Tuesday, August 11, 2020 www.nabca.org

TODAY’S HIGHLIGHTS

• Virginia ABC Offering BOLT Program Online • Holes on beer shelves not just because people are drinking more • Petition over beer duty receives 8,000 signatures • Miscarriage risk increases each week alcohol is used in early pregnancy • Direct-To-Consumer Wine Shipments On The Rise During Covid • DWI or DUI? Regardless of the label, it’s impaired driving and equally illegal

NABCA News

Visit NABCA’s COVID-19 Resource page for updates regarding policy changes that effect on- and off-premise retail operations.

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CONTROL STATE NEWS

VA: Virginia ABC Offering BOLT Program Online

News Release VA ABC August 10, 2020

RICHMOND – The Virginia Alcoholic Beverage Control Authority (ABC) has launched a new, online version of a program aimed at preventing substance use among middle school-age youth, Being Outstanding Leaders Together Against Drugs and Alcohol (BOLT).

The revamped program, which was first offered in 2014, provides educators free training and resources designed to serve as a guide to preventing youth substance use at this pivotal developmental stage. BOLT was created to dovetail with the Virginia Department of Education Alcohol, Tobacco and Other Drug Standards of Learning (SOLs) and support middle school prevention activities including in-classroom curriculum instruction and participation in substance use awareness campaigns.

“Middle school is a time when many students are exposed to alcohol and other drugs for the first time,” said ABC Education and Prevention Manager Katie Crumble. “BOLT allows us to effectively reach this critical age group and equip students with the knowledge and skills they need to make healthy life choices.”

The goals for BOLT include increasing students’ ability to:

• demonstrate knowledge of the effects of alcohol and other drugs on the body and brain;

• identify substance use consequences;

• understand the importance of peer leadership and positive decision making; and

• recognize youth substance use influences and the key concepts of social providing and peer pressure.

With uncertainty about students returning to the classroom still lingering in the midst of the COVID-19 pandemic, BOLT materials are being offered in formats to incorporate in both in-person and distance learning lesson plans. Classroom resources can be presented

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through screen share, and worksheets can be uploaded to a school’s online platform for distribution.

For more information about ABC’s BOLT program and additional resources to address the prevention of youth substance use, visit www.abc.virginia.gov/education/programs/bolt.

Contact: ABC Communications Phone: (804) 213-4413 Email: pubrel@abc.virginia.gov

OR: What will it take for Oregon restaurants and bars to offer cocktails to-go? (excerpt)

Salem Statesman Journal By Emily Teel August 10, 2020

When the Oregon legislature meets in a special session this week, legislators may explore the issue of approving the state's bars and restaurants to sell packaged cocktails to-go.

Currently, restaurants in Oregon can sell margarita mix along with a take-out order, but add tequila to that mix or gin to a bottled Aviation cocktail and the drink hits a no-fly zone.

Meanwhile, people in Texas can order a cooler full of Jell-O shots for delivery, and residents of 30 other states — including California, Idaho and Washington — have been adding liquor or restaurant cocktails packaged in bottles and jars to their take-out orders for months.

In Oregon, the rule persists, although restaurants are permitted to sell beer, cider and wine, either in prepackaged bottles or in growlers, along with take-out and delivery orders.

Further adding to the confusion, in April the state approved special permission to allow distilleries to offer same-day home delivery of bottled liquor, but restaurants and bars are barred from selling liquor or cocktails in the same way.

Jason Brandt, director of the Oregon Restaurant and Lodging Association, stressed the importance of changing the policy to include independent bars and restaurants.

"The survival of the restaurant industry is at stake," Brandt said.

According to a nationwide survey conducted by the National Restaurant Association, 72 percent of Oregonians support the sale of cocktails to-go.

Oregon's hospitality industry represents the second-largest in the state, employing 180,000 people.

Financial impact on restaurant owners

Restaurants on the surface are places that make their money by selling food, but at many eateries the profit margin on food pales in comparison to that on alcohol.

"Liquor and bar programs can carry a lot of weight in bars and restaurants," said Sydney Paige Barrentine, a bartender and consultant who previously helmed bar programs at Ritter's and Bari.

The price of a cocktail typically includes 20 percent of liquor costs and the rest, she said, "is gravy for the house. It’s not as expensive as building a dish around shellfish" or another pricey ingredient.

Restaurants, in other words, make their reputation on dinner, but they make their money on drinks.

Inclusive of wine, beer, and spirits, said Bari owner Bruce Rafei, alcohol "tends to be, I would say, anywhere between 40 percent to 50 percent of my business." But serving alcohol requires a fraction of the labor serving food does.

"It makes a huge difference," he said. When the restaurant was limited to take-out service under Governor Brown's "Stay Home, Save Lives" executive order, Rafei could fulfill takeout orders on his own, cooking alone in the restaurant kitchen. His income was less, but so were his labor costs.

Now, with the dining room reopened, including patio seating on the street in front of the restaurant, alcohol sales help offset increasing labor and food costs while on-premises dining is still slow.

"Without it, being open, I don't think I'd be able to function," he said.

At La Margarita, said Xochitl Muñoz, "on a daily basis before COVID we sold an average of $600 to $800 in alcohol (beer, wine, margaritas making up the largest percentage), during the shutdown it was zero. Now with in-house dining being down, overall, I'd say an average of $200 to $300 daily. If we could sell cocktails to go, I believe our average would go back to normal."

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Salem diners have rallied around the restaurant community in the midst of the COVID-19 pandemic. They've bought gift cards, ordered take-out and tipped big at local restaurants, but the checks still look wildly different than they did six months ago.

"Customers spend an average of $15-20 more per ticket when purchasing a margarita or two," Muñoz said. "An average ticket for two without alcohol is $25. So it almost doubles with the alcohol added to it."

Naomi Pomeroy, chef-owner of Portland restaurants and cocktail destinations Beast and Expatriate, has led the charge among business owners pushing state legislators to create a provision for businesses like hers to offer cocktails to-go.

Salem business owners haven't pushed as vocally for the change but, said Mike Ritter, co-owner of Ritter's Eatery, "cocktails to-go could potentially be good for additional restaurant sales."

"I think it would be a process to figure out but believe this industry can be very creative in figuring out how to do it ."

Change must come through legislature

The Oregon Liquor Control Commission currently licenses more than 3,600 outlets statewide for the on-premises sale of alcohol. It's this on-premises stipulation that makes offering cocktails to-go difficult from a policy perspective.

On its own, the OLCC can't approve such a change without the input of the state legislature because the state controls liquor distribution statewide.

The Governor has called such a session to begin August 10 to balance the state's budget and further address the COVID-19 crisis. Though this particular issue is not yet officially on the agenda, it may yet surface. If not during the August special session than potentially in a further special session in September.

AL: Alabama Distillers urge Congress to provide economic relief to craft distilleries

WTVY By WTVY Staff August 10, 2020

Press Release: Alabama Craft Distillers Association

WASHINGTON — In a recent letter sent to Alabama’s congressional delegation, trade associations representing more than 10 distillers throughout the state urged Congress to provide additional economic relief to distilleries facing enormous financial hardship due to the impact of COVID-19. The letter was sent from Alabama Craft Distillers Association Distiller’s Chair Jimmy Sharp and Distilled Spirits Council of the United States (DISCUS) President & CEO Chris Swonger. Click here to view the letter

In the letter, the leaders of both associations noted that Alabama’s distilled spirits industry had been thriving prior to COVID-19, supporting over 9,000 Alabama jobs and $822 million in economic activity in 2018.

“As a result of the COVID-19 crisis, many dis-tilleries in Alabama have been forced to furlough or lay off employees. Absent additional relief, some distilleries soon may be faced with the tough decision to permanently close their doors, thus also impacting their farmer suppliers and others throughout the hospitality and tourism industries,” the industry leaders stated.

They urged Congress to act swiftly to enact further measures that provide liquidity and certainty to distillers who have seen sudden and steep declines in sales with the closure of distillery tasting rooms, restaurants and bars, as well as retail outlets in certain areas and airports.  

“The distilled spirits industry is uniquely positioned at the nexus of the hospitality, agriculture, retail, and tourism industries. The livelihoods of farmers, glass bottle makers, truck drivers, warehouse workers, and countless others connected to the hospitality and tourism industry are compromised by the challenges confronting the distilled spirits industry,” they said. 

According to a survey of craft distillers, by DISCUS and the American Distilling Institute, two-thirds of respondents do not believe they will be able to sustain their businesses for more than 6 months.

The survey, which included feedback from 118 distilleries across 35 states and the District of Columbia, found that approximately 43 percent of distillery employees have been let go or furloughed since the start of the COVID-19 crisis. The average distillery respondent had almost 14 employees before the COVID-19 crisis and has let go nearly 6 employees.

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In the letter, the association leaders urged Congress to include four critical components to aid distillers as part of any additional economic relief package including:

• Provide federal excise tax relief, through permanently enacting the current rates and deferring FET payments

• Seek the suspension of tariffs on distilled spirits

• Support the RESTAURANTS Act, which creates a revitalization fund for eligible food service establishments to keep workers employed, maintain operations, and meet financial obligations.

• Fund and approve another round of PPP and EIDL loans

“We are proud that over 8 small, medium and large distilleries across the state are also doing their part to prevent the spread of COVID-19 by transitioning to produce hand sanitizer, but they will continue to need the help and support of Congress for months to come,” they added.

LICENSE STATE NEWS

SD: Shift in alcohol buying means new normal for breweries (excerpt)

Star Advertiser By Associated Press August 10, 2020

SIOUX FALLS, S.D. >> Blake Thompson and his fellow beer-makers at Fernson Brewing Co. had planned to use white cans for the Sioux Falls-based brewery’s new hard seltzer.

Thompson reached out to the supplier to inquire about getting some extra stock of the white-painted cans commonly used by large manufacturers of hard seltzers.

At first, the supplier said it would only be a matter of weeks before new inventory became available, Thompson said. But then things changed.

“Everyone started canning like crazy,” he told the Argus Leader. “I went on the phone and tried to order some cans and the guy was like, ‘We can’t get those until fourth quarter.’”

Fernson and other breweries in Sioux Falls are adjusting to shifting market conditions in the alcohol industry during the COVID-19 pandemic. A significant increase in retail beer and soda sales has created a drain on the nation’s supply of aluminum cans.

Consumers across the United States are buying more of their beverages from retailers and bringing the products home during the coronavirus pandemic, while taps of all kinds remain quiet. While the rush on product has allowed breweries who do retail sales to make up ground, it hasn’t been enough to offset the losses suffered by taprooms and bars.

“COVID kind of flipped our business to can sales more than kegs,” Thompson said. “We’re trying really hard to not have to rely on draft sales, because people just don’t want to go out like they used to, which is fair. But they still want to drink.”

TN: Holes on beer shelves not just because people are drinking more

The Daily Herald. By Ryan Wilusz USA Today Network Tennessee August 10, 2020

As shoppers were stocking up on canned vegetables during the early phases of COVID-19, canned beer also began flying off grocery store shelves.

Blair Reath, director of business development for Cherokee Distributing Company, said “pantry loading” was popular as government restrictions kept people from meeting their friends at the bar.

Now, as the country reopens, beer industry workers are playing catch-up following a pause in production, a tightening supply of aluminum cans and a new customer desire to drink at home.

Cherokee distributes beer to 61 counties in Tennessee and acts as the middleman between breweries and retailers. Its main goal is to “make sure everyone gets beer,” Reath said.

But that relies on breweries supplying product.

“It’s not like you can just produce it immediately,” he said. “A typical beer takes about three weeks to make. If you think about it, these breweries had all this inventory, then got shut down for a month, two months. Then all that inventory they had got drank or got sold to us distributors.”

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Consuming habits have changed, especially during the early stages of the pandemic.

The week ending March 21, according to a Nielsen study, the industry saw a 54% increase in off-premise sales in-store compared to data from the same period in 2019. Off-premise simply means the beer could not be consumed at the place it was purchased.

That number dropped to a 26% increase the week ending April 25, compared to the previous year, while online alcohol sales during that same period rose 477%.

Consumers also have been purchasing alcohol in larger quantities. Sales for 30-packs and 24-packs of beer increased roughly 20% each during a seven-week period ending April 18, compared to average sales from March 2019 - Feb. 2020. In addition, six-pack sales decreased by 2%.

“There are holes on shelves,” Reath said. “We still have beer in stock; there’s no question about it. When you experience growth in an industry that always grows a little bit and then you have exponential growth in three months, it changes a lot.”

Customers are adjusting, Reath said, purchasing beers similar to what they’re used to when their favorites are out of stock. Retailers also have been understanding when beer supply is low.

“We’re selling everything that we’re bringing in,” Reath said. “It’s not like everything we place an order for we get. Fortunately, (breweries) are starting to catch back up.”

The supply of aluminum cans is tightening, said Roger Kissling, the vice president of sales and client management for Iron Heart Canning Company. The company’s Asheville location provides canning services for five breweries in the Knoxville area.

Cans are produced by a small number of large manufacturers, Kissling told Knox News, and those manufacturers are trying hard to forecast demand.

“The lines that they have, by and large, they can’t change between can sizes,” he said. “They are locked into producing a certain number of 12-ounce cans and 16-ounce cans if they run operations to maximum capacity. It’s difficult to adjust in a timely manner.”

An aluminum can shortage in 2018 forced some breweries to shut down production. Kissling has not personally witnessed such a shortage in 2020, despite increased demand. However, there have been price increases on aluminum cans.

Can manufacturers have announced plans to built at least three factories within the next 18 months, but that won’t solve immediate supply issues.

Robert Budway, president of the Can Manufacturers Institute trade association, told USA TODAY that “the can industry is working 24/7 on meeting the unprecedented demand.”

“Many new beverages are coming to market in cans, and other long-standing can customers are moving away from plastic bottles due to ongoing environmental concerns around plastic pollution,” read a statement from industry group The Aluminum Association. “Consumers also appear to be favoring the portability and storability of cans as they spend more time at home.”

Some beer makers suspended output of products that sell in low volumes to focus on bestsellers. Molson Coors did this in May amid what it called an “unprecedented shortage of 12-ounce recyclable aluminum cans.”

Cans always were part of the plan for Elst Brewing Company in Knoxville. But the coronavirus pandemic led co-owner Shane Todd and his business partners to shift sooner than they expected, calling upon Iron Heart to provide canning services.

“Locally, some customers have enjoyed it because there’s more local beer in cans than there ever has been,” Todd said.

Kissling told Knox News that Elst’s decision is part of a trend among breweries pivoting toward more packaged beer.

“That has been driven by the desire not only to drink at home but the closure of restaurants,” he said. “If you just look at retail sales data, obviously, retail consumption is up significantly. Overall purchases, depending on what segment you’re looking at, are flat or slightly down.”

Nielsen projected in May that the United States alcohol industry would need to keep a 22% growth in alcohol sold off-premise to level off the impacts caused by bars and restaurants closing. Wine and

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spirits sales were above the 22% threshold when the study came out, but beer fell short.

“The path forward will require both an optimized off-premise strategy and support of a responsible return to on-premise alcohol consumption,” according to the Nielsen study.

For some breweries, this decision to shift toward canned beer was necessary to avoid beer going to waste. On the distributor side, kegs essentially were useless if there was no restaurant for them to go to.

Draft sales went to zero overnight, Kissling said, and it became difficult for beer industry workers to forecast what they would need in inventory. In April, Kissling saw an increase in requests from customers wanting to turn keg beer into canned beer.

“I think there’s still a tendency for a lot of people to drink at home right now, for sure,” Todd said. “There are definitely some customers that have come back out and everything, especially sitting outside. But now, it’s 100 degrees again.”

Elst essentially has replaced a good portion of its draft business with packaged beer. Todd said the brewery now is trying to find a balance with taprooms reopened.

“The waves (reopening) creates is just uncertainty and more difficulty forecasting accurately,” Kissling said. “But that’s why, from my perspective, maintaining our flexibility and dependability is important.”

Elst now sells its beer in a handful of stores, including Whole Foods. But that’s not always an easy path for breweries.

Many retailers have been too busy during the pandemic, Kissling said, and have made policies not to take on new products. If a brewery was not already established in-store, they couldn’t just “breeze in the door and put their product on a shelf,” he said.

In situations like this, Kissling said, it’s up to craft beer lovers to find ways to help their favorite breweries.

“Please support your local craft brewery and take advantage of to-go sales if you can’t find something you want on the shelves,” he said. “You may just have to go find them.”

INTERNATIONAL NEWS

United Kingdom: Petition over beer duty receives 8,000 signatures

Shropshire Star By James Pugh August 11, 2020

A petition calling on the Government to reverse the proposed tax rise for small independent breweries received more than 8,000 signatures in its first 24 hours from the public and those in the brewing industry.

The Treasury has announced changes to Small Breweries’ Relief, the progressive tax system that revolutionised UK brewing, which will reduce the 50 per cent duty relief threshold from 5,000 hectoliters to 2,100hl, meaning small breweries will have to pay more duty.

Shrewsbury-based Salopian Brewery tweeted: "SBR gave us the opportunity to grow, invest in our brewery and team. If this goes through it will result in less choice, brewery closures and job losses."

Jack Hobday, one of the founders of Anspach and Hobday Brewery in Bermondsey, is the man behind the petition which is being backed by industry body the Society of Independent Brewers.

“This is a big threat to small breweries across the country. Our small brewers have created better competition, consumer choice, jobs, local investment and strengthened local communities. Please support us in reversing the proposed tax rises that could put hundreds of small breweries out of business," he said.

Small Breweries’ Relief is largely credited with the upsurge in small independent breweries over the last 20 years and creating such a diverse and successful British brewing industry. Consumer choice and quality when it comes to beer has never been as high, but the proposed changes could seriously damage the industry.

SIBA, which represents around 750 independent craft breweries across the UK, has given the petition its full backing as part of their call on Government to back British beer by halting the tax rises.

James Calder, SIBA chief executive, said the organisation welcomes the Government’s proposals to make it easier for businesses to grow but that this

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cannot come at the expense of smaller breweries who have been amongst the hardest hit during coronavirus, having been unable to apply for much of the Government support offered to the hospitality industry.

“Independent breweries have been left high and dry by the Government during coronavirus, so to hit them now with a proposed tax rise will be devastating. During lockdown small brewers have seen beer sales drop by on average 80 per cent, and just as they are taking their first steps back into normality the news of a proposed tax hike has caused a huge rift in the industry.

"For some breweries the rising tax bill could force them into closure and for many others it will stifle growth, as breweries delay growth in order to remain small to stay below the level at which beer tax starts to rise. It’s a huge own-goal by a Government aiming to kickstart our economy, stimulate growth, and get local businesses thriving."

Ireland: Drinks Ireland|Beer calls on government to support Irish pub sector

Drinks Insight August 10, 2020

Drinks Ireland|Beer, the representative organisation for beer manufacturers and suppliers in the country, has called on the government for urgent support for Irish pub sector.

The news comes as the Irish government postponed the reopening of pubs and bars to September in a bid to contain the coronavirus.

According to the annual Beer Market Report published by the organisation, Covid-19 pandemic and related on-trade closures have heavily impacted Ireland’s beer sector.

The new provisional revenue clearance data indicates that beer sales plummeted by 17.4% during the second quarter of this year.

Covid-19 pandemic and related on-trade closures heavily impacted Ireland’s beer sector.

Last year, 62.7% of all beer sales were recorded in the on-trade while off-trade sales were 37.3%. Additionally, the on-trade sector recorded 80% of stout sales, 78% of ale sales and 53% of lager sales.

Between 2018 and 2019, the total beer production fell slightly by 1%. Drinks Ireland|Beer earlier said that the production will be down much more significantly across the sector due to Covid-19 this year.

Drinks Ireland|Beer director Jonathan McDadesaid: “The government needs to set up a task force that is aimed at providing financial support for pubs that remain closed due to the Covid-19 crisis.

“With almost 50% of pubs remaining closed, a strong joined-up Government support package is a priority, to avoid mass closures.

“In recent years and prior to Covid-19, we saw significant innovation in the sector, resulting in more choice than ever for Irish consumers and an increase in the popularity of non-alcoholic beer.

“The sector continued to make an important contribution to the economy in 2019, with €421m in excise receipts and €305m worth of beer exports.”

In April, Drinks Ireland came up with new plan to safeguard the drinks sector amid the Covid-19 pandemic.

Africa: South Africa’s alcohol ban puts international trade deal at risk

Business Tech Staff Writer August 11, 2020

Local and international trade bodies have raised concerns around South Africa’s alcohol sale ban as it violates existing trade agreements.

EU industry body SpiritsEUROPE urged the South African government to provide a clear and reliable timeline to quickly lift the total ban.

“The ban rips away all the benefits from the Economic Partnership Agreement between the EU and South Africa at a time when we should actually find ways to deepen our trading relations to support each other’s recovery processes,” Ulrich Adam, director general of spiritsEUROPE, said.

“Banning sales also means banning imports of European spirits – while South Africa continues to export particularly wine which has 110 million litre quota duty-free export into EU under the EPA, contributing to R5.7 billion in net exports earnings for South Africa on alcohol.

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“Our member companies operating in South Africa are deeply concerned about the uncertainty of current trading conditions.

“The lack of clarity on whether and when the ban might be lifted makes business planning impossible. We therefore need a clear and reliable timeline.”

The group also highlighted the significant damage that the ban has had on the local industry.

The ban has dire economic consequences for the entire supply and distribution chain, hurting smallholder farmers who produce grains and grapes, as well as distributors and sector workers, it said.

“The total loss in taxes (excl. excise tax) for the first ban was R13.9 billion. Assuming an additional nine-week ban will increase the potential loss to between R23.8 billion. The latter is equivalent to 1.9% of tax income (excluding excise tax).

“The total loss in excise taxes for the first ban was R4 billion. Adding another 9-week ban will increase the potential loss to R7.2 billion. The latter is equivalent to 17.6% of excise tax income,” it said.

The ban is also felt among major trading partners such as the European Union (EU), the group said.

“South Africa is the prime export destination for European spirits in Africa with exports amounting to €255 million (R5.3 billion) in 2019.”

Local industry weighs in

The European Union is South Africa’s biggest trading partner and the Economic Partnership Agreement signed between the two parties in 2016 allows for export of 110-million litres of South African wines duty-free into the EU region.

In return, the EU exports mainly spirit products into Southern Africa. This trade is now constrained due to the extended ban on alcohol sales, local industry players said.

Sibani Mngadi, spokesperson for the South African alcohol industry, said it was important for the government to consider the overall effect of the ban when deciding on the next steps in response to Covid-19.

“With progress being made in the health response to the pandemic, it is critical for the government to limit further the negative impact of the ban in the local

economy and on our international obligations as a country,” he said.

“The South African economy has already lost an estimated R13 billion in direct capital investments with South African Breweries, Heineken, and Consol Glass all halting their capital expansion projects last week due to the ban.”

PUBLIC HEALTH NEWS

Miscarriage risk increases each week alcohol is used in early pregnancy

Science Daily Source: Vanderbilt University Medical Center August 10, 2020

Summary:

Each week a woman consumes alcohol during the first five to 10 weeks of pregnancy is associated with an incremental 8% increase in risk of miscarriage, according to a new study.

Each week a woman consumes alcohol during the first five to 10 weeks of pregnancy is associated with an incremental 8% increase in risk of miscarriage, according to a study by Vanderbilt University Medical Center (VUMC) researchers.

The findings, published in the American Journal of Obstetrics and Gynecology, examine the timing, amount and type of alcohol use during pregnancy and how these factors relate to miscarriage risk before 20 weeks' gestation.

Impact of alcohol use rises through the ninth week of pregnancy, and risk accrues regardless of whether a woman reported having fewer than one drink or more than four drinks each week. Risk is also independent of the type of alcohol consumed and whether the woman had episodes of binge drinking.

Though most women change their alcohol use after a positive pregnancy test, consuming alcohol before recognizing a pregnancy is common among both those with a planned or unintended pregnancy. Half of the 5,353 women included in the analysis reported alcohol use around conception and during the first weeks of pregnancy.

The median gestational age for stopping alcohol use was 29 days. Although 41% of women who changed their use did so within three days of a positive

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pregnancy test, those who stopped consumption near their missed period had a 37% greater risk of miscarriage compared to women who did not use alcohol.

"Abstaining from alcohol around conception or during pregnancy has long been advised for many reasons, including preventing fetal alcohol syndrome. Nonetheless, modest levels of consumption are often seen as likely to be safe," said Katherine Hartmann, MD, PhD, vice president for Research Integration at VUMC and principal investigator for the Right from the Start cohort, from which participants were enrolled in the study.

"For this reason, our findings are alarming. Levels of use that women, and some care providers, may believe are responsible are harmful, and no amount can be suggested as safe regarding pregnancy loss."

According to the researchers, one in six recognized pregnancies ends in miscarriage, which brings great emotional cost and leaves unanswered questions about why the miscarriage occurred.

Biologically, little is known about how alcohol causes harm during early pregnancy, but it may increase miscarriage risk by modifying hormone patterns, altering the quality of implantation, increasing oxidative stress or impairing key pathways.

Because alcohol use is most common in the first weeks -- when the embryo develops most rapidly and lays down the pattern for organ development -- understanding how timing relates to risk matters.

Risk did not peak in patterns related to alcohol use in specific phases of embryonic development, and there was no evidence that a cumulative "dose" of alcohol contributed to level of risk.

The study recruited women planning a pregnancy or in early pregnancy from eight metropolitan areas in Tennessee, North Carolina and Texas. Participants were interviewed during the first trimester about their alcohol use in a four-month window.

"Combining the facts that the cohort is large, comes from diverse communities, captures data early in pregnancy and applies more advanced analytic techniques than prior studies, we're confident we've raised important concerns," said Alex Sundermann, MD, PhD, the study's first author and recent graduate of the Vanderbilt Medical Scientist Training Program.

To avoid increased risk of miscarriage, the researchers emphasize the importance of using home pregnancy tests, which can reliably detect pregnancy before a missed period, and ceasing alcohol use when planning a pregnancy or when pregnancy is possible.

This work was supported by the National Institutes of Health (grants HD043883, HD049675, HD094345, GM07347, TR000445 and TR002243) and the American Water Works Association Research Foundation. Follow-up is sustained by a VUMC internal fund.

Story Source:

Materials provided by Vanderbilt University Medical Center. Original written by Kelsey Herbers. Note: Content may be edited for style and length.

Journal Reference:

1. Alexandra C. Sundermann, Digna R. Velez Edwards, James C. Slaughter, Pingsheng Wu, Sarah H. Jones, Eric S. Torstenson, Katherine E. Hartmann. Week-by-week alcohol consumption in early pregnancy and spontaneous abortion risk: a prospective cohort study. American Journal of Obstetrics and Gynecology, 2020; DOI: 10.1016/j.ajog.2020.07.012

Cite This Page: • MLA • APA • Chicago

Vanderbilt University Medical Center. "Miscarriage risk increases each week alcohol is used in early pregnancy." ScienceDaily. ScienceDaily, 10 August 2020. <www.sciencedaily.com/releases/2020/08/200810102430.htm>.

INDUSTRY NEWS

Direct-To-Consumer Wine Shipments On The Rise During Covid

Forbes By Liza B. Zimmerman, Contributor August 10, 2020

Liza As the nation heads into the sixth month of quarantine during Covid, many bars and restaurants remain closed. Wine consumption in the comfort of

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one’s home is steadily on the rise. The trends include purchasing more wine, and other alcoholic beverages, from retailers and delivery services.

Consumers are also ordering more product directly from wineries. While Direct-to-Consumer (DtC) sales were already an important part of the winery sales picture they are becoming more important as new wineries join the sales fray and established ones ramp up sales.

So I recently had a chat with Alex Koral, senior regulatory counsel with Sovos ShipCompliant, a company which provides wineries with compliance and management tools about a recent report that was carried out. He shared some of the latest data on regional and varietal wine sales and how the DtC market is growing and changing.

All responses have been edited and condensed for clarity.

Liza B. Zimmerman (L.B.Z.): When was this study carried out?

Alex Koral (A.K.): The mid-year update to the 2020 Direct-to-Consumer Wine Shipping Report was developed in July following an extensive analysis of data from January to June.

L.B.Z.: What is it based on?

A.K.: It is an annual collaboration between Sovos ShipCompliant and Wines Vines Analytics, a publication focused on wine business metrics and trends. It analyzes detailed shipment data from more than 1,000 U.S. wineries’ monthly shipments to consumers each month.

The data is submitted to a proprietary weighted model that assure that aggregated transactions evenly reflect winery size, location and average bottle price. The model is built on a database of more than 10,000 wineries updated monthly by Wines Vines Analytics. This database is a near census of U.S. wineries at more than 99 percent.

L.B.Z.: How are consumer wine-buying patterns changing during Covid?

While shut in their homes during March, April and May, many consumers turned to the Internet to buy their wine directly from winemakers: often, for the first time. Consumers have gone online to buy wine through the various e-commerce channels, inclusive

of DtC and also direct from retailers through the traditional three-tier sales system.

The resulting whirlwind growth of online DtC sales led many to wonder if the coronavirus might result in a long-term break with traditional distribution models. The latest data shows this pattern might well continue.

Online beverage alcohol sales peaked in late April with a 551 percent, year-over-year growth, according to our data partner Nielsen, with triple-digit growth continuing through the end of June. Likewise, Sovos ShipCompliant/Wines Vines Analytics data shows that DtC wine sales are continuing to post strong gains with 30 percent year-over-year growth in June and July.

In addition, there are between two to three times more new buyers online right now compared to the first quarter of the year, according to Nielsen. Overall, consumers are seeking convenient—and more importantly, safe—ways to purchase alcohol.

L.B.Z.: Why are consumers buying more wine directly from wineries?

A.K.: Consider that even before the coronavirus broke out, DtC shipping was outperforming the wider wine market in terms of annual growth. And though it made up just 10.8 percent of wine sales prior to the pandemic, changing consumer expectations distinguished by the delivery economy were already pushing more to increasingly buying their goods online for the greater selection, flexibility and convenience afforded by e-commerce.

With tasting rooms, bars and restaurants closed for months, the DtC shipping channel has emerged as one of the best, most convenient ways for consumers to buy wine through the pandemic. Many are buying their wine online for the first time, and we expect this trend to continue well beyond the pandemic.

L.B.Z.: How are the wineries dealing with shipping? Do they pay or the consumer?

A.K.: Dealing with customer expectations around shipping costs is a big concern for wineries. Unlike most other sellers, wineries cannot offer free shipping due to various laws prohibiting the offer of anything free in connection with the sale of alcohol. While wine shippers can offer reduced shipping rates or include shipping costs in the price of the wines they are selling, not being able to use the magic word free can put off some consumers who have been trained by Amazon to expect not to be charged for their delivery costs.

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L.B.Z.: Are these generally local wineries or ones they have visited? Or are they experimenting with new producers?

Likely a mix of both. States where most wineries are a short drive away like California and Oregon tend to have robust DtC markets: often driven by wine clubs and shipments purchased from the tasting room.

In contrast, despite being the second-largest wine-producing state in the country, Washington ships the least amount of wine to consumers of all regions tracked in this report. This is surely a result of its important wine-producing regions being less accessible to large metropolitan areas and international airports than those located in Northern California and Oregon. In addition, as consumer awareness of the channel grows, consumers might turn to the internet for specific, harder-to-find varietals and limited releases.

L.B.Z.: Why types of wineries are seeing increases in sales in terms of their size?

A.K.: Wineries in the limited production, under 1,000 cases a year; and large production 500,000 or more cases both had volume increases of 54 percent. Small wineries, coming in at 5,000 to 49,999 cases had significant growth as well, adding $139 million in value. But, very small wineries—producing 1,000 to 4,999 cases—saw only a two percent increase in volume and had a decrease of five percent in value.

L.B.Z.: Are wineries that have historically focused more on DtC seeing better results?

A.K.: Setting up a robust DtC program can be an undertaking not all producers have felt is worth the cost. It requires a significant investment in back-end infrastructure, and historically, smaller wineries have focused on DtC as an alternative to three-tier distribution. But in recent years, we’ve seen larger wineries join the party, begin investing in DtC and making significant ecommerce plays.

There’s no doubt that the wineries that made the investment in DtC prior to the pandemic were better prepared to rapidly shift their operations and dampen the blow of closed tasting rooms.

L.B.Z.: Is there any one region that is leading the pack?

A.K.: Sonoma County has been the largest shipper of wine by volume for the last two years in a row. In the

first half of 2020, the Sonoma region saw the largest increases in both volume and value, adding 290,000 cases shipped and $71 million in additional revenue.

However, Napa is likely to remain the leader in terms of overall value with $714 million worth of wine sold in the first half of 2020. That’s almost double the value of shipments from the second largest region of Sonoma.

L.B.Z.: Are lesser-known regions emerging in popularity as consumers experiment?

A.K.: The highest percentages of growth in both volume and value were in the "rest of CA" region—which includes California wine producers not located in the Napa, Sonoma and the Central Coast regions—and wineries in lesser-known areas comprising the "rest of US" groups. However, we don't have more granular data on locations within these broad regions.

L.B.Z.: What are the top varietals they are buying?

A.K.: Every varietal increased in volume in the first half of 2020. The highest volume increases were Pinot Gris (+53 percent) and Sauvignon Blanc (+47 percent). The lowest volume increases were Cabernet Franc (+15 percent), Cabernet Sauvignon (+16 percent) and Syrah (+17 percent).

In terms of value, Cabernet Sauvignon was the only varietal to see a decrease, at negative 1 percent but remains number one in the channel in terms of value, at $411 million. Pinot Noir, red blends and Chardonnay each added over $30 million in value.

L.B.Z.: What are the top price points?

A.K.: Historically, wines shipped DtC are largely mid-level luxury goods with a higher average price per bottle. Their consumption and sales growth was predicated upon a certain level of consumer confidence among middle and upper-income consumers. In fact, last year the top end of the DtC market—notably wines priced at over $100 per bottle—grew 15 percent by volume.

But the pandemic has drastically changed how consumers purchase wine and how much consumers are spending per bottle on DtC wines appears to be going down.

L.B.Z.: As consumers order more wine during COVID, have prices remained steady?

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A.K.: During the first half of the year, the average bottle price grew slightly in Oregon at 2 percent and in Washington at 4 percent. But it decreased in Sonoma by $2 and the Central Coast and rest of California at a rate of $2.80; in the rest of the U.S. at 40 cents; and most drastically in Napa at $7.90.

L.B.Z.: Do you expect that these wineries will keep these new customers once more bars and restaurants open?

A.K. Riding a wave of new markets, the DtC channel has averaged 13 to 18 percent annual growth increases over the past decade. Prior to the pandemic, the DtC channel was showing signs of maturity with lower levels of growth expected for 2020. Now we’re seeing twenty to thirty percent year-over-year increases in growth each month.

It’s hard to say with total certainty how many customers will continue to purchase directly at increased levels once more bars and restaurants open, but signs are looking up for this trend to continue above yearly averages.

L.B.Z.: What do you think the future of DtC will look like?

The coronavirus has accelerated many trends, bringing them out of the background and into the mainstream. Likewise, the wine industry is experiencing something similar when it comes to direct-to-consumer (DtC) shipping. With more people spending their time at home, winery direct deliveries have ramped up and awareness of this important channel has increased exponentially: giving us a glimpse into a bright future for DtC sales.

Furthermore, there are many reasons to believe that DtC shipping, of all alcoholic products by more industry members, will continue to expand. The coronavirus has many new market entrants considering DtC sales, where legally allowed, for the first time. Retailers and other alcohol manufacturer, like breweries and distilleries, are looking to gain DtC shipping permissions in more states, such as Florida, which last year opened itself to shipments from out-of-state retailers.

DAILY NEWS

DWI or DUI? Regardless of the label, it’s impaired driving and equally illegal

Bellingham Herald By Doug Dahl Courtesy To The Bellingham Herald August 10, 2020

Question: I hear people some people say DUI and some people say DWI. What’s the difference? Are they two different crimes or is it just two different ways of saying the same thing?

Answer: If you’re older than a millennial, I bet you’ve found yourself puzzled by the perpetual shortening of common words. Hearing “totes cray” just sounds totally crazy. But this sort of thing has been going on for decades (or centuries; Chaucer was doing this in the 1300s). For example, back when the GenX crowd talked about DWI, in an effort to save three syllables we pronounced it DeeWee.

Besides pronunciation, is there a difference between DUI and DWI? I’ll start with the incomplete answer: They’re probably the same thing, unless you’re in Texas. Given that alcohol has been around far longer than cars, it’s pretty safe to assume that driving under the influence has been around about as long as driving. To get a more complete answer, let’s take a quick exploration into the history of impaired driving.

In 1897, London taxi driver George Smith claimed the ignoble title of first person arrested for impaired driving. In the U.S., impaired driving was first made illegal in New Jersey in 1906 or New York in 1910, depending on which source you trust. As far as I can tell, impaired driving was criminalized in Washington at some point between 1919 and 1923. The 1923 session law states that drivers arrested for impaired driving would lose their license for at least three months for a first offense and for two years for a second. (That part of DUI law hasn’t changed in 100 years.)

However, the law leaves out the details of what constitutes driving while intoxicated and instead refers to Pierce’s Code, an early book of laws for Washington. I was only able to find Pierce’s Code for 1919, and that issue did not yet have laws about impaired driving. Since then the laws, and the terms to describe the laws, have adapted and changed.

Here’s a piece of legal trivia: Between 1986 and 1987 Washington legislators rewrote our laws to be gender neutral. To quote the DWI law from 1986: “A person is guilty ... if he drives a vehicle ....” And here’s the same line in 1987: “A person is guilty ... if the person drives a vehicle ....” I think it’s OK to recognize the

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importance of gender inclusivity and at the same time acknowledge that this law was mostly accurate without any changes; three out of four impaired drivers are men.

Somewhere around 1993, our state shifted from DWI to DUI. I recall that there was a good reason why we made the change in terminology, and if I could time travel back to 1993 I’d explain it to you, but in answer to your original question, there is no practical difference between DUI and DWI in Washington.

During the 1990s there was a nationwide push, based on sound research of impairment, to lower the per se blood alcohol content (BAC) limit from .10 to .08 grams per deciliter. Washington made the shift in 1998. By 2004, every state had a .08 limit. In 2018, Utah became the first state to lower their per se limit to a .05 BAC. Utah was also the first to go from .10 to .08 in 1983. I expect that once again Utah is leading the way in DUI legislation and many states will soon follow.

Even though I’ve primarily been discussing changes to the law related to alcohol, I should point out that since at least 1931 drugs have been included in our impaired driving laws. As more states legalize cannabis, the drug portion of the DUI law has seen more attention, but the criminal aspect of driving while impaired by drugs has been there all along.

Here are some of the myths about driving while high

Vivian McPeak, the director of HempFest, and Darrin Grondel, the director of the Washington Traffic Safety Commission, sat down to talk about some cannabis myths and the risks of driving high. BY WASHINGTON TRAFFIC SAFETY COUNCIL

Nationally, DWI and DUI are not always the same. In Texas, minors who drive with any alcohol in their system are charged with DUI, while any drivers with visible impairment or a blood alcohol level of above a .08 are charged with DWI.

To confuse things more, in Maryland it’s the reverse; DWIs are for minors and DUIs are for adults. Several other states have variations that include both DUI and DWI. As long as we’re getting complicated, depending on the state, an impaired driver could be arrested for Driving While Ability Impaired (DWAI), Operating Under the Influence (OUI) or Operating While Intoxicated (OWI).

As a driver though, it’s pretty simple. No matter what it’s called, in every state it’s illegal to drive impaired. Video: https://www.bellinghamherald.com/news/state/washington/article233619957.html

Legal Insider: How Alcohol Usage Affects Security Clearances

RestonNow.com By John V. Berry, Esq. August 10, 2020

We see many types of security clearance cases involving alcohol usage. The pandemic has not helped matters as many people have engaged in more alcohol usage while at home.

One of the most common issues that has arisen over the past few years in the context of security clearance holders or applicants involves alcohol abuse or over-consumption.

Alcohol Consumption/Abuse by Cleared Employees or Applicants

Under the security clearance guidelines, alcohol over-consumption and abuse can be a major factor in determining whether a person obtains or keeps their security clearance.

Security concerns regarding this issue fall under Adjudicative Guideline G, Alcohol Consumption of Security Executive Agency Directive (SEAD) 4. These are the guidelines that apply across the Government for security clearance holders.

Alcohol security concerns can come into play when an individual has a major alcohol-related incident. The most common issue that begins a security clearance review is a recent alcohol-related traffic incident, such as being arrested for driving under the influence. A recent event gives security clearance officials pause and makes them ask the question of whether or not it is an isolated incident or something more serious.

Security Concerns Raised by Alcohol Abuse or Consumption

When security clearance issues arise involving alcohol abuse or over-consumption, it is very important to take them seriously.

The major security concern for federal agencies that evaluate security clearances is that excessive alcohol

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consumption can lead to the use of questionable judgment or the failure to control impulses, both of which are not considered acceptable for purposes of access to classified information. As a result, the Government has listed alcohol-related concerns that could cause one to lose (or not get) a security clearance. Quoting from SEAD 4, these include:

“(a) alcohol-related incidents away from work, such as driving while under the influence, fighting, child or spouse abuse, disturbing the peace, or other incidents of concern, regardless of the frequency of the individual’s alcohol use or whether the individual has been diagnosed with alcohol use disorder

(b) alcohol-related incidents at work, such as reporting for work or duty in an intoxicated or impaired condition, drinking on the job, or jeopardizing the welfare and safety of others, regardless of whether the individual is diagnosed with alcohol use disorder

(c) habitual or binge consumption of alcohol to the point of impaired judgment, regardless of whether the individual is diagnosed with alcohol use disorder

(d) diagnosis by a duly qualified medical or mental health professional (e.g., physician, clinical psychologist, psychiatrist, or licensed clinical social worker) of alcohol use disorder

(e) the failure to follow treatment advice once diagnosed

(f) alcohol consumption, which is not in accordance with treatment recommendations, after a diagnosis of alcohol use disorder

(g) failure to follow any court order regarding alcohol education, evaluation, treatment, or abstinence.”

How to Mitigate Alcohol-Related Security Concerns

The Government has established a number of ways in which a security clearance holder or applicant can mitigate alcohol-related security concerns. They include, but are not limited to, the following:

1. A significant amount of time has passed since the alcohol-related incident.

2. The alcohol usage or related incident was unusual and/or is unlikely to happen again.

3. The individual acknowledges their alcohol issue and provides evidence to show that they have

overcome it or are seriously working on the alcohol issues through treatment.

4. The individual has completed a treatment program and established a pattern of modified consumption or abstinence.

Alcohol consumption security clearance issues can involve many different variables so seeking experienced counsel is critical; every case is different. The key for successfully handling alcohol-related security clearance issues is to focus on them as early as possible.

NIH-funded $1.6 million alcohol use disorder study launched in Vermont

Vermont Biz August 11, 2020

Vermont Business Magazine DynamiCare Health, a national digital care program for alcohol, nicotine and other drugs, announced the first-ever randomized controlled trial to evaluate a digital care program using motivational incentives for alcohol use disorder in a Medicaid population.

Vermonters are more likely to drink alcohol and binge drink than residents of most other US states (NSDUH 2018).

Thanks to a federal National Institute of Health (NIH) grant obtained with the support of the State of Vermont's Department of Vermont Health Access and Department of Health, DynamiCare's digital care program will become accessible to the State's Medicaid population to increase retention and alcohol abstinence.

The program's clinical outcomes and cost-effectiveness will be evaluated in a $1.6 million NIH-funded study in partnership with RAND Corporation. Launching in September 2020, the study will recruit 300 Vermont Medicaid members.

As a result of the COVID-19 coronavirus pandemic, conventional clinics are challenged by the need for strict physical distancing among clients and staff. Digital care programs, however, are well-positioned to offer personal addiction telehealth services from home.

Dr. Scott Strenio, Chief Medical Officer for the Department of Vermont Health Access explained,

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"Vermont Medicaid is always interested in pursuing innovative ways for patients to access care in a manner that supports their medical needs while offering proven clinical outcomes. The ability to deliver healthcare for this and other common medical conditions in rural as well as urban settings through the clever use of an electronic application is the wave of the future."

DynamiCare's digital care program integrates a smartphone app with breathalyzer tests verified by selfie video, a smart debit card that blocks harmful spending, and weekly video calls with a certified recovery coach to drive healthy motivation and accountability. The program uses motivational incentives, an evidence-based intervention that offers financial rewards for healthy behavior. In a prior study, DynamiCare was found to double the rate of verified abstinence in an outpatient alcohol use disorder clinic.

Dr. David Gastfriend, Chief Medical Officer of DynamiCare, added, "Despite strong evidence for motivational incentives, their use has been elusive without insurance coverage. DynamiCare has broken through this barrier with multiple commercial health plans. This study is a breakthrough in deploying this methodology with state agencies."

This study is funded by a NIAAA Small Business Innovation Research (SBIR) Phase II grant.

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