Ralph at Tuthilltown

Another alert for New York based producers, this one for support of a bill now in WAYS AND MEANS COMMITTEE at the NYS Legislature. The "enabling legislation" which spells out the purpose and scope of responsibilities mandated of the STATE LIQUOR AUTHORITY currently stipulates the agency is responsible for "regulating" the beverage alcohol industry in New York, but unlike the Department of Ag and Markets it has NO mandate to "develop" the industry. New York State Senator Saladino has introduced a bill which would add "job creation" and "industry development" to the enabling document and the responsibilities of the SLA. This is a major step forward in recognizing beverage alcohol production as an economic force in New York State, creating jobs and contributing to local, regional and State economies. Please check this out and reach out to your Legislators and ask them to support this bill. Here is a brief description of the bill the full description of which including the actual text of the bill can be found on the Senate Bill Search site on line, further info can be found on the bill search site on line: A02412 Summary: BILL NO A02412B SAME AS Same as S 1515-A SPONSOR Gabryszak (MS) COSPNSR Saladino MLTSPNSR Amd S2, ABC L Provides that the state policy with regard to the alcoholic beverage control law shall be to promote economic development and job opportunities in the beer, wine and liquor industries of the state.

Another alert, this one for support of a bill now in WAYS AND MEANS COMMITTEE at the NYS Legislature. The "enabling legislation" which spells out the purpose and scope of responsibilities mandated of the STATE LIQUOR AUTHORITY currently stipulates the agency is responsible for "regulating" the beverage alcohol industry in New York, but unlike the Department of Ag and Markets it has NO mandate to "develop" the industry. New York State Senator Gabryszak has introduced a bill which would add "job creation" and "industry development" to the enabling document and the responsibilities of the SLA. This is a major step forward in recognizing beverage alcohol production as an economic force in New York State, creating jobs and contributing to local, regional and State economies. Please check this out and reach out to your Legislators and ask them to support this bill. Here is a brief description of the bill the full description of which including the actual text of the bill can be found on the Senate Bill Search site on line, further info can be found on the bill search site on line: A02412 Summary: BILL NO A02412B SAME AS Same as S 1515-A SPONSOR Gabryszak (MS) COSPNSR Saladino MLTSPNSR Amd S2, ABC L Provides that the state policy with regard to the alcoholic beverage control law shall be to promote economic development and job opportunities in the beer, wine and liquor industries of the state.

NEW YORK DISTILLERS ALERT: Just got word of a bill introduced in the NYS Senate by Senator Parker which was introduced in February 2012, can't say why we have not heard of this till now. The bill can be viewed at the Bill Search page of the NY Legislature: http://assembly.stat...ary=Y&Actions=Y The proposed bill number is SB6393. This bill proposes to raise State excise tax rate for distilleries on spirits you produce from the current $1.70 per liter to $2.26 per liter. This is a substantial increase in the excise tax you will pay on your artisan goods to the State of New York. On top of that, the increased revenue that tax increase generates is not designated to be used to improve the services of the SLA or help the development of the industry, it is to be put right into the General Fund. Please contact your local State representatives and let them know that an increase in the excise tax does nothing to help the growing micro distilling industry, nor the beverage alcohol industry in general when the money goes into the General Fund and not to improve the climate for the industries affected. It is especially inappropriate to raise taxes on Farm Distilleries, Farm Breweries and Farm Wineries which are small, privately owned agricultural operations contributing to the economy in various ways including jobs creation, agricultural development and economic development in rural areas. Fight this bill!!! OKAY, NEW INFO: Senator Bonacic's office reports this bill has no Assembly Sponsor and is now in Committee and appears to have no future. WHEW! But see the next post about another bill now in Committee and passed by both houses in Albany which is a good change to ABC law.

NEW YORK DISTILLERS ALERT: Just got word of a bill introduced in the NYS Senate by Senator Parker which was introduced in February 2012, can't say why we have not heard of this till now. The bill can be viewed at the Bill Search page of the NY Legislature: http://assembly.stat...ary=Y&Actions=Y The proposed bill number is SB6393. This bill proposes to raise State excise tax rate for distilleries on spirits you produce from the current $1.70 per liter to $2.26 per liter. This is a substantial increase in the excise tax you will pay on your artisan goods to the State of New York. On top of that, the increased revenue that tax increase generates is not designated to be used to improve the services of the SLA or help the development of the industry, it is to be put right into the General Fund. Please contact your local State representatives and let them know that an increase in the excise tax does nothing to help the growing micro distilling industry, nor the beverage alcohol industry in general when the money goes into the General Fund and not to improve the climate for the industries affected. It is especially inappropriate to raise taxes on Farm Distilleries, Farm Breweries and Farm Wineries which are small, privately owned agricultural operations contributing to the economy in various ways including jobs creation, agricultural development and economic development in rural areas. Fight this bill!!! UPDATE AS OF 8/14, word from legislative source, this bill has no sponsor in the Assembly and is likely to go nowhere.

There was discussion at the last ADI conference around staging of a National Distillery Day. I'd like to propose as a group craft distillers celebrate their adventures in small spirits by welcoming visitors, where possible, to the neighborhood distillery on SATURDAY, SEPTEMBER 29th. Let's take a lesson from Las Vegas, which was once "sin City" but has successfully transformed itself into a highly successful "Family Destination", no reason why your craft distillery can not be a family trip, accommodate the kids somehow. The idea is to give everyone a reason to be there, and stay long enough to enjoy and purchase. This is a first-time event, a "try out" as it were. I propose it be kept simple and to one single day this first year. There's time enough to get the word out regionally and get your customers and regional press to respond. Invite notables to your distillery, such as State Legislators, Federal folk, restaurant and retail customers, families and their kids. At TUTHILLTOWN SPIRITS we will have some music all day on the deck, free tours and tastings and a small discount for purchases made. We'll put up photos showing the development of the distillery. And likely stage an "Introduction to Distilling" seminar. We're suggesting that each distillery act independently on this launch event and see how it goes. The goal will be to launch the concept, work out the wrinkles and then plan for staging a more comprehensive national event and generate serious publicity next year for event two. Looking for feedback on this. It's an opportunity to welcome consumers into your distillery and give them something to relate to, join the family so to speak. And of course it will generate sales for those distillers with shops and the ability to sell to consumers direct. Ralph

I believe that any equipment you purchase for your company, capital expenditures included, are not taxable. But best to get an attorney to review and comment.

MINUTES OF JULY 12, 2012 MEETING NEW YORK DISTILLERS GUILD Albany Distilling Company, Albany, NY Twelve distillers on hand at the ALBANY DISTILLING COMPANY for second meeting of the NEW YORK DISTILLERS GUILD. AGENDA 1. Introduction all around 2. Introduction of guests: Dennis Rosen, Chairman STATE LIQUOR AUTHORITY BOARD; and Tom Donohue, Chief Counsel, STATE LIQUOR AUTHORITY, Kerri O’Brian, Licensing Chief SLA, Q&A period, discussion Discussion with Executives of the STATE LIQUOR AUTHORITY was informative. The Executives were forthcoming. Some issues raised and answered: GNS and products using GNS and the ability of Farm Distilleries to make and sell. Response indicated that if a distiller is using GNS to make their products, the GNS must have been made using no less than 75% NY Agricultural materials to qualify as a New York State Labeled product, which are the only products which can be made by a Farm Distiller or sold in a shop at the distillery and used for tastings under ABC law. Officials confirmed that only NY State Labeled products may be sold at Farm Distilleries and Farm Wineries. Officials confirmed that cider (containing alcohol) may not be tasted under current law at Farm Wineries and Farm Distilleries, but the Chief Counsel has added wording to the soon to be approved Farm Brewery law which will solve this problem and allow tastings of NY cider at these locations. Discussion on question: if mixed cocktails may be used in tastings under ABC law. Chief Counsel Donohue commented the law specifically allows sampling of “liquor” it does not specifically say anything may be mixed with the liquor in sampling sessions even if the amount of liquor in a cocktail sample is within the limit prescribed by ABC law pertaining to sampling. The Chairman, Mr. Rosen disagreed with this interpretation. Distillers commented that the intent of the law is to limit alcohol consumption during tastings, not to eliminate any non-alcohol additions to the sampling. Distillers also commented their belief that diluting alcohol in a sample with additions lessens the effect of the alcohol ingested. The SLA officials confirmed that spirits may NOT be shipped direct to consumers in New York. Any out of State shipments to consumers or any other recipient must conform to the laws of the destination state. Discussion on label changes. Officials agreed that such as the batch number, date, etc information on an approved label may be hand written on each bottle without risk of violating approved label change by State. All agreed that the meeting face to face with SLA executives helped to establish an open line of communication between distillers and the SLA. The SLA officials stressed the “new posture” of the SLA which is mandated by the Cuomo administration to help distillers navigate the law and be successful. This is a change from past, when the only responsibility of the SLA, from the SLA point of view, was enforcement. The new mandate includes “development”. 3. Update on Legislation efforts in NY State and Federal level The bill to permit Farm Distillers access to Farmers’ Markets and State and County Fairs is now before the Governor for signature. The bill will not take effect for 180 days after signature. HR 777, the bill proposed at Federal level which would reduce FET for small distillers to 20% of the full tax rate. The bill was sponsored originally by Maurice Hinchey’s office as a “tax credit”, which was not acceptable by the TTB, which proposed it be a simple discount. The bill was submitted to DISCUS attorneys who rewrote the text for a new bill which would enact a discount rate for producers up to a limit of 65,000; the discount would apply to all distillers for the first 65,000 proof gallons of production. Maurice Hinchey is retiring, requiring sponsorship by another legislator. Various distillers from New York conducted a DISCUS organized lobbying effort in DC during which support was given the new bill by a variety of NY legislators. The search is now on for a new sponsor for the revised bill. No noticeable objections have been received to the proposition. Rosen and Donohue updated group on legislation pending. The SLA has added language to the Farm Brewery bill which would correct the error in ABC law pertaining to those distilleries from which a Farm Winery may purchase spirits; this list up till now has not included the Farm Distillery permit holders. This was an admitted error on the part of the SLA and the State. Donohue introduced wording into the upcoming (passed by both houses and on Governor’s desk for signature) Farm Brewery bill which would correct this omission. 4. Introduction of proposed bylaws Collin provided printed copies of the proposed bylaws. The proposed bylaws are based on those adopted by the Brewers Association. It was agreed that these bylaws are appropriate, but that formalization of the organization, incorporation as 501 c (6) organization may be premature and the group was small enough to manage for the time being as an Association of Distillers. Proposed bylaws were reviewed and agreed to be set aside till the group is better prepared to take up the work associated with formalized organization. Also discussed, the number of standing committees seems high compared with the actual membership count of the guild at this point. It is agreed these committee proposals are for the future. 5. Discussion on DISTILLERY DAYS event in NY Short discussion. This event to be voluntarily organized by distillers in NY who are prepared to undertake the first year event at their facility. Each distillery organizes their own events. 2012 event to be a test.

For Immediate Release: Contact: Conor Bambrick July 13, 2012 (518) 455-4436 LEGISLATURE PASSES BILL TO HELP LOCAL BUSINESS AND AGRICULTURE Farm Distillery Bill Headed to Governor’s Desk (Albany, NY) Assemblymember Kevin Cahill (D – Ulster, Dutchess) announced that the Legislature has passed a bill he sponsored, A.9863, which would allow farm distilleries in New York to expand their business by selling their product at farmers’ markets and county fairs, an opportunity already afforded to the state’s wineries and breweries. The bill is now awaiting approval by the Governor. “This bill would be a boost to businesses that are dedicated to using locally grown products,” said Assemblymember Cahill. “Furthermore, this represents a great opportunity for these small businesses to expand their market and promote their products.” “This legislation is important for our members, as it makes simple financial sense,” said Dean Norton, President of New York Farm Bureau. “Farm distillers are a growing segment of agriculture in New York and new markets are needed to sell their products and continue their progress. Since farm distillers are required to source crops from New York farms to craft their distilled products, the agricultural industry overall receives an economic benefit as well. We thank Assemblyman Kevin Cahill, along with Senator John Bonacic, for their sponsorship of this legislation and look forward to Governor Cuomo signing this bill into law.” “The passage of this new bill, A.9863, recognizes the fact New York's twenty-two Farm Distillers are full partners with the State's Farm community and a valued part of the Agriculture Industry in New York,” comments Ralph Erenzo, a partner in the Hudson Valley Farm Distillery TUTHILLTOWN SPIRITS, New York's first whiskey distillery since Prohibition. “Opening Farmers’ Markets, State and County Agricultural fairs to Farm Distillers for the sampling and sale of their New York spirits allows new producers to introduce their distinct products directly to consumers the same way as New York wineries and breweries.”

PROPOSED AGENDA for THURSDAY, JULY 12 meeting of NY DISTILLERS GUILD in Albany at ALBANY DISTILLING COMPANY: 1. Introduction all around 2. Introduction of guests: Dennis Rosen, Chairman STATE LIQUOR AUTHORITY BOARD; and Tom Donohue, Chief Counsel, STATE LIQUOR AUTHORITY, Q&A period, discussion 3. Update on Legislation efforts in NY State and Federal level 4. Introduction of proposed bylaws 5. Discussion on DISTILLERY DAYS event in NY 6. Open Discussion The meeting is open to licensed NY Distillers and those in the application process for their distilling license. Only licensed DSP representatives may vote on issues under consideration (one vote per licensed DSP).

Word from the SLA is there is a bill already passed by the two houses, approved, and through committee vetting, awaiting signature of the Governor. For complete review of this bill go to: http://open.nysenate.gov/legislation/bill/S7727-2011 The main feature of this bill: it levels the playing field among farm brewers, farm distillers and farm wineries for the purpose of holding tastings at the licensed site. Under current law a winery or distillery may not offer sampling of cider. This bill mandates the same sampling ability for all "farm" produced alcoholic beverages at the tasting rooms of all three producers' facilities. The bill will be signed by the Governor (awaiting his signature now) and will become effective 180 days after signature.

DISCUS did not take any explicit stand I am aware of on the issue of New York farm spirits sales and sampling at Farmers' Markets, State and County fairs.

NEXT MEETING OF THE NEW YORK DISTILLERS GUILD At: 11am, Thursday, JULY 12 ALBANY DISTILLING COMPANY INC. (518) 512-9949 78 MONTGOMERY STREET ALBANY, NY 12207 VISIT www.albanydistilling.com GUESTS: DENNIS ROSEN, CHAIRMAN, STATE LIQUOR AUTHORITY, TOM DONOHUE, CHIEF COUNSEL, STATE LIQUOR AUTHORITy AGENDA TO FOLLOW

We've enlisted the FARM BUREAU in our effort to revise appropriate sections of the NYS ABC law. Julie Suarez at FB has suggested that from a lobbying and amendment perspective it will be necessary to address inequities in NYS ABC law which prevent FARM DISTILLERIES from a variety of activities and from enjoying many of the considerations which are enjoyed by other classes of beverage alcohol produers in New York State such as Farm Wineries and the newly proposed Farm Brewery license holders. I've compiled a list of some of the changes which would help the lot of Farm Distillers and listed them below. If you know of any other inconsistencies among the various producers (winemakers, brewers and distillers) that need to be corrected please post your comments. At the next meeting of the new NEW YORK DISTILLERS GUILD in Albany next week, we will have both the Chairman of the STATE LIQUOR AUTHORITY, Dennis Rosen, and the Chief Counsel of the SLA Tom Donohue on hand to meet the members and engage in a discussion about your concerns. This subject will undoubtedly come up. Difficult to pore over ABC law, but if you have some down time and can review the various applicable legal issues that face us and you can articulate the concern and suggest a remedy here it will help us to consolidate our points and express them directly to Executives at the SLA, and get their responses and suggestions on how to implement changes. Here's my list: Reduction of brand registration and label registration fee, and elimination of annual fee and registration process replaced with a single registration and fee for A-1 and DD permit holders; match winery and brewery brand/label registration fee/schedule Amend all volume record references for distilled spirits to “PROOF GALLONS” for production reporting and tax purposes, eliminating use of simple undefined term “gallons” from distillery license regulations, to match the Federal standard volume measurement Distribution of samples to retailers by distillers should be permitted. This is permitted for wine makers, so no reason it cannot be permitted for distillers introducing new products or seeking new clients. Addition of DD license holders to list of vendors/producers which may sell to Farm Wineries and Farm Breweries for resale to consumers, of NYS branded Farm spirits. Revision of ABC law to level the playing field, making “permissions” equal across all three producer classes: wineries, breweries and distilleries. Holders of a “WINERY” permit should also have opportunity to sell NY STATE labeled spirits and offer tastings as prescribed in ABC law at WINERY tasting rooms and sales shops. List of sources from which a FARM WINERY may purchase spirits for resale must include the holders of the DD FARM DISTILLERY permit (see the following). 76.4.b (6) New York state labelled wine or liquors produced or manufactured by any other New York state winery or farm winery licensee or by the holder of a class A-1, B-1, or C distiller's license. Such wine or liquors may be purchased outright by the licensee from a New York winery or farm winery licensee or the holder of a class A-1, B-1, or C distiller's license or obtained on a consignment basis pursuant to a written agreement between the selling and purchasing licensee. “DD” license must be added to listing of manufacturers who may sell to Farm Winery for resale of NY State branded spirits. R

I'm happy to see this discussion going on. People engaged. Perhaps I misled in earlier post referring to English "whisky" rather than "malt whisky". The subsequent posts point out, correctly that the "Type" is what is limited for whiskey aged in used oak. The UK (non-Scotch or Irish) whisky makers were prevented from using the term "malt whisky" on their English whisky. And yes the problem for me is the protection offered Scotch and Irish whiskies brand and process, limiting those protections to only those countries for no good reason. And the other side of that coin is the redefinition of Bourbon Whiskey by the EU's trade barrier. EU law recognizes that Bourbon and Rye whiskey, and recently Tennessee whiskey, as all AMERICAN spirits, but then goes on to put a three year minimum which is totally outside the definition of American ("Type") whiskeys by American law. The US should not discriminate among the countries exporting whiskey to the US and the EU is overreaching by establishing a minimum time in oak contrary to the American definitions. It is a totally uphill fight, attempting to use any legal leverage, for instance suggesting elimination of the exemptions for Scotch and Irish whiskies from American law, and pushing to get them to conform with American labeling requirements for class and type. Seems a more reasonable tactic to attempt to simply change American law so that any spirit made according to the laws of the country of origin must be labeled as a product of that country. One of the major objections surrounds the struggle between the SWA and Indian producers of "Indian Whisky" which is mostly made from sugar cane, what we call "Rum". The SWA would like to see Indian spirits now called "whisky" prevented from calling the non-grain product a "whisky". The argument may or may not be sound, but it has nothing whatever to do with the discrepancies between American law and EU law which are nothing less than prejudicial and exclusionary. R

Exactly. Thanks. Quid pro quo. Especially since the EU does not allow the US to define whiskey under US law, allowing a similar exemption as US law permits Scotch and Irish producers, the EU law effectively redefines American Bourbon and Rye whiskeys which are sold in the EU. R

Denver Distiller, remember that the CFR requires explicit wording. The STANDARDS OF IDENTITY exempt only Scotch, Irish and Canadian whiskies from the "new charred oak barrel" rule because it stipulates they are foreign products made under the laws of the countries of origin. It says nothing about any other country's whiskies. We are aware of an English distiller whose product was refused approval for sale in US as whiskey/whisky because England is not specifically mentioned in the STANDARDS as exempt from the new oak rule or as acceptable because it is a product of Scotland or Ireland or Canada and made under their rules. It may be true that I assumed incorrectly on the savings in cost by the Scots and Irish using used Bourbon barrels, considering dismantling, shipping, reconditioning for reuse and what that costs them. I don't know the actual costs to the Scotch makers importing used American barrels. Perhaps someone else has access to that data. But imagine the cost savings to small American whiskey makers if they could reuse oak used for Bourbon or Rye or Single Malt to produce spirits also known as Bourbon, Rye and Single Malt whiskeys. If an American distiller made a single malt whiskey using the same process as Scotch whisky makers, it would be disallowed from calling the product Single Malt Whiskey under US law since it would mean using a used bourbon barrel for aging. How is this fair? Rick, The Scotch Whisky Association has approached the US already trying to get the US to match the EU law. It is pitching the case in South America and Asia as well. The reason given is that the SWA wants to protect the integrity of the term "whisky". The SWA has every right to protect the provenance and integrity of "Scotch whisky" but no authority or history to imply authority over all whiskey/whisky made in other than Scotland. The fact they are unwilling to recognize American whiskey process and law while at the same time taking advantage of American largess specifically toward Scotch, Irish and Canadian whiskies is unfair. It is unlikely the EU would admit to the trade barrier and protectionist nature of the law, but there it is and that is what it actually does. I'm sure some SWA or EU representative would argue otherwise. The USITO considers this an "artificial trade barrier" and trade barriers are by nature exclusive and protectionist, which by its nature stifles competition. One more point, EU three year rule keeps American "Corn Whiskey" out of EU entirely, a product that is being produced widely now as the proliferation of American micro distilleries continues. It's a specifically American spirit that must be called "grain spirit" in EU, not by its traditional American designation which is clearly defined in the STANDARDS OF IDENTITY as a specific "Type" in the Class of Whiskey. Of course it's all arguable, but that's our perspective after making inquiries for the last three years. And no need to apologize for the "challenge", better we should all get it right than accept rumor and speculation. I'm open to other opinions on this. Someone convince me otherwise if possible. R

Many new American micro distillers are producing whiskey. And much of it young, under three years; which in the EU means "it ain't whisky". The EU at the behest of the Scotch Whisky Association passed a law some time ago with the blessing of the first (Senior) Bush administration that redefines what may be sold in the EU as American "whiskey" or "whisky" and sets a minimum time in oak, contrary to American law which contains no minimum time in oak. This obvious protectionist move is keeping new American whiskey out of the EU for three years minimum. In the US, in order to describe a product as a particular "Type" of whiskey, like Bourbon Whiskey, or Rye Whiskey, or Single Malt Whiskey, the spirit must be "stored in a charred new oak barrel", by law. There is no minimum storage time required. Scotch and Irish and Canadian Whiskies (which are aged in used American bourbon barrels) are given specific exemptions from this law, and are described in the law as "products of Scotland" or Ireland or Canada, "made according to the laws of" that country, and may be called "whiskey" and sold as such in the US legally. The American code which exempts Irish, Scotch and Canadian whiskies from American regulations pertaining to the legal definition of "whiskey" or "whisky", does NOT include exemptions for emerging distillers in England and Wales for instance, or for that matter any of those made on the Continent. Whisky is now being made in Germany and Switzerland for instance. In EU law, in order to describe a product as "whiskey" or "whisky" the spirit must be in an "oak barrel" for minimum three years. No requirement of "new" oak barrels (both Scotch and Irish whiskies age in used American bourbon barrels which greatly reduces the cost to those UK whisky makers compared to American distillers' costs) and no mention of "charred" as with American whiskeys. No reciprocal exemption is made for non-EU whiskies made according to the laws of the country of origin, such as American whiskeys. For three years we have worked with the INTERNATIONAL TRADE OFFICE and the US TRADE OFFICE in DC to challenge the artificial trade barrier the EU rule presents to all new American whiskey makers who are making legal American whiskey aged under three years. Our position is that the EU has redefined American whiskey and given the largest, oldest American whiskey makers a great advantage over their smaller "micro" distillery cousins who are prohibited form exporting to EU countries their legal American whiskeys which are less than three years in oak. Our efforts have been unsuccessful getting EU regulators to consider the effect these artificial trade barriers have on both EU and US producers and agriculture as a result. There needs be greater pressure brought to bear on the EU in this regard to get them to the table to renegotiate these restrictions. In England there is a movement to establish a micro distillers GUILD, such as those which are forming across the US at this time in response to the proliferation of American small distilleries. I have been in contact with the organizer of the English guild and proposed to him that working together from both ends, we might be able to resolve both trade barriers, open the markets in EU to the new distillers of legal American whiskeys, and open the US to English, Welsh and other EU distillers. The EU law is prejudicial, favoring just two countries (Ireland and Scotland), the old guard and outdated perceptions about the so called "whisky tradition"; ignoring the fact that the American whiskey tradition is not the same as the Scotch tradition, nor should be. The American law is prejudicial against all but Scotch and Irish whiskies, and keeps other whisky making non-US producers from taking advantage of the opportunities in the US, as well as limiting the variety of choice offered to American consumers. We've been very successful introducing our whiskeys to the EU over the last four to five years. But in order to sell in the EU we had to remove the word "whiskey" from all our labels. Notwithstanding the obvious problems with trying to sell new product called "aged grain spirit" rather than "whiskey", we've been very happy with the sales of our spirits abroad. There are advantages to the new distiller considering export. All goods exported are exempt from Federal and State excise taxes, a substantial savings. And goods exported bypass your local distributor and save you that margin. European consumers are hungry for new spirits products and welcome American whiskeys that are other than the standard fare they get from the major producers. Both the US and the EU laws are prejudicial. The US law inappropriately prevents any whisky but those made by Scotch and Irish whisky makers from being sold as "whisky" or "whiskey" in the US thereby giving those country's producers an exclusive right to sell foreign whisky in the US and keepting such as Welsh and English whisky makers out. The EU law prevents any whisky which does not match the Scotch Whisky Association form for whisky from being sold as "whiskey" (American) in the EU regardless its legality in the US or elsewhere under local law. And Scotch Whisky Association representatives are aggressively lobbying other countries to adopt the same three year rule for whisky/whiskey, thereby further eliminating any possible competition. If you're planning to take advantage of the benefits of export, I suggest you contact your State International Trade office and make the case that the US should pressure the EU and encourage the UK to do the same, to change the three year rule. At the same time the US should delete the two specific exclusive exemptions for Irish and Scotch whiskies and replace them with a broad exemption for any spirits made legally under the rules of the source country, so that it may be recognized under that country's product class and type. We received some flack for going to the EU with our products when the American market is so vast and untapped. We disagree. Sell your goods where you can. Get the best price you can. Success in the stylish important markets in the EU like Paris, Milan, Berlin and even London puts your products in front of eager consumers and demonstrates the broad acceptance of your products. A placement at Le BAR FORUM in Paris or THE SAVOY in London tells buyers in the US that your product is high quality, accepted by the best and most discriminating whiskey consumers. These placements open doors in the US. And export is profitable. Regardless your feelings about the relative quality of "young" or "aged" whiskey, it should up to the consumers to decide on quality and the success or failure of new whiskey brands, not the law. And certainly not the Scotch Whisky Association. Join the fight for an open market for new American micro distillers' products in the EU. Ralph Erenzo TUTHILLTOWN

Many new American micro distillers are producing whiskey. And much of it young, under three years; which in the EU means "it ain't whisky". The EU at the behest of the Scotch Whisky Association passed a law some time ago with the blessing of the first (Senior) Bush administration that redefines what may be sold in the EU as American "whiskey" or "whisky" and sets a minimum time in oak, contrary to American law which contains no minimum time in oak. This obvious protectionist move is keeping new American distillers out of the EU for three years minimum. In the US, in order to describe a product as a particular "Type" of whiskey, like Bourbon Whiskey, or Rye Whiskey, or Single Malt Whiskey, the spirit must be "stored in a charred new oak barrel", by law. There is no minimum storage time required. Scotch and Irish and Canadian Whiskies (which are aged in used American bourbon barrels) are given specific exemptions from this law, and are described in the law as "products of Scotland" or Ireland or Canada, "made according to the laws of" that country, and may be called "whiskey" and sold as such in the US legally. The American code which exempts Irish, Scotch and Canadian whiskies from American regulations pertaining to the legal definition of "whiskey" or "whisky", does NOT include exemptions for emerging distillers in England and Wales for instance, or for that matter any of those made on the Continent. Whisky is now being made in Germany and Switzerland for instance. In EU law, in order to describe a product as "whiskey" or "whisky" the spirit must be in an "oak barrel" for minimum three years. No requirement of "new" oak barrels (both Scotch and Irish whiskies age in used American bourbon barrels which greatly reduces the cost to those UK whisky makers compared to American distillers' costs) and no mention of "charred" as with American whiskeys. No reciprocal exemption is made for non-EU whiskies made according to the laws of the country of origin, such as American whiskeys. For three years we have worked with the INTERNATIONAL TRADE OFFICE and the US TRADE OFFICE in DC to challenge the artificial trade barrier the EU rule presents to all new American whiskey makers who are making legal American whiskey aged under three years. Our position is that the EU has redefined American whiskey and given the largest, oldest American whiskey makers a great advantage over their smaller "micro" distillery cousins who are prohibited form exporting to EU countries their legal American whiskeys which are less than three years in oak. Our efforts have been unsuccessful getting EU regulators to consider the effect these artificial trade barriers have on both EU and US producers and agriculture as a result. There needs be greater pressure brought to bear on the EU in this regard to get them to the table to renegotiate these restrictions. In England there is a movement to establish a micro distillers GUILD, such as those which are forming across the US at this time in response to the proliferation of American small distilleries. I have been in contact with the organizer of the English guild and proposed to him that working together from both ends, we might be able to resolve both trade barriers, open the markets in EU to the new distillers of legal American whiskeys, and open the US to English, Welsh and other EU distillers. The EU law is prejudicial, favoring just two countries (Ireland and Scotland), the old guard and outdated perceptions about the so called "whisky tradition"; ignoring the fact that the American whiskey tradition is not the same as the Scotch tradition, nor should be. The American law is prejudicial against all but Scotch and Irish whiskies, and keeps other whisky making non-US producers from taking advantage of the opportunities in the US, as well as limiting the variety of choice offered to American consumers. We've been very successful introducing our whiskeys to the EU over the last four to five years. But in order to sell in the EU we had to remove the word "whiskey" from all our labels. Notwithstanding the obvious problems with trying to sell new product called "aged grain spirit" rather than "whiskey", we've been very happy with the sales of our spirits abroad. There are advantages to the new distiller considering export. All goods exported are exempt from Federal and State excise taxes, a substantial savings. And goods exported bypass your local distributor and save you that margin. European consumers are hungry for new spirits products and welcome American whiskeys that are other than the standard fare they get from the major producers. Both the US and the EU laws are prejudicial. The US law inappropriately prevents any whisky but those made by Scotch and Irish whisky makers from being sold as "whisky" or "whiskey" in the US thereby giving those country's producers an exclusive right to sell foreign whisky in the US and keepting such as Welsh and English whisky makers out. The EU law prevents any whisky which does not match the Scotch Whisky Association form for whisky from being sold as "whiskey" (American) in the EU regardless its legality in the US or elsewhere under local law. And Scotch Whisky Association representatives are aggressively lobbying other countries to adopt the same three year rule for whisky/whiskey, thereby further eliminating any possible competition. If you're planning to take advantage of the benefits of export, I suggest you contact your State International Trade office and make the case that the US should pressure the EU and encourage the UK to do the same, to change the three year rule. At the same time the US should delete the two specific exclusive exemptions for Irish and Scotch whiskies and replace them with a broad exemption for any spirits made legally under the rules of the source country, so that it may be recognized under that country's product class and type. We received some flack for going to the EU with our products when the American market is so vast and untapped. We disagree. Sell your goods where you can. Get the best price you can. Success in the stylish important markets in the EU like Paris, Milan, Berlin and even London puts your products in front of eager consumers and demonstrates the broad acceptance of your products. A placement at Le BAR FORUM in Paris or THE SAVOY in London tells buyers in the US that your product is high quality, accepted by the best and most discriminating whiskey consumers. These placements open doors in the US. And export is profitable. Join the fight for an open market for new American micro distillers' products in the EU. Ralph Erenzo TUTHILLTOWN

Received letter from SHELDON SILVER, Speaker of the House, New York State Assembly today bringing me up to date on Assembly Bill 9863. He reports: "You will be pleased to know that Assembly Bill 9863 passed the Assembly on June 18th, 2012. The Senate3 also passed this measure, and they will send it to the Governor for his signature into law. " Okay then.......!

Received letter from SHELDON SILVER, Speaker of the House, New York State Assembly today bringing me up to date on Assembly Bill 9863. He reports: "You will be pleased to know that Assembly Bill 9863 passed the Assembly on June 18th, 2012. The Senate3 also passed this measure, and they will send it to the Governor for his signature into law. " Okay then.......!

The bill to permit Farm Distillers access to consumers for sampling and sales at State and County Fairs and at Farmers' Markets is now through all COMMITTEE review and goes before the full ASSEMBLY for a vote. Please contact your Assemblyman and press for support. It's looking very good.

Learned today the bill is passed in the RULES Committee and is scheduled for full ASSEMBLY vote. Contact your Assemblyman. It's looking very good.

Learned yesterday the bill is passed in the CODES Committee and is now before the RULES Committee. Fingers crossed.

Update on bill to permit sampling and sales at State and County Fairs, and at Farmers' Markets. The bill is through ECONOMIC DEVELOPMENT, passed; and is now before CODES COMMITTEE, which is reported to be the "toughest committee". Please read the bill below and contact the Chair of the CODES Committee, here is the link to the Committee web page listing the Chair and Members: http://assembly.stat.../?sec=mem&id=33 Here is the link to the text of the bill, please read, note the sections in ALL CAPS are the actual changes to the existing law. http://open.nysenate...bill/A9863-2011 This bill makes the ability to attend and do sampling and consumer sales of your products at Farmers' Markets, State and County Fairs an actual part of the license. This is your DIRECT ACCESS to consumers. Contact your legislator and the RULES committee members and let them know how important this is to Farm Distilleries attempting to introduce new products into the market. Like This

Organizing Meeting was held at TUTHILLTOWN SPIRITS FARM DISTILLERY of New York distillers with the goal of the meeting: formation of a New York Distillers Guild. New York distillers may contact me for summary and list of attendees. It was a positive meeting. 19 attendees representing 11 licensed NY DSPs. All agreed to the need to organize for promotional and for legislative reasons. Membership was agreed generally to be two tiered: Full Member (DSP permit holders only, one vote per DSP member), and Associate Members (non-voting, industry and interested non DSP permit holders). A second meeting is scheduled for one month from now, no date fixed yet.