control state news may 11, 2018 license state news › sites › default › files › assets ›...

16
Control State News OH: New Campaign Aims to Reduce Underage Use and Overconsumption of Alcohol Redefine campaign reinforces living life to the fullest License State News DE: Delaware votes to allow craft alcohol-makers to sell each other's products AK: Bill to revise Alaska alcohol laws dies in dispute between bars, brewers CA: Newport council says no to alcohol tasting rooms International News Finland: Study: Quit alcohol, prevent 13,000 cancer cases in Finland Canada: Online ads for sweet, high-alcohol drinks target youth: Quebec public health agency Canada: Liquor Depot's name change reveals ambition to dominate alcohol, cannabis market in Alberta Public Health News Alcohol and tobacco are by far the biggest threat to human welfare of all addictive drugs Industry News An International Celebration of Black Female Wine Makers Beer Institute Projects Shipment Declines in 2018 Daily News Chemical Engineer Develops Hangover Pill That ‘Could Prevent Alcohol Poisoning’ Alcohol Advertising in the Digital Age Different kinds of alcohol don't make you different kinds of drunk, but there are different drunks Adults have a special responsibility in dealing with minors and alcohol May 11, 2018 SAVE THE DATE MAY 21-24, 2018 !REGISTRATION IS OPEN ! 81st Annual Conference will be held at the Arizona Biltmore, Phoenix, AZ. Theme: Bridging Divides; For more information, visit www.nabca.com website. JUNE 3-5, 2018 2 ND Annual Beverage Alcohol Retailers Conference - Denver, Colorado Registration is open and sponsorship information is available at www.BevRetailersConference.com. JULY 18-20, 2018 8 th Biennial Northwest Alcohol & Substance Abuse Conference Riverside Hotel, Boise Idaho The Pre-Conference Sessions are on Wednesday. The official conference kicks off Thursday morning. Visit NorthwestAlcoholConference.org for more information. NABCA HIGHLIGHTS New! The Public Health Considerations of Fetal Alcohol Spectrum Disorders (Whitepaper) Native American Nations & State Alcohol Policies: An Analysis Alcohol Technology in the World of Tomorrow - (White Paper) The Control State Agency Info Sheets. Please view website for more information. NABCA Survey Database (members only) Upcoming NABCA Meetings Statistical Data Reports www.NABCA.org

Upload: others

Post on 26-Jun-2020

0 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Control State News May 11, 2018 License State News › sites › default › files › assets › files › ...Control State News OH: New Campaign Aims to Reduce Underage Use and Overconsumption

Control State News

OH: New Campaign Aims to Reduce Underage Use and Overconsumption of Alcohol Redefine campaign reinforces living life to the fullest

License State News

DE: Delaware votes to allow craft alcohol-makers to sell each other's products

AK: Bill to revise Alaska alcohol laws dies in dispute between bars, brewers

CA: Newport council says no to alcohol tasting rooms

International News

Finland: Study: Quit alcohol, prevent 13,000 cancer cases in Finland

Canada: Online ads for sweet, high-alcohol drinks target youth: Quebec public health agency

Canada: Liquor Depot's name change reveals ambition to dominate alcohol, cannabis market in Alberta

Public Health News

Alcohol and tobacco are by far the biggest threat to human welfare of all addictive drugs

Industry News

An International Celebration of Black Female Wine Makers

Beer Institute Projects Shipment Declines in 2018

Daily News

Chemical Engineer Develops Hangover Pill That ‘Could Prevent Alcohol Poisoning’

Alcohol Advertising in the Digital Age

Different kinds of alcohol don't make you different kinds of drunk, but there are different drunks

Adults have a special responsibility in dealing with minors and alcohol

May 11, 2018

SAVE THE DATE

MAY 21-24, 2018

!REGISTRATION IS OPEN !

81st Annual Conference will be held at the Arizona Biltmore, Phoenix, AZ. Theme: Bridging Divides; For more information, visit www.nabca.com website.

JUNE 3-5, 2018 2ND Annual Beverage Alcohol Retailers Conference - Denver, Colorado Registration is open and sponsorship information is available at www.BevRetailersConference.com.

JULY 18-20, 2018 8th Biennial Northwest Alcohol & Substance Abuse Conference Riverside Hotel, Boise Idaho

The Pre-Conference Sessions are on Wednesday. The official conference kicks off Thursday morning. Visit NorthwestAlcoholConference.org for more information.

NABCA HIGHLIGHTS

New! The Public Health Considerations of Fetal Alcohol Spectrum Disorders (Whitepaper)

Native American Nations & State Alcohol Policies: An Analysis

Alcohol Technology in the World of Tomorrow - (White Paper)

The Control State Agency Info Sheets. Please view website for more information.

NABCA Survey Database (members only)

Upcoming NABCA Meetings

Statistical Data Reports

www.NABCA.org

Page 2: Control State News May 11, 2018 License State News › sites › default › files › assets › files › ...Control State News OH: New Campaign Aims to Reduce Underage Use and Overconsumption

NABCA Daily News Update (5/11/2018)

2

CONTROL STATE NEWS

OH: New Campaign Aims to Reduce Underage Use and Overconsumption of Alcohol Redefine campaign reinforces living life to the fullest

News Release Ohio Department of Commerce, Division of Liquor Control May 10, 2018

COLUMBUS, Ohio (May 10, 2018) – The Ohio Department of Commerce’s Division of Liquor Control has announced a new social awareness campaign that de-emphasizes the role of alcohol in compelling and memorable experiences. The Redefine campaign seeks to “redefine” and challenge common beliefs about the relationship between alcohol and fun through creative messaging and visuals. It emphasizes that a full and exciting life does not have to involve drinking or drinking in excess.

The campaign will speak to audiences who have been conditioned to associate good times with the consumption of alcohol. The campaign will avoid typical “scare tactic” approaches which have been ineffective in changing attitudes and behaviors. Redefine is directed at both underage drinkers and users of legal age who may overconsume alcohol.

It has been shown that nearly 20 percent of Ohio adults have engaged in binge drinking within the past 30 days and that excessive alcohol use has caused losses in workplace productivity and increased healthcare and law enforcement costs.

Among youth in the United States, alcohol is the most commonly used, as well as the most commonly abused, drug. Ohio high school students report having their first drink by age 13. About 90 percent of alcohol consumption among youth under 21 is in the form of binge drinking.

“We have a responsibility to keep Ohioans safe, sound and secure. While we permit and license businesses, we are also responsible for educating them on the dangers of underage drinking and overconsumption,” said Ohio Department of Commerce Director Jacqueline T. Williams. “This new campaign allows us to work in communities across Ohio to influence behavior change.”

Aspects of the Redefine campaign will also be directed at alcohol retailers and their employees to ensure their definition of success includes keeping their communities safe by not selling to underage or intoxicated consumers.

www.RedefineOhio.org launched on May 8 and acts as a content hub where parents, teachers and community partners can access content including branded images, videos and sample social media posts to share via channels such as Facebook and Instagram. The campaign will have a social presence on a dedicated Facebook and Instagram page and will also seek to connect with social influencers to reach underage audiences in an authentic, low-pressure way.

The Redefine campaign will incorporate visual content that is positive and engaging, promoting a lifestyle that is about passionately living in the moment with authenticity and expression. The campaign will utilize inspirational images that encourage “living life to the fullest” and “living your best life” while also demonstrating what “responsible” looks like.

Materials will be distributed to community partners such as schools, colleges, state of Ohio agencies, retailers and distributors, the media and others to use in their efforts to prevent underage drinking and overconsumption of alcohol on the local level.

“We’re passionate about leading this movement that advocates for more personal responsibility when it comes to alcohol use,” Division of Liquor Control Superintendent Jim Canepa said. “It takes a village to make a change, and we’re grateful to have strong partnerships to help spread our message.

Kerry Francis Director of Communications Desk: 614-728-1949 Email: [email protected]

Page 3: Control State News May 11, 2018 License State News › sites › default › files › assets › files › ...Control State News OH: New Campaign Aims to Reduce Underage Use and Overconsumption

NABCA Daily News Update (5/11/2018)

3

LICENSE STATE NEWS

DE: Delaware votes to allow craft alcohol-makers to sell each other's products

Delaware Online By Ryan Cormier, The News Journal May 10, 2018

Have you ever been to a craft brewery in Delaware with a friend who doesn't drink beer either because of taste or a gluten-free diet?

Well, they won't have to sip water any longer.

The state Senate voted unanimously Thursday to allow Delaware's craft alcohol-makers to sell each other's products, effectively allowing breweries to sell wine.

A spokesman for Gov. John Carney would not comment on whether or when Carney would sign the bill into law.

But Carney did say in a statement, "Delaware has a thriving craft beverage industry that helps drive our $3 billion tourism economy. We’re always looking for ways to support our craft breweries, wineries and distilleries."

The new rule would take effect immediately once signed, allowing each of the state's 30-plus alcohol-makers to decide whether they want to sell their products at other craft locations and vice versa.

The move offers more for choice craft drinkers, ushering in a new era where a customer could conceivably drink a glass of wine from Marydel's Harvest Ridge Winery at Blue Earl Brewing in Smyrna.

Delaware beer historian and author John Medkeff Jr. says the move should bring in new customers and expose them to more of what Delaware's craft world has to offer.

"I don't see it being a huge boon [for craft alcohol-makers], but it's certainly going to help them," Medkeff says. "It will eliminate some of the remaining vestiges of Prohibition-era regulation in Delaware."

The real winners may be customers, some of whom have been chafing at the regulations that kept them from having a shot with their beer in a brewery or a glass of wine at a distillery.

The idea for the bill originated after a trip to Pennsylvania by Smyrna's Painted Stave Distillery co-owner Michael Rassmussen. He noticed that their laws allow much of the same kind of interchangeable offerings that Delaware's bill would OK.

"We all turn away business because of the limitations on what we can serve," Rassmussen says. "We obviously want to introduce people to our products in our tasting room, but if it's the difference between them having a great time and not, then all the better to put something in their hands that they'll enjoy. And at the same time, we'll be supporting another craft producer in the state."

After approaching Delaware Alcoholic Beverage Control Commissioner John Cordrey with his idea last year, he sent the Pennsylvania liquor law to Cordrey, along with other states' laws that allow similar sales to see if it was feasible in Delaware.

Rep. William J. Carson, D-Smyrna, the bill's primary sponsor, soon got on board and introduced it in April. His bill didn't get a single "no" vote in the Senate (19-0) on Thursday or the House (39-0) on April 26. Carson says he has not heard a single complaint about the bill from a constituent.

The bill did not face resistance from the state's alcohol distributorships because language in the bill was specifically crafted to keep the state's three-tier distribution in place for H.B. 337.

That means the state's breweries, wineries, distilleries, meaderies and cideries would not be able to directly sell to each other but would have to go through a third-party. That means everyone involved in the production, distribution and sale of the product would benefit.

Page 4: Control State News May 11, 2018 License State News › sites › default › files › assets › files › ...Control State News OH: New Campaign Aims to Reduce Underage Use and Overconsumption

NABCA Daily News Update (5/11/2018)

4

Over at Yorklyn's Dew Point Brewery Co., brewer Cody Hoffman says his bucolic brewery at the Garrett Snuff Mill complex would jump at the chance to offer other drinks, such as wine.

He says the previous limitations affected the number of large groups that would choose a craft location over a typical restaurant or bar, which offer a wider selection to fit everyone's tastes.

"This is huge. I think we'll start to see more groups because the way it is now, if one person doesn't like beer, they aren't coming here because we don't have wine or mixed drinks," Hoffman says of the new flexibility.

If Carney signs the bill, that same kind of selection from the bar/restaurant world would be transported right to your favorite local craft location if they so choose. (Rassmussen predicts the vast majority of the state's craft alcohol-makers would take part.)

Milton's Dogfish Head Brewery — the largest craft brewery in the state and 12th top-producing craft brewery in the country — would be among those who would be willing to share their beers with others.

Dogfish Head Vice President Mariah Calagione says you could end up finding Dogfish Head beer at other craft locations across the state. And the next time Dogfish Head makes a collaborative beer with fellow First State brewery, you'll be able to find it at both spots.

That's another change that H.B. 373 brings in.

It now allows collaborative drinks made by multiple craft locations to be sold at each location. In 2016 when Liquid Alchemy Beverages made its Triple Trouble D³ mead with help from Painted Stave and Dover's Fordham & Dominion Brewing Co., the result was a powerful 13.5 percent ABV drink that could be sold only by Liquid Alchemy.

At Newport's Twin Lakes Brewing Co., they are chomping at the bit not only to support Delaware's craft industry but to also offer non-beer alternatives at their tap room.

"We've always put a focus on our Delaware identity, so anything we can do to support the Delaware alcoholic beverage-makers, we're going to do," says Twin Lakes co-owner J. Burke Morrison. "And we want people to come in and enjoy their experience. If somebody is not a beer drinker, nobody's perfect. We're not going to hold that against them."

AK: Bill to revise Alaska alcohol laws dies in dispute between bars, brewers

Daily News-Miner By Erin Granger May 10, 2018

FAIRBANKS—A wide-ranging overhaul of the state's alcohol laws essentially died Thursday when its author withdrew it from committee following public outcry over a House amendment that would have cut brewery and distillery serving sizes by one-third.

Sen. Peter Micciche, R-Soldotna, referred to the amendment in Senate Bill 76 as "unfair and self-serving" in a news release Thursday.

"I introduced this bill because I agree with and admire its spirit of consensus," he said in a statement. "A primary goal during the formation of this bill was to protect the rights that Alaskan business owners have today. This amendment goes against all of that."

Micciche added that the use of the bill as a lever for smaller legislation is "antithetical to Alaskan values, small business and economic freedom."

"I will not allow a singular special interest group to hijack my legislation to the detriment of other Alaskan businesses because they are viewed as competition," he said.

Page 5: Control State News May 11, 2018 License State News › sites › default › files › assets › files › ...Control State News OH: New Campaign Aims to Reduce Underage Use and Overconsumption

NABCA Daily News Update (5/11/2018)

5

The amendment cutting serving sizes in breweries and distilleries came out of the House Labor and Commerce Committee. Public criticism has focused on potential conflicts of interest within the committee and was pointed at Rep. Louise Stutes, R-Kodiak, who is a former member of the Cabaret, Hotel, Restaurant and Retailers Association and owned a bar in Kodiak for 25 years, and Rep. Adam Wool, D-Fairbanks, the committee's vice chairman who owns The Blue Loon, a bar and nightclub in Ester.

The amendment aimed to cut brewery serving sizes from 36 ounces to 24 ounces a day and distillery serving sizes from 3 ounces to 2 ounces a day.

The death of this amendment is a sigh of relief for small alcohol businesses.

"I think it's great," said Rob Borland, owner of Ursa Major Distilling in Ester. "It was kind of a compromised bill anyway, and the last amendment screwed it over. I'd rather see it die this way than continue in the direction it was heading."

Borland said he hopes the bill can be renewed next year and continue without any special interest amendments.

Pat Levy, owner of Fairbanks Distilling Company, said the bill's death was bittersweet.

"I have mixed emotions, I don't know whether to say I'm happy or sad," Levy said. "Initially this was a good bill. It's a shame the amendments washed the whole thing out."

Levy said he was happy the serving size amendment will not become law.

"But it's really unfortunate that people with special interests had gotten ahold of it," he said. "Really, special interests is what killed the bill."

Bobby Wilken, owner of HooDoo Brewing Company in Fairbanks, also had mixed feelings.

"Of course we're very happy that the amendment didn't make it any further," Wilken said. "It would have been nice if the bill had gone through without the amendment, but I think what Micciche did was very important for our industry and it's definitely for the best. It's unfortunate that he had to do that but we appreciate that he did."

The effort to update the state's alcohol laws, contained in Title IV of the state statutes, was a collaboration across parties six years in the making.

"Title IV is a mess," Micciche said. "It’s a mess for the industry, the public, and the state that attempts to enforce it. I think one of the most powerful parts of this process, and one of the reasons we’ve made it this far, is that everyone who participated was able to look beyond their own self-interest and consider the big picture, and a system that is better for everyone than the one we have today."

The first version of the bill was introduced in 2015 but ran into similar issues from interest groups. The bill as a whole did not move forward but aspects were passed in Senate Bill 165 addressing the issues surrounding minors consuming alcohol.

Micciche said his plan to is to keep moving forward.

"SB 76 was never meant to be the last alcohol bill in the state of Alaska," he said. "It is a critical starting point from which tougher conversations can be based in separate, smaller and more focused pieces of legislation in the future."

A staff member to Micciche said the senator's intention is to re-introduce the bill in its pre-amendment form next year.

CA: Newport council says no to alcohol tasting rooms

Daily Pilot By Hillary Davis May 10, 2018

Newport Beach is pulling back on where to pull taps.

Page 6: Control State News May 11, 2018 License State News › sites › default › files › assets › files › ...Control State News OH: New Campaign Aims to Reduce Underage Use and Overconsumption

NABCA Daily News Update (5/11/2018)

6

Craft brewers and other alcoholic beverage manufacturers who want to attach tasting rooms where they set up shop in the city's industrial area won't be doing it anytime soon after the City Council unanimously voted Tuesday against a zoning code amendment that would have allowed the rooms.

The Planning Commission approved the proposed amendment in March.

Councilwoman Diane Dixon suggested picking the issue back up during the city's upcoming general plan update, which is expected to begin in 2019.

But she and others on the council were concerned that tasting rooms wouldn't be compatible with the area, a relatively small and mixed-use pocket of West Newport around 16th Street and Placentia Avenue. Neighbors include Pacifica Christian High School, Carden Hall and Coastline Community College. Residential neighborhoods border the area to the south.

Alcoholic beverage manufacturing — but not onsite consumption — is allowed in the industrial area as "food processing." Beverage manufacturing and onsite consumption are allowed in areas zoned for restaurants, such as Newport Beach Brewing Co., which has a full bar and menu at its Newport Boulevard location.

The proposed rule would have allowed tasting rooms up to 750 square feet and outdoor patios up to 1,000 square feet, with hours limited to 11 a.m. to 11 p.m., subject to review on a case-by-case basis. Food and entertainment also would have been allowed, but the idea was for the tasting rooms to be accessory uses, not to transform the businesses into restaurants or nightclubs, city staff has said.

But "if it quacks, it's a duck," Dixon said. "This is a bar."

Councilman Brad Avery, whose district includes the area, agreed that tasting rooms look like bars, and at a potential total of 1,750 square feet, would not be small. He said he wanted to gather more public input.

Mayor Marshall Duffield, who is familiar with the area as a historic home for boat-building, said parking would be an issue.

Stephanie Elliott, who owns a business in the area, agreed, telling the council that parking is bad around the clock.

The potential change came after Costa Mesa's Gunwhale Ales approached Newport Beach last fall proposing a combination manufacturing and retail location for its "coastal ales" concept in the industrial zone. City staff and Gunwhale officials have said tasting rooms are an important business component for modern microbreweries.

But there are no pending applications for breweries in the area, said city planner Chelsea Crager.

Dixon said that without any urgency, she wanted to wait a few months for the broader general plan talks.

"Let's just do it right," she said.

INTERNATIONAL NEWS

Finland: Study: Quit alcohol, prevent 13,000 cancer cases in Finland Quitting alcohol could prevent up to 13,000 Finnish cancer cases over 30 years, according to a study published in the European Journal of Cancer.

YLE May 10, 2018

If Finns gave up drinking, a dramatic decrease in esophageal cancer would occur, with a 23 percent drop in such cases over the next three decades, say Nordic researchers. Tee-totaling would also prevent some 5000 instances of breast cancer and 3200 cancers of the mouth and throat.

A researcher with the Finnish Cancer Registry echoes the Nordic study’s findings.

“Alcohol is the main factor contributing to a number of cancers. Around a quarter of throat and esophageal cancers are caused by alcohol,” says Eero Pukkala, the Cancer Registry’s research director.

Page 7: Control State News May 11, 2018 License State News › sites › default › files › assets › files › ...Control State News OH: New Campaign Aims to Reduce Underage Use and Overconsumption

NABCA Daily News Update (5/11/2018)

7

According to Pukkala, around one hundred breast cancer cases a year in Finland are directly alcohol-related, which is why eliminating this risk factor could yield significant benefits. He says moderate drinkers stand to benefit too and can also significantly improve their health outcomes—and save the state a pretty penny—by putting the cork back in.

The full study, "Avoidable cancers in the Nordic countries—The impact of alcohol consumption" is available here.

Canada: Online ads for sweet, high-alcohol drinks target youth: Quebec public health agency Ads are shameless promotion of "dangerous products," parliamentary committee told by author of study set up after death of Athena Gervais

Montreal Gazette Presse Canadienne May 10, 2018

Online advertising for sugary, high-alcohol drinks is a veritable “wild west,” and explicitly targets minors, the Institut national de santé publique du Québec says.

The ads are a shameless promotion of “dangerous products” aimed at minors — and even children — by using stuffed toys, cartoon characters and small animals riding tricycles, INSPQ researcher Manon Niquette told a parliamentary committee on Wednesday.

Niquette is a co-author of an INSPQ study conducted last March that examined the role the products play in binge drinking in the province. The study was conducted a few weeks after the death of 14-year-old Athena Gervais, who had been drinking the high alcohol content drink FCKD UP before her body was found behind the school she attended in Laval. A 568-mL can of the drink, with an alcohol content of 11.9 per cent, sold for $4 in dépanneurs. The drink’s manufacturer has since pulled the products from shelves.

“After the death of Athena Gervais, an ad was posted that said ‘And you? How are you celebrating during spring break?’ ” Niquette said. “Spring break is part of a vocabulary that only belongs to high school students. So (this ad) is speaking explicitly to minors.”

Dr. Réal Morin, the INSPQ vice-chairman of scientific affairs, noted that online advertising is not subject to CRTC regulations, which are confined to television and radio activity. He recommended to the committee that online publicity be regulated at the national level, that a minimum price be established for the beverages and that their sale be banned from grocery and convenience stores if their alcohol content exceeds seven per cent.

Quebec’s association for public health went further, urging MPs to “ban the use of aromatic ingredients that contain caffeine and create a false appearance,” limit the alcohol content for the beverages to the equivalent of one drink per can (some drinks contain the equivalent of four glasses of wine per can) and have prices climb should the alcohol content be higher.

The House standing committee on health launched its study of sugary, high alcohol beverages after Gervais’s death and is expected to make its recommendation by next month.

Canada: Liquor Depot's name change reveals ambition to dominate alcohol, cannabis market in Alberta Corporate giants, like Anheuser-Busch, may enter cannabis trade if they decide a profit can be made, prof says

CBC News By Kyle Muzyka May 11, 2018 6

The name change of Liquor Stores N.A., which owns the Liquor Depot chain, to Alcanna this week represents the company's intent to expand into the Canadian cannabis market alongside Aurora Cannabis, the second-largest cannabis grower in Canada.

Page 8: Control State News May 11, 2018 License State News › sites › default › files › assets › files › ...Control State News OH: New Campaign Aims to Reduce Underage Use and Overconsumption

NABCA Daily News Update (5/11/2018)

8

"They're our business partner," James Burns, vice-chair and CEO of Alcanna, told CBC News. "It gives us one of the top, most incredible-leading, fastest-growing cannabis producers in the world."

Alcanna — a portmanteau of alcohol and cannabis — reflects the company's vision of having two separate divisions of alcohol and cannabis, since legislation will likely bar the sale of the two in the same building.

Alcanna, the largest publicly traded alcohol retailer in North America, boasts a star-studded board of directors.

Chair Derek Burney is a former political strategist to Brian Mulroney's government and a former ambassador to the United States.

Board member Karen Prentice, widow of former Alberta premier Jim Prentice, was an executive vice-president for Enmax and worked on the Alberta Securities Commission.

The decision to diversify into the cannabis business was a no-brainer for Burns.

He said in America, where the company has stores in states that have legalized cannabis, they've seen liquor sales drop as much as 10 per cent.

"When a new product comes in that affects the product we sell, it made sense to us to be involved in the retail of that product as well," Burns said. "Same customer, in some senses."

'A natural fit': business prof

Kyle Murray, the vice-dean of the University of Alberta's school of business, said he'd be surprised if liquor retailers didn't invest in the cannabis market.

"It seems like such a natural fit," Murray said. "Their ability to grow their current business is fairly limited, [so] they have to look for new opportunities to grow."

Alcanna has 25 years of experience working with the Alberta Gaming, Liquor and Cannabis Commission and regulations around the sale of alcohol, which Murray said will give these companies a head start.

"I think what it is just saying, 'Hey look, we have this competency — we're the leader in retailing alcohol, and this new business seems like it's going to be a lot like alcohol so we'll probably be pretty good at that as well.' "

Murray said he's not worried the partnership will smother competition, because the two companies are relatively small compared to some of the large retailers in Canada, like Canadian Tire.

What is more interesting, he said, is watching those large companies with experience in retail to see if they're going to join the cannabis business.

"There are lots of companies out there that are good retailers — how many of them are going to want to get into the cannabis business? I think that's a pretty short list," he said.

Bigger companies with more capital have the ability to wait out the market and jump in if they think there's money to be made.

A company like Anheuser-Busch, for example, could acquire a company like Aurora for about two or three per cent of their market cap, Murray said.

"There's a lot of risk there [for big companies] — reputational risk and just unknowns in how big the market will be," he said. "It's not clear that they need to rush in."

Nonetheless, the current deal is a major move locally and one that Burns said can put Alberta on the map for both alcohol and cannabis sales.

"With us and Aurora together, as you say, one plus one equals three sometimes," Burns said. "We're proud Albertans and we think from our base in Edmonton we can take on the world."

Page 9: Control State News May 11, 2018 License State News › sites › default › files › assets › files › ...Control State News OH: New Campaign Aims to Reduce Underage Use and Overconsumption

NABCA Daily News Update (5/11/2018)

9

PUBLIC HEALTH NEWS

Alcohol and tobacco are by far the biggest threat to human welfare of all addictive drugs

News Release Society for The Study of Addiction May 11, 2018

A new review published online today in the journal Addiction has compiled the best, most up-to-date source of information on alcohol, tobacco, and illicit drug use and the burden of death and disease. It shows that in 2015 alcohol and tobacco use between them cost the human population more than a quarter of a billion disability-adjusted life years, with illicit drugs costing further tens of millions.

The largest health burden from substance use was attributable to tobacco smoking and the smallest was attributable to illicit drugs. Global estimates suggest that nearly one in seven adults (15.2%) smoke tobacco and one in five adults report at least one occasion of heavy alcohol use in the past month.

Compared with the rest of the world, Central, Eastern, and Western Europe recorded consistently higher alcohol consumption per capita (11.61, 11.98 and 11.09 litres, respectively) and a higher percentage of heavy consumption amongst drinkers (50.5%, 48.2%, and 40.2%, respectively). The same European regions also recorded the highest prevalence of tobacco smoking (Eastern Europe 24.2%, Central Europe 23.7%, and Western Europe 20.9%).

In contrast, use of illicit drugs was far less common. Fewer than one in twenty people were estimated to use cannabis in the past year, and much lower estimates were observed for amphetamines, opioids and cocaine. Hotspots included the US, Canada, and Australasia. The US and Canada had one of the highest rates of cannabis, opioid, and cocaine dependence (748.7 [694.8, 812.3], 650.0 [574.5, 727.3], and 301.2 [269.3, 333.7] per 100,000 people, respectively). Australasia (Australia and New Zealand) had the highest prevalence of amphetamine dependence (491.5 per 100,000 people [441.4, 545.5]), as well as high rates of cannabis, opioid and cocaine use dependence (693.7 [648.1, 744.4], 509.9 [453.7, 577.8], and 160.5 [136.4, 187.1] per 100,000 people, respectively).

Some countries and regions (e.g., Africa, Caribbean and Latin America, Asia regions) have little or no data on substance use and associated health burden. These are typically low or middle income countries that frequently have punitive drug policies, and may experience serious political and social unrest. These countries need enhanced monitoring because they are at risk of rapid escalation in substance use and related health burden.

The report, 'Global Statistics on Alcohol, Tobacco, and Illicit Drug Use: 2017 Status Report', uses data mainly obtained from the World Health Organization, United Nations Office on Drugs and Crime, and Institute for Health Metrics and Evaluation. The authors note that there are important limitations to the data, especially for illicit drugs, but believe that putting all this information in one place will make it easier for governments and international agencies to develop policies to combat substance use.

###

For editors:

This paper is free to download from the Wiley Online Library: https://onlinelibrary.wiley.com/doi/abs/10.1111/add.14234 (after the embargo has lifted) or by contacting Jean O'Reilly, Editorial Manager, Addiction, [email protected], tel +44 (0)20 7848 0853.

Tables of particular note:

Table 2: Modelled regional estimates of prevalence of alcohol use and tobacco smoking, 2015.

Table 3: Past 12 month prevalence of any drug use among the population aged 15-64 years, by region and globally, 2015.

Table 4: Modelled estimates of cases and age-standardised rates of past year substance dependence by GBD region, 2015.

Page 10: Control State News May 11, 2018 License State News › sites › default › files › assets › files › ...Control State News OH: New Campaign Aims to Reduce Underage Use and Overconsumption

NABCA Daily News Update (5/11/2018)

10

Table 5: Crude attributable DALYs and deaths (in 1000s) and age-standardised attributable DALYs and death rate (per 100,000) for alcohol, tobacco and illicit drugs as risk factors for disease burden by GBD region, 2015.

Appendix B: Crude attributable DALYs and deaths (in thousands) and age-standardised attributable DALYs and death rate (per 100,000) for tobacco smoking and second-hand smoking by GBD region, 2015

Interviews with co-author and Addiction Editor-in-Chief Professor Robert West: contact him at UCL (University College London) by email ([email protected]) or telephone (+44 (0)7813916681).

Full citation for article: Peacock A, J Leung, S Larney, S Colledge, M Hickman, J Rehm, GA Giovino, R West, W Hall, P Griffiths, R Ali, L Gowing, J Marsden, AJ Ferrari, J Grebely, M Farrell, and L Degenhardt (2018) Global statistics on alcohol, tobacco, and illicit drug use: 2017 status report. Addiction 110: doi: 10.1111/add.14234

INDUSTRY NEWS

An International Celebration of Black Female Wine Makers

The Tennessee Tribune By Janice Malone, Tribune Entertainment Editor May 10, 2018

HOLLYWOOD, FL — The 2nd Annual International Women in Wine Celebration by Urban Connoisseurs took place (April 28, 2018) aboard the South Beach Lady Yacht in Hollywood, FL. The confab was the gathering of Black female vineyards owners from around the world.

International Women in Wine Celebration by Urban Connoisseurs. Photo courtesy of Urban Connoisseurs

The evening was filled with lively jazz music, an exquisite cuisine six course meal from Chef Hugh Chef Irie Sinclair and Chef Jouvens Jean, and of course plenty of vino from the wineries of the featured vintner owners. Actress Sope Aluko, who starred as “the Shaman” in the blockbuster film Black Panther, was one of the VIP guest speakers among the 200-plus guests that featured event sponsors, wine vendors, sommeliers and wine enthusiasts.

Connoisseurs is a marketing agency that supports Black owned wineries, vineyards and winemakers who produce fine wines. The California-based company is owned by marketing expert Marcia Jones, who brings over twenty years of experience to the business. “We promote these wineries through orchestrating relationships with retailers and other businesses to sell their brands,” says Ms. Jones. “We tell the winemakers’ story. Time and again, professionals in the wine industry have said wine sells when the buyer knows the story behind the grape,” adds Jones. Urban Connoisseurs has even established a scholarship fund in partnership with the UNCF, with the aim of supporting African Americans pursuing careers in the wine industry. See their website www.urbanconnoisseurs.com for more details.

Some of the vineyard owners present at this year’s Wine Celebration event were:

• Marie-Inès Romelle of Champagne Marie Césaire in France (http://marie-cesaire.com)

• Aslina Wines by Ntsiki Biyela from South Africa (http:aslinawines.co.za)

• Theodora Lee of Theopolis Vineyards, Yorkville, CA (www.theopolisvineyards.com)

• Paula Harrell of P. Harrell Wines, Sonoma County, CA (http://pharrellwines.com)

All of the wine makers listed gladly accept mail orders. Visit their websites for more details.

Page 11: Control State News May 11, 2018 License State News › sites › default › files › assets › files › ...Control State News OH: New Campaign Aims to Reduce Underage Use and Overconsumption

NABCA Daily News Update (5/11/2018)

11

Beer Institute Projects Shipment Declines in 2018

Brewbound By Justin Kendall May. 10, 2018

The Beer Institute (BI) is forecasting U.S. beer shipments to decline between one and three percent in 2018, chief economist Michael Uhrich shared during the national trade association’s “State of the Industry” webinar today.

“We’ve been been flat to down the last two years,” he said. “In 2018, I’m expecting the beer category’s total performance to fall between a range of down one and down three.”

Uhrich admitted that the projection is “a pretty wide range,” but that’s due to “a lot of uncertainty” and headwinds facing the industry, including tariffs, increased input costs, “falling penetration rates” with new legal-drinking-age consumers between the ages of 21 and 25, and discounting by wine and liquor companies in off-premise retail accounts.

Uhrich added that he isn’t expecting the U.S. to fall into a recession in the next two years. That’s an important prediction for beer executives because the industry typically gains about 0.25 basis points of share during a recession. However, that isn’t necessarily good for the industry, Uhrich added, noting beer typically loses about double the amount of share it gained in the years following a recession.

According to Uhrich, inflation, which is projected to be about 2.2 percent this year, is negatively affecting beer companies as consumers may be less willing to spend. He added that the industry has likely already seen the benefits of falling unemployment rates.

“We can’t expect continued decreases in unemployment to help us moving forward,” he said.

However, the news wasn’t all bad. Uhrich said increases in the gross domestic product (GDP) and disposable incomes are likely to help businesses and consumers.

“Personal incomes are growing at about double the rate that they were last year, and that’s really great,” he said. “We’re hoping that will translate into more beer spending.”

Recapping 2017, Uhrich said beer once again lost market share to wine and spirits. Although beer still holds the majority of the share of alcohol servings (49.7 percent) versus hard liquor (34.9 percent) and wine (15.4 percent), the category lost nearly 1 percent of share in 2017.

“We peaked in share in the mid-90s at a little over 60 percent, and now beer has fallen to slightly below 50 percent of total alcohol servings,” Uhrich said. “According to my estimation, it’s actually the lowest share of the alcohol category that beer has ever had.”

Uhrich attributed some of those declines to wine and liquor companies discounting their products off-premise.

On the topic of discounting, Uhrich said price cuts, along with the move from 12-packs toward 15-packs, helped “economy” offerings become the only beer segment to improve its overall performance last year.

According to Uhrich, total craft beer volumes (including those brands owned by larger companies like Anheuser-Busch and MillerCoors) grew 1.6 percent in 2017. He added that it was “the slowest growth rate craft has seen in the last 10 years” and that much of the growth came within brewpubs and taprooms, where sales grew 24.2 percent.

“The own-premise channel accounts for one in 12 [craft] beers sold,” he said. “The remainder of craft sales actually declined last year.”

Both the craft and import segments gained share last year — 0.4 percent and 0.7 percent, respectively. Those gains came mostly from the “mainstream” beer segment, which lost about 1 share point in the U.S., Uhrich noted.

Mexican imports, Uhrich added, continued to drive import volume growth. While the segment grew 3.2 percent last year, the growth slowed compared to recent years.

Uhrich also said U.S. exports accounted for 3.7 percent of U.S. beer production in 2017.

Page 12: Control State News May 11, 2018 License State News › sites › default › files › assets › files › ...Control State News OH: New Campaign Aims to Reduce Underage Use and Overconsumption

NABCA Daily News Update (5/11/2018)

12

“I expect it to continue growing as export markets becomes a more important part of the business model for U.S. beer suppliers,” he said.

Nevertheless, U.S. consumer spending on beer increased about 0.7 percent last year to about $119.3 billion. However, Uhrich said the growth rate has slowed from previous years and price increases by U.S. beer companies have met some resistance.

Meanwhile, off-premise channels gained share from on-premise channels, Uhrich said, noting that the strongest off-premise retail sales growth in 2017 came within the grocery channel. Beer sales at U.S. convenience stores also grew.

DAILY NEWS

Chemical Engineer Develops Hangover Pill That ‘Could Prevent Alcohol Poisoning’

The Drinks Business By Phoebe French May 11, 2018

Chemical engineering professor and wine enthusiast Yunfeng Lu is developing a hangover pill which contains enzymes found in the liver that allow the body to process alcohol at a faster rate than usual.

Writing in The Conversation, professor of chemical and biomolecular engineering at the University of California, Yunfeng Lu, stated that he has developed a pill that can reduce the blood alcohol level at a faster rate than usual.

The pill has been developed to help people consume alcohol without getting a hangover, as well as acting as a treatment to deal with cases of alcohol overdose.

Professor Lu noted that a desire to reduce alcohol poisoning-induced hospital visits was one of the driving factors behind the project, adding that “current treatments for alcohol overdose largely rely on the body’s own enzymes to break down this drug”.

He has developed the product in conjunction with liver diseases specialist professor Cheng Ji as well as his graduate student Duo Xu.

The trio have tested the pill on mice, finding that it reduced the blood alcohol level by 45% in just four hours. They also found that the pill kept levels of acetaldehyde – a carcinogenic compound produced during the metabolisation of alcohol that causes headaches, vomiting and blushing after drinking – “extremely low”.

The pill contains three enzymes, oxidase (AOx), catalase (CAT), and aldehyde dehydrogenase, that occur naturally in the liver and help the body to break down alcohol.

In the trials, the pills, or nanocapsules, were injected into inebriated mice, which according to the scientists, fall asleep faster than drunk humans. The study showed that those injected with the drug woke up faster than those that were untreated.

Professor Lu stated that the pill is “something all college students would appreciate” while the ability to break down alcohol faster should “prevent alcohol poisoning” and “protect the liver from alcohol-associated stress and damage”.

The pill is currently undergoing further tests to ensure it’s safe for use, and if approved, Lu states that human clinical trials could begin as early as one year from now.

“This sort of antidote won’t stop people from going too far when consuming alcohol, but it could help them recover quicker. In the meantime, we plan on drinking responsibly, and hope that you do too,” he added.

Page 13: Control State News May 11, 2018 License State News › sites › default › files › assets › files › ...Control State News OH: New Campaign Aims to Reduce Underage Use and Overconsumption

NABCA Daily News Update (5/11/2018)

13

Alcohol Advertising in the Digital Age

Lexology By Elizabeth DeConti, GrayRobinson PA May 10, 2018

Introduction

Suppliers and retailers of alcoholic beverages advertise their respective products and offerings in a wide variety of digital outlets. Questions arise as to how the complex legal landscape of alcohol regulation applies in these digital spaces. Advertising media include social network services (e.g., Facebook), video sharing sites (e.g., YouTube), blogs, and smartphone applications. In addition to these types of media which engage consumers directly on their televisions and personal devices, other types of media target consumers in retail places. These media include digital screens which are physically present in store, as well as seemingly invisible technology which targets the consumer in store on his or her smartphone.

The Law Plays Catch-Up

Tied house laws, which address the financial relationships between supplier and retailer licensees, were enacted well before any digital media was invented. As a result, the alcohol laws have been playing catch up with this technology. Nevertheless, it is clear that social media qualifies as advertising for the purpose of alcohol beverage laws, and more and more jurisdictions are creating specific legislation to clarify this point. For example, Georgia, Kentucky, and Louisiana all now include social media in state definitions of advertising. On the federal level, the U.S. Tax and Trade Bureau (“TTB”) has confirmed that mandatory statements required in supplier product advertising are required in all forms of social media as well. 1

Paying for Technology: Compliance with State and Federal Tied House Rules

Technology can be expensive, and as a result, retailers frequently wish to enlist supplier support to defray the cost of advertising both in and out of their premises. Generally, it is important to remember that the same rules which govern traditional advertising also govern these new technologies. Therefore, the same questions which come up in traditional advertising also apply here. For example, does the advertising involve the supplier paying for or buying advertising for the retailer in a manner that results in prohibited “cooperative advertising”? Does the technology involve the supplier providing or otherwise paying for a piece of equipment which is not covered by any applicable tied house exception?

The recent case of Retail Digital Network, LLC v. Prieto, 861 F.3d 839 (9th Cir. 2017), involved the issue of an impermissible payment for advertising. The plaintiff in the case installs liquid crystal displays for advertisements in retail outlets. Advertisers pay plaintiff for the opportunity to feature their brand advertising in the retail location. Plaintiff in turn then pays the retailer a percentage of the advertising fees generated by the display. Suppliers of alcohol beverages refused to do business with the plaintiff out of concern that California’s alcohol beverage laws prohibited them from paying to place advertising on a retail premise. The plaintiff sued the California Department of Alcoholic Beverage Control to enjoin enforcement of this particular part of the state tied house law. In short, the plaintiff argued that the suppliers’ proposed advertisements were protected commercial speech and that the state interests and concerns inherent in the Twenty-first Amendment were outweighed by First Amendment interests. An en banc panel of the Ninth Circuit held that the California advertising prohibition directly and materially advanced the state’s interest in maintaining the three-tier system, and therefore was sufficient to overcome First Amendment scrutiny.

Because digital advertising has become so popular, a cottage industry has developed for screens, closed loop televisions, and other devices that sit in retail places to stream digital content. Retailers frequently ask whether these items can be paid for or loaned by suppliers. This is a state-specific issue, and the answer to the question will vary from one jurisdiction to another. One way to analyze the issue is to determine whether the item really a digital sign (likely covered under a tied house exception) or an illegal thing of value (a gift not covered by a tied house exception). The Texas Alcoholic Beverage Commission (“TABC”) has published two Marketing Practices Bulletins on this subject which provide helpful guidance. The TABC articulated questions to be used to determine the true nature of the item. They include:

Page 14: Control State News May 11, 2018 License State News › sites › default › files › assets › files › ...Control State News OH: New Campaign Aims to Reduce Underage Use and Overconsumption

NABCA Daily News Update (5/11/2018)

14

• Is the primary purpose of the item to advertise a product?

• Is it a permanent fixture?

• Is it a thing of value?

• How long will the item stay in the retail premises?2

Questions Raised by Smartphone Applications

The uptick in digital advertising has also increased the number of smartphone applications directed at the marketing and sale of alcoholic beverages. Many retailers now have their own smartphone applications and many interface with applications operated by non-licensees which drive traffic to the retail establishment.

Many of the best practices associated with applications which advertise alcohol are the same as the best practices for websites featuring alcohol products. These include, but are not limited to, age-gating and promoting responsible consumption.3 In addition, however, smartphone applications also raise several other legal issues in the alcohol space, depending on the functionality of the application. Consider the following issue-spotter questions:

• Does the app, if operated by an unlicensed third party, improperly use or avail itself of the retailer’s license to sell alcoholic beverages?

• Does the app facilitate an improper flow of funds between a supplier and a retailer?

• Does the app offer promotions which could result in violations of state happy hour or drink pricing rules?

• Does the app result in tied house exclusion by directing consumers away from one retailer and toward another?

Summary

Digital communications promoting alcohol present compliance challenges in terms of their jurisdictional reach, and to whom they may be directed. It is best for industry members to consult state law to determine which laws and regulations governing traditional advertising may also apply in the context of digital advertising. Furthermore, many states have developed enforcement policies and other opinion statements on social media and related issues; therefore, consulting state agency resources is recommended.

Different kinds of alcohol don't make you different kinds of drunk, but there are different drunks

Inlander By Mitch Ryals May 10, 2018

Tequila makes me crazy. Whiskey makes me ornery. And I hate gin for many reasons, but mostly because it makes me gloomy.

These dictums are well known among the well lubricated. They distill into the notion that different alcoholic drinks can affect our emotions differently.

But they're wrong — probably. Just ask a biologist. Alcohol is alcohol and it will have the same effects on the body no matter the spirit that contains it.

A relatively sparse amount of science backs this up. For example, research from 1970 using human subjects on the different effects of bourbon and vodka found "no consistent differences in behavior" between the two liquors. In 1984, researchers injected rats with cognac, tequila, vodka, scotch and straight ethanol, but observed no differences in their behavior (though, discerning whether one rat is pissed and another is tequila-crazy seems difficult).

It's more likely that certain moods are associated with different types of drinks because of how and where those drinks are consumed. Shooting tequila during a bachelorette party, for example, is an entirely different evening

Page 15: Control State News May 11, 2018 License State News › sites › default › files › assets › files › ...Control State News OH: New Campaign Aims to Reduce Underage Use and Overconsumption

NABCA Daily News Update (5/11/2018)

15

than nursing a gin and tonic all night. And pounding rum and Cokes (which contain more sugar) will play out differently than sipping whiskey.

Still, the perception lives on. A 2017 study published in BMJ found that drinking liquor, wine or beer can elicit different emotions. The study analyzed self-reported emotions of nearly 30,000 people from 21 different countries. Researchers found that spirits are most often associated with aggression. Nearly 60 percent of people also said liquor makes them feel confident, energetic and sexy. Red wine was most likely to make people feel both tired and sexy. And when people drink beer (the least sexy drink), nearly half said they felt relaxed.

The research also suggests that setting (your couch versus the bar), the time of day, drinking habits and culture can also play a role.

But forget the type of drink for a moment, and let's consider the type of drunk. Science and journalism have an answer here, too. In a 2015 study of college students' drunk personalities, researchers at the University of Missouri-Columbia came up with four drunk archetypes. Our interviews with bartenders at a local dive, a nightclub, a bougie wine bar and a beer bar mostly supported the study's categories.

Hemingways: named after the esteemed author who is said to have claimed that he could "drink hells any amount of whiskey without getting drunk." These are the drinkers who can keep their cool (or at least appear to) after six shots while the rest of us are on the floor.

Mary Poppins: named after the affable nanny. These drunks' friendly and agreeable nature is amplified after they've had a few, but they're not likely to get into much trouble.

Mr. Hydes: named after Dr. Jekyll's sinister alter ego. These drunks are more hostile, less responsible. These are the blackout drunks. They're mean-mugging everyone. Maybe they'll get arrested.

Nutty Professors: named for the shy university professor who's transformed into an extroverted party animal. These folks break out of their shell after a few drinks. Maybe they're louder, friendlier and more touchy feely, but

it's all love. ♦

Adults have a special responsibility in dealing with minors and alcohol

Herald and News By Pat Bushey May 10, 2018

OREGON - A couple of weeks ago a demonstration at Henley High School showed in realistic fashion the aftermath of a car crash that involved teenagers and alcohol. It was part of the nationwide Operation Prom Night to discourage high school students from drinking and driving.

The devastating immediate effects of a serious accident were simulated by students and staff of Henley and Bonanza high schools. Simulated, yes — but, probably real enough to cause some heavy-duty thinking among those watching, or who read Stephen Floyd’s description in the Herald and News or saw video and photos of it.

That was the point.

Here is another: In addition to deaths and injuries from drunken driving, is the responsibility assumed by adults who furnish alcohol to underage drinkers.

That should be considered by adults as the high schools approach graduation night — a time of good cheer for graduating seniors and their families, but also one sometimes associated with underage drinking and traffic accidents.

Any adults who think they are being good parents by hosting parties with underage drinkers would do well to take a look at Oregon laws about such things.

No one, according to the Oregon Liquor Control Commission, except a parent or guardian, can provide alcohol to a minor (under 21). To be legal it has to be done only in a private residence in the presence of the parent.

Page 16: Control State News May 11, 2018 License State News › sites › default › files › assets › files › ...Control State News OH: New Campaign Aims to Reduce Underage Use and Overconsumption

NABCA Daily News Update (5/11/2018)

16

“If you allow your property and/or home to be used for a party where minors, other than your minor child(ren) consume alcohol in your presence, you may have to forfeit property and may be issued a criminal citation.”

The power to provide alcohol to a minor can’t be transferred from a parent to other adults.

Then there’s ORS 471.565: “As a licensee, permittee or social host, if you serve visibly intoxicated persons or guests, you may be held liable for damages caused by the persons or guests away from your home or licensed premises.”

You might wind up in court in the aftermath of a serious accident debating how to define “visibly intoxicated,” with a lot riding on the outcome.

In addition to any criminal charges, civil cases could take years and be a crushing financial burden along with the agonizing weight of guilt.

Obviously, the immediate effects of drunken driving accident are the most important. But it doesn’t end there. Criminal and civil issues can last for years.

Minors and adults aren’t the same in the eyes of the law and, we hope, in most other eyes as well. The law accords special protections for minors, as it should. Adults, we hope, recognize the responsibility that they have in keeping alcohol away from minors and possible consequences if they don’t.

This email and any files transmitted with it are intended solely for the use of NABCA members, free-of-charge. If you do not wish to receive this daily service, please respond with “UNSUBSCRIBE” in the Subject line. In addition, if there is another individual within your company who should also be receiving this service, please forward their NAME, TITLE, EMPLOYER, and EMAIL ADDRESS to [email protected]. Thank you for your time and attention as we continue to work to improve upon the services and benefits that we provide to our members. Please note that any views or opinions presented in this email are solely those of the author(s) and do not necessarily represent those of the National Alcohol Beverage Control Association.