Tuesday, September 3, 2019 www.nabca.org

TODAY’S ARTICLES

• Bar wars: Proposal to limit activities in Alaska breweries and distilleries stirs tension inside state’s alcohol industry (excerpt)

• Sales vs safety: the minor inconvenience of online alcohol delivery • Ready-to-drink beverages: a convenient answer to consumer demand for functionality? • Kansas Alcohol Regulator Receives National Award at Center for Alcohol Policy Conference

JOB OPPORTUNITY Deputy Commissioner The Department of Liquor and Lottery is seeking a Deputy Commissioner to lead the Division of Liquor Control (DLC) within the Department of Liquor and Lottery.

This position will work closely with the Commissioner of the Department of Liquor and Lottery to effectively manage a retail and distribution business model within State government. A professional back-ground in the beverage alcohol industry would be helpful in providing the necessary tools and prospective to effectively interface with both local, domestic and international product manufacturers, the Governor’s administration, industry members and the general public.

To review the full details of this position, click here.

DO NOT APPLY ONLINE. Email a cover letter and resume to Cheryl Mowel at cheryl.mowel@vermont.gov no later than September 8, 2019.

CONTROL STATE NEWS VA: Governor Northam Kicks Off Fourth Annual September Virginia Spirits Month Campaign and Launches Virginia Spirits Trail Collaborative effort among the Virginia Alcoholic Beverage Control Authority, Virginia Distillers Association and Virginia Tourism Corporation continues support for burgeoning distilled spirits industry.

News Release August 29, 2019

August 29, 2019 – MOUNT VERNON, VA, Governor Ralph Northam joined more than 20 Virginia distilleries last night for the kickoff to September Virginia Spirits Month at George Washington’s Mount Vernon Distillery. The fourth annual month-long campaign to support sales and

education for Virginia’s craft spirits industry also celebrates the 400th anniversary of distilled spirits production in the United States, which began with Virginia colonist George Thorpe distilling the first batch of corn whiskey in 1620. “Virginia is the birthplace of American Spirits, and our distilleries continue to represent one of the fastest growing sectors of our booming beverage industry,” said Governor Northam. “I am proud to celebrate Virginia Spirits Month and the important contributions of our high-quality distilled spirits to the Commonwealth’s rich history and thriving economy.”

Since the first year of the campaign, September sales at Virginia ABC stores and distillery stores have grown by 85 percent. “Virginia ABC is proud to carry more than 200 Virginia-made spirits crafted in distilleries across the Commonwealth,” said Travis Hill, CEO of Virginia ABC. “September being Virginia Spirits Month is a great opportunity to highlight the success of this industry in Virginia, and show our support for Virginia distillers and the contributions they make to the economy and tourism industry.”

The 2019 September Virginia Spirits Month campaign coincides with the launch of the Virginia Spirits Trail and Passport Program, sponsored by the Virginia Tourism Corporation (VTC). In addition to sharing the history of Virginia’s distilled spirits, the Virginia Spirits Trail provides tourists with a map detailing the locations of the 28 participating Virginia distilleries. A passport program encourages multiple visits and gives spirited travelers a free trail T-shirt once they visit 10 distilleries, with no purchase necessary. Consumers can download a digital copy of the trail or request the printed version by visiting VirginiaSpirits.org.

“As we kick-off Virginia Spirits Month, I can think of no better time to celebrate the launch of the Virginia Spirits Trail,” said Rita McClenny, President and CEO of VTC.

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“This is an important new product development for the tourism industry in Virginia, as visitors from around the world will be able to sip premier spirits across the commonwealth. This trail is an important and exciting addition to our culinary scene and will show travelers that some of the best things made in Virginia come in a bottle. We can’t wait for travelers to discover for themselves why Virginia is for Spirits Lovers.”

The Virginia Spirits Trail was also made possible through support from Virginia Hop on Tours, which provides customizable tours and reliable transportation for spirited visitors.

Additional highlights taking place September Virginia Spirits Month:

• Virginia Spirits Day – On September 5, 10 featured Virginia-made spirits will be priced 20% off in all Virginia ABC stores and online at www.abc.virginia.gov. The discount will also be available at respective distillery stores.

• Almost 400 in-store Tastings will feature Virginia distillers at ABC stores statewide. For the full list of tastings, click here.

• Additional discounts and special product offerings. For the full list of monthlong discounts, click here.

• Virginia Spirits Roadshows will offer samplings and a chance to speak with local distillers:

• 9/14 -- Richmond at the Virginia War Memorial • 9/21 -- Alexandria at the Building Momentum

Co-op Space • 9/28 -- Fredericksburg at A. Smith Bowman

Distillery

“Distilleries are a rapidly growing part of Virginia’s economy and are helping define Virginia as a beverage destination,” said Gareth H. Moore, VDA President and CEO of Virginia Distillery Co. “Virginia Spirits Month provides an opportunity for consumers to connect with our industry and broaden awareness.”

MEDIA CONTACTS: Amy Ciarametaro Virginia Distillers Association amy@virginiaspirits.org Cell: 757.535.5829 Taylor Thornberg Virginia ABC Taylor.Thornberg@abc.virginia.gov Cell: 804.921.5163

LICENSE STATE NEWS AK: Bar wars: Proposal to limit activities in Alaska breweries and distilleries stirs tension inside state’s alcohol industry (excerpt)

Anchorage Daily News Author: James Brooks, Annie Zak September 2, 2019

Another round in the Alaska bar wars is exposing friction between bars and breweries as consumer drinking habits change, and the future of a booming multimillion-dollar industry is at stake.

New proposed rules from the state’s Alcoholic Beverage Control Board would further tighten restrictions on what types of events and entertainment are allowed in breweries, distilleries and wineries — places where rules already outlaw pool tables, dancing, darts and other games.

State law prohibits “live entertainment, televisions, pool tables, dart games, dancing, electronic or other games, game tables, or other recreational or gaming opportunities” at breweries, distilleries and wineries, but that wording has left regulators struggling to decide whether art events should be allowed, or whether music played outside a taproom — but still audible in the room — violated the rule.

In July, regulators offered a revised regulation, which is now up for public comment. The proposed rule would expand the list of forbidden “recreational or gaming opportunities” to include festivals, games and competitions, classes, presentations, parties (except private ones) and more.

Brewery owners worry the broader crackdown could hinder business, potentially threatening everything from informal group gatherings to tours of their operations. On the other side, some bar owners believe breweries and distilleries are pushing the boundaries of state law, infringing upon legal rights they have paid a premium for.

The rift between manufacturers and traditional taverns and retailers is not new. This most recent flashpoint dates to a June 2017 complaint against a Juneau distillery, which was accused of improperly serving cocktails and providing entertainment.

Distilleries across the state worry they would lose the ability to serve cocktails, and their supporters inundated the board with requests to preserve the privilege. The alcohol board spent months attempting to resolve the cocktail issue by regulation. It was only settled when the Alaska Legislature stepped in.

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The entertainment issue, however, remained.

Changing tastes

Global alcohol consumption fell by 1.6% between 2017 and 2018, according to figures from IWSR Drinks Market Analysis. In the United States, the IWSR — a firm that tracks global alcohol consumption — noted that “consumer interest in craft beer remains healthy, however … and a continued rise in on-site consumption at domestic breweries.”

“Premiumization” has been the trend in the U.S. for the past 20 years, said Brandy Rand, chief operating officer of IWSR in the Americas.

“American consumers have been trading up to more premium wine, spirits and beer, with sales of these products growing in volume and value,” she said in an email.

In a sign of that shift, breweries in Alaska have proliferated in recent years, even though the amount of alcohol Alaskans buy has dropped.

The amount of alcohol sold per drinking-age Alaskan declined over the past two decades, from 42.8 gallons in fiscal year 2000 to 34.2 gallons in fiscal year 2019, according to the state Department of Labor and Workforce Development and the Department of Revenue. (Beer consumption has fallen even more steeply than alcohol consumption overall.)

The decline likely would be even steeper if not for the state’s tourism growth during the same period. Alaska tourism boomed during those same years, but it’s unclear from the state data just how much alcohol those tourists bought.

Still, new breweries continue to pop up. There were 14 Alaska breweries in 2007, according the state. Today there are 45, with more planned. Between 2002 and 2019, Alaska-made beer grew from 1% of all beer sold in Alaska to just under 7% — and that growth does not include sales to distributors that also sell within the state.

The newly proposed rules from Alaska regulators are just the most recent attempt to stifle the state’s craft breweries, said Ben Millstein, owner of Kodiak Island Brewing Co. It’s an effort he thinks is misplaced.

“We as small-brewery tasting rooms — we’re not driving this trend,” he said. “We’re following this trend. This is a trend in the marketplace all over the country which has exploded. It’s way bigger than all of us, it’s bigger than Alaska.”

Changing times

The roots of Alaska’s alcohol regulations go back to the 1930s and the end of Prohibition. At that time, the state — like many others — enacted a three-tier system. Manufacturers make the alcohol, distributors buy it from the manufacturer and send it to retailers, who sell it to the consumer.

Alaska put strict lines between each of those tiers, granting each particular right.

As drinking habits have changed, the state has tried to keep pace. In 1988, with the support of the Cabaret, Hotel, Restaurant and Retailers Association (Alaska’s main alcohol trade group), the Alaska Legislature allowed breweries to open taprooms and sell beer directly to drinkers, bypassing the other two tiers.

Sixteen years later, the Legislature granted distilleries the same privilege, and again CHARR supported the move.

Dale Fox, CHARR’s director at the time, “concluded that the bill is fair and uncontroversial, and it helps a new Alaska industry,” according to Legislative meeting minutes.

Each time, bars, distributors and liquor stores believed “tasting rooms” would account for only a fraction of the manufacturer’s business. Most of the alcohol, they believed, would be sold to them.

But as time went on, those traditional liquor license holders became vocal in their belief that taprooms themselves had become the main business for many manufacturers.

“It’s kind of come back to bite retailers because they weren’t foreseeing that manufacturers would cut out the other two tiers entirely,” said Sarah Oates, a former alcohol regulator who now works as CHARR’s director.

The distinctions between bars, breweries and brewpubs can be opaque to the casual visitor. In a single Juneau block, for example, a visitor can find a bar, beer garden and brewery all serving beer and food under different licenses. There’s also a distillery nearby.

With a brewery or distillery license, a business can sell alcohol made on-site, in an atmosphere that might resemble a bar, but the business itself has restrictions. Unlike bars, breweries can only be open until 8 p.m. Patrons there can’t play music or games, or dance. Breweries and distilleries can sell alcohol made on-site, but they also have strict serving limits. On the flip side, a bar holding a beverage dispensary license can make and sell its own beer if it also buys a brewpub license, but the amount of beer it can make is limited.

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Tasting rooms are a crucial way for breweries to build relationships with customers and also hone new products, said Lee Ellis, director of operations at Midnight Sun Brewing Co. in Anchorage and president of the Brewers Guild of Alaska. They offer a different environment compared to traditional bars, he said, in part because breweries can only serve each patron 36 ounces of beer in one day.

“Not to say every bar is full of people who are intoxicated,” Ellis said. “But we have a different public perception, different character, and different way of engaging with our consumers than I think most bar owners do.”

Millstein, in Kodiak, said his brewery provides something unique in a town “that doesn’t have a lot of indoor spaces for people to just gather," whether for a birthday party, a painting class, or other community events.

Darwin Biwer owns the bar Darwin’s Theory in downtown Anchorage, and he’s also a CHARR board member. From his perspective, different players in the state’s alcohol industry aren’t fighting the way they have in the past. Alaska’s strong craft brewing scene even helps his business, he said, because he sells those products.

But breweries should operate more clearly within the parameters of a manufacturing license, he said, and alcohol businesses should all adhere to that three-tier system.

“I don’t have a problem with a new brewery, a small brewery starting up. That’s fine,” he said. “But it shouldn’t be having music and pool tables and all that stuff, because that’s not a tasting room anymore.”

TX: Breweries Start Selling Beer to Go As Texas' New Alcohol Laws Go Into Effect

KUT By Jimmy Maas September 1, 2019

Texas’ “beer-to-go” law went into effect today, allowing the purchase of beer direct from breweries and taprooms.

State Rep. Eddie Rodriguez of Austin bought the first beer to go this morning at Zilker Brewing Company on East Sixth Street.

“This is at least two sessions' worth of work to get this thing done, at some level,” said Rodriguez, who led the charge on the law in House. “Texas was the last state to actually allow this in the country.”

"Beer doesn't have a party. Democrats drink beer. Republicans drink beer."

While the Democrat helped shepherd the bill through the House, Republican state Sen. Dawn Buckingham of Lakeway steered it through the Senate.

“Beer doesn’t have a party,” Rodriguez said. “Democrats drink beer. Republicans drink beer. When you find something that you can find common ground on, you got to work on that.”

Rodriguez said the brewers he’s talked to feel the law will boost their beer sales.

“It’s really important for these small businesses to give them every opportunity to grow," he said.

For decades, beer sales in Texas have operated on three tiers. Breweries made beer, distributors moved it on to the retailers, which sold it to customers. Breweries could sell beer, but consumers would have to drink it on site, like at a bar or restaurant.

Distributors have historically resisted the change, fearing they might be cut out of their part of the state’s alcohol sales pie.

“I think even distributors will benefit from this,” Rodriguez said. “I know Zilker, for example, where I’m at right now, they self-distribute. So does Austin Beer Works and others. But at some point, the more successful they are, they can’t be a distributor company. They’re brewers, right? The more successful [they are] then they’ll have to go to a distributor.”

Folks who buy their beer and wine from stores may benefit from other big changes to Texas' alcohol laws. Sunday sales hours have been extended. And consumers can now get alcohol delivered. Restaurants and retailers that are licensed can deliver beer, wine and liquor to consumers directly, or through on-demand delivery services.

Correction: A previous version of this post said the law now allowed stores to start selling beer and wine at 10 a.m. on Sundays. It does not.

WI: Wisconsin Counties Using Automated Kiosks To Conduct Court-Mandated Alcohol Screening Counties Say Kiosks Save Staff Time, Provide More Convenience

WPR By Danielle Kaeding September 2, 2019

Counties across Wisconsin are using automated kiosks to conduct Breathalyzer tests for people required to take part in court-mandated alcohol screening.

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The kiosks use fuel cell technology to monitor blood alcohol content, and tests are taken without the presence of a supervisor. Minneapolis-based Precision Kiosk Technologies is offering the automated systems across at least eight counties, including Racine, Door, St. Croix and Sawyer counties.

In Racine County, the kiosks have allowed law enforcement to release low-risk nonviolent offenders as long as they comply with alcohol screening, according to Patrick McKinney, the company’s general manager.

"It’s allowed them to keep their jail bed population to a manageable level based upon their current staffing," said McKinney. "In St. Croix (County), we’re using it in association with a drug court and we’re doing alcohol monitoring."

The kiosks have also been used for probation or Huber work release programs, said McKinney. The units are typically located in the lobby of jails or law enforcement centers, so individuals have 24-hour access to the kiosks for testing.

The units incorporate fingerprint authentication or an individualized pin, as well as video, to verify the identity of people taking the tests. The system notifies people of upcoming tests, which can be scheduled or random, through emails or text messages. The offender pays a nominal fee to pay for the cost of the system.

The results of whether people pass, fail or miss a test are transmitted electronically to those responsible for overseeing alcohol screening, according to Diane McNamer, criminal justice coordinator for Sawyer County. She said the county recently began using the kiosks because the county conducts an average of 23 tests daily or randomly.

McNamer said the kiosks are being used to test offenders who must comply with alcohol screening as a condition of being released on bond. She said alcohol monitoring is one way to keep low-level offenders out of jail. She also added the county has one circuit court judge with the highest caseload per judicial official in the state, which can mean delays for cases moving through the system.

"In the meantime, you want to preserve that safety for the community," she said. "Thus, here's a testing mechanism to make sure that if I let them out on a cash bond that there are some parameters and some boundaries that they will be testing. They're going to earn that right to be out while they're case is being decided."

Lafayette County has been using the kiosks for the past several months, according to Reg Gill, the county's sheriff.

He said the systems also free up staff time to focus on other duties.

"Our jailers are dispatchers as well," said Gill. "They're doing both jobs, so they're already pretty busy as it is."

He said the kiosks also provide more convenience for those required to take part in screening, noting individuals could test from any kiosk even if it's outside the county where they live.

"When we would have someone report to the sheriff's office needing a breath test done, if our staff was real busy at the time, it might take a while to get to them," said Gill. "Now, as long as that kiosk is open, they're able to just pop in, take care of that test and go from there."

McKinney said there are 12 kiosks throughout the state with another five scheduled to be installed. He estimates 19 counties will be using the automated system by the end of the year.

As of the end of July, McKinney said more than 84,000 tests had been administered in Wisconsin with a 99.5 percent compliance rate showing no signs of alcohol use.

"We’re highly accurate," he said. "The only time we’ve seen a false positive is when somebody has used an alcohol-based mouthwash."

McKinney emphasized the kiosks are a monitor and any positive tests would need to be verified through follow-up testing with law enforcement.

Such automated systems have raised questions over privacy and security of technology storing the information. McKinney said the kiosks do not store fingerprint information, but rather an alphanumeric key developed from the information entered. The data is encrypted and stored in the cloud, which means storing programs over the internet instead of on a computer's hard drive. No data is stored locally on the kiosks, which are monitored by the company.

CA: Extending Last Call To 4 AM Could Cost More Than Two Million Dollars A Year

Good Day September 2, 2019

SACRAMENTO (CBS13) – Allowing bars in nine California cities, including Sacramento, to apply to stay open until 4 am could cost at least two million dollars a year.

Senate Bill 58 would allow bars in Sacramento, San Francisco, Oakland, Los Angeles, West Hollywood, Long Beach, Coachella, Cathedral City, Fresno, and Palm Springs to extend last call hours from the current 2 am to

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4 am starting January 1, 2022. Bars could start applying for the extended license in January 2020.

The bill passed the Assembly Appropriations Committee on Friday by a vote of 13-4.

Alcohol Beverage Control estimates this bill will cost:

• $600,000 one-time in 2020-21 to develop pilot program

• Ongoing annual costs of $2 million starting in 2021-22 to cover program development, licensing, enforcement (paid for by application fee/annual licensing fee)

• Hundreds of thousands in one-time costs for CHP to participate in local task force (from Motor Vehicles Account)

• Ongoing cost of $4,000 to the Department of Justice for enforcement (Legal Services Revolving Fund, General Fund)

Currently, there are more than 9,000 “on-sale licenses” in those cities. Establishments looking to extend last call would need to pay a $2,500 application fee, plus another $2,500 annually.

Even if SB 58 becomes law, the ten cities listed wouldn’t automatically get to extend last call. Instead, cities would need to adopt a local ordinance that would get approved by the Alcohol Control Board. ABC would also approve or deny applications submitted by bars looking to close at 4 am and would base the decision on a number of criteria, including:

• Requires that all persons engaged in the sale or service of alcohol during the additional hours period complete a responsible beverage-training course.

• Prohibits the additional hours’ license to be transferred between on-sale licensed premises.

• Requires ABC, upon receipt of an application, to make a thorough investigation, including whether the additional hours would unreasonably interfere with the quiet enjoyment of their property by the residents of the local community.

• Authorizes ABC to deny an application if the issuance of that license would tend to create a law enforcement problem or if issuance would result in or add to an undue concentration of licenses.

• Requires the applicant to notify the law enforcement agencies of the city, the residents of the city located within 500 feet of the premises for which an additional hours license is sought, and any other interested parties, as determined by the local governing body, within 30 consecutive days of the filing of the application.

The new law would go into effect on January 1, 2022, and sunset on January 2, 2027.

A number of cities nationwide have similar laws, including Chicago, Washington, DC, New York City, Buffalo, Las Vegas, and Louisville.

Gov. Jerry Brown vetoed a similar bill, SB 905, earlier in 2018, citing concerns raised by the California Highway Patrol over an increase in drunk driving.

“California’s laws regulating late-night drinking have been on the books since 1913,” Gov. Brown said in his veto. “I believe we have enough mischief from midnight to two without adding two more hours of mayhem.”

The previously vetoed bill had the support of a number of mayors and chambers of commerce statewide.

Sacramento Mayor Darrell Steinberg has spoken in support of a later last call hour, noting how it would help in the revitalization of the downtown district.

“This legislation gives us the flexibility to tailor our nightlife scene to attract tourists and conventions while protecting the character of our quieter residential neighborhoods,” Steinberg said in a statement.

INTERNATIONAL NEWS Australia: Sales vs safety: the minor inconvenience of online alcohol delivery

Inside FMCG By Ruth Hogan September 3, 2019

Alcohol has never been so readily available online, whether it’s the option to add a bottle of wine to the shopping cart at Woolworths online or order a magnum of Saint Roch Le Rosé from Vinomofo on UberEats.

Most liquor retailers now offer their range online, but is there enough measures in place to ensure alcohol doesn’t fall into the hands of minors? And how much of this responsibility lies with third party delivery platforms?

Julie Ryan CEO Retail Drinks Australia told Inside FMCG that when it comes to bricks and mortar stores, a licence is required to sell liquor and all team members doing so require an RSA.

However, a licence that deals with online sales only does not require all team members to be RSA trained as they are not all present at the time of sale. When it comes to third party delivery companies, such as Uber Eats, they are not required to hold a license at all.

“Third party delivery companies complete the ‘delivery’ of the sale. The sale itself is completed by a liquor retailer

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under their own liquor licence and that is who is responsible for the sale,” Ryan explained to Inside FMCG.

“There is currently no legislation around a delivery company needing a licence or for a delivery driver to have an RSA.”

Ryan said this is reflective of the fact that alcohol delivery may only represent a very small percentage of the work conducted by a delivery driver, unlike someone in a bottle shop who would do it full time.

She said that Management Plans or House Policies provide liquor retailers with guidelines on how to retail responsibly, including measures like verifying ID.

“A large number of responsible retailers actually already ensure that their third-party contractors are RSA trained – this is a best practice stance and not a requirement currently,” she said.

The Retail Drinks Online Alcohol Sale and Delivery Code which was launched recently, requires all retailers who are signatories to ensure that the third party delivery drivers they use are trained in the traditional RSA principles.

“Given the Code already represents more than 80 per cent of all alcohol sold online, it is clear how capturing both retailers and delivery agents like Australia Post as signatories will rapidly and dramatically change the delivery environment for alcohol,” Ryan said.

Jimmy Brings, an alcohol delivery services that operates in most Australian cities, operates on this basis.

“We place great importance on safety and following all the relevant laws and regulations,” a spokesperson told Inside FMCG.

“All of our drivers have RSA certification and when they deliver, they check the IDs of the recipients if they look to be under 25 years old. Additionally, we never leave any alcohol unattended or with anyone who looks to be under 25 and doesn’t have valid identification to prove their age.”

Legislation around online alcohol sales varies from state to state. In NSW alcohol cannot be left unattended if purchased that day, and in Victoria it is considered an offence to deliver alcohol to anyone under 18.

In many states a date of birth is required to be entered at the time of purchase. Ryan said that most reputable retailers will go a step further by verifying customer details to ensure a minor is not using false identification or stolen cards.

“Some retailers commit that for all first time deliveries ID is checked for every customer, and most commit to the

voluntary “ID25” principle which ]means that] their delivery agents will check the ID for any customer who looks under 25,” Ryan explained.

So, is there enough being done to prevent alcohol falling into the hands of minors?

Ryan said express/same day delivery poses the biggest risk as it is most attractive to persons under 18 and potentially hazardous for a person who is already intoxicated.

“The real risks to be considered is express or same day alcohol delivery, and almost all of the retailers operating in that space have agreed to sign the Retail Drinks Code which bans unattended alcohol delivery in the same day as it is ordered, and requires RSA trained drivers to be conducting those deliveries,” she said.

“This means anyone ordering alcohol for delivery the same day will be ID checked if they look under 25 and will have an assessment of whether they are intoxicated at the time of delivery. If they fail either of these tests, the alcohol isn’t delivered.”

She said that the industry is very good at self-regulation with “robust practices” in place to ensure responsible delivery of alcohol.

Inside FMCG contacted Uber Eats for comment on its rules around alcohol delivery but did not receive a response ahead of publication.

Philippines: Liquor producers ask for level taxation on distilled spirits, wine

Manila Standard By Julito G. Rada September 1, 2019

The Distilled Spirits Association of the Philippines said it supports the government’s proposal for higher taxes on alcohol products as long as it promotes a level playing field among industry players.

DSAP president Olivia Limpe-Aw said association members were concerned that current proposals aimed to impose too much tax burden on distilled spirits and a lighter levy on wine products.

“As we told the Department of Finance, if you want to increase our taxes, we’re okay with that as long as you level the field,” Limpe-Aw said at a recent Senate ways and means committee meeting chaired by Senator Pia Cayetano.

Limpe-Aw said the DOF’s plan to exempt wines from the ad valorem tax was unfair to other alcohol makers. Under

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the proposal, the government plans to collect two kinds of taxes from every proof liter of distilled spirits―first, a P40 specific tax and second, a 22-percent ad valorem tax based on net retail price per proof.

The DOF proposed to impose a single specific tax of P40 per liter of wine, which would be exempted from ad valorem tax.

“We’re currently applying a progressive tax structure for distilled spirits. There’s no reason it can’t be done across categories in the alcohol sector/industry. We just need to look for the right balance,” said Limpe-Aw, who is also the president and chief executive of Destileria Limtuaco, Inc., the country’s oldest distillery.

She said that if adopted, the DOF proposal would unfairly penalize low-income consumers who could not afford to buy expensive wines costing up to P600,000 per bottle that pay only P40 excise tax per liter or equivalent to P30 per 750-ml bottle.

“Let’s compare: Ginebra San Miguel Gin will be sold at P94 a bottle under this proposed tax, so the tax is P32.66 or a tax burden of 34.74 percent. The most expensive wine―P600,000―the tax is only

P30/bottle, or a tax burden of 0.005 percent,” she said.

She admitted that not all distilled spirits catered to the mass market as there were also brands that catered to affluent consumers and sold for more than P20,000 per bottle. She said high-end distilled spirit brands paid higher excise tax.

Canada: PCs promise to let brewers sell on-site drinks without steep government markups Liberals and NDP slam promise, point out cut to Craft Liquor Opportunity Fund

CBC News By Austin Grabish September 2, 2019

Manitoba's craft brewers will be able to keep more cash from sales they make on-site if the Progressive Conser-vatives are re-elected next week.

PC Leader Brian Pallister promised to remove markups for beer, spirits, cider and wine on products that are brewed or distilled and then sold for drinking on site.

"This exemption will encourage local producers to expand their operations, to open a taproom or a tasting facility at their location to create new jobs, to create new tourism opportunities and to help us grow a vibrant local economy," Pallister said Monday afternoon at Patent 5 Distillery in the Exchange District.

Brock Coutts, one of the owners of Patent 5, one of two craft beer breweries in Winnipeg, said the promise is significant and would allow him to hire two new staff members and potentially become profitable quicker than originally forecast.

'Going to help every distiller'

He said it would allow him to make more money on on-site consumption sales of spirits like gin and vodka that account for 10-20 per cent of his business while the rest of his revenue comes from sales at Manitoba Liquor Marts.

"It's going to help every distiller to the point that I think in the next two years you'll probably see at least five new distillers because of that reduced reduction in markups," said Coutts. "It's a fantastic thing for the industry."

"If I sell the product directly from my tasting room should there be a markup on it? They didn't distribute it, they didn't retail it, they didn't wholesale it," Coutts added.

Estimated 16 businesses will benefit: Pallister

Micro-distilleries currently face steep markups on their products.

For spirit sales, there's an 85 per cent markup that puts about $20.00 a litre into provincial coffers, for example. Pallister said the goal is to help make the industry more competitive which he said currently lags behind Saskatchewan, Alberta and B.C.

He estimated 16 businesses would be eligible for the markup exemption.

Coutts said it's difficult to compete with distilleries in other western provinces because they have looser rules that let them make money at home and export their product out of province.

"We're having trouble making money in our own province so now the playing field is equal."

Liberal Leader Dougald Lamont slammed Pallister's promise pointing out the Manitoba Craft Liquor Opportunity Fund, which was intended to help local craft brewers get off the ground, was killed under his government.

"This is just the latest in a series of reversals by this government where they are trying to make up for damage they have done — in this case, cancelling a successful program that helped Manitoba brewers and distillers start their businesses," Lamont said in a statement.

Pallister refutes debate criticism

The NDP, meantime, had a similar criticism of Monday's promise.

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"This is typical of Brian Pallister. He cut supports to the craft brewery industry three years ago. Now he would have us believe he supports it," said campaign spokesperson Emily Coutts, who is not related to Brock.

Pallister was also asked Monday about criticism from his NDP opponent Wab Kinew, who has been vocal about Pallister only attending one election debate so far and failing to commit to any others.

Pallister said by the end of the day Tuesday he'll have visited 50 out of Manitoba's 57 election ridings himself.

"We've actually already run the most ambitious and energetic leadership tour and campaign in the history of the province of Manitoba," Pallister said.

"I don't expect the people of Manitoba to have to come to me like Mr. Kinew does."

United Kingdom: What happens if you drink too much at the airport?

Travel Insurance Explained By Rebecca Kingsley September 3, 2019

A passenger was arrested and escorted by police from an EasyJet flight early Sunday morning. It is believed the female, who has not yet been named, was drunk and assaulted a member of the cabin crew. The woman’s husband was also removed by police.

Cabin crew were forced to restrain the woman during the flight and the plane landed safely at Southend Airport where police were able to assist.

This is not the first instance where passengers have been arrested after landing due to drunk and disorderly behaviour. In fact, the number of passengers having one too many in the departure lounge has significantly increased in the last few years. According to an investigation by ITV* 245 people were arrested at UK airports on suspicion of being drunk between 1st April 2017 and 31st March 2019. 103 of those arrests were made at London’s Heathrow, the UKs busiest airport.

So, what happens if passengers drink too much at the airport?

Anti-social behaviour, whether it’s intoxication, disobey-ing instructions, threatening behaviour or endangering the safety of the flight, staff and passengers, can have serious repercussions.

Airlines’ train their staff to deal with all forms of disruptive behaviour, and staff on the ground have the right to refuse boarding to anyone behaving in such a

manner. Cabin crew will also refuse to serve alcohol to anyone who appears to be intoxicated during the flight.

According to the Civil Aviation Authority the punishment for drunken behaviour on board a flight is a fine of up to £5,000 and two years in prison. Depending on the severity of the incident passengers that endanger the safety of the aircraft could face up to five years in prison.

If the flight is diverted, the passenger may have to repay the airline the cost of the diversion. These costs range from £10,000 to £80,000 – a high price to pay for a couple of drinks at the airport.

Can passengers claim for the holiday cost if they are refused boarding?

No, and they have no one to blame but themselves. It may seem unfair, but potentially endangering the safety of an aircraft is a serious matter.

If passengers are refused boarding, it may be possible for them to fly at a later date once they have sobered up, but this decision will be solely down to the airline.

Those looking to submit a claim on their travel insurance should be aware that a policy will not cover any costs associated with the passengers being refused boarding due to their behaviour. This includes the cost to return home if they are diverted during a flight and land in another country.

What can passengers do to prevent this happening to them?

It really is as simple as making sure they do not drink excessively or take drugs before boarding their flight. Everyone has a different tolerance when it comes to alcohol, but during a flight the pressure in the cabin causes lower oxygen levels and passengers may feel the effects of alcohol quicker – even after one or two drinks.

If passengers find themselves next to someone who appears intoxicated, discretely report them to a member of airline staff. Occasionally intoxicated people slip past the gate staff and are allowed to board the plane. Reporting the passenger before take-off can prevent a lot of aggravation during the flight.

Unfortunately, until a regulation is put in place to restrict the amount of alcohol a passenger can consume before a flight – or a ban is put in place, these incidences are likely to continue and become more frequent. Just make sure it doesn’t happen to you. More on alcohol abroad can be found here.

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INDUSTRY NEWS Ready-to-drink beverages: a convenient answer to consumer demand for functionality?

Food Bev By Heather Burrell September 3, 2019

Ready-to-drink beverages, or RTDs, are single-use beverages that are packaged ready for immediate consumption upon purchase. The market for RTDs is now broader than ever, ranging from iced coffees and teas, to kefir yoghurt drinks to canned wines and cocktails.

According to ForMarkets, the global RTD market is predicted to reach $17.67 billion by 2025, with a growth rate of 7.2% from 2018-2025. In 2019, an increasing number of beverage brands have jumped on to the RTD-bandwagon with cutting-edge beverage innovations.

Consumer awareness for health and wellness, demand for clean label and functionality are just some of the contributing factors pushing this rapid growth in the RTD category. So, what are the top 5 drivers of success for the ready-to-drink beverage sector?

Functionality

Within the RTD market, it has become evident that whilst using vibrant, creative packaging can help sell the beverage, it is more important is to focus on the innovation of the beverage itself. So far in 2019, this has been particularly centred on the creation of beverage products with a unique function.

According to Frost and Sullivan research, functional drinks represent the fastest growing functional market. Research from Mintel has found that, in the RTD category, consumers mainly seek choices that include antioxidants (47%), promote brain health (40%), are anti-inflammatory (35%) or have probiotics (30%).

It is evident that functional RTDs are appealing to the health-conscious consumer. This year we have seen a variety of new ‘fusion’ beverages that are both ready-to-drink and claim to have health-related functional benefits, such as cannabis-infused iced teas and collagen waters.

In particular, the past year has seen a boom for probiotic beverages. Global Market Insights Inc. claims that by 2023, the global market for probiotic ingredients is expected to reach $64 billion. Products released within this category range from probiotic dairy drinks to probiotic juices. RTD probiotic beverages allow health conscious consumers a quick and easy way to potentially improve their gut health.

Energy drinks are a common example of drinks with functionality and have always been a strong driver of the RTD market. However, as consumers are becoming more concerned about what they are putting into their bodies, the category is now beginning to redefine itself.

Whilst we previously saw energy drinks mainly containing the ingredients of sugar and caffeine, brands are now steering towards more natural functional ingredients. Earlier this year, Coca-Cola launched its first energy drink which naturally derived caffeine, guarana extracts and B vitamins. Similarly, Radnor Hills unveiled a new line of natural energy drinks in March, boosted with seven B vitamins and natural caffeine, designed to give consumers more energy without the sugar crash.

Clean, functional beverages have an increasingly significant place in the RTD category, and we are seeing, and will continue to see, big brands and new brands alike hopping onto this trend in the near future.

Convenience

Time-poor, on-the-go consumers are increasingly looking for products to fit their active lifestyles. As such, convenience trends are fuelling demand for ready-to-drink beverages.

Recent growth in the RTD coffee market is largely down to this consumer demand for convenient beverages that not only fit into but also fuel their busy lives. The Global RTD Coffee Market is forecasted to reach $12.61 billion by 2024, witnessing growth of 4.5% during the forecast period (2019 – 2024), according to Mordor Intelligence.

The convenience coffee category has seen a plethora of new innovative products this year; from cold brews to sparkling canned coffee, snapchilled coffee and high-protein RTD coffee. As consumers are becoming more environmentally conscious, demand for plant-based products is on the rise and brands are having to cater for these demands. For instance, Danone North America expanded its Stok Cold Brew portfolio with two new dairy-free RTD creamed coffees in March.

We have also seen an increase in brands providing healthy and convenient solutions for consumers who may even be too busy to prepare snacks or meals, by releasing RTD products that can be consumed either as a ‘snack’ or meal replacement.

Products such as RTD smoothies are a simple way for shoppers to ensure they are getting key nutrients from fruit. UK brand Earlybirds took this further by creating a ‘snacking beverage’ range; providing a high-fibre, plant-based drink for time-poor, health-conscious consumers.

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We are also seeing an increasing number of beverage products that can be consumed as a meal replacement. For instance, the global breakfast drinks market accounted for $57.17 billion in 2018, and is expected to reach around $83.83 billion by 2026, at a growth rate of around 4.9% between 2019 and 2026, according to a report published by Zion Market Research.

RTD alcoholic beverages

Ready-to-drink alcoholic beverages have been a significant player within the category recently, with the global alcoholic RTD and high strength premixes market estimated to grow at a rate of 3.32% from 2019-2027.

Although it may not appear so at first, the growth of this category coincides with consumer demands for healthier choice. Consumers are making active decisions to reduce the amount of alcohol they are consuming, for instance, alcohol consumption fell by 1.5% around the world last year, according to IWSR. Providing options for smaller, more convenient alcoholic beverage products, containing less alcohol, means consumers can consciously cut down on the amount of alcohol they consume.

Innovation of RTD alcoholic beverages has been rife. A category that was once primarily known for brightly coloured alcopops has now extended to canned wines, pre-mixed cocktails and hard seltzers.

Ultimately, RTD alcoholic beverages allow consumers with choice, both in terms of the wide variety of new innovative products and the option to choose healthier options such as lower alcohol, lower calories and smaller volumes.

Premiumisation

The RTD beverage category is growing rapidly, and with this growth comes further competition for beverage companies. Therefore, the need for innovation and uniqueness is greater than ever.

With sustainability heavily impacting beverage brands currently, it comes as no surprise that there is an inclination towards cans or glass bottles for RTD packaging design, which arguably give a premium look.

Craft beers brands and sparkling soda alike are hopping onto this trend of premium packaging trend. Belgian start-up brand, Yugen, collaborated with Ball Corporation earlier this year to create a new range of kombucha packaged in printed cans.

Millennials

Millennial-aged consumers are a primary target market for this category and are driving both innovation and success within it. The health-conscious millennial

consumer is continuing to redefine consumer markets, and RTD beverages provide them with fresh, new, exciting brand stories.

In a recent study, it was found that 57% of consumers aged 25 to 35 demonstrated engagement with all functional beverage category segments. They are a generation of busy individuals ultimately looking to find simple, convenient ways to conform to a healthy lifestyle.

Attractive packaging designs on RTD beverages are favourable for beverage brands marketing products to younger consumers. The eye-catching designs on social media are key to influencing millennial consumer behaviour. Global brands marketing director Jen Draper claims that 80% of consumers are more likely to purchase an item based on friends’ suggestions, with social media being one of the easiest ways to do this.

These top five factors contributing to the growth of RTD beverages spans multiple categories, from alcohol premixes to dairy/dairy alternatives, soda, coffee, tea, sparkling energy drinks and more.

It is no surprise, therefore, that a plethora of beverage brands have hopped onto this booming trend, which not only caters to modern-day consumers’ concern with health and wellness, but also with their need for convenience within busy fast-paced lives.

If you think you have an award-worthy beverage innovation, be sure to enter the World Beverage Innovation Awards 2019 now.

DAILY NEWS Kansas Alcohol Regulator Receives National Award at Center for Alcohol Policy Conference Debbi Beavers, Director of the Kansas Alcoholic Beverage Control, receives Leadership in Alcohol Regulation Award

News Release Center for Alcohol Policy August 30, 2019

The Center for Alcohol Policy is pleased to announce that Debbi Beavers, Director of the Kansas Alcoholic Beverage Control, is the recipient of the Seventh Annual Leadership in Alcohol Regulation Award.

The award, which recognizes a specific program, agency or person with the ability to regulate the alcohol industry and promote public health and safety, was presented by the Center’s Advisory Council at the 12th Annual Alcohol Law and Policy Conference, in Boston, Mass.

From left to right: Center for Alcohol Policy Advisory Council member Jerry Oliver; Director Debbi Beavers;

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Advisory Council members Brannon Denning, Jim Hall, and Patrick Lynch.

Director Beavers has served the State of Kansas for over 15 years and has always been known for her honest and thoughtful approach. The Center for Alcohol Policy chose Mrs. Beavers to receive this award because she has led with an appropriate focus on ensuring an orderly and fair marketplace and advocating for responsible policies that protect the well-being of all Kansans.

Specifically, Mrs. Beavers was selected for leading the agency and the industry through the profound changes that have occurred in beverage alcohol regulations in Kansas over the last two years. Through dialogue with all segments of the industry, community and public health stakeholders, as well as education of alcohol licensees, she dynamically led this transition under the new laws.

“The Center works diligently to promote public health and safety through a responsible state-based alcohol regulatory system and strives to educate regulators on the importance of prioritizing public safety when enforcing state law,” said Center for Alcohol Policy Advisor Jerry Oliver. “The Center is proud to present its annual award to someone who shares those same values, day in and day out.”

Crossing The Mason-Dixon: Alcohol Laws In Maryland And Pennsylvania A little line makes a big difference.

Study Breaks By Madison Feser, Seton Hall University September 2, 2019

Let’s face it, America has some weird laws: North Carolina bingo games cannot last more than five hours, and Coloradans need a permit to modify the weather. Such bizarre legal codes are rarely enforced — but state alcohol laws, even if just as outlandish, are not to be reckoned with.

The 1933 Prohibition repeal came with greater state autonomy in creating, regulating and enforcing alcohol laws. Historical precedence and religious demographics influenced just how strict or fluid states were in implementing their respective laws, despite how absurd they might be.

Pennsylvania and Maryland share a border and have a complicated territorial history. Prior to the drawing of the Mason-Dixon line in the 1760s, the two states essentially shared (and fought an 8-year war over) Pennsylvania’s southern and Maryland’s northern border.

Previously sharing territory and currently sharing a border, one might assume that Pennsylvania and Maryland share similar laws. This would also be convenient, as residents along the border cross state lines daily for work and recreation. But, alas, legal codes are not always so simple nor practical, especially when it comes to alcohol laws.

The Commonwealth of Pennsylvania came to be in 1681 as a “holy experiment” of Quaker founder William Penn, who guaranteed religious freedom to all residents. Such promises appealed to Penn’s fellow Quakers and, later, German-speaking immigrants, known today as the Pennsylvania Dutch (including Mennonites, Amish and Brethren).

The Keystone State’s religious tolerance means many of its legislative traditions are heavily influenced by remnants of old Christian morals. As recently as August 2017, 686 municipalities in Pennsylvania continued the Prohibition’s work by remaining “dry” communities.

As a dedicated teetotaler, or one who abstains from alcohol, Pennsylvanian Governor Gifford Pinchot was devastated at the national Prohibition repeal, and he was determined to protect his beloved state. If America wanted to descend into drunkenness, so be it, but the state of “virtue, liberty and independence” would not be so dammed.

Pinchot called a special session of the General Assembly and formed the Pennsylvanian Liquor Control Board to create liquor laws that would make drinking alcohol as “inconvenient and expensive as possible.”

Mission accomplished: Pennsylvania has some of the strictest alcohol laws in the United States. The rigmarole of buying an alcoholic beverage is so exhausting that even Dionysus would choose water over wine.

Like most states, Pennsylvania sets the legal drinking age at 21 years and allows 18-year-olds to sell alcohol. But a 17-year-old can also sell alcohol if they have graduated high school or have a note from the head of their school district certifying they’ve reached full “academic potential.”

Pennsylvania law, taking no chances on potential underage drinking, does not make exceptions for religious ceremonies; no wine at communion, no wine at Passover — no alcohol for minors, ever. William Penn’s spirit is likely dismayed at this aspect of his “holy experiment.”

Far more inconvenient than rigid age limitations on alcohol consumption is the very purchasing of it — alcohol runs are long and toilsome endeavors.

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Beer is only available from designated distributors and nothing smaller than a full case, or 24-pack, can be sold, unless a customer finds a bar with a license to sell 6-packs. Wine and hard liquor, meanwhile, are only sold at the state-run store at the state-determined price. And with only 600 “Fine Wine and Good Spirits” stores in the 46,055 square mile state, buying that perfect bottle of Jameson or Pinot Grigio might mean a lengthy road trip.

Pennsylvania clearly has strict liquor laws, but are they enforced? Just ask Arthur Goldman. In 2014, a judge found out that Goldman brought wine illegally into the state and, in turn, ordered the contents of 1,300 bottles to be poured down the drain.

Until recently, Pennsylvania and Utah were the only states where the state government had complete control over wine and spirit sales. But luckily for Pennsylvanians, 2016 brought minor changes to liquor laws that suggest the state “might be on the brink of recovering from an 83-year hangover.”

If waiting for that hangover cure becomes wearisome, just hop over the Mason-Dixon. The Old-Line State has always welcomed drinkers, even during the Prohibition. Maryland was the only state that never passed a state enforcement act, as the Prohibition was seen as “an infringement on states’ rights to enforce and control liquor traffic within its borders.”

These declarations, however, were largely symbolic because the entire country was legally a dry nation. Subsequent liquor laws tried to keep the symbolism alive by stating that the purpose of state policy toward alcohol regulation is to “obtain respect and obedience to law and to foster and promote temperance.” Where Pinchot wanted Pennsylvania law to completely discourage all drinking, Maryland law wants to moderate excessive drinking.

To accomplish this goal, the state relinquished most of its authority to local counties. County boards and councils regulate liquor licenses, control which business can sell specific types of alcohol and determine when these products can be sold.

Maryland’s legal drinking age is also 21, and 18-year-olds can serve or sell beer and wine, but servers and sellers of hard liquor must be 21 because, according to an old myth, spirits are more alcoholic than beer or wine.

Minors who wish to indulge in fermented beverages are free to, so long as they drink in a private residence and a guardian or spouse is present. If they are at church, temple or another public religious establishment, however, it’s illegal. Like Pennsylvanian, Maryland law makes no exception to minors drinking at religious

ceremonies — but they can get as intoxicated as they want in their own homes. This, ladies and gentlemen, is the logic of Maryland alcohol laws.

As of 2018, Maryland was one of 11 states that did not allow beer and wine to be sold at grocery stores. However, opening alcohol sales to grocery stores would economically benefit both local brewers and struggling family-owned grocers, so some counties are exploring the possibility.

Maryland and Pennsylvania once debated for nearly 50 years about an imaginary line in the ground, when really a battle over “to drink or not to drink” would have been far more interesting. A wet state borders a dry one — borders should foster similarity, and conflicting ideas of temperance should foster differences.

Although legal and religious history plays a clear role in influencing each state’s respective liquor laws, nothing in their laws is radically different enough to create another neighborly dispute.

That is, unless, another Arthur Goldman comes along. Except instead of importing wine from abroad, he just pops over to Maryland, stocks up on spirits and heads home to Pennsylvania. The penalty would far surpass emptying some wine bottles — the states might need a new, stricter re-surveying of the Mason-Dixon line.

President Donald J. Trump Proclaims September 2019 as National Alcohol and Drug Addiction Recovery Month

Sierra Sun Times September 1, 2019

September 1, 2019 - Presidential Proclamation on National Alcohol and Drug Addiction Recovery Month, 2019:

During National Alcohol and Drug Addiction Recovery Month, we raise awareness of substance use disorder and celebrate the millions of Americans who have successfully overcome addiction. Their stories of healing and redemption are a source of hope and encouragement to others battling addiction.

Addiction to alcohol, opioids, and illicit drugs is a public health emergency. For this reason, I have taken aggressive action to combat the scourge of addiction and help those affected by it. My Initiative to Stop Opioid Abuse and Reduce Drug Supply and Demand is designed both to reduce the demand for drugs through education, awareness, and the prevention of over-prescription and to cut off the flow of drugs across our borders. The Substance Use-Disorder Prevention that Promotes Opioid Recovery and Treatment (SUPPORT) for Patients and

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Communities Act, which I signed into law last year, is the single largest bill dedicated to combating the drug crisis ever passed in the history of our country. This law expands access to evidence-based treatment, protects our communities from illicit drugs, invests more in sustained recovery, brings those in treatment and recovery back into the workforce, and raises public awareness of the dangers of illicitly imported synthetic opioids. My Administration also secured more than $6 billion over 2 years to help Americans affected by addiction to opioids and other drugs have access to the care they need. And we continue working closely with States to waive overly restrictive Federal rules, so they have more flexibility to develop and implement innovative solutions to this crisis.

Every American can work to end the crisis of alcohol and drug addiction in our country, which shatters relationships and erodes the strength of our communities. Countless first responders, healthcare professionals, counselors, recovery coaches, spiritual leaders, and volunteers help Americans every day to achieve and sustain recovery through their compassion and dedication. Equally important are the courageous individuals in recovery who have battled stigma, misunderstanding, and the disease of addiction to build a new life. Their struggles, lessons learned, and experiences gained on the road to recovery offer invaluable inspiration to all who fight addiction. Through The Crisis Next Doorplatform launched by the White House last year, Americans whose lives have been tormented by addiction can share their stories and provide a glimpse into the tragic consequences of substance use disorder and the hope, healing, and joy of lives reclaimed through recovery.

This month, we reaffirm our commitment to the critical battle against alcohol and drug addiction, remember the lives lost to this disease, and honor those in recovery. By helping those still struggling find the treatment they need and by welcoming home those who are recovering, we can make our communities and our Nation stronger, healthier, and more prosperous.

NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim September 2019 as National Alcohol and Drug Addiction Recovery Month. I call upon the people of the United States to observe this month with appropriate programs, ceremonies, and activities.

IN WITNESS WHEREOF, I have hereunto set my hand this thirtieth day of August, in the year of our Lord two thousand nineteen, and of the Independence of the

United States of America the two hundred and forty-fourth. DONALD J. TRUMP Source: Office of the White House

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