Control State News February 6, 2019 Montgomery Co., MD: Franchot, Kramer Trade Sharp Jabs over JOB OPPORTUNITY Roles with Alcohol Businesses Virginia ABC ID: Business is growing for Idaho State Liquor Division Director of Communications NH: New Hampshire marijuana bill gets public hearing The Director of Communications serves as the primary media spokesperson for the agency, and PA: What’s fresh in the latest Pa. bill to legalize for as the point of contact for media issues for all recreational use? divisions. This position is required to work with executive staff and board members on MT: Bill taps into longer hours for breweries development and approval of statements and releases as needed. License State News For more details, click here.

AK: New legislation would save beer and wine at the Brittany Burrell, MHRM, SHRM-CP | Talent State Fair Acquisition Consultant Virginia ABC | 2901 Hermitage Road, Richmond, MO: City council considers regulating drink specials VA 23220 Office: (804) 204-2319 International News Fax: (804) 213-4437 [email protected] Ireland: Social media putting young people off alcohol, www.abc.virginia.gov C&C warned

SAVE THE DATE United Kingdom: NHS data shows rise in alcohol-related deaths March 17-19, 2019 Public Health News 26th Annual Symposium on Alcohol Beverage Law and Regulation New Research Further Explores Alcohol's Role as a Migraine Registration is open for NABCA’s 2019 Legal Symposium. Trigger For program details, travel information and to register online, please click here. Alcohol-Related Liver Disease Is Affecting New Demographics Global public health challenges, fiscal policies, and yellow vest NABCA HIGHLIGHTS Industry News The Public Health Considerations of Fetal Alcohol Spectrum Disorders (White Paper) How Wine Retailers Can Compete in The Age of Amazon Native American Nations & State Alcohol Brewers are ready for the low-ABV revolution. But are beer Policies: An Analysis (White Paper) drinkers? Alcohol Technology in the World of Tomorrow - (White Paper) High Molasses Imports Challenge Rum Industry The Control State Agency Info Sheets. Please Daily News view website for more information. NABCA Survey Database (members only) Hey, Careful, Man, There’s a Beverage Here! TTB, CBD, and the Production of Beer Upcoming NABCA Meetings Statistical Data Reports Billboard battle brewing? Liquor Barn takes jab at the competition www.NABCA.org

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CONTROL STATE NEWS Montgomery Co., MD: Franchot, Kramer Trade Sharp Jabs over Roles with Alcohol Businesses Montgomery senator introduces bill to restrict donations from regulated industries Bethesda Magazine By Dan Schere February 5, 2019 Maryland Comptroller Peter Franchot and state Sen. Ben Kramer became engaged in a war of words Tuesday, accusing each other of conflict of interest when it comes to the alcohol and tobacco industries. At issue is a bill Kramer has introduced that would prohibit elected and appointed government officials who receive financial contributions of more than $100 from the alcohol, tobacco and motor fuel industries from having regulatory authority over the industries. Among the individuals specified in Kramer’s proposal are the comptroller, employees in the comptroller’s office, members of a local licensing authority, mayors or other “officer elected or appointed to any office of trust.” Franchot released a statement Tuesday claiming that Kramer’s bill demonstrates a “complete lack of understanding” that his office’s field enforcement division has in protecting consumers, by carrying out functions such as recovering lost revenue from illegal alcohol business, preventing tobacco smuggling and guarding against identity and tax fraud. Kramer’s bill was introduced Monday at the request of the Task Force to Study State Alcohol Regulation, Enforcement, Safety, and Public Health — a 20-member committee made up of legislators, alcohol industry representatives and law enforcement officials among others. The bill is scheduled for a hearing Feb. 22. Franchot, in an interview last month, said the task force voted 13-7 to strip him of his regulatory authority. He accused lawmakers of retaliating against him due to his positive working relationship with Republican Gov. Larry Hogan. “It is a corrupt concept that has as its only basis the retaliation against me for my relationship with Hogan and my independence,” he said of the task force’s recommendation. Franchot, a Democrat, said he thinks the effort against him is a reaction to his advocacy for the deregulation of the craft beer industry. Franchot statement noted the senator’s ties to the liquor industry in Montgomery County, pointing out that he and his sister Rona Kramer, the state’s secretary of the Department of Aging, own a building that houses a county- run liquor store and receives $20,000 per month in lease payments from the Department of Liquor Control. “Despite his obvious financial conflicts of interest, Senator Kramer has introduced this bill because of my efforts to reform Maryland’s archaic craft beer laws and level the playing field for small businesses throughout the state,” Franchot wrote. In an interview Tuesday, Franchot said Kramer’s bill stem’s from the comptroller’s desire to rid Montgomery County of its liquor monopoly. “He [Kramer] has an ancient grudge with me because I want to get rid of the DLC,” he said. Kramer filed a disclaimer of possible conflict of interest with the legislature after he was first elected to the House of Delegates in 2006. The state senator said in an interview Tuesday that ties to the county liquor store property have no relevance when it comes to the state’s regulation of alcohol, because the bill has nothing to do with the county’s liquor monopoly. “What is the relationship between that and this legislation other than a red herring to create some sort of impression? How does that relate to having DLC in a tenant space?” said Kramer, a Wheaton Democrat. NABCA Daily News Update (2/6/2019) 3

Kramer said Franchot’s statement was hypocritical, because the comptroller has taken contributions from the alcohol industry. Campaign finance records show that Franchot accepted $1,000 in 2017 from a political action committee that supports Maryland craft brewers. “That’s a legitimate concern that manifested itself in the task force. Should we have an elected official who is responsible for regulation in an industry,” he said. Kramer went on to accuse Franchot of “playing the victim.” “He’s taking a page out of the [President] Donald Trump playbook to attack and demean anyone that doesn’t fall in line with him,” Kramer said. Kramer, despite the harsh words, said he has known Franchot for many years and that the two have “gotten along fine,” but he is disappointed in the comptroller’s reaction to what he believes is a measure aimed to avoid conflicts of interest. “That’s not an attack on the comptroller. It doesn’t matter if it’s Peter Franchot or Peter Rabbit. I am focused on the best interests of the residents of our state,” Kramer said.

ID: Business is growing for Idaho State Liquor Division Associated Press February 5, 2019 BOISE, Idaho (AP) — The Idaho agency that sells whiskey, vodka and other distilled spirits wants relocate or remodel nine of its liquor stores. State Liquor Division Director Jeffrey Anderson also told the Legislature’s budget-setting Joint Finance- Appropriations Committee on Tuesday that the agency needs more warehouse employees and pallet jacks because it’s selling more liquor. The agency is seeking approval for a 6.8 percent increase in its budget to $22.8 million for fiscal year 2020. That’s about $600,000 more than recommended by Gov. Brad Little. The agency distributed a record $78.5 million to various state entities in fiscal year 2018, with about 40 percent, or $31.5 million, going to the state’s general fund. Anderson says he expects the agency to distribute nearly $1 billion to beneficiaries in the next decade. Lawmakers will decide on the budget request in the coming weeks.

NH: New Hampshire marijuana bill gets public hearing WCAX By Adam Sullivan February 5, 2019 CONCORD, N.H. (WCAX) Vermont, Massachusetts and Maine: All the states that surround New Hampshire and have already legalized recreational marijuana. Now, there is a new push in the Granite State to do the same. Committee hearings do not usually take place in the main House chamber at the Statehouse in Concord. But the possible legalization of cannabis brings out the crowds. "Granite Staters know that it is already legal to grow and possess marijuana in all three neighboring states. They ask, why can't we do this in the live free or die state?" said Matt Simon of the . HB.481 would legalize, regulate and tax marijuana sales in New Hampshire. Cannabis is decriminalized in New Hampshire and medical marijuana is available for certain patients. But supporters of the bill, who held a press conference before the hearing, say it's time to end prohibition of the drug. NABCA Daily News Update (2/6/2019) 4

"We are going to encourage people to drive as far as they can, across the borders, to get their product and bring it home with the hopes that they will not use it on the way back," said Joe Hannon of Lee, New Hampshire, a former state rep. And while HB.481 has bipartisan support, not everyone wants it to pass. Margaret Drye is a volunteer EMT from Plainfield. She's concerned about public safety and the lack of roadside tests for marijuana impairment. "We have one for alcohol, 0.08. It's an easy number to aim for and you know when you have crossed it or you haven't. There is no such thing for marijuana," Drye said. Alcohol is heavily promoted in the Granite State. State-run liquor stores scatter highways and shopping plazas. "I don't think it is a great idea to sell liquor on the side of the highway, either," Drye said. "I think we are sending a really mixed message to our young people." Rep. Renny Cushing, D-Hampton, is the bill's main sponsor. "I certainly think there is an inconsistency between the state's promotion of and reliance on alcohol to feed a bit of the state's budget and its prohibition of the use of cannabis which is a far more benign substance than alcohol," Cushing said. Gov. Chris Sununu, R-New Hampshire, has made his position very clear. He does not support legalization. So, if the bill passes, it may come down to whether there is enough support to override a veto.

PA: What’s fresh in the latest Pa. bill to legalize cannabis for recreational use? The Inquirer By Sam Wood February 6, 2019 The latest in a series of bills to legalize marijuana in Pennsylvania for adult recreational use was introduced Monday in the Assembly. The bill, H.R. 50, which would amend current law, differs radically from previous efforts to legalize marijuana. Introduced by Rep Jake Wheatley (D., Allegheny), it addresses several issues long fought for by advocates. This is the first bill to be introduced after Gov. Tom Wolf said in mid-December that it was time for Pennsylvania to seriously consider legalizing recreational use. Such bills, typically sponsored by Democrats, face the uphill task of convincing Republican lawmakers, who have typically been opposed. On adoption of the law, anyone who had been arrested and convicted of a minor cannabis offense would have those crimes expunged from their record. And any Pennsylvanian over age 21 would be allowed to cultivate up to six plants at home, as long as only three were flowering at any time. Taxes collected from the sale of recreational cannabis would be directed to a handful of social programs. The first $5 million would go to state programs aimed at keeping people out of prison, workforce development, and mentoring services in communities that saw a high number of cannabis-related arrests during the War on Drugs. Additional revenue would go to student-debt forgiveness, affordable housing, and after-school programs. “We passed a law in 2016 that allowed medical cannabis in Pennsylvania,” Wheatley said. “That law was the right step. The first step. But we need to do more.” The bill would allow for up to 300 recreational cannabis retail locations. Those shops would operate independently of the Pennsylvania State Store system but be like those used to sell alcohol. There are more than 600 State Stores across the commonwealth and nearly 1,000 commercial outlets now sell takeout beer and wine. H.R. 50 has 25 cosponsors, all Democrats. -area lawmakers who have signed on include MaryLouise Isaacson (Phila.), Rosita C. Youngblood (Phila.), Jared G. Solomon (Phila.), Kevin J. Boyle (Phila.-Montgomery),

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Donna Bullock (Phila.), Mary Jo Daley (Montgomery), Brian Sims (Phila.), Danilo Burgos (Phila.), Stephen Kinsey (Phila.), Malcolm Kenyatta (Phila.), Joanna E. McClinton (Phila.-Delaware), Christopher M. Rabb (Phila.), Jordan A. Harris (Phila.), Brian Kirkland (Delaware), Dan K. Williams (Chester), Joe Ciresi (Montgomery), and Tim Briggs (Montgomery). Wheatley said there is Republican support for legalization, but no one in the GOP will back it publicly. When Wolf last month tweeted that he believed it was time to begin a discussion around legalization, key members of the Republican caucus swiftly shouted him down. “Many say they support it, and that it makes sense,” Wheatley said. “We have voter support. Almost 60 percent of Pennsylvanians believe this is the time to legalize cannabis. What could help us is the 67-county tour Lt. Gov. Fetterman is embarking on. We encourage people to show up and express their support.” Fetterman’s first stops on his “Recreational Marijuana Legalization Listening Tour” are slated for Dauphin and Perry Counties. He will appear Monday, Feb. 11, at the Jewish Federation of Greater Harrisburg, and Tuesday, Feb. 12, at the Newport Public Library. Additional dates will be released on Friday. Cannabis advocate Patrick Nightingale, a lawyer, believes the chances of getting Republican support for the bill are good “if we take the time to make the case and help them understand why this would be a good decision.” “We need to get out of our bubble a little bit and realize this is not a hot-button issue for most Pennsylvanians,” Nightingale said. "There are concerns that a lot of activists are dismissing. Many people still believe marijuana is a gateway drug. We need to win them over to our side, because they believe it’s a genuine issue. “We’re enjoying this moment of incredible political and popular support that we’ve never experienced before, and it’s intoxicating and easy to think that nothing can stop us now," Nightingale said. “But if you remember the struggle we had to legalize cannabis for medical use, there’s a whole lot that could stop us before Gov. Wolf or his successor can sign something like this into law.” The new bill has provisions that would protect employees from being fired for having a nonintoxicating level of THC in their blood. It would also reinstate driving privileges to those convicted of minor cannabis offenses. Les Stark, executive director of the Keystone Cannabis Coalition, a nonprofit dedicated to changing cannabis laws, said state lawmakers are running out of time. “One [Republican legislator] I know thinks that marijuana should be regulated like lettuce — and that lettuce is over-regulated,” said Stark. “But he thinks legalizing recreational use could stop medical research. “This should be considered emergency legislation,” Stark said. "Once and New Jersey legalize marijuana, our state is going to be flooded with cannabis. And there’s nothing that will stop that cannabis from coming into Pennsylvania. Trying would be useless, like holding up your hand to an oncoming ocean wave and expecting it to stop. "

MT: Bill taps into longer hours for breweries Great Falls Tribune By Tim Pierce, UM Legislative News Service University of Montana School of Journalism February 5, 2019 HELENA -- If the Legislature passes a hotly debated bill, small breweries could be open for two more hours, extending their closing time from 8 p.m. to 10 p.m. House Bill 185, sponsored by Rep. Dave Fern, D-Whitefish, drew a small crowd to the Capitol Tuesday for its public hearing in the House Business and Labor Committee. Executive Director of the Montana Brewers Association Matt Leow was one of 15 supporters of the bill. He said Montana breweries rely on Montana industry, so selling more beer helps more than just breweries. NABCA Daily News Update (2/6/2019) 6

“When you buy a beer in a brewery, more of those dollars stay in the state and get recirculated here,” he said. Leow also said Montana has the second most breweries per capita compared to other states, and the boom in industry has created jobs across the entire state. “It’s not just supporting jobs behind the bar. It’s supporting jobs on the other side of the wall, in the manufacturing side of that business. It’s supporting the Montana barley and hops growers,” Leow said. “And it’s creating opportunity for folks to create new industries in this state that would not have been possible if we did not have this craft brewing industry here. John Iverson with Montana Tavern Association, who was one of the 10 opponents to the bill, said small breweries are manufacturers, not retailers, and if they want to extend their hours, they should buy a retail license. He also said giving breweries more hours takes away from bar business. “This is bill is not about economic growth, it’s an economic shift,” Iverson said. “The breweries that want to retail more beer want to have their cake and eat ours too.” According to the bill, small breweries have an annual nationwide 17 production of not less than 100 barrels or more than 60,000 barrels. The House Business and Labor Committee did not immediately vote on the bill.

LICENSE STATE NEWS AK: New legislation would save beer and wine at the Alaska State Fair Anchorage Daily News By James Brooks, Author February 5, 2019 JUNEAU — A bill introduced in the on Tuesday would preserve beer and wine sales at the Alaska State Fair by fixing a gap in state law regarding alcohol licenses. Senate Bill 16 creates a new alcohol license specifically for fairs, resolving an issue that threatens to prevent the Palmer fair — and the other Alaska state fairs in Ninilchik, Kodiak and Haines — from getting alcohol licenses. The bill was introduced by Sen. Peter Micciche, R-Soldotna, and received its first hearing in the Legislature on Tuesday. Several members of the public told the Senate Labor and Commerce Committee that alcohol isn’t the only thing at stake: Beer and wine sales represent real revenue for fairs, and if those sales go away, the fairs might, too. “They can’t afford it without the alcohol sales. There’s many things they can’t afford without the alcohol sales,” “Hobo Jim” Varsos said as he testified in favor of the bill. Varsos is one of the best-known regular performers at the Alaska State Fair. Jerome Hertel, general manager of the Alaska State Fair, told lawmakers that alcohol sales amount to about 20 percent of the fair’s revenue. According to publicly available tax filings, the nonprofit behind the fair earned $7.5 million in revenue in 2016. “That’s a pretty large percentage of your budget to lose and keep operating,” Hertel said. Questioned by Sen. , R-Anchorage, Hertel said losing alcohol revenue would not necessarily mean a hike in ticket prices. For 37 years, the fair has applied for (and received) what’s known as a “recreational site” alcohol license. But under state law, events eligible for those licenses are limited to places where “baseball games, car races, hockey games, dog sled racing events or curling matches” are held.

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Despite that limitation, the Alaska Alcohol Beverage Control Board voted year after year to issue a license to the state fair and other organizations, such as ski areas, that aren’t specified in the law. Legislative auditors flagged the problem in 2014 and again in 2017. This year, when the fair’s alcohol license came up to the board, staff at the Alcohol and Marijuana Control Office recommended the fair’s license be rejected. Rather than approve that recommendation and reject the license, the alcohol board deferred its decision. (The board has previously gone against AMCO recommendations: It voted in favor of a recreational-site license for Arctic Valley Ski Area in August, after the auditors' warning.) In addition to creating a fair license, Micciche’s bill would create an alcohol license for performing arts centers and create a permit for alcohol sales at music concerts. Ski areas are not included, but Micciche said he is open to some additions if the public requests them. Micciche said he views his legislation as “sort of an emergency management licensing bill for some entities that are important to the state of Alaska.” Micciche has long supported a broader reform to Alaska’s alcohol laws, one that would have fixed the problem encountered by the state fair, but that legislation failed to garner House approval before the Legislature adjourned last year. Micciche said he intends to reintroduce the broader reform, but he believes Senate Bill 16 could address the fair’s needs this year if the broader reform becomes bogged down. The fair-related bill remains in the Senate Labor and Commerce Committee. Sen. , R-Eagle River and chairwoman of the committee, said she is continuing to accept public testimony and suggestions on the legislation.

MO: City council considers regulating drink specials Would limit specials 9 p.m. to 1:30 a.m. ABC 17 News By Sydney Olsen February 5, 2019 COLUMBIA, Mo. - Columbia’s City Council discussed the possibility of regulating drink specials at Monday night's meeting. The Columbia Police Department and Public Health and Human Services presented a report outlining different outcomes of intoxication, which the council requested in March of 2018. The report included a chart with the number of alcohol-related reports in 2017 from the Columbia Police Department, and stated 24 percent of reports taken in the downtown sub-beat (70D) were alcohol related. This is the section of the city where the alcohol concentration is most dense.

Source: City of Columbia NABCA Daily News Update (2/6/2019) 8

It outlined recommendations for the city council to enforce from 9 p.m. to 1:30 a.m. They include prohibiting the sale of an unlimited number of servings of alcohol for one fixed price or cover charge, two-for-one deals, specials like lady’s night and more. The report also said the number of underage students consuming alcohol at bars ranged from 27 percent in 2012 to 55 percent in 2018. The Substance Abuse Advisory Commission’s report said limitations on drink specials could reduce excessive drinking, underage drinking, alcohol-related crashes and crime. It also said the restrictions could improve health outcomes. The report said other college cities around the like Athens, Georgia; Baton Rouge, Louisiana and Iowa City, Iowa enforce similar regulations on drink specials. The state of Missouri does not have alcohol regulations. Ward 4 Council Member Ian Thomas sent a statement about the possible regulation. “I am concerned about the proliferation of 'drinks specials' in student-oriented bars and the negative impact they are having on downtown ambience and the safety and health of consumers. Staff from the City's Health, Human Services and Police Departments presented a thorough report on these issues and possible mitigation steps last night - I am interested in exploring the idea of allowing 'drinks specials' up until a certain time in the evening (say, 9pm) and then prohibiting them.” Harold Moore is a junior at the University of Missouri. He said the proposed regulations would make it more expensive for people to buy drinks, and less people would go to downtown bars as a result. He did say, however, the proposed regulations would help keep people safe. “I guess less people would get like extremely blackout drunk,” Moore said. “It would curve binge drinking, alcohol poisoning and just unhealthy drinking habits.” Moore said he would recommend the council push the regulation back to begin at 10:30 p.m. rather than 9 p.m. He said the changes would hurt the bars more than anyone because people will drink more alcohol before actually going to the bars. “It just makes you pregame even harder,” he said.

INTERNATIONAL NEWS Ireland: Social media putting young people off alcohol, C&C warned Irish Independent By Gavin McLoughlin February 6, 2019 Social media culture is putting people off alcohol, posing challenges to Bulmers-maker C&C, analysts at investment bank Berenberg have told clients. Shares in the company fell 2.6pc in Dublin yesterday after the analysts cut their rating on the company's stock to 'sell'. C&C's stock has been boosted since its acquisition of UK wholesaler Matthew Clark Bibendum, but Berenberg believes market expectations for the company are too high. It says the company's drinks brands - including Bulmers and Magners cider and Tennent's lager - are facing structural challenges due to demographics. The so-called 'Generation Z' - generally defined as people born in the mid-1990s - is drinking less alcohol, Berenberg said. NABCA Daily News Update (2/6/2019) 9

"Social media culture has placed significant emphasis on vanity and looks, to which alcohol and smoking are not conducive," analysts at the German investment bank said in a note circulated to clients. "People have been put off the consumption of alcohol that may lead them 'going viral' for being 'wasted on camera'," they added. "Twenty years of anti-drug, anti-smoking and anti-alcohol education has done its job: it is no longer 'uncool' to not drink or take drugs." Berenberg also said C&C was facing challenges from competition, like Heineken's Orchard Thieves. Berenberg said that acquiring a wholesaler wouldn't fix these issues, as Berenberg sees them. The argument in favour of having a wholesaler is that it will enable you to push your brands, but Berenberg said that C&C already had big Scottish and Irish wholesalers (Gleeson) and still faced challenges in terms of market share.

United Kingdom: NHS data shows rise in alcohol-related deaths Practice Business February 6, 2019 NHS Digital data has shown that there has been a distinct rise in alcohol-related deaths over the past decade NHS Digital statistics, released earlier this week, have shown an alarming rise in alcohol-related deaths. In 2017/18 there were 338 thousand estimated admissions where the main reason for admission to hospital was attributable to alcohol. This is 15% higher than in 2007/08. Professor Dame Parveen Kumar, BMA board of science chair, responded to the news. “The latest statistics are alarming and show that rather than making progress, the public are at even greater risk of alcohol-related ill health than in previous years,” she said. “With a three per cent increase in alcohol-related hospital admissions in the last year – representing over seven per cent of all hospital admissions – and the number of alcohol-specific deaths increasing by six per cent since 2016, it is clear that large-scale action is required immediately. “While the government has announced the expansion of alcohol care teams as part of the NHS Long-Term Plan, these figures highlight the enormous scale of the problem and prompt concerns that what the government has proposed is not anywhere near what is actually required. “We need to see a strong and comprehensive new alcohol strategy that prioritises prevention and factors in the wider societal influences that may impact a person’s alcohol consumption. “The BMA will continue to push for the government to commit to a comprehensive and effective range of population-wide measures such as a minimum unit pricing for alcohol, mandatory labeling and limits on alcohol advertising, as the current approach is failing to protect the health of the public.”

PUBLIC HEALTH NEWS New Research Further Explores Alcohol's Role as a Migraine Trigger Neurology Advisor By Brandon May February 5, 2019 Researchers have found that alcohol, and specifically red wine, is a potent migraine trigger in patients with migraine. Many patients with migraine avoid or drastically reduce their alcohol consumption based on its triggering effects. The findings from this observational study were published in the European Journal of Neurology. NABCA Daily News Update (2/6/2019) 10

Dutch patients with migraine with and without aura in the Leiden University Migraine Neuro-Analysis (LUMINA) study population were enrolled in the study (n=2424). An electronic alcohol trigger questionnaire was administered and completed by all participants to explore the effect of alcohol on migraine headache and the timing between alcohol consumption and migraine attack, as well as the effect of alcohol's triggering component on alcohol consumption behavior. For vodka and wine, the researchers also examined how frequent attacks were triggered based on a scale from 0 to 5: 0, never, 0%; 1, rarely, 1% to 24%; 2, sometimes, 25% to 49%; 3, often, 50% to 74%; 4, mostly, 75% to 99%; and 5, always, 100%. Alcohol was a reported migraine trigger in 35.6% of participants, and approximately 25% of patients reported abstaining from alcohol because of its trigger effects. Red wine and vodka were the most frequently and least frequently reported migraine triggers (77.8% vs 8.5%, respectively). Only 8.8% of participants found red wine to be consistently associated with the onset of a migraine attack. In addition, the time to migraine onset was <3 hours in approximately one-third of participants, whereas the majority of patients (90%) had an onset of <10 hours across all types of alcoholic beverages. The retrospective and observational nature of the study, as well as the reliance on only questionnaire data, represent the main limitations of the study. The researchers suggest that "low consistency of provocation suggests that alcoholic beverages acting as singular migraine trigger is insufficient and may depend on a fluctuating trigger threshold." Reference Onderwater GLJ, van Oosterhout WPJ, Schoonman GG, Ferrari MD, Terwindt GM. Alcoholic beverages as trigger factor and the effect on alcohol consumption behavior in patients with migraine [published online December 18, 2018]. Eur J Neurol. doi: 10.1111/ene.13861

Alcohol-Related Liver Disease Is Affecting New Demographics The Fix By Maggie Ethridge February 5, 2019 Alcohol-related liver damage used to be associated with older men but new statistics suggest that the disease is now increasingly affecting younger people. A new troubling trend is on the rise with regard to alcoholic liver disease, or ALD. Over the years, as young people began to drink more and more, related problems began to arise. College-aged- kids going into alcoholic comas, becoming injured or dying during drunken frat-house parties have become a pressing concern, and now doctors are seeing ALD in more younger Americans. ALD used to be considered “an old man’s disease,” Michigan Medicine liver specialist Jessica Mellinger, MD, told Michigan Health. Onset symptoms of alcoholic liver disease include chronic fatigue, poor appetite, itchy skin and abdominal pain and swelling. A national study led by Mellinger and colleagues looked at seven years of data from over 100 million U.S. residents with insurance. “One of the scariest statistics out there that my colleagues unveiled in a study is that cirrhosis mortality related to alcohol use increased the most in people 25 to 34 years old,” Mellinger said. Between 1999 and 2016, there was an average increase around 10% every year of young people who died from alcohol-related liver damage. “This is really dramatic and mirrors what we are seeing in the clinic,” Mellinger notes. “It signals that more alcohol abuse is occurring.” The research found that more women than men had alcohol-related cirrhosis of the liver over the seven-year study, with women at a 50% increase and men at 30%. Over one-third of cirrhosis cases in the study were related to alcohol. NABCA Daily News Update (2/6/2019) 11

Men and women absorb and metabolize alcohol differently, leaving women more vulnerable to liver damage. And women also have less body water, so women and men with the same amount of alcohol consumption will have different blood alcohol concentrations. Mellinger also believes that American culture plays a part in women’s drinking. “There is this ‘mommy juice’ culture, this ‘mommy juice’ humor involving wine that’s normalizing drinking in a bad way,” she told Michigan Health. “There is nothing funny about alcoholic liver disease.” In addition, Dr. Vijay Shah, head of the Division of Gastroenterology and Hepatology at the Mayo Clinic, told NPR that the study's emphasis on American youth is new. "Alcohol-related liver cirrhosis used to be considered a disease that would happen after 30 years of heavy alcohol consumption," Shah said. "But this study is showing that these problems are actually occurring in individuals in their 20s and 30s."

Global public health challenges, fiscal policies, and yellow vest The Lancet By Franco Sassi February 5, 2019 In December, 2018, the 24th Conference of Parties (COP) Climate Change Conference in Katowice, Poland, made the case for radical measures to combat climate change even more compelling. That same month, France, who hosted the historical COP 21 conference and participating countries adopted the Paris Agreement, had to repeal an increase in carbon taxes in response to astrong popular reaction from so-called yellow vest protesters. The Lancet Taskforce on non-communicable diseases (NCDs) and economics provided evidence supporting the use of fiscal policies to address NCDs, which challenges the view that taxes on unhealthy consumption are inequitable.1 2 Health benefits of environmental taxes, similar to taxes on tobacco, alcohol, unhealthy foods, and non-alcoholic beverages, often benefit individuals whose consumption is reduced, and generally benefit poor people the most. Environmental and health taxes are backed by a solid economic, public health, and social justice rationale, but governments can no longer afford to be naive about their use. Thomas Piketty,3 from the Paris School of Economics in Paris, France, exposed the French Government's fundamental mistake of increasing fuel taxes following a substantial drop in wealth taxes while concerns rise about social inequality. One way forward is for governments to establish a stronger link between taxes and the purpose they serve, and there is no better way of achieving this than directing the revenues generated towards the same purpose. This process, known as earmarking, has a crucial role in making taxes acceptable to the public and has the potential to make taxes an even more powerful tool for promoting health.4 Additionally, health policy makers must realise that there is more to fiscal policies than excise taxes, and they should explore a much broader spectrum of fiscal and price regulation policies. For example, policy makers should direct more attention to incentivising healthy consumption, rather than simply attempting to target unhealthy products. Another important way forward is to mitigate any regressive financial impacts by enhancing the progressive nature of a country's fiscal system, chiefly through income and wealth taxes. Governments must establish tangible compensatory measures to ensure new policies are not to the detriment of fiscal justice. The case for using fiscal and pricing policies designed to improve health is strong, and the evidence base is growing.5 Many governments have been able to overcome strong opposition to these measures from industry, but they will need to sharpen their fiscal policy tools to avoid disenfranchising taxpayers, whose support they need the most.

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I declare no competing interests. References • Nugent R • Bertram MY • Jan S • et al. Investing in non-communicable disease prevention and management to advance the Sustainable Development Goals. Lancet. 2018; 391: 2029-2035 View in Article • Scopus (7) • PubMed • Summary • Full Text • Full Text PDF • Google Scholar • Sassi F • Belloni A • Mirelman AJ • et al. Equity impacts of price policies to promote healthy behaviours. Lancet. 2018; 391: 2059-2070 View in Article • Scopus (8) • PubMed • Summary • Full Text • Full Text PDF • Google Scholar • Piketty T Gilets jaunes et justice fiscale. http://piketty.blog.lemonde.fr/2018/12/11/gilets-jaunes-et-justice-fiscale/ Date: Dec 11, 2018 Date accessed: January 24, 2019 View in Article • Google Scholar • Cashin C • Sparkes S • Bloom D Earmarking for health. From theory to practice. World Health Organization, Geneva; 2017 View in Article • Google Scholar • Pimpin L • Sassi F • Corbould E NABCA Daily News Update (2/6/2019) 13

• Friebel R • Webber L Fiscal and pricing policies to improve public health: a review of the evidence. Date: 2018 Date accessed: January 24, 2019

INDUSTRY NEWS How Wine Retailers Can Compete In The Age Of Amazon Forbes By Liza B. Zimmerman, Contributor February 5, 2019 At a time in which Amazon has become all things to all people, providing them with everything from silver foil to movies, it has become increasingly difficult for many wine retailers to keep up with the corporate kingpin. The Seattle-based corporate giant bought Whole Foods in August of 2017 and plans to use it as its primary wine- delivery service. A panel of wine industry professionals recently shared their perspectives—at the Direct to Consumer Wine Symposium held outside of San Francisco—on what winery executives can do to keep up with Amazon. How Wineries Can Support Sales One of Amazon’s strongest advantages is that it has always been fast and relatively low cost for its users. What is more, when consumers think they are satisfied with just soup and toilet paper, the service then provides some of the latest movies without their customer base even having had to ask for it. So one of the biggest questions raised has been how wineries, throughout the country, will be able to provide the same kind of services. “Amazon keeps throwing things at us,” shared Miryam Chae, a marketing director at the Napa-based Constellation Brands. She added that the accumulated effect is that its customer base has become like the girl from Willy Wonka who “wants it all now.” One of the ways that Chae says that wineries could use Amazon’s model to take the guesswork out of shipping programs for wineries is by providing automatic renewals of winery memberships. “Make it easy for them,” she adds, by “trying to become their one-stop shop.” She adds that consumers also generally like to know that their products are on the way, so she urged wineries to provide wine club members with tracking numbers. This is something that everyone from Amazon to top shoe stores such as DSW have always done. She went on to note that Amazon doesn’t even have a customer service number on its website as the bulk of its buyers prefer to interact online. So wineries, she noted, should follow suit and meet customers where they are by “identifying trends and staying ahead of the game.” Leveraging the Amazon Effect Amazon, in many ways, has pioneered taking a first-time customer and making them into a repeat buyer, shared Susan DeMatei, owner of the Napa-based WineGlass Marketing, which focuses on helping wineries ship more of their products directly to consumers. She added that wine clubs can use the same approach to convert first- or second-time winery visitors to wine club members. The Seattle-based retailer has, she noted, in some ways, reinvented reviews of retail items and used them as sales collateral for repeat purchases. It is something that has long been done in the restaurant business, via services, such as Yelp, but Amazon perfected it. As a result, she notes that, “ 78%of Americans read reviews before purchasing a product.” NABCA Daily News Update (2/6/2019) 14

As a result, it might behoove wineries to reach out to their customers to ask them to evaluate the wines they have purchased and publish their reviews. At the same time, she suggests that if current customers have opted out of their wineries' email updates that these wineries should reach to them by phone. So in addition to suggesting that wineries share consumer reviews of their products, she thinks they might also benefit from getting cheeky about items left in baskets prior to buyers pushing the buy button. She shared that a retailer called Mod Cloth responds to prolonged wait times, items in a basket, with retorts such as, “We know you want it. And it is still here.” There is much that the wine world could learn from other retailers.

Brewers are ready for the low-ABV revolution. But are beer drinkers? City Pages By Jerard Fagerberg February 6, 2019 The bang-to-buck ratio is a simple calculation. First, you take the serving size of your beer. Then, you multiply by the ABV. Divide by the price, and there you have it: the absolute value of the buzz in your bottle. The math works out instinctively. A 30-pack of 5% Budweiser for $20? That’s about what you’d expect. A single 22 oz. bomber for the same price? Well, it better be at least 12% alcohol, or it’ll stay on that shelf until it fossilizes. Both big and local brewers are victim to this lizard-brain value assessment. It’s not just Surly Darkness anymore—craft IPAs and stouts routinely clock in at wine-like double-digit alcohol-by-volume levels. From 2014 to ’15, the number of 6.5%-plus ABV craft beers increased by 319%. Beer Advocate’s 10 highest- rated beers average 9.8% ABV, with the top entry sitting at 12%. That booziness can be stifling. But everything in brewing is elastic, and local brewers have begun testing their answer to the high-gravity gut-wreckers crowding the release market: the ultra-low, sub-5% craft beer. If you ask Fair State Brewing Cooperative brewer Niko Tonks what’s in his beer fridge, you’re not gonna get a sexy answer. He’s been a proponent of the sessionable craze since before it had good branding, and he predominantly drinks light, volume-ready lagers. He’s tried to translate this into Fair State’s menu. “We put low-ABV stuff on because we want to have it,” Tonks says. “If you ever see a beer roll outta here with a low ABV, you can be assured that beer was closer to my heart than the other ones.” Tonks’ Central Avenue shop has rotated in a slew of ultra-low-ABV options, including a smoke beer (Grodziskie, 3.8%), a Berliner weisse (Funkelweizen, 3.6%), and a wild ale (Chateau Estate Reserve 2018, 2.9%) to contrast their weighty imperial stout line. They’ve also bottled a 3.8% Kvass-style ale made with pretzels, an emblem of their commitment to brewing small beers with unmitigated creativity. But they’ve yet to see this creativity translate into sales, which means these beers tend to be the exception and not the rule. “As a brewer, I’m not here to be prescriptive. I’m not here to tell people what to do,” Tonks says. “We’re beholden to the market to do things that people want. We agree with some of them, but we don’t agree with all of them.” South Minneapolis’ Wild Mind Artisan Ales is also prone to low-weight beers. They have their own kvass (2.6%) and a table beer (2.8%), both favorites among the brewers. But brewer Ryan Placzek has been left feeling hamstrung by the success of higher-ABV beers. Their most sought-after offering is still the 11.5% Atomic 26. “Some people just don’t understand it,” he says. “They see 2.6%, and they say, ‘Why would I ever get that?’” Both Fair State and Wild Mind have made strikes against the high-gravity beers that have become the norm, but only Bauhaus Brew Labs has dared to go so low as 0.5%. The Northeast brewery just released its nonalcoholic NABCA Daily News Update (2/6/2019) 15 variant of Homeguys Helles Lager, making it the first Minnesota brewery in almost 100 years to offer patrons buzz- free beer if they so choose. “It’s inclusivity. We want everyone who walks into our taproom to feel welcome,” says Matt Schwandt, Bauhaus COO and head brewer. “The beers that we offer are ones that you want to have several of, inside or outside the taproom. As far as the greater industry, I think there is gonna be a natural trend towards lower-ABV options.” So far, the response to NA Homeguys has been positive, Schwandt says, and retailers are clamoring to get it on their shelves. He worries about the price point being potentially too high to compete with macro lagers, but his version of O’Douls has layers more flavor. It’s biscuity and finishes with a bright dose of floral hops. If there’s hope for beer with absolutely no alcoholic effect, can low-ABV craft beer flourish as well? The prospects are mostly untested, but drinkers like Minneapolis’ Charles Harris are ready to branch out from the punch-packing tallboys that first made him fall in love with craft beer. Harris says that, for him, selecting a beer “comes down to taste.” He, like a lot of other consumers, can be a seasonal drinker, and subzero temps drive him toward boozier varieties. But he prizes breweries like Barrel Theory for how they’re able complement richer stouts with sours that knock back effortlessly. Still, he admits he isn’t immune to the instinctive appeal of the bang-to-buck ratio. “When consumers sit down, they’re looking at the whole package,” says Chatterbox Pub co-founder Steven Miller. “Think about buying a flat-screen TV. You’re looking for the best value, the best picture, the best features, and the best price point.” With 34 beers on tap, Chatterbox is uniquely positioned to provide drinkers with the opportunity to convert to lighter weight beers on that second pour. Miller believes drinkers might not opt for a 3.7% Able BLK WLF on their first go, but they’re far more willing to pivot after they’ve satisfied their inner bargain-hunter. He prizes tasty low- ABV beers like Bad Weather’s Scottish Mist (3.5%), and if more beers of its caliber hit the market, he’s convinced it could change the drinker’s calculus. “It’s crazy how often trends manifest themselves in the beer world,” he says. “There really aren’t many [low-ABV beers] that are out there competing with the big beers. If people could get a really good double-dry-hopped IPA that was 3%, I think they’d find a market for it.”

High Molasses Imports Challenge Rum Industry Jamaica-Gleaner February 6, 2019 Jamaican rum is well known and sought after internationally. However, there is an increasingly crowded field of brands on the global market and declining acreage under sugar cane cultivation in Jamaica to produce molasses, from which the spirit is made. The country’s producers are therefore forced to buy from abroad more than half the required amount of molasses as they seek to carve a bigger slice of the global pie by distilling greater value and profits from the production of more premium spirits while maintaining export volumes of bulk rum to distillers and blenders overseas. Despite the many players, there is a growing global market for premium spirits, and bulk rum from Jamaica is being used in blends by distillers in different countries, chairman of the Spirits Pool Association Limited Evon Brown told the Financial Gleaner. The Spirits Pool was created on March 10, 1932, as an umbrella for some 34 Jamaican rum producers at the time eager to halt the then-declining fortunes of the rum industry. Today, it represents the six rum distilleries still operating in Jamaica – J. Wray & Nephew Limited’s Appleton Estate, located in St Elizabeth and New Yarmouth Estate in Clarendon; Clarendon Distillers Limited at Monymusk and Long Pond Distillers in Trelawny, both owned by National Rums of Jamaica Limited; Hampden Distillers in Trelawny, operated by Everglades Farm; and Worthy Park Estate in St Catherine. NABCA Daily News Update (2/6/2019) 16

The six distilleries are dependent on molasses imports from Fiji, Guatemala, Mexico, and countries of South America. “Right now, we are importing about 50 per cent of our requirements, with the possibility of having to import more,” Brown said. This represents upwards of 40,000 tonnes of the 80,000 to 100,000 tonnes of molasses the industry utilises to make rum each crop year. While he was unable to give exact current rum production figures for the industry, Brown said Jamaica produces between 20 million and 22 million litres of alcohol each year. The need to shell out more and more money for high-cost molasses imports adds to other industry challenges, chief among them the fierce competition from producers whose operations are said to be shored up by subsidies and unequal treatment in international markets. Citing examples, Brown pointed to Puerto Rico and the US Virgin Islands as benefiting from subsidies under special programmes by the United States government. Producers in those countries are able to sell at lower prices, thus providing a direct threat to the local industry. “Jamaica’s production is still a peck on the huge global rum market stage. We have to spend heavily to market alongside some brands whose corporate budgets dwarf Jamaica’s national economy,” Brown said of the scale of the global rum trade. The industry dynamics are forcing local rum producers to seek to wring more earnings and larger profits by concentrating on the growing end of the market for premium aged rums, a segment in which Jamaica has a competitive advantage because of the country’s reputation for producing unique full-bodied rums with rich aromas. These characteristics are said to be derived from factors such as the soil in which the sugar cane is grown, the quality of water used in the rum distillation, and the particular woods from which the barrels for ageing rum are made. The greater move up to the dark aged rums segment is a departure from the focus on the lighter ‘column still’ rums manufactured by Jamaican rum makers from the 1960s onwards in response to the market demand at the time. ‘Column’ still refers to the use in the distillation process of tall column vats rather that kettle-shaped pot stills used for darker, more textured, complex and nuanced rums. Locally, as well as in the Caribbean, outdated national regulations, including excise or taxation systems described as falling short of international best practices, are said to be other issues with which rum makers must contend. “We are actively engaged in examining these issues with a view to mitigating their impact on our sector,” Brown said without giving details. Meanwhile, as the industry battles the challenge posed by rums from elsewhere claiming to be Jamaican, the registration in December 2016 of Jamaica Rum as a geographical indication, or GI, is seen as a major move to protect the local industry. “We are not going to allow any watering down of the authentic Jamaican rum brand,” Brown declared. “We are now going to use the tool of GI to promote our rums in this exclusive market,” he said.

DAILY NEWS Hey, Careful, Man, There’s a Beverage Here! TTB, CBD, and the Production of Beer JDSupra Written by Ward and Smith, P.A. February 5, 2019 So you brew beer? Cool. So you want to brew a beer with cannabidiol? Even cooler. Don’t know what cannabidiol is? That's ok. You probably know it as "CBD" – the highly popular cannabinoid that was recently legalized by the federal government, when it is derived from . NABCA Daily News Update (2/6/2019) 17

Everyone in the industry is excited about the prospect of CBD infused beverages. It can potentially be used in all types of non-alcoholic and alcoholic products, including malt beverages. And the rush to use CBD in malt beverage products should not be surprising. Both hemp and hops, a critical ingredient of malt beverage products, belong to the same family of flowering plants called Cannabaceae. In a world of ever increasing craft producers and shrinking market share, many brewers view the use of hemp and hemp-derived products, like CBD, as an opportunity to expand both their customer and products base. Regulation of Hemp, Generally Hemp and CBD are generally regulated by the federal government, although individual states can opt into primary regulatory authority if they choose to do so. For more on the current state of hemp regulation in America, read this. Although the U.S. Department of Agriculture has been legislatively assigned primary regulatory oversight of our nation's cultivation and production of hemp, the Food and Drug Administration ("FDA") has also flexed its muscle to regulate the use of CBD in food, drug, cosmetic, and dietary supplement products under the Federal Food, Drug & Cosmetic Act (the "FD&C Act"). For more on that topic, read this. Generally, and at least for today, the FDA has publicly stated that it is unlawful "to introduce food containing added CBD or THC into interstate commerce…" Real questions exist as to the enforceability of that position, but is it the position that the FDA has taken so far. And, as it turns out, "food" – as that term is defined in the FD&C Act – includes drinks and the components of those drinks. It also includes chewing gum! But that's not relevant here. Regulation of Malt Beverages, Generally Right now you're probably thinking "Ok, so malt beverages are drinks, and drinks are regulated by the FD&C Act, so my malt beverage products must also be regulated under the FD&C Act." That's a reasonable and logical thought! But… nope. Labeling and product approval issues for malt beverage products are separately governed and regulated by the Federal Tax and Trade Bureau ("TTB") and the Federal Alcohol Administration Act (the "FAA Act"). Under the FAA Act, "malt beverages" means any: beverage made by the alcoholic fermentation of an infusion or decoction, or combination of both, in potable brewing water, of malted barley with hops, or their parts, or their products, and with or without other malted cereals, and with or without the addition of unmalted or prepared cereals, other carbohydrates or products prepared therefrom, and with or without the addition of carbon dioxide, and with or without other wholesome products suitable for human food consumption. If you are brewing malt beverages, you are subject to the FAA Act and your licensing and regulatory bodies are the TTB (on the federal level) and, at least in North Carolina, the NC ABC Commission (on the state level). Ok, I Get It. So How Do I Brew With CBD? Good question. Long answer. Formula approval from the TTB is required before you can use any hemp ingredients in the production of an alcoholic beverage product. Today, this requirement applies whether or not you intend to distribute the product across state lines. And, the TTB has made it clear that it will consult with the FDA, when appropriate, to determine whether or not a hemp ingredient is allowable for use in a beverage. The TTB will also typically defer to the FDA's interpretation of the relevant laws (including the FD&C Act) when considering label and product formula approval applications. At least for now, it appears it will be an uphill battle to obtain TTB formula approval if your product contains hemp-derived terpenes or CBD. This could change as the regulatory framework surrounding hemp and CBD continues to develop. But, if you're itching to get a "hemp beer" to market now, hemp seed oil, sterilized hemp seeds, and mature hemp stalks are already acceptable hemp ingredients for obtaining TTB formula approval. Products like The Hemperor HPA™, produced by New Belgium Brewing Company, already incorporate hemp hearts (seeds) in their production. NABCA Daily News Update (2/6/2019) 18

When you submit the product formula to the TTB for approval, you'll also have to include a lab analysis of the hemp ingredient(s) you are using and a detailed description of the method of analysis used by the testing lab. The TTB also requires you to retain and store certain information at your brewery for inspection, if needed. Label approval from the TTB (called a Certificate of Label Approval, or COLA) is also required if you plan to sell your malt beverage product across state lines. Labels submitted to the TTB must specifically identify the hemp ingredient used in a way that makes clear it is not a controlled substance. You must also be careful not to give the impression that the beverage contains a controlled substance or that it has effects similar to those of a controlled substance. In other words, you'll have to put your creative juices to work to create a product name, text, and graphics for the label that does not trigger a denial by the TTB. Similar concerns may also arise in the context of brand protection (i.e., trademark registrations) with the U.S. Patent and Trademark Office. Once you've worked through the federal requirements imposed by the TTB, you will also have to comply with your state specific product approval and labeling requirements. In North Carolina, product labels for malt beverages must identify the brand name of the product, the name and address of the brewer or bottler, the type of product (e.g., beer, ale, porter), and the net contents of the product. And, you are required to submit to the ABC Commission an original copy of the intended product label, a product analysis certification, a copy of the federal COLA (if being sold across state lines), and the required application fees. The government has to get its money! Whatevah! I Do What I Want! Does this sound like a lot of rules? Are you thinking about bypassing these requirements and going straight to market with your CBD-related malt beverage product? Not so fast. You worked hard (and invested a lot) to get your Brewers Notice and your state-level commercial and retail licenses. Don't you want to keep them so you can continue brewing and selling your malt beverage products? Yeah, we thought so. If you don't follow the rules, you risk losing the government issued licenses and privileges required to lawfully operate your brewery. But with the recent legalization of hemp and hemp-derived CBD, and with no certainty that the FDA will continue to wag its finger at the use of CBD in food and beverage products under the FD&C Act, many brewers are still pushing to create CBD related malt beverages in the hopes of gaining early approval and a competitive advantage.

Billboard battle brewing? Liquor Barn takes jab at the competition Insider Louisville By Caitlin Bowling February 5, 2019 LOUISVILLE, KY - Local chain Liquor Barn is poking at the competition with a strategically placed billboard advertisement. Maryland-based Total Wine & More posted a billboard advertisement along Interstate 71 downtown promoting its location across Shelbyville Road from Mall St. Matthews, touting it as “worth the drive.” The liquor, beer and wine superstore opened its second Louisville location in October last year. Liquor Barn, also an alcohol superstore, already was advertising on the next billboard down Interstate 71, just behind Total Wine’s advertisement, said Jonathan Blue, managing director of Liquor Barn owner Blue Equity. “The funny, ironic part is that we were talking about changing our billboard,” he said. “We were just going to change it to a generic freshened version.” That is until they saw what Total Wine’s billboard said and decided to stoke the competition between the two with its own billboard reading “Don’t Drive … We Deliver!” The billboard hasn’t whipped up the social media frenzy that the mysterious Chris and Jessica billboards did last summer, but Blue hopes it will attract the attention of drivers. NABCA Daily News Update (2/6/2019) 19

“You only have one second to catch someone’s eye,” he said. Insider Louisville has reached out to Total Wine & More to ask if they plan to respond to the Liquor Barn’s advertisement with their own new billboard sign. “We respect all of our competitors. We are locally owned and operated and have been for a while and are just happy to come up with creative things,” Blue said. Liquor Barn started its delivery service in June 2018 and sales from delivery business has been doubling month over month, Blue said, noting that it is still a small part of its sales. Alcohol delivery in Kentucky became legal in June 2017. Delivery will help Liquor Barn to continue to compete as consumers increasingly want convenience, Blue said. Grocery chains, including Kroger and ALDI, are now offering delivery at some locations, and there are numerous startups that allow consumers to get food from restaurants that don’t have their own in-house delivery. While delivery can be an easy way to order alcohol, liquor stores in Louisville can still attract a crowd to their stores by offering specialty bourbon releases. Both Liquor Barn and Total Wine offer drawings for chances to buy rare bourbons and larger releases of multiple hard-to-find bourbons; each draw crowds that camp out in lines outside the stores. “The more business we do, the more Pappy we get, the more releases we get,” Blue said. Blue Equity purchased Kentucky’s 15 Liquor Barn stores in 2017 for more than $25 million. It operates those, along with two Party Mart liquor stores.

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