BACK AT IT

[Ralph at Tuthilltown]

Well I thought I was fully with it, but my first attempt at this post disappeared when I hit the wrong key. So here's the second go-around.

I've been absent from ADI Forums for about six months as some of you my have noticed. Had a little car trouble in December that wound me up staring at the ceiling of the Albany Medical Center ICU for three months. Good news is of course I never did shovel an inch of snow this winter. But it did keep me out of commission for nearly six months. But I'm home now and writing mainly here to thank everyone who took the time to write me words of support and encouragement. Every good vibe I received was terribly gratifying and contributed to my determination to get through the difficulty and get back to work at Tuthilltown. Thank you, thank you all.

And now business, HR 777 is in the hands of Maurice Hinchey, our NY Congressman. But he will need the support of a considerable number of other State's Congressmen and Senators to get it past committee and to the floor for consideration. Remember this law, when passed, will result in an 80% discount in your Federal Excise Tax, no laughing matter. Please get on the phone today and call your Congressman and Senator's offices. If they are not available to speak with you directly ask for their Legislative Assistant and bring HR777 to his/her attention and (politely) insist that the Congressman or Senator address the issue immediately. Remind them this is not about alcohol, it's about agriculture, tourism, economic development in rural areas; and about the return of one of the country's most traditional trades and the return of the relationship between the craftsman (small distillers) and local farmers.

We're at a critical time. We've successfully introduced the bill, had it composed and have Congressman Hinchey sponsoring it. But he needs the additional support of other elected officials if it is to get past committee and the various and many review points. This is a major step forward and has been in the works with various members of ADI for a couple of years. When we started we were told the typical:"Oh that'll never get anywhere." We've proven that response to be false by studied work and sheer determination. Now it's up to the distillers. Contact your Congressman and Senator and get them working on HR777.

And it's good to be back.

Ralph Erenzo

Tuthilltown Spirits

[JohnD]

Good to have you back Ralph, your voice was sorely missed here.

Best wishes.

[fotoski]

Welcome back, Ralph. You were dearly missed. Glad to have you back in the saddle.

Cheers et Santé,

[Jay Erisman]

Ralph! How wonderful to hear from THE WORLD'S TOUGHEST DISTILLER. I'll be in New York for WhiskyFest in November, and hope to see you then.

All the best,

Jay Erisman

The Party Source

[JohninWV]

It's great that you are on the mend (is that a southern term?).

We've called our guys and will continue to do so.

[GaDistCo]

It's great to have you back Ralph, even us guys down South missed ya!

Bill

Georgia Distilling

[grehorst]

Great to have you back Ralph!!

[FrEwing]

Well I thought I was fully with it, but my first attempt at this post disappeared when I hit the wrong key. So here's the second go-around.

I've been absent from ADI Forums for about six months as some of you my have noticed. Had a little car trouble in December that wound me up staring at the ceiling of the Albany Medical Center ICU for three months. Good news is of course I never did shovel an inch of snow this winter. But it did keep me out of commission for nearly six months. But I'm home now and writing mainly here to thank everyone who took the time to write me words of support and encouragement. Every good vibe I received was terribly gratifying and contributed to my determination to get through the difficulty and get back to work at Tuthilltown. Thank you, thank you all.

And now business, HR 777 is in the hands of Maurice Hinchey, our NY Congressman. But he will need the support of a considerable number of other State's Congressmen and Senators to get it past committee and to the floor for consideration. Remember this law, when passed, will result in an 80% discount in your Federal Excise Tax, no laughing matter. Please get on the phone today and call your Congressman and Senator's offices. If they are not available to speak with you directly ask for their Legislative Assistant and bring HR777 to his/her attention and (politely) insist that the Congressman or Senator address the issue immediately. Remind them this is not about alcohol, it's about agriculture, tourism, economic development in rural areas; and about the return of one of the country's most traditional trades and the return of the relationship between the craftsman (small distillers) and local farmers.

We're at a critical time. We've successfully introduced the bill, had it composed and have Congressman Hinchey sponsoring it. But he needs the additional support of other elected officials if it is to get past committee and the various and many review points. This is a major step forward and has been in the works with various members of ADI for a couple of years. When we started we were told the typical:"Oh that'll never get anywhere." We've proven that response to be false by studied work and sheer determination. Now it's up to the distillers. Contact your Congressman and Senator and get them working on HR777.

And it's good to be back.

Ralph Erenzo

Tuthilltown Spirits

Great that your back!!! Thanks for the info on HR777. I wasn't aware of it. I did a search to read the bill and then checked out the number of sponsors. An absolute shame - ONLY 3 sponsors . Gang I'm in the DC area and 3 sponsors means a weak bill with no muscle. We need 25 to 50 or more sponsors. Please contact your US Congressman and urge them to sponsor the bill. It's in House "Ways and Means Committee" and can stay there for years if we don't push. Ralph thanks for asking us to 'Get on the ball" and get our Reps signed on and pushing or this bill will never come out of committee. It was introduced in Feb of this year I Googled it and read it. You can find it at www.govtrack.us. ( Or you can put the following in your browser: http://www.govtrack.us/congress/bill.xpd?bill=h112-777 ) Check it out if your not familar with it, just as I was.

Remind your US Congressman that the small distillery business and movement in the USA is a growing industry providing new jobs and new revenue to our States - their State will benefit. Remind them that the small distillery growth in this country is following the same growth track as has occurred with craft breweries and the wine industry before them. The annual revenue contribution to State and Federal Govt is hugh. Make note that wine and beer are taxed at far lower rates than distilled spirits permitting them to bring more product to market with a lower cost to consummer than spirits. The lower tax rate called for in HR777 will lower our costs and permit us to make more investments in our business to help us grow and have the revenue to hire more employees. Don't forget Ralph's argument about agriculture and providing employment in rural areas of their State. So lets give Ralph a strong "Welcome Back" and make contact with your US Congressman demanding they sign on to and support HR777. Question For Ralph: Is there a co similar bill being introduced in the US Senate?

Dick Garofalo

Fr Ewing

[Ralph at Tuthilltown]

Thanks for the warm welcomes back, all are greatly appreciated. You can get to the list of the WAYS AND MEANS COMMITTEE at: http://www.govtrack.us/congress/committee.xpd?id=HSWM

But as Dick says the most direct route is your own Congressman and Senator. Get on their case. Take ten minutes out of your busy day and call their offices. Remember that Legislative Assistants are valuable to elected officials who rely upon their assistants for guidance and updates. Make friends with the Legislative Assistants and enlist their aid. Check with Michele at DISCUS: Michele Famiglietti, email: mfamiglietti@discus.org , she is organizing a letter for all distillers to sign onto for delivery to the Hill. Ask her for a copy and make sure you send it out. This ain't frivolous stuff, it will translate to thousands of dollars saved by you in Fed. Excise Tax payments. It also means recognition of the specialness of our growing craft by the Federal Government.

I can't help myself, I'm perhaps pushy about this issue, but hell I hate to give in so let's get it done.

R

[Chris Martin]

Welcome back!!! Your insights and work on behalf of all of us are deeply admired. Thank you.

[swb]

Welcome back, Ralph.

I had the opportunity to attend the ADI conference last year in Louisville. I came to your marketing presentation, which I must say was great.

I have been invited just today to attend a forum at the Virginia Farm Bureau on Monday, July 11. Kathleen Merrigan, the Deputy Secretary of the USDA will be there. This may present an opportunity to for me to help educate the USDA on the artisan distilling industry and HR 777, and possibly glean some support from the USDA. I will certainly do my best to get a minute of her time. I have been told that she will be very interested in our little Virginia distillery and for me to bring any issues to this event on Monday. Maybe I could ask her for a letter of support for HR 777. Do any of you fellow ADI forum members there have any ideas or suggestions that I could communicate to her?

Ralph - I remember reading one of your posts - if I remember correctly you said something like "our industry is not about alcohol, it's about agriculture." This is certainly true, and one of the points that I wish to make. We promote agriculture in America, which is what the USDA is about.

Of course, I have contacted my Congressman and Senator......

Sharon

Virgilina Distilling Company

[delaware_phoenix]

Glad you are back and healthy Ralph. All the best to you and THT!

[Ralph at Tuthilltown]

Welcome back, Ralph.

I had the opportunity to attend the ADI conference last year in Louisville. I came to your marketing presentation, which I must say was great.

I have been invited just today to attend a forum at the Virginia Farm Bureau on Monday, July 11. Kathleen Merrigan, the Deputy Secretary of the USDA will be there. This may present an opportunity to for me to help educate the USDA on the artisan distilling industry and HR 777, and possibly glean some support from the USDA. I will certainly do my best to get a minute of her time. I have been told that she will be very interested in our little Virginia distillery and for me to bring any issues to this event on Monday. Maybe I could ask her for a letter of support for HR 777. Do any of you fellow ADI forum members there have any ideas or suggestions that I could communicate to her?

Ralph - I remember reading one of your posts - if I remember correctly you said something like "our industry is not about alcohol, it's about agriculture." This is certainly true, and one of the points that I wish to make. We promote agriculture in America, which is what the USDA is about.

Of course, I have contacted my Congressman and Senator......

Sharon

Virgilina Distilling Company

Remember Sharon, the USDA has recently acknowledged micro distilled products are considered by the USDA to be AGRICULTURAL PRODUCE and therefore protected on USDA rules and eligible for participation in international as well as domestic trade promotions. Make sure that point is made clearly. Thanks.

R

[swb]

Will do, Ralph.

I have printed the proposal from Melkon Khosrovian to give to her. Never hurts to glean support for our efforts!

Sharon

[swb]

Ralph - and other forum members,

The meeting that I attended today was a Business Roundtable requested by President Obama to Kathleen Merrigan, Deputy Secretary of the USDA. I was told that there will be several more of these meetings across the nation. Attendees of the meeting were all told that all issues would be taken directly to the White House and would be considered with the Agricultural Policies of the Administration....

I had the opportunity to discuss HR 777 at length, and the Deputy Secretary took notes.

I also met Dietra Y. Trent, Ph.D., Deputy State Director with the Office of Senator Mark R. Warner who happens to be from my county - Halifax County, VA. She wanted a copy of HR 777 and the proposal, so I gave her a copy. She has sent me an email inquiring if Senator Warner could do anything to help.

Below is an excerpt of the email that I sent back to her:

It is my understanding that HR 777 is a House bill, and it has been stalled in the Ways and Means Committee. I have been told that a Senate Bill would be beneficial as well. Would Senator Warner be willing to sponsor something similar in the Senate? To date, there are 6 artisan distillers operating in the state, and George Washington's Mount Vernon distillery is one! There are several pending ABC permits of those planning to do so. The USDA has deemed artisan distilled spirits as an agricultural product.

These artisan distillers do not realize economies of scale like the large distilleries. A Federal Excise Tax in line with the FET on microbreweries and small wineries will allow the small distiller to grow their businesses, which will generate jobs and agricultural growth. It is not about the alcohol - it is about jobs and agriculture right here in America!

If you read this article from the Wine and Spirits Daily, it is a pretty good description of the deal that Diageo (foreign company) got from the Federal Government on their moving their rum plant from Puerto Rico to the Virgin Islands.

http://www.winespiri...ily.php?id=1457

Decreasing the FET on artisan distilled spirits amounts to a drop in the bucket compared to this!

I would be happy to discuss this in any way with you further. So - would Senator Warner be able to help?

Thanks so much for your interest,

Sharon

Now, I am not a politician, but I did my best! We'll see what happens next and I am keeping my fingers crossed. If there are any Virginia distillers reading this, please contact Diedra Trent in support of Senator Warner sponsoring a similar bill in the Senate.......

[JohninWV]

Just got a letter from Nick J Rahall saying he's a cosponsor. I sent multiple letters to him asking to help. I'm not sure if he did it on his own or because of us but I'm glad he did something about it.

Are we going to have to find ways to get funding for this somehow since the feds are losing money? Or, is our argument strong enough that we'll more than make up the losses by putting people to work, growing business, supporting agriculture and domestic manufacturing? I hope it's the latter.

[Ralph at Tuthilltown]

Ralph - and other forum members,

The meeting that I attended today was a Business Roundtable requested by President Obama to Kathleen Merrigan, Deputy Secretary of the USDA. I was told that there will be several more of these meetings across the nation. Attendees of the meeting were all told that all issues would be taken directly to the White House and would be considered with the Agricultural Policies of the Administration....

I had the opportunity to discuss HR 777 at length, and the Deputy Secretary took notes.

I also met Dietra Y. Trent, Ph.D., Deputy State Director with the Office of Senator Mark R. Warner who happens to be from my county - Halifax County, VA. She wanted a copy of HR 777 and the proposal, so I gave her a copy. She has sent me an email inquiring if Senator Warner could do anything to help.

Below is an excerpt of the email that I sent back to her:

It is my understanding that HR 777 is a House bill, and it has been stalled in the Ways and Means Committee. I have been told that a Senate Bill would be beneficial as well. Would Senator Warner be willing to sponsor something similar in the Senate? To date, there are 6 artisan distillers operating in the state, and George Washington's Mount Vernon distillery is one! There are several pending ABC permits of those planning to do so. The USDA has deemed artisan distilled spirits as an agricultural product.

These artisan distillers do not realize economies of scale like the large distilleries. A Federal Excise Tax in line with the FET on microbreweries and small wineries will allow the small distiller to grow their businesses, which will generate jobs and agricultural growth. It is not about the alcohol - it is about jobs and agriculture right here in America!

If you read this article from the Wine and Spirits Daily, it is a pretty good description of the deal that Diageo (foreign company) got from the Federal Government on their moving their rum plant from Puerto Rico to the Virgin Islands.

http://www.winespiritsdaily.com/publications_daily.php?id=1457

Decreasing the FET on artisan distilled spirits amounts to a drop in the bucket compared to this!

I would be happy to discuss this in any way with you further. So - would Senator Warner be able to help?

Thanks so much for your interest,

Sharon

Virgilina Distilling Company

Now, I am not a politician, but I did my best! We'll see what happens next and I am keeping my fingers crossed. If there are any Virginia distillers reading this, please contact Diedra Trent in support of Senator Warner sponsoring a similar bill in the Senate.......

Well done. Other distillers who see this should follow suit. Contact your lawmakers now.

R