Erik Owens

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.

Source: https://longisland.news12.com/

February 17, 2024

Gov. Kathy Hochul is pushing to convert a pandemic-era policy into a permanent one.

If the Legislature sides with the governor, New York will become the 21st state in the nation that would allow to-go cocktails.

It's an effort to provide some extra income to restaurants that never fully recovered from the pandemic.

"As a business owner, you're going to take the position, of alright its another revenue stream, another way to make money," said Scott Fratangelo, a restaurant owner.

And in this Amazon world, where convenience is everything, they can provide another service to their clientele.

"That's where I think we win," said Fratangelo.

Fratangelo is the owner of L'inizio in Ardsley. He says despite the bump in business he may end up seeing as a result, he struggles with cheering this effort on.

"You have people that own wine and spirit shops and you're not looking to hurt anybody. They're not selling food we are, they're selling only spirits and now were dipping into their spirit game," he said.

This includes people like Tony Russo, owner of Aries Wines and Spirits in White Plains.

"We understand their plight just like we hope people understand our plight. We're small businesses, we're the rock of the community," said Russo.

Russo says this new law would amount to losing a few sales here and there, he's not so concerned. But he is concerned that restaurants will turn into liquor stores.

"If someone wants to buy a to-go drink with their chicken parm that's what this is supposed to do, not to allow them to sell a full bottle of tequila," he said.

That, he says, would be extremely detrimental to his business .

Mothers Against Drunk Driving of Westchester representative Carole Sears says this makes drinking and driving a whole lot easier.

"As long as it is sold to people who are 21 or over and that it is well sealed and put into the trunk or the back of the car wherever it is that the driver cannot reach it," she said.

Gov. Hochul says she hopes to make this law permanent in this year's budget which will be finalized in March.

Source: https://www.thespiritsbusiness.com/

By Bill Linnane

February 19, 2024

This feature was originally published in the September 2023 issue of The Spirits Business magazine.

Irish whiskey faces a challenge to capitalise on its recent growth, while deciding the correct price point to place its products at.

On 4 September 2013, Irish Distillers Limited (IDL) threw a party. The company, formed in 1966 when the three remaining distilleries left operational in the Republic of Ireland amalgamated, invited business leaders, the media, and state dignitaries to its distillery in Midleton, County Cork, to mark the launch of a €100 million (US$109m) expansion. But The Housewarming, as the event was billed, was about more than showing off an expanded distillery, or celebrating the incredible success of Jameson. It was a message to the world that Irish whiskey was back.

IDL – a member of the Pernod Ricard group since 1988 – had a lot to celebrate. The previous year had seen Jameson cap off 23 years of successive growth by reaching the milestone figure of four million nine-litre cases sold, with more than a quarter of that figure being sold in the US alone (in 1988, when Pernod bought IDL, Jameson sold 466,000 cases globally, with Ireland as its main market). In 2013 a company filing by Pernod Ricard valued IDL at €1.68 billion (US$1.83bn), as IDL went from plucky underdog to one of the French drinks group’s top performers.

A decade of growth

In the 10 years since The Housewarming, the island of Ireland has gone from having just four distilleries – Bushmills, Midleton, Dingle, and Cooley – to 45 in operation, with more moving through the planning and building processes. The most common expression used in connection with this renaissance is that a rising tide lifts all boats, but in the case of the Irish whiskey category, Jameson is not so much a boat as it is the tide itself. It sold 10m cases for the first time in the year to 30 June 2022, and is now a top-three global whiskey brand, and a top-eight global spirits brand, according to the IWSR’s 2022 report.

Its triumph in the past two decades has been largely built in the US, where its easygoing accessible identity resonated with consumers (helped by 32 million Americans self-identifying as Irish-American, according to the US census). Brendan Buckley, global marketing director with Irish Distillers, says the US’s thirst for Irish whiskey is not sated: “We believe there is still plenty of room to grow not just our brands, but Irish whiskey in general in this market.”

According to Buckley, IDL is also breaking into new regions: “For example, in 2014 we decided to focus on Nigeria. Today we are selling well over 200,000 cases of Jameson in this market, and it is the third-largest market for Jameson Black Barrel in the world.”

Luxury bottlings

He points out that in the past, Irish whiskey underperformed at the super-premium level compared with Scotch. But he says in recent years things have moved on considerably, with the launch of aged and rare whiskeys, such as the ultra-high-end Midleton Very Rare Silent Distillery Collection. It is Ireland’s oldest whiskey collection, which retailed for €35,000 to €45,000 (US$38,235-US$49,160). He says: “Figures from Discus (Distilled Spirits Council of the US) show that more and more consumers are turning to Irish whiskey as their luxury whisky of choice in the US. Since 2003, high-end premium and super-premium Irish whiskey grew by a staggering 1,053% and 2,769% respectively.”

Mark Reynier, the founder of Waterford Distillery, and former owner of Bruichladdich, says Irish whiskey now needs to look to life beyond Jameson: “One needs to differentiate between Pernod Ricard and everyone else. While they have done an amazing job – there can’t be a bar in the world that doesn’t have Jameson – they have rather defined what Irish whiskey is. That’s what happens when one has a monopoly for nigh on 20 years. The company has single-handedly shaped the entire category, technical file and all. That leaves opportunities for alternative, more independent takes, and premiumisation.”

It’s a sentiment echoed by Louise McGuane, who spent decades working in the luxury spirits sector before moving home to rural County Clare, where she built a maturation warehouse on her family farm, and single-handedly resurrected the old Irish tradition of whiskey bonding. In 2019, just four years after she founded her JJ Corry whiskey brand, she released The Chosen – a 27-year-old Irish single malt with a price tag of €6,000.

McGuane says that while Irish whiskey has triumphed as the everyday approachable drink, it needs higher aspirations to ensure the category is as complete and robust as that of other world spirits. “The ultra-premium and luxury subcategories are wholly under-served at the moment, and as consumers learn that the quality and rarity of Irish matches that of Scotch and Japanese, we will see demand rocket from a base of almost zero today.”

Glorious resurrection

That zero baseline is also part of what McGuane sees as the reason for the growth in Irish whiskey, that this glorious resurrection is as much about market correction as anything. But she warns that Irish whiskey now needs to evolve: “The threat could be that the bigger players continue to focus on the lower end of the shelf and establish Irish as a whiskey for ‘release’ rather than ‘discernment’. If consumers in new markets like China become accustomed to Irish being low end it will be hard to break that mindset, which is what we are seeing to some degree in the US today.”

Hyde Whiskey has a range of diverse whiskeys that can be found on shelves in Asia. Founder Conor Hyde says: “Asia is all about whiskey quality, taste consistency, and business relationship development. Hyde is exporting to more than 75 markets worldwide, and Asia is our fastest-growing region right now.”

He says the surge of Irish whiskey brands trying to break the US has created a logjam in some states: “America is a very difficult market for any new Irish whiskey brand to enter, yet it is where they all head first off because it accounts for 38% of global Irish whiskey sales. What is not widely spoken about is the fact that 95-plus per cent of all Irish whiskey sales in the US market are made up by just the top five Irish whiskey brands. That leaves over 200 other smaller Irish whiskey brands slogging it out for the remaining 5% market share.

“Far too many new Irish whiskey brands are entering the US market at a relatively high US$50-plus retail price point on shelf. This is not working as it is far too expensive. I see these brand bottles just gathering dust on the shelf in every state I travel to. The reality is you have to be below the US$35 price point on shelf in the US market to move any significant volumes on a consistent basis. Anything above US$40 is special occasion territory only.”

Biggest threat

For David Boyd-Armstrong of Rademon Estate Distillery in Northern Ireland, this paradigm of Irish whiskey being perceived as very affordable, while being expensive for newcomers to produce, is something newer distilleries like his have to battle against. He says: “The biggest threat is the point at which buyers believe they can buy Irish whiskey at. As the newer distilleries begin to release their own stock the cost of liquid will rise, and they can’t supply at the pricing of the more macro-scaled distilleries.”

For other newcomers, the path to success does not always lead west. As one of the newest distilleries to open on the island of Ireland, Ahascragh Distillery is a thoroughly modern endeavour. Built in a renovated mill in east Galway, it aims to distil some of the first zero-emissions spirits in Ireland. Also, despite being on the west coast of the country, with the US right across the Atlantic, its focus is eastward, towards Asia, where founder Gareth McAllister worked for many years. He says: “You cannot ignore Asia. There are 83 cities in the world with populations greater than Ireland. Seven out of the top 10 cities by population are in Asia. Four out of the top five are Asian. Tokyo alone has a population of 37 million people. By 2030, 66% of the world’s middle class will be in Asia. It is really a no-brainer, and a huge opportunity for the Irish whiskey category.”

Asian market

John O’Connell of West Cork Distillers, one of the largest independent distilleries, says that although the Asian market is ripe for exploration, the real lack of an age-declared subcategory of Irish whiskey will threaten growth there. He also sees plenty of room in the US for the category: “Irish whiskey only accounts for circa 7% of total whiskey case sales in the US, and there are many states where Irish whiskey is not even on the radar.”

Tullamore Dew, owned by William Grant & Sons, opened a €35m distillery in Tullamore in 2014, and its sales are second to Jameson in the category. According to global brand ambassador John Quinn, this success is down firstly to the approachable taste of Irish whiskey, but also to the hard work and huge investment by larger drinks firms. He says: “We still need to remember that being Irish is not enough, we need to spend a lot of money talking to and attracting consumers. Where any Irish brands have been successful you’ll find a history of significant investment over a long period of time. Consumers don’t change their whiskey preference without good reason. But if you get a consumer to love your whiskey there’s a good chance they’ll love it for life.”

Peter Mulryan of Blackwater Distillery went from being a journalist and author to running one of Ireland’s more experimental distilleries, playing with historic mashbills, and fighting for changes to the state definition of Irish single pot still whiskey.

He points out that money alone is not enough in breaking new markets, or even winning hearts and minds in the US. He uses Bushmills Distillery in Northern Ireland as an example of how strategy is as important as funding. Once part of the Pernod Ricard IDL stable, it was sold to Diageo in 2005 for €298m. In 2014 Diageo traded Bushmills to Jose Cuervo as part of a deal to acquire full control of Tequila Don Julio and US$408m in cash. Since the Mexican drinks giant took control, Bushmills has had a new lease of life. In April this year Bushmills opened its £37m (US$47m) Causeway Distillery, more than doubling the company’s production capacity. In July, accounts filed for the Irish whiskey producer showed its turnover rose by £13m (US$16.5m) to a record £56.2m (US$71.5m) for the 12 months ending 31 December 2022.

Consistent expansion

Donagh McHenry, global brand director at Bushmills, says the company is confident it will grow its single malt share in the years to come. “Beyond core US and European markets, we are seeing healthy momentum in Eastern European markets, exciting early acceleration in India, China, key markets in Asia and Africa, and consistent expansion and growth in global travel retail.”

For the category, the future is bright, and the great Jameson wave continues to roll around the world. Ten years on from The Housewarming, Irish Distillers is building a new distillery alongside the current one in Midleton – a €250m (US$273m) carbon-neutral operation that is expected to be operational by 2025. But for all the positivity, there are still concerns.

The loss of the Russian market hit the category hard, given its position as the third-biggest consumer of Irish whiskey in 2021, importing 716,900 cases, 5.1% of the export market. Brendan Buckley says in May this year Pernod Ricard halted the export of all international brands to Russia. He is unequivocal about the conflict. “From the start of the war, we have utterly condemned the invasion of Ukraine by Russia. Our priority has been protecting our colleagues in the region, providing assistance to our local team members, including direct financial assistance, psychological support, accommodation and employment outside Ukraine for those who required it.”

Beyond international conflicts, there is also the possibility of trade wars and associated tariffs. Cormac Healy, director of trade body Drinks Ireland, says the future is not without concerns: “With over 95% of Irish whiskey being sold in markets outside of the island of Ireland, our industry depends on a supportive global trading environment. Undoubtedly, the growth in export of Irish whiskey has been greatly supported by free trade, however, at the same time there has been a re-emergence of protectionist policies, trade disputes and threats of new tariffs. This and potential supply chain vulnerabilities pose real threats to an export-oriented industry such as Irish whiskey. As an industry, we are ambitious for the future of Irish whiskey. The value of Irish whiskey exports to the all-island economy exceeded €1bn for the first time in 2022. According to the IWSR (Drinks Market Analysis), overall sales of Irish whiskey in 2022 grew by 10.3% from 2021 to 15.245 million cases.

“Having been dominated for so long by sales in Europe and North America, Irish whiskey is recording solid growth in a range of emerging markets such as Africa and Asia. There is so much more growth to be achieved over the next decade.”

Irish single malt whiskey

Irish whiskey continues to find favour both on home soil and overseas. While the category’s pot still styles have created a point of interest among whiskey enthusiasts, single malts are also generating some serious intrigue.

New product development is creating a swathe of interest around Irish single malt whiskeys – and a recent release from The Powerscourt Distillery is adding to the excitement. Back in April, the Irish whiskey producer unveiled a particularly special single malt – the first distilled whiskey from County Wicklow in more than 100 years.

Fercullen single malt Irish whiskeyMade entirely from malted barley and distilled at the Powerscourt Estate, Fercullen Single Malt boasts aromas of toffee, vanilla, baking spices, pears, soft leather, cinnamon and pastry crusts. The palate delivers vanilla custard, soft oak, digestives and tarte tatin, followed by oak spice, more soft leather and stewed fruits.

“The spirit laid down at Powerscourt Distillery in 2018 is of exceptional quality,” commented Paul Corbett, master distiller. “To have the opportunity to blend these liquids and establish the DNA of Fercullen Single Malt has been an honour. I look forward to blending many more releases of Powerscourt Distillery liquid in the coming years.”

With more bottlings like this on the horizon, Irish single malts look set for a bright future.

Is single pot still the next big thing?

Peter Mulryan – founder and CEO, Blackwater Distillery: “Single malt is still the most recognisable style of whiskey. The Scots have created a lot of the whisky language we use and expect to see – from age statements to cask treatments to regionalisation. The nerd buzz about pot still will take time to spread but will be helped by the huge growth in world whiskies. Many of the Scotch whisky tropes are now hindering the Scottish industry, as their drinkers get older and the youth market searches for fresh tastes. New world whisky is now much more of a threat to smaller Irish distilleries than anything coming out of Scotland.”

John O’Connell – founder, West Cork Distillers: “There is strong demand for single malt Irish whiskey but blended Irish whiskey remains the dominant subcategory. The growth of pot still Irish whiskey has been slower than I would have anticipated.”

David Boyd-Armstrong – head distiller, Rademon Estate Distillery: “Single malt will remain the number-one premium category, as that’s what 99% of the consumer understand to be premium. That said, mixed mash bill Irish whiskies such as our Shortcross Rye & Malt and the broader pot still category means the variety of Irish whiskies available is almost infinite. That will bring more people to the category.”

James Doherty – co-founder, Ardara Distillery: “We have work to do on the language around the category, in that pot still as a concept and category is poorly understood and championed, even in Ireland. We need to find a way to communicate the flavour benefits of multigrain distilling and its evolution in Ireland, which I don’t think is done very well yet.”

Louise McGuane – founder, JJ Corry whiskey bonders: “For the average consumer, pot still is simply not understood at all. Pot still has its challenges as it has caught on in the US, with many US distilleries releasing whiskies under that subcategory. This makes it even more difficult to communicate a credible distinction. With the reintroduction of peated Irish, the rise of single and double grain, it will be interesting to see where demand shakes out.”

Mark Reynier – CEO, Waterford Distillery: “Cunningly appropriating, from under the Scots’ nose, an inanimate copper object for the title of an entire whisky category already creates a certain level of confusion: every single malt, whether Scottish or Irish (and almost everywhere else) is, by law, distilled in a pot still. The increasing genuine diversity of Irish whiskey, away from the handful of ubiquitous suppliers to date, as new smaller distilleries come on stream, can only add to the Irish whisky revolution. This is exciting.”

Source: https://www.law360.com/

February 14, 2024

Alcoholic spirits giant Sazerac Brands LLC hit a Milwaukee-based liquor company with a trademark infringement lawsuit over the branding of coffee-flavored vodka, saying the liquor was sold under its "Grind" mark without authorization.

In Friday's complaint, Sazerac alleged that Wisconsin's Central Standard is selling its coffee vodka under the name "Daily Grind," which infringes Sazerac's registered "Grind" mark, under which it sells its espresso-infused rum.

"Central Standard's Daily Grind is likely to cause massive confusion in the marketplace at every link in the distribution chain from distributors, to retailers, to consumers," the liquor company said in its suit.

Sazerac, which is behind brands such as Southern Comfort and Fireball, told the court that it had been selling its liquor under the "Grind" mark since at least 2010, and has registered the trademark with the U.S. Patent and Trademark office covering alcoholic beverages.

Central Standard knew that, Sazerac said, when it began selling its own branded liquor under the "Daily Grind" name, because Sazerac's "Grind" rum is branded with a trademark registration symbol, and later, Sazerac notified Central Standard that its coffee-flavored vodka was infringing its mark.

Both products are distilled spirits, Sazerac said, and both are labeled with marks that emphasize the capitalized mark "Grind."

To add to the potential for confusion, Sazerac pointed out that both the "Daily Grind" vodka and the "Grind" rum are sold at some of the same third-party stores, bars and grocery stores in Wisconsin, and both have been marketed to consumers to create similar drinks, such as espresso martinis.

Sazerac is asking the Wisconsin federal court to find that Central Standard violated both federal and state trademark infringement and unfair competition laws and award it actual damages and Central Standard's profits from the infringement.

Sazerac is also looking for an injunction blocking Central Standard from further use of the mark, and for all "Daily Grind" products to be taken off shelves and disposed of.

A representative for Central Standard and counsel for Sazerac did not immediately respond to a request for comment Monday.

Sazerac is represented by J. Michael Keyes and Connor J. Hansen of Dorsey & Whitney LLP.

Counsel information for Central Standard was not immediately available Monday.

The case is Sazerac Brands LLC v. Central Standard LLC, case number 2:24-cv-00185, in the U.S. District Court for the Eastern District of Wisconsin.

Source: WSOCTV.com February 4, 2024

Changes are coming to South Carolina liquor laws.

Lawmakers in the Palmetto State are making progress in the legalization of home delivery and Sunday alcohol sales.

Recently, a house judiciary panel passed two bills- one that allows curbside pickup and home delivery of alcohol; the second would allow micro-distilleries to sell alcohol on Sunday.

Neither one of the bills requires any liquor store to open on Sunday, according to our partners at The Rock Hill Herald.

Officials say mom-and-pop liquor stores will be exempt from the $3,000 license fee if they only operate one store.

For Immediate Release: Feb. 7, 2024

Contact: Lisa Hawkins                                                                                                                                  

Distilled Spirits Council Annual Economic Briefing:

WASHINGTON – U.S. spirits revenues maintained its market share lead in 2023 as the sector reset following the robust sales spikes during the pandemic super cycle, the Distilled Spirits Council of the United States (DISCUS) reported today at its annual economic briefing for media and analysts.

In 2023, spirits market share totaled more than 42%, with steady gains over the past 14 years. This represents the second year in a row spirits supplier revenues have surpassed beer. The spirits sector has gained more than 13 points of market share since 2000. Each point represents $890 million in supplier revenue.

“The spirits sector showed resilience in 2023, navigating through the choppy wake of the pandemic and maintaining our market share lead of the total beverage alcohol market,” said DISCUS President and CEO Chris Swonger.  “The phenomenal sales growth we saw during the pandemic was unprecedented and unpredictable but also unsustainable, and now, the spirits market is recalibrating.”

Swonger reported that spirits supplier sales in the United States were flat (0.2%) in 2023 totaling $37.7 billion, while volumes rose 1.2% to 308.8 million 9-liter cases. 

Swonger attributed the challenging sales environment to a number of dynamic market factors including difficult economic conditions with high inflation and interest rates reducing consumer discretionary spending; consumers returning to more normal routines and buying habits post-pandemic; and retailers and wholesalers putting a pause on reordering as they reduced inventory build ups.

U.S. HOSPITALITY INDUSTRY REBOUNDING BUT RECOVERY REMAINS FRAGILE

During the briefing, DISCUS reported that the hospitality industry continues to rebound from the pandemic but that its recovery remains fragile.

U.S. Bureau of Labor statistics show nearly four years later, the hospitality industry's employment has not yet recovered to its pre-pandemic level of nearly 17 million. The hospitality industry added 588,000 jobs in 2023, but it still requires an additional 86,000 jobs to reach the seasonally adjusted employment level recorded in February 2020. 

“The past few years have been tumultuous for hospitality businesses dealing with pandemic closures, supply chain shortages, higher food and input costs, and uncertainty in the economy in general,” said Swonger.  “These businesses continue to battle through ongoing challenges, but their recovery remains fragile. Our message to legislators is clear: hospitality businesses anchor local communities providing much-needed jobs while boosting tourism. These businesses need your continued support, not unnecessary regulations and higher taxes.” 

CONSUMER PREFERENCE FOR HIGH-END TEQUILA/MEZCAL, AMERICAN WHISKEY CONTINUED IN 2023

Presenting an overview of the spirits sales trends in 2023, Christine LoCascio, DISCUS chief, policy, strategy & membership, reported that despite the overall slowdown, the premiumization trend continued for some spirits categories in 2023 including Tequila/Mezcal and American Whiskey.  

DEMAND FOR SPIRITS RTDS REMAINS ROBUST

LoCascio also reported that spirits ready-to-drink (RTD) products continued to grow in popularity in 2023 with sales up 26.8%, representing the fastest growing spirits category by revenue.

Presenter Marten Lodewijks, head of consulting - Americas at IWSR Drinks Market Analysis, presented additional data on the overall RTD category. 

“Despite the hard seltzer craze we witnessed from 2017 to 2021 which was malt-driven, spirits-based products have actually grown faster, just off a smaller base,” said Lodewijks. “Spirits-based products, including the vodka- and tequila-based hard seltzers that entered the picture later, offer consumers a slightly more premium experience, and that has been key to their success over the malt-based alternatives that initially created the category.”

2023 SPIRITS CATEGORY TRENDS:

The top 5 spirits categories by revenue:

• Vodka sales nearly flat totaling $7.2 billion
• Tequila/Mezcal sales up 7.9% or $476 million totaling $6.5 billion
• American Whiskey sales up 3.8% or $192 million totaling $5.3 billion
• Cordials sales nearly flat totaling $2.9 billion
• Premixed cocktails including spirits RTDs up 26.8% or $599 million to $2.8 billion

Fastest growing spirits categories by revenue:

• Premixed cocktails including spirits RTDs up 26.8% or $599 million to $2.8 billion
• Tequila/Mezcal up 7.9% or $476 million to $6.5 billion
• Blended Whiskey up 4.1% or $38 million to $978 million
• American Whiskey up 3.8% or $192 million to $5.3 billion

2023 POLICY WINS & 2024 POLICY PRIORITIES

In the public policy arena, Swonger highlighted a number of important victories in 2023 at the federal and state levels including:

• U.S.-EU agreement to extend the suspension of EU’s retaliatory tariff on American Whiskeys until March 2025
• Seven-day spirits sales in Montana and increased Sunday sales hours in New York
• Cocktails to-go permanency in five new states (bringing permanent states total to 23) and extensions in three states
• Wins on spirits RTDs in three states
• Defeated tax threats in six states
• Retail tastings laws expanded in Arkansas and West Virginia
• Expanded distillery sales and/or tastings opportunities signed into law in Connecticut, Texas and West Virginia

Swonger also outlined DISCUS’ priorities for 2024 including advocating for the permanent suspension of retaliatory tariffs on spirits products; fairer tax treatment and increased retail access for RTD products in the states; defending against hospitality tax threats; and expanding marketplace modernizations including cocktails to-go and direct-to-consumer shipping.

 Promoting Responsibility and Road Safety

Swonger, who also serves as president and CEO of Responsibility.org, underscored the spirits industry’s strong commitment to preventing underage drinking and drunk driving, and encouraging responsible consumption among adults who choose to drink.

He cited Responsibility.org’s leadership in developing programs such as Ask, Listen, Learn for youth and Alcohol 101+ for college students, as well as the continued support for the industry-supported We Don’t Serve Teens campaign. He highlighted the latest federal data showing alcohol consumption and binge drinking among America’s teens is at or near record low levels. 

“As a nation, we continue to make significant progress in reducing underage drinking, but we must also remain vigilant in our efforts to rid our roadways and highways of impaired drivers,” said Swonger.  “After decades of declines in drunk driving fatalities, the latest data show alcohol-impaired driving is on the rise. The spirits industry is fully committed to working with federal and state legislators, policymakers and other concerned stakeholders to reverse this disturbing uptick.”

Swonger pointed to the spirits industry’s advocacy to reduce impaired driving including supporting state legislation mandating ignition interlocks for first-time offenders; advocating for the continued development of impaired driving prevention technology in new vehicles; and Responsibility.org’s leadership role in addressing the growing problem of multiple substance impaired driving through the formation of the National Alliance to Stop Impaired Driving (NASID).

###

SUPPORTING MATERIALS: 

DISCUS Annual Economic Briefing Presentation - 2023

Economic Briefing Support Tables – 2023

The Distilled Spirits Council of the United States is the leading voice and advocate for distilled spirits in the U.S.  

The Alcohol and Tobacco Tax and Trade Bureau (TTB) is announcing 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.  The Department of the Treasury’s February 2022 report on “Competition in the Markets for Beer, Wine, and Spirits” recommended that TTB revive or initiate rulemaking in these areas.  Further, in April 2023, the President signed Executive Order 14094, “Modernizing Regulatory Review,” encouraging agencies to provide opportunities for public participation in regulatory actions. The Office of Management and Budget’s guidance for implementing EO 14094 encourages Federal agencies to solicit comments in non-written formats, such as live webinars or audio recordings, to encourage participation from members of the public who might not otherwise participate in the regulatory process and to use virtual listening sessions to reach people who may be unable to attend in-person sessions.  These listening sessions are 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. 

The notice setting forth the dates and times of the virtual listening sessions, instructions for registration, and a docket for submitting written comments will publish tomorrow (January 31, 2024) in the Federal Register. 

A pre-publication copy is available to the public today on the Federal Register’s Public Inspection page.

Source: https://www.avalara.com/

January 29, 2024

As of January 1, 2024, beverage alcohol producers must have a license to ship alcohol directly to consumers in Alaska.

While direct-to-consumer (DTC) licenses have long been required in most other states that permit DTC shipping, this is a new requirement in Alaska: Beverage alcohol manufacturers could ship to Alaska consumers without a permit prior to 2024.

https://www.avalara.com/blog/en/north-america/2024/01/alaska-dtc-license.html

The Biden administration has identified consolidation among U.S. alcohol distributors as one of the greatest threats to the industry.

Source: https://www.sfchronicle.com/

January 29, 2024

The average American drinker wouldn’t know Southern Glazer’s Wine and Spirits by name. But chances are good that they’ve consumed its beverages, which include top-selling brands like Grey Goose, Smirnoff, Bacardi, Jameson, Patron, Josh Cellars and Meomi.

Southern Glazer’s doesn’t make these products; it distributes them, serving as the middleman between the maker and the seller. The company is not only the country’s largest alcohol distributor, but also the 10th-largest private company in the U.S., according to Forbes.

Critics of Southern Glazer’s have long argued that it’s too large and powerful for the good of the industry. But now, the company is facing a level of heat that appears unprecedented. The Biden administration has raised concerns about its dominance in the market. The Federal Trade Commission has said it’s investigating the company for possible violations of a federal law. The Internal Revenue Service and the Alcohol and Tobacco Tax and Trade Bureau descended on one of the company’s Bay Area offices in what officials described as an “official activity.”

And Southern Glazer’s is now battling an antitrust lawsuit that has the potential to threaten its command of the American alcohol industry, some experts say. If successful, this lawsuit could force Southern “to stop bullying potential competitors,” said Taylor Katzman, the founder and CEO of Provi, the company that brought the lawsuit. (Southern Glazer’s did not respond to a request for comment for this story.)

Provi is an online platform connecting alcohol suppliers, distributors and retailers. A liquor store owner, for example, can use Provi to order from multiple distributors at once, including Southern Glazer’s. Between 2016 and 2021, Southern Glazer’s fulfilled more than 120,000 orders via Provi, worth about $200 million, according to the lawsuit.

But then, Provi’s lawsuit alleges, Southern Glazer’s and its closest competitor, Republic National Distributing Co., began to boycott Provi. They each created online marketplaces similar to Provi, the lawsuit says, and forced their customers to use those proprietary platforms instead. Southern Glazer’s and Republic National “nearly simultaneously” announced that they would no longer accept orders that came through Provi, according to the complaint, and “even blocked emails from Provi” so that any orders placed through Provi would never be completed.

Because Southern Glazer’s controls the distribution of so many “must-have brands,” said Katzman, this boycott “significantly impaired” Provi’s business.

Both Southern Glazer’s and Republic National have denied the allegations in interviews with other publications and have filed a motion to dismiss. A decision on that motion is expected soon from a judge in the U.S. District Court for the Northern District of Illinois Eastern Division.

Legal challenges are nothing new for Southern Glazer’s. Some of the recent lawsuits against the company have alleged it engaged in a pay-to-play scheme in Pennsylvania (for which it paid a $5 million fine); that it processed fake orders in order to drive up sales numbers (that case was dismissed); that it charged customers higher late-payment fees than was legal (for which it paid a $5.5 million settlement).

But Provi’s lawsuit, filed in 2022, shocked Sean O’Leary, an alcohol lawyer in Chicago who is not involved in any litigation with Southern Glazer’s. Cases against Southern Glazer’s often fall apart, he said, because the company has so many resources. Provi’s challenge was unusually formidable: “This is a well-written brief by a well-funded company, and they have very good lawyers,” O’Leary said.

While that plays out in court, Southern Glazer’s is facing additional pressure from the federal government.

Last year, the Federal Trade Commission opened an investigation into Southern Glazer’s for potentially violating the Robinson-Patman Act, which prohibits discriminatory pricing. Essentially, under the 1936 law, “you can’t give a deal to Bob’s liquor store and not give it to Pete’s,” explained O’Leary. The commission has since sued Total Wine, one of the country’s largest alcohol retail chains, for records related to the investigation. (A commission spokesperson declined to comment on the investigation.)

That investigation is part of a larger effort by the Biden administration to increase competition in various industries. In 2021, the president issued an executive order on competitiveness; the following year, the U.S. Department of the Treasury published a report that raised concerns about consolidation in the alcohol industry, among other fields, noting that the country’s largest alcohol distributors may be able to “push out smaller competitors.”

The Federal Trade Commission may not be the only federal agency investigating Southern Glazer’s. In 2022, regulators from the IRS and the Alcohol and Tobacco Tax and Trade Bureau arrived at the Union City offices of Southern Glazer’s and were “engaged in an official activity” there “for most of the day,” a spokesperson told the Chronicle at the time. It’s not clear whether the agencies will take any official action against the distributor. (The IRS and the trade bureau declined to comment for this story.)

“The challenge is that the government hasn’t brought these big antitrust cases in quite some time,” said Rebecca Stamey-White, an alcohol lawyer with the San Francisco firm Hinman & Carmichael LLP. “So whether they can accomplish much is unproven.”

But Provi’s case could aid the government’s efforts, Stamey-White said. If the lawsuit is not dismissed, it will move into the discovery phase, which might reveal new evidence not currently available to the government.

O’Leary echoed her sentiment. “If anything gets past the motion to dismiss,” he said, “it’s game on.”

Organized by Blaum Bros

https://www.galenawhiskeyweekend.com/

By Melita Kiely https://www.thespiritsbusiness.com/2024/01/judges-reject-diageo-appeal-to-dismiss-black-fungus-lawsuit/

Diageo has lost its appeal to dismiss a lawsuit brought against it by a couple claiming their property has been damaged by angels’ share vapour from whisky warehouses.

Thomas and Gail Chalmers, who live in Bonnybridge, Scotland, first sought legal action in 2014.

The Chalmers’ house sits approximately 350 metres from Diageo’s warehouses in Bonnybridge.

The pair alleges the ethanol vapours from the warehouses – known commonly as the angels’ share – have produced black fungus, also known as baudoinia, which has damaged their house.

In a court hearing last year, the Chalmers were granted permission to pursue legal action against Diageo for allegedly damaging and devaluing their home.

The Chalmers paid £139,950 for their house in 2002. This was revalued in May 2017 to be worth £190,000-£195,000.

The couple argues that the value of the house has been reduced by approximately 5% to 10% due to the effects of the fungus on properties in the area.

Diageo has always contested the allegations. The case was heard in the Second Division, Inner House, Court of Session on 19 January, before the Lord Justice Clerk, Lady Dorrian, sitting with Lord Matthews and Lord Armstrong.

Johnnie Walker owner Diageo sought to have the damages action dismissed, or for certain statements, and awards of expenses in the Chalmers’ favour to be excluded.

In last year’s legal proceedings, the judge said: “It is clear, even without reference to the pleadings about the testing of samples, that the growth of baudoinia, causing deposits or staining, is central to the pursuers’ case.”

In the most recent ruling, Lady Dorrian said: “We agree with the Lord Ordinary [judge] on this matter with her comment that ‘there is no lack of clarity as to the case the defenders [Diageo] have to answer’.”

A Diageo spokesperson said: “We are disappointed with the court’s decision and will continue to defend ourselves vigorously in these proceedings.”

https://www.prnewswire.com/news-releases/reservebar-enters-into-a-strategic-technology-partnership-with-deliverycom-302041996.html

NEW YORK, Jan. 24, 2024 /PRNewswire/ -- ReserveBar, the leading e-commerce platform for premium and luxury beverage alcohol, has entered into a strategic technology partnership with delivery.com, a pioneer in the restaurant delivery segment. Utilizing its cutting-edge technology enablement and nationwide fulfillment network, ReserveBar will significantly expand the beverage alcohol product offerings and the retailers available to delivery.com customers, enabling consumers on delivery.com to shop for everything ranging from their favorite everyday beverage alcohol to new releases, limited editions, craft spirits, luxury bottles, specialized gift bundles, and custom engraved bottles.

The strategic partnership will also vastly increase the geographic reach of delivery.com's beverage alcohol segment, powered by ReserveBar's innovative technology integrated into the delivery.com website and app. delivery.com customers will be able to order wine, spirits and beer directly or paired with meals for on-demand delivery from 3,500 licensed retailers in the ReserveBar network in key markets throughout the country.

"Through our partnership with ReserveBar, we are poised to seize the tremendous growth opportunities in the alcohol delivery space. This collaboration will empower our platform to expand rapidly and offer an even wider range of products to our customers," said Laurence Levine, CEO of delivery.com. "By joining forces with ReserveBar and leveraging our combined strengths, we anticipate remarkable growth not only in our retailer network but also in customer orders. The possibilities that arise from the commercial synergies between our brands are limitless, and we're committed to delivering an unparalleled experience for our customers."

According to ReserveBar CEO, Derek Correia, "This cutting edge partnership further affirms ReserveBar's e-commerce technology enablement leadership, meeting customers at their point of need, whether it's through our owned and operated platforms -- ReserveBar, Minibar Delivery, and our recently launched Get Stocked -- or through partnerships that can power partner sites and apps across industries, including personal and business gifting, content publishing, luxury and specialty retail, travel and leisure, hospitality, delivery service providers, pharmacy and supermarket chains, and more.

About delivery.com
delivery.com empowers the neighborhood economy by enabling consumers and corporate customers to order online from their favorite restaurants and other local businesses. More than three million delivery.com customers and delivery.com office clients explore their communities and order from over 12,000 local businesses in nearly 2,000 cities while at home, at work, or on the go. With headquarters in New York and a growing presence across the country, delivery.com makes e-commerce an integral part of local daily life, enabling customers to order, companies to provide, businesses to grow, and neighborhoods to thrive. For more information, please visit www.delivery.com.

About ReserveBar
ReserveBar is the established e-commerce leader in rare, luxury, and ultra-premium spirits, specializing in customization, personalization, and innovative gifting. In addition to its content-rich, on-brand experience, ReserveBar specializes in new and limited-edition products, celebrity brands and is the go-to platform for new launches. ReserveBar is a destination for today's modern, convenience-driven adult shopper, delivering the most curated offerings to enthusiasts across the United States. ReserveBar is a technology platform at its core, utilizing cutting-edge software, analytics, and an exceptional retail network to deploy solutions that simplify the compliant purchase of beverage alcohol on ReserveBar.com and numerous partner sites, including spirits brands, publishers, e-commerce partners, and gifting platforms. For more information, please visit www.reservebar.com. ReserveBar is also the owner of Minibar Delivery and GetStocked.com. All three platforms give consumers the choice of on-demand delivery, as well as shipping, as the method of fulfillment.

Last week the limited series "True Detective" kicked off a new season. Set in research station above the arctic circle in Alaska, one of the scientist residents is seen wearing an Alpinist Amaro sweatshirt.

A quick search for the label reveals that this is a registered product with a craft distiller in Montana,  Montgomery Distillery (https://www.montgomerydistillery.com/). 

When asked for comment, Ryan Mongomery stated

https://www.theblacksheartimes.com/local-events/?_evDiscoveryPath=/event%2F145201x-whiskey-blending-class-at-manifest-distilling

By Ric Anderson https://www.jaxdailyrecord.com/news/2024/jan/19/thanks-to-eased-restrictions-craft-distilleries-on-rise-in-florida/

David Cohen has watched the number of licensed distilleries in Florida roughly triple since he opened Jacksonville-based Manifest Distilling in 2016, growing from about 30 to more nearly 100 today.

Cohen is the president of the Florida Craft Spirits Association, a group of 50-plus distillers supporting development of the industry statewide. 

Their efforts include starting the Florida Distillery Trail, a promotion in which participants collect stamps from Florida distilleries on a special passport to receive prizes such as gift baskets and tasting glasses. 

The trail includes five distilleries in Northeast Florida, stretching from Marlin and Barrel Distillery in Fernandina Beach to St. Augustine Distillery. Others are Manifest, Sailbird Distilling of St. Augustine and City Gate Spirits, also of St. Augustine.

Visit Jacksonville lists five Jacksonville distillers in addition to Manifest: Burlock and Barrel; Citrus Distillers; Four Fathers Distillery; Grey Matter Distillery; and Sounds of Spirit.

The state’s craft spirits business earned a boost in 2021 when Florida lawmakers approved legislation that eased Prohibition-era restrictions combating the state’s rum running and moonshining trade. 

The law increased the production limit from 75,000 gallons to 250,000 gallons per year for craft distilleries while also lifting restrictions on the number of bottles that could be sold annually and allowing by-the-glass sales on-site in tasting rooms or at Florida fairs, trade shows, farmers markets and other events.

With restrictions loosened, Cohen says the market continues to expand. The Florida Craft Spirits Association’s membership rose 20% year-over-year in 2023, and more startups are coming.

“Based on the interest we get via email communication and the licenses popping up online, it appears that more craft distilleries are still joining the Florida market,” Cohen said. 

“It’s a lengthy process to get open, so sometimes we hear from people 8-12 months before they are even open.”

By TORI LATHAM https://robbreport.com/food-drink/spirits/empirical-nyc-distillery-tasting-room-1235477981/

It may still be dry January—or, as some have unfortunately rebranded it, “damp” January—but New York City is about to become a little boozier.

Empirical, the spirits company founded by two Noma alums, is set to open a distillery and tasting room in Brooklyn this year, Eater NY reported on Wednesday. The brand shut down its Copenhagen location in 2023 and filed for bankruptcy in that country, but that hasn’t stopped it from relocating to the states and further expanding its reach.

By the Irish Liquor Lawyer: https://irishliquorlawyer.com/liquor-industry-insights/is-blocking-dtc-shipping-really-the-solution/

There must be a New York shipping bill floating around the horizon, because there are letters coming out against direct-to-consumer (DTC) shipping in full force. Robert’s Kent, who was General Counsel of the White House Office of National Drug Control Policy under Joe Biden, wrote a piece about the dangers of DTC manufacturing shipping. What we don’t know, since it is not disclosed, is if he wrote this as a concerned disinterested third-party, or is hired by someone. But since he has written on addiction issues before and served in government roles on important issues related to substance abuse, I think he is sincerely in the right place.

I want to address some of his points he makes, because I believe his editorial piece in the Times Union, may have missed the mark.

Mr. Kent claims that direct shipping is a dangerous idea and poses a threat to public health and breaks down protections to prevent underage drinking.

The truth is out-of-state wine manufacturers have shipped into New York for nearly twenty years and there is no evidence to support these claims on the dangers of alcohol shipping.

He goes onto state that because 1 in 6 persons report excessive alcohol use, we should not expand access to alcohol in New York. Does this mean he believes we should maintain a moratorium on brick-and-mortar licenses and not open businesses serving alcohol in New York, or does he believe only DTC shipping alone creates this problem? Remember it is easier to access readily available alcohol at bars, restaurants, and grocery stores, instead of waiting numerous days for your alcohol shipment to arrive.

Mr. Kent goes onto claim that shipping alcohol creates an unregulated and unsupervised channel for more alcohol. The opposite is true, wineries shipping into New York require a permit to ship and are required to provide the State of New York with monthly reports on wine shipments. If distiller shipping is legalized, they would follow the same process. Not legalizing DTC shipping will create more of a black market, legalizing it will create less of a black market. That is true for about anything in life.

Next, Mr. Kent claims that a Massachusetts study supports the position that shipping alcohol makes it easier for minors to obtain alcohol.  In this study 40% of the time there was no adult signature obtained and there were zero request for age verification. What is not mentioned is that none of the individuals whom product was delivered to were minors and a majority were over thirty-five years old.

Studies show that minors aren’t purchasing alcohol online, according to the VinoShipper study only .15% of all attempted purchases were made by minors. Why, because to purchase, they would need to use their parents’ credit card, hope their parents don’t notice, and then hope they are home at shipping time and hope the driver doesn’t ask for id. There are many easier ways to get alcohol.

Finally, Mr. Kent provides the soft alternative of local delivery and under his viewpoint, local delivery negates the need for DTC shipping and is a safer alternative.

He does not recognize why people engage in DTC with manufacturers. The reason being is because they can’t get the product through the three-tier system in their own state. If a New York resident visits a small batch winery or distillery in a far-off state chances are that product is not available in the New York three-tier system. So, Mr. Kent’s alternative option argument fails to satisfy consumer demand.

As for local delivery, what are the safeguards against underage access, do the retailers need to provide records and proof to the state that they positively age verified someone? I would believe the record keeping and reporting requirements are less stringent for local delivery than shipping and hence lead to more risk of the type which concerns Mr. Kent.

In concluding, since Granholm the New York market has been open to winery shipping, the truth is wine shipping is safe and great for the marketplace. What has worked for the marketplace should be expanded and not restricted. Distillers should have the right to expand their marketplace and consumers should have the right to greater access.

Mr. Kent’s heart maybe in the right place, I just disagree with his conclusions and how he gets there.

Let’s reform the alcohol space by eliminating the bad and expanding the good, if we all can agree on that, we will have a blessed and happy new year!

By Nicola Carruthers https://www.thespiritsbusiness.com/2024/01/agave-spirits-to-outsell-vodka-in-us-bars/

Hospitality engagement platform Union analysed data from more than 1,000 bars and restaurants across the US to predict key trends for the on-trade in 2024.

Based on ordering data at Union venues, agave-based spirits are expected to close in on vodka when it comes to sales share of spirits sold in the on-trade.

Tequila and mezcal drinkers drank 13% less vodka and 14% less whisky in the 12 months to 31 October 2023. Mezcal also rose by 20% during the same period, making it the fastest-growing agave spirits subcategory.

Tequila and mezcal now represent a 29.4% share of spirits sold in the on-premise, with 2% growth in the 12 months to October 2023. In comparison, vodka currently leads in spirits sales share at 30.5%, but its share declined by around 2.8%.

IWSR Drinks Market Analysis previously estimated that Tequila would overtake vodka in 2023 to be the biggest category by value.

By Alex Brown https://www.insideindianabusiness.com/articles/journeyman-seeing-early-success-with-valparaiso-campus

VALPARAISO, Ind. - It’s been three months since Journeyman Distillery completed the first phase of a $40 million project to transform a former windshield wiper factory in Valparaiso into a destination for fans of craft spirits and beer and foodies, alike.

In October, the distillery opened the Union Hall restaurant and three event spaces on the 140,000-square-foot campus at the former ANCO factory, and co-founder Bill Welter says the initial reaction from residents and visitors has been incredibly positive.

“I think people in Valparaiso realize the effort and time and energy that went into the project and have been incredibly supportive in coming out to see it,” Welter said.

But the project isn’t done just yet. Welter told Inside INdiana Business they are preparing to open the next phase of the Valpo campus.

“We’re about to wrap up phase two, which has been the brewing and distilling,” he said. “[I’m] fairly confident that we’ll have our own beer on tap starting in March. The distillery [has] about the same timeline, a little sooner, actually. But we should be producing spirits here in February, March at the latest.”

by David Morrison https://winegourd.blogspot.com/

I think that I have the answer to the title question, and that answer appalls me. The World Health Organization (WHO) used to accept the idea that small amounts of alcohol were not necessarily bad for you, and may actually have positive effects on some aspects of health. They no longer accept this — now, all amounts of alcohol are considered to be bad. Read on to see why they changed their minds.

I have written about this topic before, but I think that this is a very important one for the wine industry, as this seems to be one of the biggest global threats to that industry (along with local threats from neo-prohibitionists, etc), as also is global warming. This post is actually split into two halves, and will thus be continued next week.

As background, I've written several posts recently about wine and health:

• A scientist looks at alcohol and health, and is concerned
• Is consuming wine really as unhealthy as tobacco?
• Health and wine, and also Coca Wine

Previously

The reason for the previous positive attitude towards alcohol is summarized by Mark Hicken (Don’t let anti-alcohol grinches ruin your holidays😞

The science related to safe levels of [alcohol] consumption has not changed. Hundreds of studies, and decades of scientific research, have consistently shown that those who drink in moderation live about as long (or even slightly longer) than those who don’t drink at all. The reality is that moderate drinking provides some cardiovascular benefits while slightly increasing the risk of certain cancers, some of which are very rare ... For most people, there is little or no effect on overall health and mortality.

This idea is usually pictured as a so-called J-curve, as shown above. It indicates that small amounts of alcohol (eg. one standard drink per day) actually reduce the risk of people dying (compared to zero alcohol), due to various medical causes. This particular picture is from: Giovanni de Gaetano and Simona Costanzo (2017) Alcohol and health: Praise of the J curves. Journal of the American College of Cardiology 70: 923–925.

Indeed, the Canadian Association for Responsible Drinkers hosts a whole web page covering this topic: Recent Studies on Alcohol + Health. It lists 12 science / medicine studies published from 2018—2023 confirming the health effects of moderate alcohol consumption. It also has links to pages containing both academic and medical commentary on the matter.

In spite of all of this, groups like the World Health Organization (WHO) would now have us believe that there is “no safe level of alcohol consumption and that alcohol causes cancer” (WHO shifts its alcohol narratives). Proactively, the WHO has suggested reducing consumption via global tax increases on “unhealthy products”, including wine (WHO demands tax increases on alcohol and sugar), as I recently discussed (WHO and the use of taxes to reduce alcohol consumption).
 

What caused WHO to change their tune?

The WHO makes it clear that their change of tune is based on accumulating medical evidence. This leads me to ask an obvious question: what is the first of the recent medical / scientific studies that made these new claims?

My research leads me to identify this published scientific paper, which appears to be a very important one of them, from 2018:

Alcohol use and burden for 195 countries and territories, 1990—2016: a systematic analysis for the Global Burden of Disease Study 2016. Lancet (2018) 392: 1015–1035. (Max G Griswold seems to be the senior author, and Emmanuela Gakidou is the corresponding author.)

This paper is actually a summary of a more detailed report:

Global Burden of Diseases, Injuries and Risk Factors Study 2016. This was authored by the MGBD 2016 Alcohol Collaborators (517 people are listed as the collaborators).

The conclusion from the published 2018 paper is:

Alcohol use is a leading risk factor for global disease burden and causes substantial health loss. We found that the risk of all-cause mortality, and of cancers specifically, rises with increasing levels of consumption, and the level of consumption that minimises health loss is zero.

Note that this is literally true, but that it is not all of the truth! Their Figure 5, as shown immediately above, is their revised version of the J-curve (as shown in the top figure). Note that the mortality curve does not drop below zero, which is the point that the authors are emphasizing. However, based on this graph, the authors could equally accurately have said that “the level of consumption that minimises health loss is one drink per day”. This is an act of omission, not commission — what they say is literally true, but it is only half of the story. That is why I am appalled!
 

An evaluation of the 2018 paper

Anyway, one can see why WHO might change their tack. The report is unambiguous, and actually concludes:

These results suggest that alcohol control policies might need to be revised worldwide, refocusing on efforts to lower overall population-level consumption ... In terms of reducing population-level alcohol use, WHO provides a set of best buys—policies that provide an individual year of healthy life at less than the cost of the average individual income. Governments should consider how these recommendations can be implemented within their local contexts and broader policy platforms, including excise taxes on alcohol, controlling the physical availability of alcohol and the hours of sale, and controlling alcohol advertising.

There is no doubt that the contributors have performed an impressive study. They have collated a massive amount of data, and developed some innovative ways to analyze that data, accounting for previous limitations. However, there is still one basic limitation in this type of work — the authors compiled data from pre-existing sources, rather than doing an experiment of their own. I will discuss this limitation in next week’s post.

Meanwhile, I noted above that previous studies found a positive effect on health of small amounts of alcohol (the so-called J-curve). When discussing these previous J-curves, the authors note:

Past findings subsequently suggested a persistent protective effect for some low or moderate levels of alcohol consumption on all-cause mortality. However, these studies were limited by small sample sizes, inadequate control for confounders, and non-optimal choices of a reference category for calculating relative risks. More recent research, which has used methodologies such as mendelian randomisation, pooling cohort studies, and multivariable adjusted meta-analyses, increasingly shows either a non-significant or no protective effect of drinking on all-cause mortality or cardiovascular outcomes. Our results on the weighted attributable risk are consistent with this body of work.

In estimating the weighted relative risk curve, we found that consuming zero (95% UI 0·0—0·8) standard drinks daily minimised the overall risk of all health loss (figure 5; shown above). The risk rose monotonically with increasing amounts of daily drinking. This weighted relative risk curve took into account the protective effects of alcohol use associated with ischaemic heart disease and diabetes in females. However, these protective effects were offset by the risks associated with cancers, which increased monotonically with consumption.

So, there you have it — the monotonic increase in mortality with increasing alcohol consumption is literally true, based on their data, but it is also true that lower levels of alcohol consumption have no notable difference in effects. The WHO have changed their mind for a very dubious reason. There is more to this topic, which I will cover in my next blog post.

story: CRAIG SAUERS from Punch

Electricity use is capped at the horsepower of two hair dryers. Advertising is prohibited. Boilers rely on wood-burning fires. Yet Onson and a group of like-minded small producers are creating some of Thailand’s most interesting spirits.

https://punchdrink.com/articles/thailand-spirits-distilling/