rice wine, and Matchbook Distilling Co. in Greenport, New York. Hana Soju 60 ($60 for 375 ml) is made with nuruk and distilled at 60% ABV—more than triple that of most green-bottle sojus—bringing out the spirit’s bright, floral character. Released in December, it’s served at top Korean restaurants, including New York’s Atomix and Baroo in Los Angeles. Alice Jun, Hana Makgeolli’s co-founder, says she plans to expand brewing capacity in the spring and to begin exporting by yearend. Boutique importers are meeting demand from restaurant and cocktail bars by bringing more craft soju from Korea. KMS Imports, a New York-based outfit that has specialized in small-batch soju since it was established in 2020, has doubled its number of producers to build a portfolio of 20 distinct craft products in less than four years—impressive growth, given that demand among Americans was long confined to a niche. After founder Kyungmoon Kim began importing Won Soju, a brand founded by K-pop artist Jay Park in 2022, his company doubled its annual revenue. “The $3 billion soju market globally is not real soju,” says Hana Makgeolli’s Jun. “Soju as a spirit, as a craft, has the depth to compete against Japanese craft spirits, whiskey, tequila or so many different types of spirit categories from all around the world.” Hwasim Jujo, an up-and-coming distillery located about an hour outside Seoul, is collaborating with Zest (at No. 18, Korea’s highest-ranked bar on the World’s Best list) to develop a private-label soju that incorporates the bar’s zero-waste philosophy: Spent garnishes such as rosemary sprigs are used in production. Noah Kwon, Zest’s co-founder, says the team plans to debut a sustainable milk-washed cocktail with Hwasim’s smoked rice soju; “Almost 70%” will be flavored with repurposed fish bones, green tea and vinegar. For its part, Tokki has been broadening its portfolio of artisanal sojus to include higher-end expressions. Among them is a premium soju finished in Pedro Jiménez sherry casks and priced at $60, more than twice that of Tokki’s entry-level White Label soju. The company believes the biggest growth opportunity for craft soju lies in major cities where cocktail culture is flourishing. “We want it to get to a point where you don’t even think of it as Korean anymore,” says Tokki’s Hill. “When you think of vodka, you don’t think ‘Eastern European’ anymore. That’s just something that’s at a bar.”

Source: https://www.buckeyeinstitute.org/ John Ream, March 6, 2024 John Ream owns and operates Trek Brewing Company in Newark. He is represented by The Buckeye Institute in Ream v. U.S. Department of Treasury. Benjamin Franklin may not have actually said it, but T-shirts do: "Beer is evidence that God loves us and wants us to be happy." My wife agreed with this sentiment and bought me a home brewing kit almost 16 years ago. I have been happily brewing away ever since. What started as a little hobby in my garage soon turned into my own American dream — Trek Brewing Company — that we have owned and operated as a family business and gathering place in Newark since 2017. Trek isn’t just a business though. Through our Trek Together Community Fund, we help fund and support other local organizations and do our best to make our community a better place to live and work. We have built a business we are really proud of, and I like to think our establishment offers just the sort of place and pint Dr. Franklin would have enjoyed if he ever found himself in our neighborhood. Why am I suing the government Beer is not the only drink I appreciate though. Professionally, I am an engineer by formal training and have extensively researched and studied the art and craft of distilling, specifically whiskey, and more specifically domestic ryes and bourbons. There are new flavors and combinations that I would like to explore — responsibly, of course — with a small-batch home distillery for my own personal consumption and curiosity. I do not want to sell the whiskey I would make, but I would like to taste it and see how I do at it. Unfortunately, I can’t. At least not legally. Federal law prohibits me from distilling any spirits or “hard alcohols” at home, in the shed, out in my garage, or on the back porch, etc. Breaking this law is a felony that could earn me five years in prison and a $10,000 fine. I will not break the law. But I will challenge it in federal court. With the assistance of some capable lawyers at The Buckeye Institute in Columbus, I have taken legal action against Uncle Sam. This is about more than whiskey The legal argument here is quite simple: the Constitution gives Congress a lot of power, but it does not include the power to criminalize distilling alcohol in my own garage. If Congress can prohibit me from home distilling, what is to stop it from banning home bread baking, vegetable gardening, fixing up the family Ford in the driveway, and practically anything else? Congress is abusing its power to “regulate interstate commerce.” I don’t want to sell what I distill to my neighbors, let alone across state lines. What I am proposing to do is neither interstate nor commerce. The federal government shouldn’t be allowed to have this level of intrusion into my home and hobbies. It is absurd that I can legally brew beer at home—and ultimately turn my craft into a business—but I dare not distill an ounce of whiskey for my own personal consumption. You don’t have to be as smart as Benjamin Franklin to understand how ridiculous this federal regulation is. John Ream owns and operates Trek Brewing Company in Newark. He is represented by The Buckeye Institute in Ream v. U.S. Department of Treasury.

SAN DIEGO – Devil’s Cask was named the grand winner of the Distilled Spirits Council’s (DISCUS) Innovation Showcase competition during the awards presentation at the 2024 DISCUS annual conference in San Diego. As part of the awards ceremony, Devil’s Cask’s President and CEO Jeremy Grunewald and teammates showcased the company’s SpiritLock Technology, a fluid vapor barrier that can be applied to the exterior surface of wooden casks used in the maturation process of barrel-aged spirits. This functions to reduce the evaporation of ethanol and water vapors from escaping out of the cask, decreasing angels’ share and barrel leaks. Importantly, this process occurs without affecting the flavor profile of the maturing spirit. Tapi USA took second place for its innovative bottle closures made from reused sawdust waste. Leah Hutchinson, Tapi’s regional sales manager, accepted the award for the new closure product that allows for the reduction of virgin plastic in the company’s plastic heads by 30% by utilizing a sawdust by-product collected in-house. So far, more than 10 million pieces of sawdust closures have been produced, saving more than 37 tons of plastic. Not only do Tapi’s sawdust closures reduce overall carbon dioxide emissions, but the texture, color and design are completely customizable. Third place was awarded to Southern Glazer’s Wine and Spirits (SGWS), for its clean energy approach to delivering wine and spirits. SGWS Vice President of Operations Mark Koslow accepted the award for how SGWS utilizes electric vehicles fitted with an electric reefer system and reusable insulated boxes for transportation and delivery of products. The electric reefer system maintains optimal temperatures for the wine and spirits while the reusable insulated boxes cut down on single-use packaging typically used for safe transportation of delicate bottles. “Every year we are amazed and inspired by the groundbreaking innovations presented by companies across the spirits industry,” said Chris Swonger, president and CEO of DISCUS and Responsibility.org. “The 2024 nominees were no exception, demonstrating how cutting-edge technology and a commitment to sustainability can converge to create industry innovation and positive change. “ Nine finalists were selected to compete in the Innovation Showcase sponsored by DISCUS partner member The Spearhead Group. The finalists were chosen out of more than 32 submissions in categories spanning from spirits packaging, technology, supply chain, sustainability, marketing, structure, responsibility and product development. Other finalists included Vigate, Elephant Amaro, Arbikie, Marabu, Dexter Bourbon and NINA. Prior to the conference, each finalist had 15 minutes to present as part of a live virtual competition their innovation in front of a panel of judges who scored the innovation based on its concept, value, scalability and demonstrated impact. The judges were Brian Christensen, editor and publisher at Artisan Spirit Magazine; Steve Brown, vice president of commercial finance at Pronghorn; Samantha (Sam) Montgomery, chief operations officer at Kentucky Straight Ice; and April Wachtel, founder of Cheeky Cocktails The first-, second- and third-place winners received prize packages ranging in value from $5,000 to $20,000 including a $10,000 cash prize for the showcase winner. “The Innovation Showcase always aims to applaud remarkable products that are set to shape the distilling landscape and ignite a fresh wave of inspiration,” said the Spearhead Group CEO Heather Fritzsche, who presented the awards today at the conference. “It is a privilege to acknowledge the innovative thinkers transforming the spirits industry, with a dedicated commitment to prioritizing sustainability in their efforts.” An image of the winner can be downloaded here.

Source: TTB March 3, 2024 This week, as announced in Notice No. 232, we held two virtual listening sessions to receive input from the public on labeling of wine, distilled spirits, and malt beverages to disclose per-serving alcohol and nutritional information, major food allergens, and/or ingredients. These listening sessions were intended to engage the public, including consumers, public health stakeholders, and industry members of all sizes, and facilitate the public’s ability to provide input to inform rulemaking. If you did not have the opportunity to speak at one of the listening sessions, or if you were a speaker and have additional comments, we encourage you to submit a written comment to the docket. Written comments may be submitted electronically or via postal mail and must be submitted or postmarked by 11:59 p.m. ET, March 29, 2024, using the instructions provided in Notice No. 232. To view all documents and comments related to this notice, see Docket No. TTB-2024-0002 at Regulations.gov.

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American Distilling Institute has submitted a letter of support on the CA Legislation website: https://calegislation.lc.ca.gov/Advocates/faces/index.xhtml

MARTIN PURVIS FEB 25, 2024 The following article digs into the recent US spirits consumption data released in the excellent DISCUS (Distilled Spirits Council of the US) report. It contains incredible data for 2023 and compares against the high bar of 2022. We wanted to look at this in detail as it has gained very few headlines in the drinks industry press. https://commercialspiritsintelligence.substack.com/p/us-spirits-consumption-drinking-in

https://www.fox9.com/news/alcohol-spirits-home-distilling-in-minnesota-could-become-legal ST. PAUL, Minn. (FOX 9) - Minnesotans are allowed to brew wine and beer at home, and following the legalization of recreational marijuana, can even grow a limited amount of plants for personal use. But a new bill being considered in the Minnesota Senate would add distilled spirits to the list of things you can make at home without a license.

Emails find OHA intentionally hid a publicly funded study when it concluded alcohol taxes don’t curb excessive drinking, then lied about outside lobbyist’s involvement Source: Oregon Beverage Alliance February 25, 2024 Today, the Oregonian followed up on its investigation into the Oregon Health Authority withholding a publicly funded report that contradicted its position on alcohol tax increases. The Oregonian found OHA lied as recently as Feb. 2, 2024, in a letter to state Sen. Tim Knopp about the entire debacle, saying the report was not shared with “partners or special interests prior to its posting” on Jan. 25, 2024. Yet OHA emails obtained through public records requests show after several OHA officials received the final report in 2021, they asked Oregon Recovers’ Mike Marshall for his input on how to proceed while he and the agency continued lobbying for higher alcohol taxes with the Governor and state legislature. Emails show an outside lobbyist paid to advocate for higher alcohol taxes, Oregon Recovers’ Mike Marshall, was weighing in on what should have been government agency edits and decisions around the report. OHA also appears to strongarm ECONorthwest, the economic research firm it hired to draft the report, pushing them to never publicly link to the final report as is standard practice, and instead only making public an interim report without the tax policy findings. “The emails confirm what many suspected – the Oregon Health Authority is using taxpayer dollars to deliberately mislead the legislature and public. The Oregon Health Authority and its employees have been significantly compromised,” said the Oregon Beverage Alliance. “This is outrageous and we demand answers and accountability.” OHA officials also lied to the media and members of the Legislature’s Task Force on Alcohol Pricing and Addiction Services chaired by Rep. Tawna Sanchez. Edits of OHA’s summary to accompany the report continued for six months after the final report was given to OHA, proving the report wasn’t forgotten about during the chaos of COVID as claimed by OHA officials at the Feb. 1, 2024, Task Force on Alcohol Pricing and Addiction Services meeting. The task force is slated to hear from that same OHA official, as well as an ECONorthwest economist who worked on the report, on Feb. 23, 2024. “Oregonians should be extremely skeptical of information the Oregon Health Authority provides. We expect truth and ethical conduct from the Oregon Health Authority – a public health agency,” said the Oregon Beverage Alliance. “Oregon Health Authority has fallen short of that public expectation.” Lawmakers are growing increasingly frustrated with OHA as it fails to address a fentanyl drug addiction crisis and roll out Measure 110 funding. Recent reports show massive disfunction at OHA. Despite receiving more than $1 billion more to spend on mental health and drug addiction and recovery services, OHA has spent almost nothing over the past three years despite having dozens of shovel ready project funding requests. Alcohol is the third largest source of revenue for the state, yet only 3% of that revenue goes toward funding mental health and drug addiction recovery and treatment. https://www.oregon.gov/oha/PH/PREVENTIONWELLNESS/excessivealcoholuse/Documents/OHA-Alcohol-Harms-FINAL.pdf

Source: https://irishliquorlawyer.com/ Wisconsin adopted an Amendment SB 268, the bill which set out to shut off DTC shipping into the State of Wisconsin. Under the Amendment, the language changes from shall revoke a common carrier permit to may revoke a common carrier permit. The language’s impact changes it from a mandatory revocation of a permit after two mistakes to providing the division discretion to consider the impact of revoking a common carrier’s permit. Further, language was added that if the common carrier engages in repeated and negligent shipping practices involving alcohol, it may have its permit revoked by the department. This is also a change from the previous mandatory language, which provided the division no discretion by law over the process. Finally, the amendment changes reporting requirements from type and quantity weight of alcohol beverages to the weight of alcohol beverages. This alleviates a terrible reporting burden for common carriers and shippers This is a positive change, but I would have liked to see a knowingly standard, the negligent standard is a low barrier to revoke a common carrier permit, but at least it is no longer mandatory and the State liquor authority which knows more than the legislature about liquor issues will be deciding these issues at its own discretion.

ANNAPOLIS – The Distilled Spirits Council (DISCUS) and Maryland distillers submitted testimony to the House Ways and Means Committee today in favor of HB663, a bill to reduce the tax rate for spirits ready-to-drink cocktails (RTDs). “There is no reason our small distilleries should be forced to pay more than our competitors for products with the same or similar alcohol content,” said Monica Pearce, founder of Tenth Ward Distilling Company in Frederick, MD. “As constituents who contribute to our state’s economy, pay local taxes and are negatively impacted by this unfair tax, we ask the Maryland Legislature to hear our voice. Creating a more equal tax rate for equal alcohol content just makes sense.” Under the proposed bill, the tax rate on spirits RTDs would be reduced from the current rate of $1.50/gallon to $0.40/gallon. Andy Deloney, DISCUS senior vice president and head of state public policy, pointed out in his testimony that the RTD category has transformed over the past several years with a wide array of options from malt-based hard seltzers, wine-based flavored spritzers or canned/pre-mixed cocktails. “Unfortunately, Maryland spirits producers pay much higher taxes to produce a spirits-based RTD product even if the product has the exact same or similar alcohol content as a malt-, sugar- or wine-based RTD,” said Deloney. “For example, at five percent alcohol-by-volume, the Maryland tax rate on spirits-based RTDs is about 17 times the rate paid for a malt-based RTD or beer product. That’s not right and it’s hurting Maryland’s distilled spirits industry.” Deloney also noted that the Maryland Department of Health’s definition of alcohol clearly states that a 12-ounce bottle of beer or wine cooler, a 5-ounce glass of wine or 1.5 ounces of 80-proof distilled spirits all contain the same amount of alcohol. “To suggest by statement or policy that some forms of alcohol are ‘safer’ than others sends a dangerous message when science has recognized for decades that standard servings of distilled spirits, beer and wine contain the same amount of alcohol,” said Deloney. “This is a critical aspect of responsible consumption.” Maryland is one of many states taking a closer look at RTD products to ensure spirits-based RTDs are being taxed fairly and that consumers have equal access to them in the marketplace. Twenty-five states already have lower tax rates for lower-abv spirits-based products. Deloney concluded his testimony by stating, “The spirits industry has been leading beverage alcohol product innovation for nearly two decades. Today, it is a major contributor to the state of Maryland, generating nearly $2.3 billion in economic activity and $292 million to local communities and the state in taxes. Adoption of House Bill 663 will continue to support this growth and expand upon the thousands of industry jobs across the state.”

Sunday Feb 25, 6:00 PM Ophelia's Electric Soapbox, Denver, CO Rob and Heather Masters got hit with the ultimate double-cancer whammy this year so we are pulling out all the stops to bring family and friends together to shower them with love, raise funds to help them through these challenging times and join together to tell cancer to go fuck itself! Event Details: https://robandheathersbash.com/ Silent Auction: https://www.32auctions.com/organizations/116976/auctions/158628

Source: https://www.thespiritsbusiness.com/ By Nicola Carruthers February 19, 2024 Oregon-based producer Thinking Tree Spirits has been acquired by Heritage Distilling Company (HDC) for an undisclosed sum. The deal will see HDC own 100% of the Thinking Tree assets and brands, which includes Gifted Gin, Main Stage Vodka, Whiteaker Rum and Butterfly Lavender Pea Vodka. The acquisition will see Thinking Tree merge with HDC, resulting in a combined entity of two spirits production facilities (one in Washington and one in Oregon), five retail tasting rooms, a joint online direct-to-consumer presence and distribution across the Pacific Northwest and in new states in the Midwest. HDC CEO and co-founder Justin Stiefel said the company was approached by Thinking Tree last year to discuss a potential acquisition. He continued: “After careful consideration and a review of the synergies we could achieve together, it became apparent the combination of these two Eugene companies – Heritage Distilling and Thinking Tree – could continue to tell the story of Thinking Tree’s amazing products and brand that have been purposefully developed over the last decade in a bigger and more efficient way moving forward. “Consumers in the Oregon market who have come to love Thinking Tree’s spirits, tasting room experience and energetic vibe will continue to experience that moving forward as we intend to honour the passion that has been poured into the making of the brand while we work to grow it.” Thinking Tree Spirits was founded in Eugene, Oregon, in 2014 by Emily Jensen, Bryan Jensen and Kaylon McAlister. ‘Ultimate potential’ “It became apparent to us and our shareholders that if we wanted Thinking Tree to grow to its ultimate potential, we needed to add authentic craft scale in a way that has not yet been done in the craft spirits space,” Emily Jensen explained. “This meant finding a partner as focused on quality and purposeful spirits, and driving culture and connection amongst their communities as we have been; a partner who understood how Thinking Tree’s products should fit in a world of the growing craft spirits’ landscape. “The exploding craft distilling movement has never been in a more exciting moment, and we know Heritage Distilling is the best partner to help enable our continued growth.” Heritage plans to move its tasting room activities, samplings, drinks service and its Cask Club programme at 110 Madison in Eugene’s Whiteaker District to the existing Thinking Tree building nearby. This would result in a much larger co-branded retail tasting room and event space. Thinking Tree’s production will be moved and combined with Heritage’s production at the 110 Madison location, which would enable the Thinking Tree brands to grow more efficiently, HDC said. HDC will continue to produce and distribute its current brands. Both the facility move and tasting room expansion are expected to be completed by the weekend of Memorial Day (27 May) 2024. Several Thinking Tree workers will be employed by Heritage following the deal. In August last year, HDC teamed up with Tonto Apache Tribe to create a distillery and tasting room next to the Mazatzal Hotel and Casino in Arizona, US.

https://www.spotfund.com/story/9920c9d3-4d3a-421a-a1e4-13cf039401c2 As Heather and Rob both fight cancer, let's work together to reduce their burdens and support their healing! Funds will be used to cover medical expenses, lost earnings, and to provide things they need to support Henrik, provide comfort, or make their lives a little easier.