Who & What —

Posted on January 13, 2022 by Joel Whitaker

National Alcohol Beverage Control Association elects Fred Wooten, commissioner of the West Virginia Alcohol Beverage Control Administration, chair-elect.  He will assume his responsibilities in May 2022, when current Chair-Elect Tim Holden, Chairman of the Pennsylvania Liquor Control Board, becomes NABCA Chairman of the Board.

Posted in Who and What | Comments Off on Who & What —

Sales of Spirits, Wine Rose as Much as 40% in Early Months of Pandemic

Posted on January 11, 2022 by Joel Whitaker

That’s according to a study by University at Buffalo researchers.  While wine and spirits sales soared 20% to 40%, sales of beer declined in the early months of the pandemic compared to like periods in prior years.  The research also found what everyone would expect during a pandemic:  People’s visits to bars and pubs declined but visits to liquor stores increased.

Dynamics varied significantly across states. While beer sales decreased in most states between March and June 2020 compared with the same months in recent years, they increased in Kansas, Arkansas and Texas. Meanwhile, Texas, Kentucky and Virginia showed sustained increases in their sales of both spirits and wine, which the authors suggest “can be alarming signals for problematic alcohol use.”

“If data can provide information about geographic areas in which alcohol use increases during certain types of events such as during severe weather, high unemployment, or events such as the COVID pandemic, this information can be useful to help prepare law enforcement, medical professionals and substance use disorder treatment providers to address alcohol-related issues associated with such times,” Quigley says.

Machine-learning assessments in the study point to a significant shift in the relationship between alcohol sales data and visits to various alcohol outlets. More research will be necessary to understand how people’s behaviors changed, but these findings suggest the possibility that some states may have seen an increase in online alcohol purchases or panic buying of spirits and wine.

The research team notes that the study has some limitations. For example, many states were not included in the NIAAA dataset, and the human mobility data was not able to capture alcohol sales at places such as grocery stores, where sales of alcohol are mixed with sales of other items. Nevertheless, these results provide insights into the potential effects of lockdown policies on alcohol use and could inform future public health policies to address alcohol-related social issues, the researchers say.

Posted in COVID-19 | Tagged | Comments Off on Sales of Spirits, Wine Rose as Much as 40% in Early Months of Pandemic

Permanent Direct Shipping for Spirits Advances in California

Posted on January 11, 2022 by Joel Whitaker

The California Senate Committee on Governmental Organization passed SB 620, which would permanently allow California distillers to ship their spirits products directly to consumers just as wineries have done for more than three decades in the state. The bill now heads to the California Committee on Appropriations.

Both the California Artisanal Distillers Guild (CADG) and the Distilled Spirits Council of the United States (DISCUS) testified before the committee.

“As both a winemaker and distiller, the unequal treatment of wine and spirits products is even more clear to me,” said Alex Villicana, owner of Re:Find Distillery and Villicana Winery, and member of CADG. “Being able to ship one of my products but not the other makes no sense. Wine DTC shipping allowed that sector to grow drastically. Jobs skyrocketed for vintners, wholesalers and retailers. We simply want the same ability to safely ship our great spirits products to consumers – growing our sector and our brand, all while reaching our customers where they are.”

Since 2005, the number of retail employees at liquor stores in California has increased more than 30%. Employment in the wine and spirits wholesaler segment has grown to around 87,000 today from 50,000 in 2001.

“Direct-to-consumer spirits shipping helped save many California businesses and jobs during the pandemic,” Chris Swonger, DISCUS president/CEO said. “Stripping distillers of a responsible and critical revenue stream, and consumers of increased convenience, simply doesn’t make sense in the modern marketplace. Wine has been shipped directly to consumers for more than three decades in the state, and it is well past time spirits DTC was made permanent as well.”

 

The CADG, DISCUS, the American Craft Spirits Association (ACSA) and the American Distilling Institute (ADI) sent a joint letter to Governor Gavin Newsom last month urging him to approve SB 620.

 

“With continued modernization of alcohol regulations, distilleries around the country have demonstrated that spirits can be shipped safely, with traceable transactions,” said Margie A.S. Lehrman, CEO of the ACSA. “Direct-to-consumer shipping is a critical step to grow these U.S. small business manufacturers. Plus, as these small businesses grow, states receive more tax dollars, and jobs are created throughout multiple sectors that touch our distilleries. Farmers, hospitality workers, label designers, and all other workers within a wide variety of occupations, those who toil day in and day out to support our grain to glass industry, benefit with job growth.”

Swonger noted that DISCUS retained IWSR to poll more than 2,000 American consumers about their interest in being able to have spirits products shipped to them like wine. This survey showed:
• Nationally, 73% of all households surveyed shopped online for groceries,
and 47% reported they are shopping online more frequently than in the
past year.
• Eighty percent of consumers surveyed nationwide believe distillers should be
allowed to directly ship their products to legal-age consumers in any state.
• At least 76% of Californians surveyed agreed they should be able to order
spirits directly from distillers and that distillers should have the same privileges as
wineries to ship direct.

Swonger called direct-to-consumere shipping “a complement to the three-tier system.”  Spirits direct-to-consumer shipping or distillery to doorbell shipping serves as an on ramp for smaller producers to connect with established wholesalers, Swonger explained. With more than 2,300 craft distillers across the United States and more than 15,000 spirits products, wholesalers can’t possibly give due diligence to all of the brands that are available, especially those that are small or only of regional interest.  Spirits DTC provides a way for smaller distilleries to develop and showcase a brand “following” that is critical for the producer to be able to make the economic case for broader distribution through wholesale partnerships.

Direct-to-consumer shipping can allow larger producers to provide their fans with products not geographically available to them, or items limited to distillery-only
bottlings or a unique subscription offering (similar to wine clubs).

As for worries that direct-to-consumer shipping will hurt local retailers, Swonger said California consumers will not order a product online that is available at their local retailer, due to the high costs of shipping and the extra time required for delivery.

“Californians deserve the right to buy directly from the beverage alcohol producer of their choice, be it beer, wine or spirits,” said Erik Owens, president of ADI. “Wine DTC shipping has been happening for more than 30 years in California with tremendous success, creating an increase in jobs and no negative impacts for distributors or retailers. There is no reason distillers should be prohibited from doing the same”

Posted in Direct Sales | Tagged , | Comments Off on Permanent Direct Shipping for Spirits Advances in California

In Dry January, Maryland’s Breweries Look Forward to FeBREWary

Posted on January 11, 2022 by Joel Whitaker

Maryland brewers and partners will kick off the month-long observance of FeBREWary on Feb. 1.

Proclaimed as “Maryland Craft Beer Lovers Month” by Gov. Larry Hogan since 2015, FeBREWary showcases the more than 120 operating breweries in the state. Supporting more than 7,100 full-time jobs and $956 million in economic impact, Maryland’s beer industry is a major contributor to the economy.

Posted in Promotions | Tagged , | Comments Off on In Dry January, Maryland’s Breweries Look Forward to FeBREWary

Bev/Al Indispensable in Fighting Covid

Posted on January 11, 2022 by Joel Whitaker

In Quebec, a new rule requires one to have proof of vaccination to buy alcoholic beverages or marijuana.  Result:  First-dose vaccination appointment quadrupled the first day.  The rule goes into effect Jan. 18.  Bev/al and marijuana are sold only in state-run stores.

Quebec’s 78% vaccination rate on Jan. 1 was fifth highest in Canada but led every U.S. state.

Posted in COVID-19 | Tagged | Comments Off on Bev/Al Indispensable in Fighting Covid

US Chamber Seeks to Make Case that Business is Resilient

Posted on January 11, 2022 by Joel Whitaker

The U.S. Chamber of Commerce held its annual State of American Business briefing Tuesday (1/11), and Chamber President/CEO Suzzane Clark focused on the benefits competition brings, demonstrated most dramatically last year in “the race for COVID-19 vaccines and therapeutics. Who won? Humanity…with multiple vaccines and drugs made widely available, saving millions of lives and providing millions of people our best defense yet against the pandemic.”

She cited a recent Small Business Index survey by the Chamber and MetLife which found small business owners across the country expressing the highest levels of optimism since the start of the pandemic.  TJ Douglas, who owns a Boston wine shop, responded to a question about why he was optimistic:  “Does it take too long to get wine from Napa Valley to Boston? Yes. But, the constant innovation in packaging, delivery, and logistics is helping us keep up.”

She assailed Biden Administration policies, including “a sweeping executive order based on the false premise that our entire economy is overconcentrated and stagnant.

Modern-day “trust-busters” on Capitol Hill—from both parties—think all big is bad and necessarily a threat to small … when in fact, our economy is an ecosystem where big business depends on small companies and vice versa. They are each other’s vendors, suppliers, customers, and partners. And they each employ the consumers who keep the whole system afloat,.” she said.

She also denounced the Federal Trade Commission’s stance against mergers and acquisitions, saying, “small and medium-sized businesses fear they’ll have worked for years to build something and have no exit strategy if they choose to sell. The FTC has a really important job to do in stopping anticompetitive behavior that harms consumers. But it can’t do that job if instead it is trying enlarge its powers to, as its new Chair has actually said, “shape the distribution of power and opportunity across our economy.”

Seventy percent of American voters think our nation’s highest priority is keeping businesses on their feet so they can move our country forward, she said, adding there’s a reason the public deems business the most competent and the most trusted of institutions.

Government can’t do what business does. It can’t take the kinds of risks businesses can. It can’t operate at the speed of innovation. It can’t create wealth or prosperity or new job opportunities; it can only redistribute them.

With 11 million jobs unfilled, she called for doubling the number of people legally immigrating to the U.S., creating a permanent solution for the “dreamers,” and removing barriers that prevent parents from accessing affordable childcare, formerly incarcerated individuals who have paid their debt to society and individuals struggling with addiction.

The U.S. and China are competing for global leadership, Clark said, and “by one vital measure—trade—we’re standing still. And that means we’re falling behind.

“While other economies race to ink new deals, the U.S. has not entered an agreement with a new trade partner in a decade. And the current administration—consumed by caution and internal reviews—is doing little to change that. In fact, it has yet to embrace even relatively uncontroversial initiatives such as a trade agreement with the UK, our closest ally.

“But Europe is charging ahead. The EU has 46 trade agreements with 78 countries. The U.S. has just 14 trade agreements with 20 countries—and the trend for our tariffs has been up, not down.”

As for China, the Regional Comprehensive Economic Partnership—a massive China-led trade pact that covers all of East Asia—means better access to some of the world’s fastest growing markets for businesses from Korea and Japan to Indonesia and Vietnam. The U.S. is on the sidelines, she said, having pulled out of the Trans-Pacific Partnership.

Posted in Economic Outlook, Legislation | Tagged | Comments Off on US Chamber Seeks to Make Case that Business is Resilient