Monday, February 3, 2020 www.nabca.org

• Inside the key decision that helped end Michigan’s shortage • What can’t you infuse in Washington? TODAY’S • The Government’s tax on increases today to $2.26 per litre HIGHLIGHTS • Health Organisations Call for 2% Alcohol Duty Rise in UK • Southern Glazer’s & Spirits Commits $1 Million to Thurgood Marshall College Fund

looking at delayed delivery routes that were NABCA NEWS three, then four days behind. Already bad, the 27TH ANNUAL LEGAL SYMPOSIUM situation was nearing a tipping point. Registration is open for NABCA’s 27th “It started to get into day four behind. And at Annual Legal Symposium. Please go to some point, you’re going to what I call ‘lap’ https://www.nabca.org/meeting/2020-legal- yourself... if you’re five days behind you’re a symposium-0 to register! delivery week behind, so you now start duplicating orders. And that just would have If you have questions, please contact sent the system over the edge,” said Gigliotti, [email protected]. Region President of Control States for RNDC, in a January interview.

JOB OPPORTUNITY He’d been sent in from Virginia to help address a shortage that stemmed back to issues at a new Position: Deputy Commissioner-Division of warehouse the company built in Livonia. Liquor Control But to get the company’s deliveries back on Vermont Department of Liquor and Lottery, track, first, he had to knock them completely Monteplier, VT off-course. RNDC -- the largest liquor distributor For more details regarding this position, copy in the state -- threw away three days’ worth of and paste this link: orders and paused deliveries entirely to give https://careers.vermont.gov/job/Montpelier- itself a chance to catch up. Deputy-Commissioner-Division-of-Liquor- Control-VT-05601/621534800/. It was a bold move and risked further angering customers. It wasn’t approved by the Michigan Liquor Control Commission. It cost a lot of CONTROL STATE NEWS money (“you have no idea," Gigliotti said) and required bringing people in on overtime, MI: Inside the key decision that helped end operating on weekends, and retaining 120-150 Michigan’s liquor shortage temporary workers. MLive “You’ve got this plan to go forward, nobody By Emily Lawler wants to look and say ‘well we’re going to take February 2, 2020 a step and go backward.' Those aren’t easy As Michigan bars, restaurants and regulators decisions,” Gigliotti said. grew frustrated with the liquor shortage caused “Was it the right decision? I would sit here and by Republic National Distributing Company last tell you absolutely.” November, Joe Gigliotti was on the inside, 2

More than two months later, there are mostly temporary workers at their old indications it worked, and the liquor shortage is Brownstown facility, “which in hindsight I think over. was a mistake.” “I think the shortage is certainly pretty much Transitioning to the new warehouse passed,” said Michigan Liquor Control exacerbated previous issues, resulting in the Commission Chair Pat Gagliardi in a January delivery and stock issues that would eventually interview. be referred to as the liquor shortage. How stumbles became a shortage As the busy holiday season approached, it became clear the issue wasn’t just growing Michigan is what’s called a “control” state in the pains. That’s when Gigliotti -- whose liquor industry. A bottle of liquor goes from its background is in wine -- came up from Virginia. manufacturer to the wholesaler, which in Michigan is actually the state. The state has “November was, I don’t know any way to put it three Authorized Distribution Agents that but ugly,” Gigliotti said. warehouse and deliver the bottle on its behalf He made that key decision to stall orders and to every and restaurant in the state. play catch-up. Then, he went back to work. RNDC is by far the largest, comprising nearly Fixes and moving forward two-thirds of Michigan’s liquor industry. Walking thorugh the Livonia facility in January, Back in the spring of 2019, the Michigan Liquor Gigliotti greeted workers as he walked past. Control Commission started getting an uptick of complaints about the company, Gagliardi said. Part of the initial fix was manpower in the form of overtime, extra shifts and bringing temporary They were hearing about retailers not getting workers in. The software issues improved. The their deliveries on time or at all, not getting fiberoptic line remained intact. complete orders and not being able to order certain items because they were out of stock. By the second week of December, RNDC was Some shelves were running low or empty “what I would term caught up” on the issues because of these issues. stemming from the Livonia facility, Gigliotti said. And the complaints started ramping up in the He worked to balance the inventory, deciding fall, right ahead of the holidays, when the which routes to run out of the older warehouse volume of liquor sales is the highest. in Brownstown and which to run out of the new facility in Livonia. When it corrected too far “Disasters can happen at any point in time in toward running delivery routes out of the old one’s life... and this was a disaster,” Gagliardi facility, he re-balanced and has continued to said. move routes back to the Livonia facility in “This was the State of Michigan as a wholesaler January. of distilled spirits contracting with a company “January has been, from a delivery standpoint, that couldn’t deliver.” very very good,” he said, acknowledging the At RNDC, Gigliotti said the internal problems volume in January is lower than in November were multifold, but traced back to the and December. company’s transition to a new, upgraded facility He said work on balancing the inventory would in Livonia that didn’t go as smoothly as planned. continue and be put to the test during the Some things were unpredictable, like a summer when Michigan’s tourism typically fiberoptic line accidentally getting cut and issues spikes liquor consumption. with the software behind one of their key The company still faces potential fines from the systems. The company took the bulk of their state stemming from the shortage. existing talent to the Livonia facility and hired 3

And with its customers, the company essentially oversupply has moved from raw to finished has to earn its stripes back, Gigliotti said. product, but it's still an oversupply. Gagliardi of the MLCC said regulators continues Farmers are better off than they were a year to get complaints about RNDC workers being ago, the OLCC report concludes, but "even rude or short with people, and the coordination though demand is increasing significantly, it may between the two warehouses is probably still still be consuming prior years' supply of extracts not where it should be. But with the immediate and concentrates, and more time is needed to shortage solved, “Now it’s just going to be an reduce 'back stock' of inventories." amount of time to see that they’ve really got it headed in the right direction.” LICENSE STATE NEWS RNDC is aiming to do good work and be WA: What can’t you infuse in Washington? consistent, but Gigliotti knows the relationship with retailers will take time to repair. The Spokesman-Review By Tracy Damon, EVERCANNABIS Correspondent “Candidly, I can talk all day long. But the only February 3, 2020 way that we’re really going to do it is by showing them,” he said. While infused edibles aren’t a huge part of the state’s legal recreational cannabis market – they make up about 9 percent of marijuana sold – it OR: Oregon Grew Record Amounts of sometimes seems like you can buy almost Recreational Cannabis in 2019 But Wholesale anything infused with pot. Prices Spiked Anyway From champagne to potato chips, sweet treats Processors buying to make edibles, oils, extracts and to coffee, soft drinks to ramen, there’s a huge other products helped prices rebound but the variety of sweet, savory, smooth or crunchy overhang has shifted to store shelves. treats infused with flower available. Willamette Week But there are a few edibles you can’t purchase By Nigel Jaquiss in Washington, and a few reasons why. February 2, 2020 Brian Smith, communications director, and In its annual report on recreational cannabis Kathi Hoffman, cannabis laws and rules released earlier this month, the Oregon Liquor coordinator, for the Washington State Liquor Control Commission highlighted a surprising and Cannabis Board, recently provided paradox. guidelines for what is OK to sell and what is not. Oregon weed farmers produced another “The following criteria will be used when bumper crop in 2019, their biggest ever. That determining approval of marijuana infused would seem to put downward price pressure on edibles,” they wrote in an email. a market that has been massively over-supplied. A marijuana processor may infuse food or drinks Previous large crops caused wholesale prices to with marijuana provided that: crash from $1,700 a pound in mid-2017 to $650 a pound in April 2019. But strong demand from (a) The product or products do not require processors—who use pot to make edibles and cooking or baking by the consumer; oils—led to a rally in the second half of 2019, (b) Coatings (frostings, sprinkles, etc.) applied to boosting prices back to $1,200 a pound. the product or products are compliant with the Fortunately for consumers, retail cannabis requirements of WAC chapter 314-55; and prices have not reflected that increase. (c) The product and package design is not similar The not-so-good news for the industry is that to commercially available products marketed the edibles and oils are stacking up on shelves for consumption by persons under twenty-one and have long shelf lives. In essence, the 4

years of age, as defined by WAC 314.55.105 For those who don’t want to get high, but are (1)(c). seeking the potential benefits of CBD (cannabidiol), take note that CBD edibles can For the last item above, the referenced WAC only be sold at cannabis retailers. specifically lists gummy candies, lollipops, cotton candy, or brightly colored products as CBD derived from hemp – which does not have prohibited. the psychoactive effects of THC (tetrahydrocannabinol) found in marijuana – is It goes on to include fruit or vegetable often used in lotions and supplements for (not including shelf-stable concentrates); fruit relaxation and pain relief, and is sold just about or vegetable butters; pumpkin or custard pies, everywhere. But the state Department of or any pies that contain egg; dairy products of Agriculture does not allow CBD as an ingredient any kind such as butter, cheese, ice cream, or in traditional foods, and recently cracked down milk; and dried or cured meats as also being on sales at non-cannabis retailers. prohibited for sale. “Advertising and claims about CBD and its Marijuana-infused vinegars or oils for cooking potential benefits are everywhere these days,” also have restrictions. They aren’t allowed to be wrote Smith. infused with any other product, like herbs or garlic, so you will have to add those separately “The truth is that very little still is known about to whatever you are cooking. CBD. It may have been a misconception of the public that CBD was allowed in food products. “Infused vinegars or oils can pose food safety Cannabinoid extracts like CBD are not allowed risks,” wrote Smith. “The primary concern is the as a food ingredient under federal and state law. extremely dangerous and sometimes deadly Marijuana processors licensed by the state can microorganism, Clostridium botulinum (C. bot), produce CBD-infused edibles for sale in state which can cause botulism.” licensed marijuana retail stores only.” There are also guidelines regarding edible packaging. Any product in a package that may INTERNATIONAL NEWS be “too appealing” to children won’t be allowed on store shelves. United Kingdom: CAPs to extend into more areas as it reports success in reducing underage Calls to poison centers about kids accidently drinking ingesting edibles have increased in states where recreational marijuana is legal. Smith says Drinks Retailing News multiple factors may have contributed to that By Sonya Hook growth in calls. February 3, 2020 “The presence of the Poison Center “Not for Community Alcohol Partnerships (CAP) has Kids” logo on edible products with the phone announced significant reductions in underage number was designed to generate phone calls,” drinking in areas with CAP schemes, and it also he said. “Also, because it’s now legal for adult announced plans to extend into around 100 new use, more people likely feel comfortable areas nationally. reporting it.” The latest report, which reflects evidence from In 2018, the WSLCB announced banning the sale the last four years, shows that CAPs are of many hard candies, chewy candies, tarts and achieving significant reductions in alcohol chocolates, later modifying the restrictions. supply to children, alcohol-related anti-social Edibles can’t be sprayed with colors, molded behaviour and underage drinking. into shapes other than balls or bars, or have Speaking at the annual CAP celebration at the frosting or sprinkles. House of Lords last week, chair Derek Lewis 5

launched its latest annual report. Evaluations Scotland: Alcohol consumption in Scotland falls for the period 2015-2019 show: following minimum price law • 52% average reductions in regular drinking FoodBev among 13-16 year olds Posted By: Emma Upshall February 3, 2020 • 40% reductions in youth alcohol-related anti-social behaviour Research conducted by the NHS found that the volume of alcohol sold per adult in Scotland has • 80% improvement in Challenge 25 fallen by 3.6% during the first year of compliance following CAP training implementing minimum unit pricing (MUP). • 90% reductions in residents reporting The new report, which was carried out by NHS seeing under 18s drinking in the local area Health Scotland, evaluated the impact of MUP • 77% reduction in young people hanging on sales-based consumption in Scotland over around shops and asking adults to buy the 12 months following the new legislation. alcohol for them In May 2018, Scotland became the first country Since CAP was launched in 2007, 201 schemes in the world to introduce MUP for alcohol as it have been launched in England, Scotland and aimed to tackle public health problems caused Wales. The aim is to bring together a range of by cheap, high-strength alcohol. local stakeholders with a shared interest in The new legislation set a minimum price of 50p preventing underage drinking and encouraging per unit. Analysis found that the average price responsible drinking among young adults. of off-trade alcohol rose by 5p per unit (ppu) CAPs are made up of partnerships between from 55ppu to 60ppu. retailers, local authorities, police, schools, Compared to the 12 months which preceded neighbourhood groups and health providers, implementation of MUP, the volume of pure working together to empower communities to alcohol sold per adult in Scotland decreased tackle alcohol-related harm to young people from 7.4 to 7.1 litres, a fall of 3.6%. and improve the quality of life for residents. Meanwhile, England and Wales – where MUP Derek Lewis said: “Underage drinking is has not been introduced – recorded an increase associated with school and educational from 6.3 to 6.5 litres. problems, unprotected sex, consumption of illicit drugs, violence and drinking problems in sales in Scotland recorded the most later life. We have been greatly encouraged to significant decrease of 18.6%, while sales of see emerging evidence that CAPs are reducing spirits fell by 3.8% and beer by 1.1%. Fortified alcohol consumption by underage children. wine was the only drink category in which sales rose. “While the proportion of young people in England who regularly consume alcohol has Sales of cider, spirits and beer all increased in dropped slowly between 2001 and 2018, the England and Wales over the same time period. reductions achieved in CAP areas are even Lucie Giles, public health intelligence advisor at greater, with 52% average reductions in regular NHS Health Scotland, said: “This is the first time drinking among 13-16 year olds. We believe that we have been able to analyse sales data this reflects the increasing emphasis on working covering the full year following the introduction with schools within the CAP areas.” of MUP, and it is encouraging that off-trade CAP aims to increase the number of CAPs to 300 alcohol sales fell in Scotland following its nationally in areas of high alcohol harm and to implementation. extend its remit to provide continued support as “Today’s findings show that the scale of change children become young adults. varies according to drink category. For example, 6

per adult sales of cider saw the greatest It’s more than 17 times the amount Germans decrease, and this was likely to be associated pay and even double that of our Kiwi neighbours with cider having the greatest relative increase in New Zealand. in average sales price, once MUP came into Brewers Association of Australia CEO Brett force.” Heffernan said this meant 42 per cent of the The analysis suggested it was unlikely the retail price on a carton of beer was tax. increase in alcohol sales in northern England “It’s getting to the point that having a beer with was due to cross border sales activity as similar your mates is beyond the reach of ordinary rises were observed in the rest of England and Australians,” he said. Wales. Mr Heffernan said drinkers were paying $21.84 Further evaluations looking at longer term, in tax on a carton of beer retailing at $52. post-MUP data will be published in due course. “By far the biggest cost in the price of a typical Australian beer is tax. It’s not the ingredients, Australia: The Government’s tax on beer production costs, advertising, transport or even increases today to $2.26 per litre retail overheads and profits … it’s Australian Government tax,” he said. NT News By Eliot Hastie, news.com.au The tax is a lucrative one for the Government February 3, 2020 that last year pocketed $3.6 billion from beer It’s a good thing Australians are drinking less alone. beer, as the cost of a pint is set to increase from Health campaigners say the tax is a useful way today. to reduce cancer and obesity rates as it deters Research from the Australian Bureau of binge drinking. Statistics (ABS) shows that beer has gone from It appears to be working as the ABS calculates making up 75 per cent of alcohol consumed 40 that 84 per cent of Australians drink within years ago to just 40 per cent today. recommended guidelines, and binge drinking is Despite the downward trend, beer still remains at its lowest level on record. Australians’ preferred drink of choice with wine The Australian Institute of Health and Welfare not far behind. even reports that 82 per cent of teens don’t However, that could change as the price of a drink alcohol at all, an increase from 54 per cent pint goes up today by 1.2 per cent thanks to the in 2004. Government’s automatic levy. Mr Heffernan said the statistics showed that Every six months for the past 35 years there has Australia was becoming responsible with been an automatic increase to the price of drinking and should, in fact, be rewarded. alcohol, and today’s is the 71st consecutive hike. “Aussies are paying an artificially inflated The increase in real terms equates to 27 cents premium via exorbitant and ever-escalating per carton of 5 per cent strength beer or $2.26 beer tax,” he said. per litre of alcohol. “It’s time Aussies got tax off for their good Health campaigners endorse the tax as a way to behaviour.” cut alcohol consumption. Picture: Toby Zerna A report commissioned by the Brewers Association of Australia claims this rate is the fourth highest beer tax in the world.

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PUBLIC HEALTH NEWS excessive consumption through tax and regulation. Alcohol duties raise £12 billion to Health Organisations Call for 2% Alcohol Duty pay for vital public services like the NHS.” Rise in UK “We keep the tax system under constant The Drinks Business review. Any changes would be made at the by Edith Hancock Budget in the context of the wider public February 3, 2020 finances.” Health organisations in the UK are urging the What the researchers said government to raise duty rates on alcohol, claiming that the “burden alcohol places on Last year, researchers were commissioned by society is unsustainable”. the Institute of Alcohol Studies (IAS) to look into the impact this has had on the NHS. It found that Balance, the North East’s regional alcohol office, cuts to alcohol duty since 2012 have led to a 1% has joined the Alcohol Health Alliance (AHA), a rise in consumption in England. coalition of more than 50 UK health organisations, in putting pressure on the According to the Sheffield Alcohol Research government to increase alcohol duty by 2% Group, this has led to nearly 2,000 extra alcohol- above inflation to ease pressure on public related deaths, compared to if the escalator had finances. remained in place until 2015. The statement said that recent cuts to alcohol The study looked at data on alcohol duty have cost the government more than £1 consumption, consumer spending habits, billion every year – enough to fund the salaries consumer and supplier responses to duty of 40,000 nurses or 29,000 police officers. changes, alcohol related hospital admissions and deaths, health inequalities, costs to the NHS Citing a study by researchers at the University of and costs associated with alcohol-related crime Sheffield, it also said that duty cuts have had and workplace absence. It claimed the cuts have “tragic consequences for public health, led to over 61,000 hospital admissions since including nearly 2,000 more alcohol-related 2012, costing the NHS roughly £317 million, and deaths in England since 2012.” has also generated an estimated additional In 2009, the government introduced an alcohol 111,000 instances of alcohol-related crime, as duty escalator that raised taxes by 2% above well as an economic value of £58 million in lost inflation each year. Then-Chancellor Alistair working days for businesses in England. Darling’s 2010 Budget planned to extend the Senior research fellow at the University of duty escalator until 2014. However, it was Sheffield’s Alcohol Research Group, Colin scrapped in 2013 for beer, and 2014 for other Angus, said that “due to the complex drinks. A series of duty freezes for beer and relationship between alcohol and health, the spirits have been placed in the Treasury’s effects of government duty policy since 2012 budget statements since. will continue to be seen for many years into the Colin Shevills, director of Balance, the North future, estimated to be as high as 9000 East Alcohol Office, called for an end to tax relief additional deaths by 2032.” on alcohol when the funds raised “could help The drinks industry’s stance fund the vital front line services most of us rely on,” adding that that alcohol places an The call comes just days after the Wine and “unsustainable” burden on the NHS. Spirit Trade Association (WSTA) issued a statement of its own calling for a 2% cut to A Treasury spokesperson told the drinks alcohol duty in the next budget, claiming it business: “Overall alcohol consumption has would be a boon to the public purse. fallen in recent years, but we continue to look at the range of measures available to control 8

Miles Beale, the WSTA’s chief executive, said “In order to protect the future health of our last month that alcohol duty is “an important society, the government must take action now revenue stream for Government to fund public by increasing duty on alcohol and investing that services, which is precisely why we are calling money into our over-stretched and for a 2% duty cut on wine and spirits. underfunded NHS and public services.” “A cut will not only boost Treasury coffers but also bring a boost post-Brexit to British INDUSTRY NEWS businesses and consumers, whereas another Black In Business: Celebrating The Legacy Of rise will have a negative impact on all three.” Black Entrepreneurship The Campaign for Real Ale, unsurprisingly, also Forbes regularly calls for duty freezes on beer. By Ruth Umoh, Forbes Staff & Brianne Garrett, Following the Conservative party’s victory in the Forbes Staff general election last December, UK prime February 3, 2020 minister Boris Johnson pledged to review African-Americans have played a profound role alcohol duty rates as a way of supporting the in shaping the U.S. business landscape. country’s and bar sector. Technological innovations like the traffic light, CAMRA National Chairman Nik Antona, automatic elevator doors and even caller ID all welcomed the news, claiming that beer duty in sprung from the minds of creative black the UK is “disproportionately high compared to luminaries. other leading nations in Europe and To honor their business achievements this Black 56% of consumers find the price of a pint History Month, Forbes spoke to a number of unaffordable.” founders, investors, activists, celebrities and Commenting on this week’s call to raise alcohol experts on the black diaspora. What emerged duty, however, Shevills said it is “ironic that the from these conversation was a rich, complex alcohol industry is benefiting from around £1 portrait of black entrepreneurship, one that billion in alcohol duty reductions every year, highlights the black community’s tremendous while it costs the North East £1 billion a year to creativity, as well as a resilience that was born, mop up the fallout from the product they are in part, out of hardship and necessity. selling.” Historically, black-owned companies, like He said the burden alcohol places on society is Madam C.J. Walker’s hair-care line and the “unsustainable and we’re all paying the price.” businesses that formed Tulsa, Oklahoma’s Black “In the next Budget, the government has an Wall Street, were developed in direct response opportunity to act by ending tax cuts for the to racial discrimination. “These segregation alcohol industry. We are urging them to patterns then created market opportunities for prioritise public services, including the NHS, black entrepreneurs to step in, make money and police and education system, and intervene to meet the demands of the black community,” bring alcohol harms under control.” says Mehrsa Baradaran, author of The Color of Money: Black Banks and the Racial Wealth Gap. Professor Sir Ian Gilmore, chair of the Alcohol With few work opportunities and high job Health Alliance UK, said: said: “Alcohol is 64% instability, many black pioneers took matters cheaper than it was thirty years ago, and its into their own hands, building small enterprises availability at these prices is encouraging more that served and employed fellow African- of us to drink at unhealthy levels. It is no Americans. coincidence that deaths from liver disease have increased in line with alcohol’s affordability in The black community’s long history of the UK. entrepreneurship is marked by ebbs and flows. The Reconstruction era, the period after the 9

Civil War, saw a sharp rise in the number of Still, much remains to be done both in the black-owned businesses as the country private and public sectors. “In order for there to attempted to right some of the inequities of be a great America, there must be a great black slavery. But in the late 19th and early 20th America,” Busby says. “And in order for there to centuries, the resurgence of Jim Crow laws be a great black America, you must have great enforcing racial segregation, coupled with the black businesses and a great black economy.” Great Depression, led to the decline of black If history is any indication, black entrepreneurship. “Black businesses were entrepreneurship will continue to grow and targeted and we saw a rollback in many of the thrive in the coming years—an economic boon advancements that were made previously,” says for Americans of all colors. Tiffiany Howard, a small business and entrepreneurship fellow at the Congressional Black Caucus Foundation. Too early to tell if Canberra district wine harvest The rate of black business creation continued to will be affected by smoke taint rise and fall throughout the 20th and 21st Cranberra Times century, increasing in the ’90s, dipping during By Karen Hardy the 2008 recession and rising again post- February 3, 2020 recession. In recent years, the number of black- owned businesses has risen dramatically, with While wineries in the Tumbarumba district and black women fueling much of that growth. In in the Adelaide Hills in South Australia were 2003, Oprah Winfrey, arguably the most notable destroyed by bushfires, no wineries in the black female entrepreneur, became the first Canberra region were directly affected. black American billionaire. And in just the last "The impacts for some individuals in these grape five years, four other African-Americans have and wine regions are severe and our hearts go reached the billionaire echelon. out to those who have lost vineyards, the But even with this forward momentum, black lifeblood of their wineries, as well as plant and entrepreneurs still face a number of challenges: equipment," Leyshon said. primarily, a lack of access to capital, says Ron "We in the Canberra district are coming to terms Busby, president of the U.S. Black Chambers. with these losses and how the bushfires will “We have the acumen, the creativity, the affect us in 2020. The flow on effects from these knowledge and even the manpower. But events are far reaching and as a farming without access to capital, our ideas come to a community we will feel it keenly." standstill, are stolen or are manipulated.” Leyshon, from Mallaluka winery, said Many of the black 2020 30 Under 30 listmakers workshops were being held nationally with the echo a similar sentiment in candid video Australian Wine Research Institute to let interviews with Forbes, but they also note the growers and winemakers know what the best black community’s collective ability to practice was to determine the level of smoke persevere against all odds. And in an effort to taint, if any, in vineyards. level the playing field for entrepreneurs of color, "We're working with the AWRI and NSW Wine a number of corporations and wealthy black on a coordinated effort to have our grapes business leaders have created funds to invest in tested a few weeks before harvest to measure minority-owned companies. Real estate tycoon the smoke taint levels," he said. Don Peebles announced a $500 million fund for emerging minority and female developers in "The overarching thought is that in most areas June 2019, and banks like JPMorgan and with smoke-exposed fruit, it is still too early in Citigroup have launched initiatives and the season to tell if the wine will be affected at investment funds to support underrepresented all." entrepreneurs. 10

The first batch of grape samples left Canberra on professional development, and provides January 28 and subsequent samples will be student leaders with opportunities to pursue dispatched to the AWRI in Adelaide at regular future careers with the Company. intervals until a reliable analysis is obtained SGWS commits $1 million to the Thurgood from across the region. Most of the district's Marshall College Fund. wineries will be tested during the process. In addition to recruiting and on-campus events, Leyshon says the biggest threat to local wineries Southern Glazer’s will participate in the 20th is fresh smoke from a nearby fire, rather than Annual Thurgood Marshall College Fund the smoke haze that has settled over the Leadership Institute. The Leadership Institute is district. With most fire activity to the south and intended to develop students’ leadership skills east of Canberra at this stage, Leyshon says, and provide companies access to a talented and while everyone is taking every precaution, the diverse student population for full-time jobs and immediate fire threat to the district's wineries is internship opportunities. Nearly 400 students not large. attended the 2019 event from 47 publicly- Leyshon said the district would pull together to supported HBCUs and PBIs. Student attendees help the Tumbarumba region as much as they were selected from thousands of candidates could. Only three hours west of Canberra, the and received full scholarships to participate in fires burnt 19 wineries in the area with the week of career development activities as Obsession , Johansen Wines and TMCF Scholars. Courabyra Wines severely affected. Southern Glazer’s Chief Human Resources "From a regional community perspective, Officer Terry Arnold and its Chief Executive building our smaller regional centres, such as Officer Wayne Chaplin, both serve as executive Tumbarumba, back up is vital in keeping the sponsors of the program. The Company’s Australian wine industry going and in return it strategic supplier, Moet Hennessy, a long-time keeps our thriving Canberra wine district alive supporter of TMCF and the charter corporate too," Leyshon said. sponsor of its Hennessy Fellows graduate program, was influential during the building of Southern Glazer’s new partnership. Southern Glazer’s Wine & Spirits Commits $1 Commenting on the agreement, Mr. Arnold Million to Thurgood Marshall College Fund stated, “We are honored to be working with the News Release esteemed Thurgood Marshall College Fund to February 3, 2020 help attract, recruit and hire top talent for MIAMI & DALLAS--(BUSINESS WIRE)--Southern internships and full-time positions with Glazer’s Wine & Spirits (“Southern Glazer’s”)— Southern Glazer’s. This agreement highlights the world's pre-eminent distributor of beverage our commitment to cultivate a more diverse and alcohol—today announced that it has signed a highly-skilled employee base to help position us $1 million agreement with the Thurgood for continued growth well into the future.” Marshall College Fund (TMCF) – the pre- Mr. Chaplin added, “Enhancing diversity is eminent national organization dedicated to critical to our long-term success and also promoting educational excellence among reinforces our values and culture. There are students attending Historically Black Colleges tremendous careers opportunities with and Universities (HBCUs) and Predominantly Southern Glazer’s as we continue to innovate Black Institutions (PBIs). The agreement and grow, and we look forward to partnering establishes a partnership that gives Southern with the Thurgood Marshall College Fund to Glazer’s access to TMCF’s diverse talent help identify future leaders for our Company pipeline, connects Southern Glazer’s employees and our industry.” with HBCU students for mentoring and 11

“Thurgood Marshall College Fund President & But others say the ban is not enforced at all. CEO, Harry L. Williams said, “This exciting For NIC-affiliated fraternities on campus, the partnership with Southern Glazer’s is another repercussions of not abiding by the ban range example of the diverse set of amazing global anywhere from not being able to host events to corporate partners that value and want to make being barred from recruiting new pledges. Tau long-term investments in the development and Kappa Epsilon, Kappa Sigma and Phi Delta Theta success of HBCU students through TMCF. We are the only fraternities at the University that look forward to this decade long endeavor to are not affected by the ban. create more pipelines into Southern Glazer’s expanding on the success of our partnership For fraternity member Jackie Tan, the ban has with Moet Hennessy.” done a good job of maintaining order. “It has mitigated a lot of people from binge- EDUCATION NEWS drinking on hard-alcohol, at least in my own chapter,” Tan said, adding that reducing binge- UMN fraternities wrestle with hard alcohol ban, question enforcement drinking hard alcohol at parties has been a Two years after a ban of hard alcohol in some frats priority for his chapter. near the University of Minnesota, many have raised Yet, the presence of hard alcohol is known by questions about its enforcement and efficacy. many who throw and attend fraternity parties. Minnesota Daily The ban may be efficient in keeping outside By Parker Toyne alcohol out of the events, but when it comes to February 2, 2020 the consumption of hard alcohol by certain chapter members themselves, the difficulty lies Nearly two years after the majority of University in enacting measures to not get caught. of Minnesota fraternities banned hard alcohol, some question how the policy is enforced. “We do take some measures to make sure we don’t get caught, that’s the biggest thing,” said In 2018, fraternities part of the North American a University fraternity member who prefers to Interfraternity Conference, which includes the remain anonymous and not name his chapter in majority of University fraternities, implemented fear of repercussions for himself or his a ban on all alcohol with an fraternity. of 15 percent or higher from all chapter parties and events. However, many fraternities self-enforce their own alcohol policy and hide hard alcohol from Following multiple publicized deaths of those who oversee the ban, the fraternity fraternity pledges around the country, the member said. conference’s more than 6,100 chapters on 800 campuses were forced to re-examine their “We definitely haven’t enforced it at all. We relationship with hard alcohol. According to the don’t go out of our way to confiscate it from NIC, 90 percent of all students living in fraternity people who have it in the house,” the University houses are under 21. fraternity member said. Here on the University campus, there are Current IFC President Andrew LaFortune conflicting views on the ban’s efficacy and acknowledged alcohol is prevalent at many questions about how it is actually enforced. parties, and the ban’s current enforcement Many fraternity members and presidents stand lacks practicality. by their claims of upholding the ban, applauding “You can’t really limit every single thing. The its ability to maintain safe environments at all purpose of it is to make it less prevalent as much fraternity-sponsored events, which is done as you can,” LaFortune said. through self-monitoring and the use of “sober monitors.” Conor Hogan, the current President of Phi Gamma Delta, said his fraternity members know 12

not to have hard alcohol, and have sober Jail officers often find smaller stashes of the monitors at every party. The monitors ensure pungent homebrew alcohol, but learned that no outside hard alcohol is brought onto the prisoners were “going big” for the Super Bowl, premises by anyone seeking to attend. said Sgt. Ray Kelly, The San Francisco Chronicle reports. No one will face charges for hiding the “If we see any hard alcohol at our parties we alcohol. take it, dump it out outside or take it away. For the people that bring it in we kick them out “Never fun to ruin a good party, but in this case usually,” Hogan said. He said he thinks the ban the party is over before it started,” Kelly said, is well enforced and respected. according to the publication. “We will all watch the Super Bowl today at Santa Rita sober.” LaFortune stated that there is an open line of communication between chapter presidents The San Francisco 49ers face the Kansas City and the IFC and that moving forward steps will Chiefs today (February 2) in Super Bowl 54 in be taken to better enforce the ban. Miami.

“Something that a couple of the chapter presidents have talked to me about is how to go 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 about actually enforcing it. We want to create receive this daily service, please respond with “UNSUBSCRIBE” in an environment where it is not readily available the Subject line. In addition, if there is another individual within to everybody,” LaFortune said. your company who should also be receiving this service, please forward their NAME, TITLE, EMPLOYER, and EMAIL ADDRESS to [email protected]. Thank you for your time and DAILY NEWS attention as we continue to work to improve upon the services and benefits that we provide to our members. Please note that any views or opinions presented in this email are solely those of the Hundreds of gallons of homemade booze found author(s) and do not necessarily represent those of the National before inmate Super Bowl party, CA jail says Alcohol Beverage Control Association. The Sacramento Bee By Don Sweeney February 2, 2020 Officers at a San Francisco Bay Area jail confiscated an enormous stash of homebrew alcohol concocted by prisoners for a Super Bowl blowout party, sheriff’s officials say. “There will be no super bowl party at Santa Rita Jail tomorrow,” the Alameda County Sheriff’s Department wrote on an Instagram post Saturday showing officers posing with trash bags of green-, yellow-, blue- and orange- colored alcohol. The concoction, called pruno, is commonly produced in prisons and jails by fermenting “fruit, , water, and other common ingredients for several days in a sealed plastic bag,” reports the Centers for Disease Control and Prevention. But it’s also a recipe for botulism, particularly since the process isn’t exactly sanitary, the CDC warns.