Thursday, March 26, 2020 www.nabca.org

• Virginia liquor stores reducing hours amid coronavirus response • Alcohol restrictions frustrate restaurants trying to survive pandemic TODAY’S • Dan Murphy's and BWS Have Introduced Limits on Alcohol to Discourage Hoarding HIGHLIGHTS • Nielsen Says Beverage Alcohol Retail Sales Are Soaring During The Crisis • What constitutes 'essential businesses'? States seem to have varying standards (excerpt)

19, the state says it’s reducing hours and working to NABCA NEWS develop curbside pickup options. ! 83rd ANNUAL CONFERENCE The State Liquor Commission is also allowing With the continuing and evolving impact of restaurants and bars to return some of its inventory COVID-19 across the US and the imposed bought in the past 30 days. In-person dining was mandates that prevent public gatherings to banned as of March 17, normally one of the busiest curb the spread of the virus, the NABCA’s days of the year for bars and restaurants. 83rd Annual Conference has been canceled. Visit the NABCA website for more details. Under a temporary order, restaurants are allowed to sell beer and wine to go with food orders, but

mixed-drinks and hard liquor aren’t allowed. TTB Alcohol Trade Practice Video Series “The commission is aware that on-premises TTB provides on-demand alcohol educational licensees may have a larger inventory of liquor or information beverages on hand than what will reasonably be Videos: https://www.ttb.gov/news/see-our-new- needed to meet anticipated demand,” a note to ttb-trade-practice-video-series) licensees reads. “In many cases, this inventory was purchased prior to the imposition of these NABCA WEBINAR restrictions.” NEW! Women. Alcohol. Health. - From Blackouts to CEO Tom Boucher said Great New Hampshire Breast Cancer. webinar is now available on our Restaurants plans to return about $50,000 worth of website. Visit liquor inventory. www.nabca.org/Resources/Webinars “It is just sitting on the shelves right now doing nothing,” he said. “If we can return that and get CONTROL STATE NEWS $50,000 into our accounts to continue to pay for our salaried managers and all of our overhead costs like NH: NH Liquor and Wine Outlets look at curbside rent, loans, health insurance and liability insurance, pickup. Restaurants can return unopened booze we will. All those expenses come in whether we New Hampshire Union Leader have customers or not.” By Jonathan Phelps The group, which operates T-Bone’s, Copper Door, March 25, 2020 CJ’s Great West Grill and Cactus Jack’s, is taking While some on social media want the state to close advantage of the order to sell beer and wine to go. its liquor stores to help slow the spread of COVID- Both measures are seen as a way to help restaurants that have either temporarily shut down or only 2 offering takeout, said E.J. Powers, a spokesman for VA: Virginia liquor stores reducing hours amid the liquor commission. coronavirus response “The commission recognizes the unprecedented WTOP situation we’re facing with COVID-19,” he said. By Jeff Clabaugh March 25, 2020 Restaurants can return unopened bottles to stores. Larger returns can be arranged through the Virginia’s state-run liquor stores will reduce hours at commission’s warehousing partner, DHL. all 388 Virginia ABC stores in the state beginning March 27. Powers was unable to say how many returns have been made as of Wednesday. “There are some Most stores are currently open from 10 a.m. to 10 restaurants that have taken advantage of that, while p.m. As of Friday, the hours will be from noon to 7 others are weathering the storm and anxiously p.m. The stores will remain open seven days a week. looking forward to reopening,” Powers said. The Alcoholic Beverage Control Authority says the The Liquor and Wine Outlets remain open from 11 shorter hours will allow for more cleaning and to a.m. to 6 p.m. Monday-Saturday at all locations. address store staffing issues. Sunday hours vary by location. ABC had already canceled all in-store tasting events. Sales are “brisk,” Powers said, with some customers Earlier this week, Virginia Gov. Ralph Northam taking advantage of the “Bottle Bucks” sale (for ordered nonessential businesses to close across the every $150 spent customers receive $25 in Bottle state, including gyms, theaters, bowling alleys and Bucks for a later purchase). barbershops. Liquor stores were deemed essential “We’ve observed some customers stocking up,” he and allowed to stay open. said. On March 19, Virginia ABC closed one store in Rosemary Wiant, the commission’s chief operating downtown Richmond after the roommate of an officer, said during a virtual meeting with executive employee tested positive for COVID-19. The liquor councilors Tuesday that employees have been given agency reports no other cases involving store guidance about how to try and create distance at employees. checkout lines. There are currently no restrictions on privately “We have been actively working on developing a owned liquor stores in Maryland or the District. curbside solution for this particular event we are dealing with,” she said. “There would be much more control over the transaction much along the lines of IA: Gov. Reynolds grants temporary relief to Iowa Hannaford (Supermarkets) To-Go model, and that’s bars and restaurants impacted by COVID-19 being developed right now.” News Release The state is also looking at ways to expand Alcoholic Beverages Division purchases of alcohol through the state’s online March 25, 2020 portal, Gov. Chris Sununu said. (ANKENY) – Governor Kim Reynolds issued a State of All liquor store employees who aren’t comfortable Public Health Emergency declaration on March 19 with working at the retail checkout counter are granting temporary relief to Iowa bars and given other tasks in the store, he said. restaurants impacted by mitigation efforts related to COVID-19. “We are trying to give all the flexibility in the world to our employees to make sure they are safe,” he “We thank Governor Reynolds for giving us said. additional regulatory flexibility to assist our licensees during this difficult time,” said ABD Administrator Stephen Larson. “We stand ready to immediately implement these relief measures.” 3

The declaration authorizes the following: “A friend who owns a liquor store told me he’s concerned about the state closing his store,” Carol • Bars, restaurants and other alcohol retailers Niznik of Coon Rapids said while shopping at the holding a class “C” liquor license issued by ABD liquor outlet next to a Cub Foods in St. Louis Park on may sell alcoholic liquor and wine in original, Monday evening. unopened containers for carry-out, curb-side pickup, drive-through or home delivery without “It’s not for me to say if liquor is an essential, but obtaining an additional license, permit or what if we do a shutdown like New York?” she privilege. Class “C” liquor licensees already have asked. the authority to sell beer in original, unopened When New York Gov. Andrew Cuomo on Friday told containers for off-premises consumption. New Yorkers to stay home as much as possible, • Breweries, brewpubs and beer retailers may fill liquor and convenience stores were told they could and sell growlers or crowlers of beer to-go remain open. without requiring an in-person sales transaction. In his daily news conference, Walz on Tuesday • Beer barrel tax and wine gallonage tax reporting afternoon said he’s still considering if and when to and remittance is temporarily deferred. issue a shelter-in-place order. A spokesman later said the details, including its effects on liquor stores, • Seasonal and temporary alcohol license and are also unresolved. permit holders may request a refund of their license or permit fees. But the prospect of being cut off from alcohol supplies has loomed larger for Minnesotans since More information on these changes, as well as any Walz last week ordered bars and restaurants to future changes connected to alcoholic beverages, close except for takeout orders. can be found online on ABD’s COVID-19 Updates webpage at https://abd.iowa.gov/covid-19- “Whenever the governor speaks, people think we’re updates. going to close,” said Jennifer Schoenzeit, owner of Zipps Liquors in Minneapolis. LICENSE STATE NEWS Last Friday, that fear produced a shopping frenzy from which some stores were still recovering on MN: Minnesotans storm liquor stores, and an Tuesday. 'essential' debate emerges "Whenever the governor speaks, people think we're going “It was mayhem,” said Judd Greenagel, owner of to close," said Jennifer Schoenzeit, owner of Zipps Liquors Liquor Boy in St. Louis Park, which experienced the in Minneapolis. highest sales in its eight-year history. Star Tribune “People were tripping over each other and breaking By John Ewoldt things,” said Brenda ¬Visnovec, manager of Lake- March 25, 2020 ville’s municipal liquor stores. “As it got closer to the A line of socially distant customers formed outside governor’s 2 p.m. speech, you could see the hordes of Surdyk’s in Minneapolis last Friday as the store of people coming in.” limited how many customers could be inside at Shoppers got so out of control that municipal stores once. in Lakeville, Edina, Brooklyn Center, Elk River and Minnesotans stormed the state’s liquor stores over Columbia Heights closed temporarily. the past week, leaving some in complete disarray as Visnovec said her staff needed time out to figure out shoppers stocked up in the face of the coronavirus. proper sanitizing, limits on the number of people in Now, drinkers and distributors alike wonder: If Gov. stores, and curbside pickup and delivery. Lakeville’s Tim Walz orders Minnesotans to “shelter in place,” liquor stores reopened Tuesday and, barring an will the places that sell beer, wine and liquor get to order from Walz, will stay open Mondays through stay open as “essential services”? Saturdays. 4

Separately Tuesday, Richfield’s municipal-owned operation manager in Elk River. “Customers told us liquor store temporarily closed two of its four on three separate days last week that today is the locations. day the government is going to shut you down.”

Some liquor stores imposed social distancing rules on shoppers, encouraging them to keep away from OK: Restaurants, liquor stores adjust to, thankful each other to reduce the chance of spreading the for temporary alcohol delivery during coronavirus virus. At Surdyk’s in Minneapolis, that led to an outbreak awkward-looking line out the door with waiting customers standing several feet apart. Oklahoma News by Lauren Daniels Liquor stores that stayed open through the weekend March 25, 2020 began looking for more workers to cope with the surging demand. OKLAHOMA CITY (KFOR) - Liquor stores and restaurants are adjusting to flexible, temporary Ryan Widuch, co-owner of Elevated Beer, Wine & rules set by the ABLE commission during the COVID- Spirits in Minneapolis and White Bear Lake, said he’s 19 pandemic. adding seven people that, for now, he’s calling “seasonal” employees. The announcement came last night that until April 17th, alcohol retailers including liquor stores, “With so many people laid off, you don’t have to grocery and convenience stores and restaurants can look far,” Widuch said. “We just put a sign on the deliver certain alcoholic beverages to consumers. door.” At Cafe 7, their dining room is closed but that's not Wisconsin Gov. Tony Evers issued a “safer at home” stopping customers from getting the food and order on Tuesday that closed most of the state’s drinks that they want. businesses. Liquor stores in Wisconsin stayed open, although some are resorting to curbside pickup and "Who wouldn’t want a small can of Prosecco delivery only. delivered to their doorstep?" said Cafe 7 co-owner J. Mays. "I mean how fun?" In California, where Gov. Gavin Newsom issued a stay-at-home order last Thursday, liquor is widely Mays and his team have been making adjustments available in grocery stores, which were dubbed over the last few weeks, working with services like essential for residents. Pennsylvania stopped the Postmates, Grubhub and online drive-thru orders. sale of liquor at state-owned liquor stores, though They've even added some market items like ground beer and wine can still be purchased in most beef and chicken. supermarkets and convenience stores. "A few things that grocery stores are having a hard The Minnesota Licensed Beverage Association has time with keeping up with demand," Mays said. been in constant contact with legislators and officials in Walz’s office, said Tony Chesak, the Now they're adding the option of beer and wine to group’s executive director. their deliveries. “We are hearing no sign from the governor’s office Third party delivery services cannot deliver alcohol, that indicates … closing down,” he said. “As soon as so Cafe 7 is having their own employees make those there are more developments, we are encouraging trips. increasing delivery and curbside pickups.” "I’m really happy that the ABLE commission has The municipally owned liquor stores in Elk River that come out and and said let’s help people stay at closed last week are expected to reopen on home and give them what they need at home and Saturday. that’s booze!" said Mays. “We were doing four times our normal business last At Byron's Liquor they've been limiting the number week. It was panic buying,” said Joe Audette, liquor of guests who come through their doors. 5

"We are highly recommending everybody keep their “I have customers who come in every week for my distance from one another," said operations specialty cocktails,” he said. manager Jason McCormick. The only restaurants permitted to sell beer or wine Customers waiting for their turn to go inside are to customers ordering meals are those with a license asked to wait outside at a safe distance - 6 feet apart that specifically authorizes the sale of packaged marked by pieces of tape. goods for off-premise consumption. They're also encouraging safe consumption. Those licenses are generally restricted to taverns and urban lounges and allow those sales through "Be reasonable," McCormick said. "Don’t take this as pickup orders only, not delivery. The only companies the end of days." permitted to deliver alcohol, now that liquor stores McCormick says one concern he has is the have been closed as nonessential, are large grocery transactions being made face to face. stores. "Which really puts the driver at risk and that’s the Jeff Wyatt, owner of French restaurant and wine fear right now and what we’re looking into is how retailer Marche Bacchus, has three licenses allowing can we deliver this service to our community while him to sell alcohol but says none of them allows him also protecting our employees?" he said. to sell a bottle of wine with a takeout meal. The ABLE Commission says they understand that As a result, he has temporarily closed his restaurant concern, but say it is important to do these — a decision he says he wouldn’t have made if the transactions in person so the customer's age can be regulations were applied differently. verified. “I would have reduced the menu down to something Meanwhile, those we spoke to in these industries that could have been executable by one of my line are just grateful for this opportunity in such a tough cooks, and then I would have sold package liquor.” time. David Samuels, owner-operator of Henderson’s "At this time it’s just kind of hey let’s take care of Carlito’s Burritos, said he received a cease-and- one another and do what we have to do," said Mays. desist letter from the city on March 5 informing him The ABLE Commission wants to remind consumers that the license that allows him to sell packaged these changes are temporary. beer, wine and spirits-based drinks for off-premise consumption does not cover the margaritas he’d been offering to takeout customers. NV: Alcohol restrictions frustrate restaurants trying “They’re saying that if we put a margarita in a bottle, to survive pandemic that I’m manufacturing (liquor),” he said. Las Vegas Review-Journal So he no longer advertises those cocktails among his By Al Mancini takeout food and grocery options, but he March 25, 2020 occasionally packs them up for regular customers As restaurant owners go, Nick Palmeri is among the who ask. lucky ones. Jehrome Thigpen, owner of the Craft LV liquor His family business, Gaetano’s Ristorante, has catering company, says he has approached city and remained busy as it’s converted to a curbside pickup county officials about changing the regulations to model. allow alcohol delivery, or at least modify them, during the COVID-19 crisis. He has been able to keep at least nine employees working close to full-time hours. He says that “So far, they haven’t been willing to budge,” he says. number would be higher if he wasn’t prohibited So he’s in the process of drafting a petition to from packaging cocktails, or even beer or wine, to circulate among affected businesses. accompany customers’ meals. 6

NY: A New Website Is Helping NYC Restaurants Sell Though it just launched last week, Cellars already Off Their Wine Cellars has beloved spots like cocktail haven Please Don’t It’s a high-margin item that provides restaurants with the Tell and Michelin-starred Brooklyn wine bar The short-term capital they desperately need right now Four Horsemen on board, the latter of which is Inside Hook unloading its robust wine cellar. “You can buy By Eli London bottles from them that you can’t even find in a March 25, 2020 liquor store,” says Thomas. Other popular wine spots like City Vineyard and Compagnie des Vins Editor’s note: As of Wednesday afternoon (3/25), Surnaturels also populate the list. Cellars.nyc — the subject of this article — has partnered with the Coast App to amplify Thomas, who has a background in the service distribution, and has rebranded as Takeout COVID. industry, says he knows that margins on alcohol are New York and San Francisco are now available, with way better than margins on food, and how most of more cities on the way. these restaurants make a large percentage of their money. He is all for the gift-card approach, but At this point there is basically no part of daily life slightly wary of them since restaurants will still have that the coronavirus has not had a major impact on. to make good on them in the future. “This alcohol is Schools and “non-essential” shops are closed, something they already have,” he points out, “so airlines, hotels and the rest of the travel industry are anything they make from it is pure profit at this reeling, and the Javits Center is being turned into an point.” impromptu hospital nearly overnight. Thomas also pointed out that a lot of these local But perhaps no sector has been hit quite as hard as restaurants, such as the Four Horsemen, don’t have the hospitality industry, any sort of delivery infrastructure in place. The A story from The Atlantic declared that “America’s Cellars map is meant to correct for that, helping Restaurants Will Need a Miracle” to recover, while people identify the places in their immediate vicinity Vox reported earlier this week that as many as 10 that could use some help. million jobs could be lost by the time the world gets The best, and most supportive, part of this platform back to relative normalcy. is that the restaurants themselves don’t have to As is usual in times of need, people are stepping up upload information. Anyone who knows of a to help their favorite local establishments stay restaurant or bar selling to-go alcohol is able to sign afloat. You can now buy “bonds” in your favorite the establishment up. Thomas himself then restaurants (basically gift cards at a discounted rate) personally verifies submissions as a safeguard to redeem at your favorite restaurants, and before they start cataloguing on the site. countless initiatives and programs are popping up to He also reiterated that the purpose of this project help out service industry folks in need. On top of isn’t to encourage drinking through a time of crisis, that, local governments are loosening alcohol laws but rather to help restaurants survive by purchasing to allow for the sale of to-go cups and bottles. high-margin products from them. By law, you’ll have Philip Thomas, a software developer with several to purchase food as well, which you by all means successful startups living in Brooklyn, noticed that should do anyways. many of his favorite local spots had begun to open In another act of good-samaritanism, Thomas also up their rather extensive wine and liquor cellars to made the platform open-source, so anyone can take help support themselves in this uncertain and what he’s done and apply it to their own city in order unfortunate time. Seeing an opportunity to help to help local restaurants through these tough times. them, Thomas set up Cellars.NYC, an interactive LA and DC have launched in the past day or so, and map that highlights NYC locations that are offering while they don’t have robust offerings yet, you can to-go booze. help do your part by submitting any of your local 7

favorites that are selling booze so that others may a few weeks ago). A lobbying campaign from various discover the fact. alcohol-related trade bodies including The Wine and Spirits Trade Association, the British Beer and Pub Other cities are sure to be launching in the near Association (BBPA), and the Scotch Whisky future as well. Association had called on collecting payments for 6 months in order for businesses to stay afloat. INTERNATIONAL NEWS In short, the alcohol industry, like most other sectors United Kingdom: Coronavirus: U.K Government of the economy, faces day-by-day uncertainty over Declares Alcohol Shops ‘Essential Businesses’ what might happen as the coronavirus pandemic shuts down the U.K. economy (as well as other Forbes countries) and forces the government to take By Felipe Schrieberg, Senior Contributor March 25, 2020 unprecedented measures to fight it. Following Boris Johnson’s announcement Sunday Following this latest announcement though, at least evening placing the U.K. in a ‘lockdown’ as part of most people in the country should be able to find a the government’s measures against the Coronavirus stiff drink if needed to help deal with the current pandemic, all shops selling ‘non-essential’ goods, situation. including electronics and clothing, immediately had to close down. Asia: Coronavirus: was ’s plan to enforce However, the updated guideline issued by his alcohol ban just a threat to force bars to act? Cabinet Office today placed off-licenses (specialist South Morning Post alcohol shops) in the clear, allowing them to keep By Alvin Lum and Kanis Leung trading alongside other businesses deemed as March 26, 2020 essential retailers. A proposal by ’s leader to ban bars and This is likely to be welcome news to booze restaurants from selling alcohol to limit the spread businesses, as alcohol has been flying off the shelves of the has gotten off to a rocky start, with industry in supermarkets since the country’s bars were figures ready to challenge the move in court and forced to close down, benefiting the big experts noting the law already allows her to supermarket chains but forcing out smaller booze- immediately impose such restrictions. based shops. But Chief Executive Carrie Lam Cheng Yuet-ngor The news isn’t all good for the U.K.’s alcohol industry instead decided to float the idea first as a warning to though. Many brewery taprooms and some pubs owners to take steps on their own to curb social have been caught out as they did not have an off- gatherings, according to government insiders, a license before the shutdown (just ‘on-license’ course of action a medical expert said had allowing the purchase of drinks to be consumed on unnecessarily complicated what should be a the premises), meaning that they can’t shift to straightforward decision about public health. delivery and takeaway services as restaurants and cafes have been able to do for food. Deliveroo has The government could announce the ban as early as offered to provide delivery services if the rules Thursday, along with tougher measures to force change. However, The Guardian reports that so far people to practise social distancing, two sources that Kit Malthouse, the Home Office minister with knowledge of the situation said. “All options responsible for alcohol licensing, has not been are on the table,” one said. considering the idea so far. Lam rattled the industry on Monday by announcing The other blow was the declaration that the her administration might force the city’s 8,600 government would not suspend collection of restaurants, bars and clubs with liquor licences payment for alcohol duty (it did, however, freeze it 8

Only days earlier, a cluster of infections were would need to consider whether the government revealed as stemming from the Lan Kwai Fong indeed had the power to create new regulations entertainment district in one of the largest recent regarding the sale of alcohol under the ordinance. instances of local transmission. “Measures such as putting a certain group of people Further restrictions such as a reduction in opening under quarantine can be implemented quickly hours or a cap on the number of patrons could because such measures are already included and follow if behaviour did not change, she said. allowed in the ordinance,” Cheung said. At least five of Lam’s senior advisers voiced their “But legislative amendments would be needed for opposition to the idea on Wednesday. They included restrictions not specified in the ordinance, and it will former Bar Association chairman Ka- take time.” wah, who suggested limiting public gatherings to Restaurant, bar and club owners say they have been four people or else a curfew might be needed if the unfairly singled out. “We are considering filing a number of cases, which stands at 410, continued to judicial review application, but we have to wait for rise. the government to [announce] the relevant laws to Lam did not give a time frame to implement the make that happen,” said Cat Hou Chui-shan, measure, only saying it would be a new regulation chairwoman of the Bartenders and Mixologists under the Prevention and Control of Disease Union of Hong Kong. Ordinance. Others backing the challenge included the Hong When pressed further on Tuesday, she said officials Kong Small and Medium Restaurant Federation, would need a few more days to study the legal several business owners and industry associations, issues in-depth, without detailing what those she said. concerns might be. Chan cautioned that bar owners would find it A source said the original intention of Lam’s difficult to argue the ban on alcohol was unrelated announcement on Monday was to issue a warning to the spread of the virus. If drinks were not to caterers and diners to practise social distancing. available, “people would probably not be gathering at the bars and pubs in the same manner”, he said. “We are willing to explore other options which can serve the purpose of promoting social distancing, But he also warned the ban might amount to a such as restricting opening hours of bars and deprivation of intangible property, which calls for restaurants, and widening the distance between reasonable compensation under Article 105 of the tables in those venues,” a separate government Basic Law, the city’s mini-constitution. source said. Young said that for now, the ban was less intrusive But legal scholar Man-mun, a chair than forcing licensed establishments to shut. professor at the ’s law “[The ban on serving] is a step worth trying, and if school, said the ordinance provided the chief proven to be ineffective, or only moderately executive with broad powers to create new laws effective, a stepped-up measure could then be used. “for the purposes of preventing, combating or It is a proportionate and evidence-based approach alleviating the effects of the public health to tackling the current problem,” Young said. emergency and protecting public health”. The other Executive Council members who joined Another scholar from the law school, Simon Young, Tong in questioning the wisdom of the move were also pointed to the wide scope to manoeuvre Lau Suk-yee, Yu-yan, granted to the city’s leader, noting that a public Kwok-kwan and Dr Lam Ching-choi. officer could be empowered to compel the forfeiture of certain property under the ordinance. Ip and Horace Cheung said they doubted the ban would be effective in curbing the spread of the But a principal lecturer from the university’s law faculty, Eric Cheung Tat-ming, said Lam’s legal team 9 disease and any new law should target public But the government had also underestimated the gatherings instead. public’s willingness to adopt measures to contain the epidemic, Lam said. Tong said he initially put forward the suggestion of keeping gatherings to no more than four people for Exco member Horace Cheung, vice-chairman of the a two-week period but the government did not pick city’s largest pro-government party, the Democratic up the idea. Alliance for the Betterment and Progress of Hong Kong, said: “There should be restrictions on people “Often after hearing our advice, the government has gathering, and not restricting certain eating habits.” to consider for a long time,” he said. “It’s already too late because the current tally is about people Ip, a former security chief, even pointed out that infected seven to 14 days ago. If [the ban] doesn’t Hong Kong would be the first jurisdiction in the work this week, we’d have to impose a curfew.” world to issue such a ban in an attempt to reduce social contact. As an example of the administration’s reluctance to make tough calls, Tong pointed to the complete ban But the Exco member who questioned the ban most on arrivals and transit passengers, which Lam fiercely was catering sector lawmaker Tommy rejected last Saturday because so many passengers Cheung, who chairs the pro-business Liberal Party. were Hong Kong residents, only to reverse her He said the sector was against a ban on alcohol sales decision on Monday. or public gatherings, and called for compensation to cover rents and payrolls if the measures were Tong said he proposed the ban on non-residents to introduced. the government weeks ago but believed officials felt it was not the right time. “The ban on alcohol is unnecessary, but if the government was to go ahead, we will cooperate,” “On medical grounds, I take it, but politically, is it Cheung said. He refused to say whether the worth the risk?” Tong said. government had consulted him beforehand. The senior counsel’s remark casts doubts on the Dr Joseph Tsang Kay-yan, a specialist in infectious decision-making process of Lam’s administration diseases, said a ban on alcohol sales was a step and some of her advisers. Both Chan and Young forward but not drastic enough. He questioned how called Tong’s proposal to ban public gatherings too much economics might have influenced the drastic or even extreme for now. government’s thinking, which might not be the right “I doubt if the current situation, namely a few approach in safeguarding public health. naughty people failing to comply with a restraint “Why the disease prevention measures in Hong order, is sufficiently serious to justify a total ban of Kong are not thorough enough is because of [such all public meetings, unless the situation gets much considerations],” Tsang said. He suggested other worse,” Chan said. methods to reduce the spread of the virus, including The Post was told the proposed ban on liquor sales roping in more private hospitals to help carry out was mainly handled by bureaucrats and Lam’s tests for the coronavirus. ministers, and was announced without first Hou, the chairwoman of the bartending union, said consulting the non-official Exco advisers. One they were inclined to press ahead with the legal member privately admitted that, “I only knew about challenge despite uncertainties about winning the the ban when watching the news on television”. battle. Exco member Lam Ching-choi said they were “We will do anything and try our best to stop the typically not briefed on such “administrative introduction of the ban on alcohol sales,” she said. measures”. He conceded the government was too conservative at the time. “The bureaucrats may The amendment by Lam even caught the Liquor think using the liquor licences can be most Licensing Board by surprise. James Wong Kong-tin, effective,” he said. the chairman of the statutory body, said he had no 10 idea whether it could continue to approve licences Australia: Dan Murphy's and BWS Have Introduced if the ban came into effect. Limits on Alcohol to Discourage Hoarding The limits are now in place at stores across the country. “We were not notified beforehand and only came to realise it when the chief executive’s press Concrete Playground. conference was held,” Wong said. “For the time By Samantha Teague being, we are still doing our work and handling March 26, 2020 licences day in, day out.” When the Australian Government announced on Sunday night that pubs, bars and nightclubs would

be closing the following day to help contain COVID- Iran: Death toll from tainted alcohol rises to 255 19, it led to the mass-buying of booze across the People in Gulf country consumed moonshine after rumors country. Bottle shops are not impacted by the it prevents coronavirus closures, but it didn't stop Aussies stocking up just in AA.com case. By Ahmet Dursun March 25, 2020 Booze is just the latest item to be targeted by panic- buying, with toilet paper going first, then essential The death toll from consumption of toxic alcohol in food items. Supermarkets across the country have Iran rose by 72 on Wednesday, bringing the total to since introduced strict two-pack-per-person limits 255 since March 6, local media reported. on coveted items, such as eggs, sugar, white milk, IRNA quoted Mohammad Javad Moradian, the head frozen desserts and canned tomatoes, and now of Fars province's Emergencies Center, as saying bottle shops are following suit. that some 592 people were poisoned by tainted BWS and Dan Murphy's, who are both owned by the alcohol. Woolworths Group, introduced temporary limits on People consumed illicit liquor after rumors spread alcohol. A statement on the Dan Murphy's website that it prevented from contracting the coronavirus, reads, "these limits are in place to ensure everyone the viral infection that has claimed nearly 20,000 has access to the drinks they love". Thankfully, the lives worldwide. limits aren't quite as strict as those on food. The sale and consumption of alcoholic beverages is At Dan Murphy's in NSW, Vic, ACT, Qld, NT, SA and prohibited for Muslim citizens in Iran. Tas, the limit per customer per day is 18 bottles of wine, three casks of wine, six bottles of spirits and Under the Iranian law, those who produce, buy or three cases of beer, cider and premix. BWS has sell alcoholic beverages can be sentenced to implemented similar restrictions, with all states and imprisonment and lashing. territories (except for WA) having per customer, per Some 143 people in Iran have died of COVID-19 in shop limits of 12 bottles of wine, three casks of wine, the last 24 hours, pushing the death toll to 2,077, four bottles of spirits and four cases of beer, spirits, according to the Gulf nation's health authorities. premix and cider. At least 2,206 people have tested positive since WA has stricter limits, in-line with state regulations, Tuesday, bringing the total to 27,017. with customers able to buy a maximum of two from the following categories: 11.25 litres of beer, cider After emerging in Wuhan, China last December, the or pre-mix spirits; 2.25 litres of wine; one litre of virus has spread to at least 172 countries and spirits; and one litre of fortified wine. regions. Both chains are also encouraging social distancing, Out of more than 438,500 confirmed cases globally, have introduced maximum capacities at their stores, the death toll nears 20,000, while more than and are offering pick-up and delivery services. 111,890 have recovered, according to data compiled by the U.S.-based Johns Hopkins University.

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INDUSTRY NEWS the 1.5L glass segment that had been in decline saw gains of almost +20% in this single week vs. the same Pandemic Alcohol Stock-Up Skews Toward Wine period one year ago. Canned wines, which was already performing well, grew by +95%. Advisor Wine Industry Network By Editor Though it remains to be seen how alcoholic March 25, 2020 beverages sales perform through an extended pandemic shutdown, at least these are good early Consumers have been stocking up in preparation for signs for wine. an extended COVID-19 pandemic and sheltering in place. Most of the purchases have of course been focused on perishables and toilet paper, but Nielsen Says Beverage Alcohol Retail Sales Are alcoholic beverages have also seen a significant lift Soaring During The Crisis with wine shaping up to be a preferred beverage for isolation. Forbes By Thomas Pellechia Nielsen’s total U.S. off-premise sales for wine grew March 25, 2020 +27.6%, spirits +26.4% and beer/flavored malt beverages/cider +14% in the week ending March 14, According to Nielsen's data, beverage alcohol retail 2020 vs. the same week one year ago. Though wine (off-premise) sales “across the board” have been is only growing slightly more than spirits, these soaring. Total U.S. beverage alcohol retail sales in numbers are a remarkable turn compared to the the week ending March 14, 2020, over the same trends. period in 2019, was: wine up 27.6%, spirits up 26.4% and beer/flavored malt beverages/cider up 14%. For the 13-week time period ending January 25, the beer/flavored malt beverage/cider category was For perspective, Nielsen points out that in the 13- growing at +5%, wine was nearly flat at +0.6% and week period ending January 25, 2020 wine was spirits grew at +3.8%. nearly flat—up 0.6%, spirits sales were up 3.8% and the beer/flavored malt beverage/cider category was “While Beverage Alcohol categories are all up by 5%. experiencing double digit growth, they lag growth rates for total consumer goods,” says Danelle It appears consumers seek large packages for their Kosmal, our VP of Beverage Alcohol at Nielsen. “For wine and beer purchases. 3 Liter boxed wines are up the week ending March 14, when many consumers by 53% over a year ago, canned wines were up by were stocking up on perishables, cleaning products 95% and the 24-pack beer category is up 24%, which and toilet paper, total consumer goods grew by 40% Nielsen claims is “…aligning with the broader in Nielsen all U.S. outlet channels. To me, this is an ‘stocking up’ that consumers are doing.” indication that Beverage Alcohol is important to Before the crisis, 1.5 liter glass wine segment retail consumers, but other consumer goods categories sales had been declining, but in the week ending are being prioritized, at least for now. As more and March 14, 2020, the category was up by almost 20% more on-premise locations close, I think we will over the same period in 2019. The 750 ml bottle continue to see off-premise sales for beer, wine and segment grew, too, a little more than the 1.5 liter spirits grow even more, and closing the gap with category. other consumer goods.” Still, Danelle Kosmal, Nielsen’s vice president of Though all price tiers and package sizes saw growth beverage alcohol points out that, “While Beverage a few outperformed the pack. The price segment Alcohol categories are all experiencing double digit that did best was $11-$25 on an equivalent 750 ml. growth, they lag growth rates for total consumer In the theme of stocking up, large pack sizes goods.” performed exceedingly well with 3L boxed wine Nielsen’s claims that for the week ending March 14, growing +53% and 24-packs of beer at +24%. Even 2020, “…total consumer goods grew by 40% in all 12

Nielsen U.S. outlet channels.” About that, Kosmal interstate and in-state winery and retailer sales. He says, “…this is an indication that Beverage Alcohol is wants every state to make permanent the so-called important to consumers, but other consumer goods curbside pickup that is allowed in some states during categories are being prioritized…As more and more the coronavirus pandemic. on-premise locations close, I think we will continue During this pandemic and while non-essential to see off-premise sales for beer, wine and spirits businesses must close, New York State allows that grow even more…” packaged wine can be sold from retail shops and Nielsen data tracks with data supplied by the online wine tasting rooms. The reason given is that wine is wine shopping company, Vivino, which says Friday, an agricultural product. Yet, since 1934 attempts March 13, 2020, was the company’s “…highest sales have failed in the state to legislate wine sold in day ever, beat out only by Black Friday 2019.” grocery stores alongside other agricultural products. The company says it saw, “…300% sales growth globally year-over-year in terms of Gross DAILY NEWS Merchandise Value (GMV).” By March 21, Vivino recorded a “…global increase in GMV of 162% with To Save Their Industry, Restaurant Owners Get the and Italy seeing even larger Organized “These guys are working together. increases at 170% and 282%, respectively.” They’re all connected.” Grub Street Vivino has in the past pointed out that relative to By Kitty Greenwald total wine retail sales, e-commerce has been slow to March 25, 2020 get rolling, but sheltering during this crisis has the potential to change the trajectory of online buying, As the effects of the citywide coronavirus shutdown whether from retailers or from wineries. Vivino continue to ripple throughout the restaurant works with both retail sectors. The company claims industry, operators have tried to find solutions to hundreds of items are inventoried, representing the dire financial situations they now face: selling small and large wineries as well as retailers, and that delivery and takeout food with skeleton crews, 42 million global users have access to the wines. taking advantage of temporarily relaxed liquor laws to sell alcohol for customers to take to go, Meanwhile, according to the National Association of transforming their restaurants into boutique Wine Retailers executive director, Tom Wark: “If grocers, and establishing crowdfunding initiatives ever there was a moment that demonstrated both for their employees. Regardless, the most ominous the utility and necessity of allowing consumers to projections indicate three out of every four receive shipments of wine from out-of-state wine independent restaurants simply won’t reopen. retailers, it is now, as we isolate and require Americans to migrate even more of their lives into “A lot of places are going to close,” says James Kent, an online setting.” the chef at Lower Manhattan’s Crown Shy. “It’s a tough business, and those on the brink probably Citing this WSWA letter to governors across the US, won’t make it.” Wark has particularly harsh words for Wine & Spirit Wholesalers of America (WSWA): “…what is To help prevent that warning from becoming a shocking is their attempt to manipulate the current reality, Kent and the city’s other industry leaders health crisis to advance a long held agenda to stop have mobilized in an effort to protect New York interstate shipments of wine to consumers all for State’s 30,000 independent restaurants and the the sake of maintaining a place of privilege in the industry’s 500,000 workers. alcohol beverage marketplace.” The most effective, fast-moving action is a three- Wark ends a rather long message he sent to the tiered approach: A group called the Independent press by telling us that every one of the states ought Restaurant Coalition, which formed just last week, to be helping consumers stay safe with legislation to works at the federal level. The newly formed Relief allow wine shipments direct to consumers through Opportunities for All Restaurants (ROAR) works with 13

Governor Cuomo’s office at the state level. And the Katz says, have already worked together effectively New York City Hospitality Alliance works at the city to get some tax relief to restaurant owners, delaying level with Mayor Bill de Blasio’s office. Stephanie a required payment. “Essentially,” Katz explains, “it Cutter, the founding partner of Precision Strategies was an interest-free loan for a few months.” He in Washington, D.C., started working with the IRC adds, “It was a great action that helped a lot of last week too, helping out with its messaging. And, restaurants.” she says, she’s impressed with the groups’ Meanwhile, other efforts have been established to efficiency: “These guys are working together. fill an even more basic need: feeding workers who They’re all connected.” need a meal and a reminder that their community is These efforts got underway after Governor Cuomo still there for them. Through grants made possible ordered the state’s restaurants closed on March 16. by the chef-led Lee Initiative and Maker’s Mark, the The chef Andrew Carmellini said he realized that the Brooklyn restaurants Gertie and Olmsted will be situation was dire when “I saw a press conference able to offer free meals to industry folks. from the White House that mentioned bailouts for Combined, these actions are still not yet enough to industries that don’t employ one percent of what we save an industry that was essentially eliminated do as an industry — that was infuriating.” Camilla overnight, but the swift progress made to date is Marcus, the owner of the Soho café west~bourne, promising, and it’s a testament to the people whose immediately began coordinating with dozens of careers are defined by hustling with little to no prominent restaurateurs, including Carmellini and resources. “We’re going to come back,” Katz says, Tom Colicchio. One of her biggest goals, she says, is optimistically. “And we’re going to come back better to secure financing and legislation that protects “all than ever so that people have a place to celebrate the restaurants across the city and state” and life again.” increases unemployment funds. Yesterday, a widely shared Times op-ed from the groups laid out the stakes facing the industry. This What constitutes 'essential businesses'? States morning’s announcement of a $2 trillion federal aid seem to have varying standards (excerpt) package, which the AP reports offers checks paid CNN directly to workers, plus “$600 per week to normal By Scottie Andrew, CNN state benefits for up to four months and provides an March 26, 2020 additional 13 weeks of benefits to 39 weeks of regular unemployment insurance,” already feels like (CNN)In a third of US states, businesses and services it could be a big win for the groups and offers at least are now divided into two factions: essential and a glimmer of hope. non-essential. “We organized, called on Congress to act — and The Covid-19 pandemic has prompted at least 17 they listened,” says Carmellini, who offered the states to issue stay-at-home orders. As a result, comment while also joining his peers in mourning some businesses are shuttering while the the sudden loss of the chef Floyd Cardoz. “The things "essential" ones remain open, though often with we fought for are in this bill: loan forgiveness, restrictions. changing the employment size limit so income grant The lists of essential businesses are mostly the relief can reach more restaurants, and ensuring same: Health care services, grocery stores and gas restaurants that closed as early as February because stations make the cut. Malls, gyms and movie of the pandemic are eligible for assistance.” He theaters do not. adds, “There is a lot more work to do, but this is a But a closer look at state orders shows some big first step.” inconsistencies: In Delaware, florists can still deliver All told, the groups’ size and community bonds work bouquets. In Pennsylvania, medical marijuana to their advantage, helping get things done quickly. dispensaries are OK but liquor stores aren't. And in ROAR and NYC Hospitality, Crown Shy co-owner Jeff 14

Arizona, golf courses can stay open, too -- they're always effective for substance-dependent people essential businesses. who are detoxing, he said. The Department of Homeland Security's "Addressing people's substance use and mental Cybersecurity and Infrastructure Security Agency health needs are critical components of us resolving (CISA) gave states an outline of suggested "essential this," Stauffer said. "Without that, it's going to be a businesses" to follow. whole lot worse." But because it's up to the states, there are bound to Gun stores be differences among them -- and many lists are Firearm retailers aren't specifically mentioned in shifting as the pandemic does. most states' lists of non-essential businesses, so Liquor stores they're assumed to be non-essential. But in many cities within those states, the mandates aren't being Liquor stores are considered essential businesses in enforced, so they're staying open anyway. every state that's issued stay-at-home orders but one -- Pennsylvania. Take California. Because firearms dealers aren't explicitly outlined in the CISA guidance, San Diego That could pose a major risk to substance- County Sheriff Bill Gore said, they'll be allowed to dependent people, said Bill Stauffer, substance use remain open in the county. disorder counselor and executive director of the Pennsylvania Recovery Organizations Alliance. Gun stores provide a "valuable public service," the sheriff's department said in a statement, and closing "We know that there's a large portion of population them could drive illegal firearms sales. with alcohol dependence, and a large portion of those who are at risk of physical withdrawal," he But things are different 120 miles away in Los told CNN. "Some of them don't even know they're Angeles, where police on Tuesday added 1,300 alcohol dependent -- it's one of the most life- deputies to crack down on gun stores that stayed threatening types of withdrawal." open despite Gov. Gavin Newson's stay-at-home order. The sudden shutdown caused sales to soar in Pennsylvania. On March 16, the same day the state When firearms didn't make Pennsylvania's list of announced all liquor stores would shutter by 9 p.m. essential businesses, locals flooded state gun stores the next day, there was almost $30 million in sales to stock up before they shut indefinitely. The across nearly 600 liquor stores -- perhaps the governor later updated the state's list of "life- highest-earning day recorded, according to the sustaining businesses" to include gun stores -- but Pennsylvania Liquor Control Board. with some limitations. Under the new order, firearms dealers must operate under limited hours Gov. Tom Wolf said he's reconsidering the ban on an individual appointment basis to comply with based on concerns from industry groups and social distancing measures. Department of Drug and Alcohol Programs. And in states where orders for gun stores aren't But there are concerns, in Pennsylvania and in states concrete, buyers are eagerly stocking up on where liquor stores are open, that climbing rates of ammunition before they're closed indefinitely. It's a unemployment and pandemic-induced stress could symptom of uncertain times, industry analyst Rob drive more people to the liquor store than usual. Southwick told CNN last week. People buy firearms That's why keeping mental health and substance to feel safer. abuse services open and available is essential, Stauffer said. Marijuana dispensaries Substance use disorder recovery groups such as Most states that have legalized medical or Alcoholics Anonymous are moving online and recreational marijuana have allowed dispensaries to mental health counselors are conducting remain open. Advocates say the substances can be appointments over video, but those methods aren't life-sustaining for millions of patients. 15

Many people rely on medical cannabis to alleviate Walker is worried not only about the livelihoods of seizures, chemotherapy-induced nausea and his friends and coworkers, but also their mental symptoms of post-traumatic stress disorder, health and sobriety. “I know exactly what I’d be according to the Marijuana Policy Project, a doing right now if I hadn’t found the program,” he cannabis legalization organization, in an open letter says. to state governors. Nearly everyone in Michigan — with the exception "Cannabis is a crucial part of the treatment regimens of people who perform essential services — is of hundreds of thousands of individuals, including sheltering in place right now. That isolation can many who have vulnerable immune systems bring anxiety — from a lack of human contact, a because of their advanced age or a serious medical sense of uncertainty, concerns about the economy, condition," the organization's letter read. "For these and worries about the health and safety of loved individuals, the uncertainty created by the crisis we ones. Some people are managing by quarantine face is compounded by the prospect of losing access baking or watching hours of Netflix. Others are to a treatment option that is essential to their well- hosting video chats with friends or taking walks. And being." quite a few, whether out of boredom or a desire for stress relief, are drinking. Pennsylvania considers medical marijuana growers and dispensaries "life-sustaining" businesses. Members of the restaurant industry are no California and Washington state orders don't specify strangers to stress, anxiety, and the use of alcohol the difference between medical and recreational to self-medicate, and it’s for this reason that many dispensaries -- only that "cannabis retailers" can of them are being acutely impacted by the remain open. pandemic. Prior to the crisis, an estimated 40 percent of U.S. restaurant and bar workers were already living in poverty. A disproportionate number Detroit’s Restaurant Professionals Reach Out With of service industry workers were also already Mental Health and Sobriety Support dealing with substance abuse and mental health Stuck in quarantine, Detroit restaurant workers are issues: According to a 2015 survey by the Substance leaning on social networks and former coworkers for Abuse and Mental Health Services Administration, support food and service industry workers experienced the Eater highest rates of illicit drug use out of any industry By Brenna Houck and ranked third highest for heavy drinking. March 25, 2020 Likewise, one study found that tipped servers were Dustin Walker knows what it’s like to feel anxious at greater risk for sleep problems, stress, and and out of control—and to spend years trying to depression, and “more than twice as likely to live in relieve the stress through drinking. “It wasn’t until I poverty relative to untipped workers.” To further was 29 that I was diagnosed with anxiety that I was exacerbate the issue, these same people lack masking for a long time with alcohol,” he says. Even widespread access to healthcare and mental health after starting treatment, Walker continued to drink. services. “Two or three years after being diagnosed with What’s more, many workers may be made even anxiety and treating it with medicine, I was still more vulnerable by the same mindset that makes treating it with alcohol and it was making it worse,” them great at their jobs. “People that thrive and do he recalls. But a little more than a year ago, the well in hospitality tend to have a set of traits or general manager at Birmingham’s Social Kitchen & characteristics that make them really good at taking Bar finally decided to get sober—and it was, he says, care of people and thriving off people’s “the best decision I could have made for my mental appreciation,” Walker explains. “That sometimes health.” can go hand in hand with some of the same triggers Now, as the restaurant industry faces a widespread and factors that can be related to people with very crisis due to the novel coronavirus pandemic, addictive personalities.” And thanks to the 16

coronavirus pandemic, those individuals aren’t meals to feed her employees during the initial 14- necessarily “getting that gratification of taking care day closing period, Williams also made sure that of people and being of service to people,” he adds. those currently enrolled with company health plans “We all in life have callings and we all need to feel would continue to have access to coverage for the needed in different ways. People that do well in same period. That included mental health hospitality, they don’t have that outlet right now counseling — for both employees with coverage and and it can be really dangerous.” That, coupled with resources and those without. the fact that many of Michigan’s substance abuse “It’s stressful. It’s a completely unprecedented meetings have been canceled or moved online in an time,” Williams says. “Stress also weakens your effort to reinforce social distancing, has created a immune system.” For her, staying grounded has difficult situation for people in recovery who rely on meant advocating for the local restaurant industry a support system. at the state and national levels as well as staying in On March 17, Walker turned to Facebook, urging touch with staff and cooking at home. “We’re trying anyone who was struggling to stay sober or drinking to do this together and get through this together,” too much to give him a call. He has since heard from she says. several people who have been having a tough time For people without access to mental health with their drinking. “Obviously,” he says, “you have professionals, there are still ways to receive help. to be in a very specific spot to reach out for help, Numerous support groups are now active online especially from a stranger.” through Facebook, video chats, and apps. Alcoholics Last week, Adam O’Connor also opened himself up Anonymous also operates several local hotlines. to phone calls with people both in and outside of the Chefs With Issues, a project dedicated to mental industry trying to manage their sobriety. A health in the food industry, also provides national marketing and PR director with Otus Supply in resources on its website for people in need. Ferndale, he’ll have been sober for 16 years this While social media can be a source of anxiety for April. “To me, it’s always been about my support people who follow the news, Aaron O’Conner system,” O’Connor says. “Not having that is really believes it can also be a relief to be so connected at challenging” for food industry workers whose usual a time like this. “The fortunate thing is that we are support system was tied to a routine like going to all in communication right now through so many work and being around like-minded people, he platforms it’s almost absurd,” he says. “But it just explains. And the loss of regular meetings and takes a seconds if you’re in a bad spot that you can support groups can make people seeking help feel to reach out to someone and hear back.” even more untethered. “That can be overwhelming in a situation that already feels like you’re taking on the world when you’re trying to either stay sober or This email and any files transmitted with it are intended solely for the use of NABCA members, free-of-charge. If you do not wish to receive this battle those demons one day at a time,” O’Connor daily service, please respond with “UNSUBSCRIBE” in the Subject line. In says. “The world is upside down right now.” addition, if there is another individual within your company who should also be receiving this service, please forward their NAME, TITLE, Although some restaurant employees like Dustin EMPLOYER, and EMAIL ADDRESS to [email protected]. Thank you for your time and attention as we continue to work to improve Walker are fortunate to receive healthcare benefits upon the services and benefits that we provide to our members. Please from their employers, many are not. Keeping note that any views or opinions presented in this email are solely those employee benefits intact was on Kate Williams’s of the author(s) and do not necessarily represent those of the National Alcohol Beverage Control Association. mind as made the difficult decision to close her three Detroit restaurants and bars after several employees expressed concerns about the safety of remaining open. As the chef prepared to let go of more than 80 employees at Lady of the House, Karl’s, and Candy Bar on March 15, she did her best to take care of them: in addition to preparing freezer