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Tuesday, June 2, 2020 www.nabca.org

• State Closes 2 Stores After Employee Tests Positive For COVID-19 • Cumberland Farms Wins Latest Battle in Its Face-Off With Liquor Stores TODAY’S • April Saw 35.6% Decrease In Sales In Ireland HIGHLIGHTS • COVID-19 has significantly affected our collective mental health. • How Importers and Distributors are Adapting to a New Reality Without Restaurants and Bars • Fundraisers Surge for Restaurants Destroyed During Riots in Minneapolis and Saint Paul

NABCA News CONTROL STATE NEWS

NABCA launches a COVID-19 Resource page. It PA: Critical Compliance Tips from Pennsylvania Liquor includes interactive dashboards which includes Control Board’s Guidance for On-Premise Sales During state actions to lessen the spread of COVID-19 COVID-19 Crisis and policy changes that effect on- and off- premise operations, as well as additional National Law Review information. Article by Theodore J. Zeller, III & Matthew B. Andersen, Norris McLaughlin, P.A. Visit NABCA’s website for more information June 1, 2020 As we outlined in our post last week, Governor Wolf TTB NEWS issued guidance for retail food and alcohol businesses in green counties (permitted to have 50% of capacity inside NEW COVID-19 PAGE ON TTB.GOV You can now find all TTB’s COVID-19-related news and outside dining) and yellow counties (permitted to and guidance in a single location. Check the page have 50% of capacity outside dining beginning on June frequently to find new or updated information to 5). help you and your business respond to the Following up on Governor Wolf’s guidance, the COVID-19 national emergency. Pennsylvania Liquor Control Board (“PLCB”) issued https://www.ttb.gov/coronavirus guidance on Friday evening regarding inside and outside food and alcohol service for the green counties that had

entered that stage on Friday morning. Although this NABCA WEBINAR guidance only applies to green counties, it does provide a glimpse of what the policies may be for yellow counties Women. Alcohol. Health. - From Blackouts to Breast Cancer. webinar is now available on our that can resume outside service on June 5. website. We do expect the PLCB to issue further guidance for yellow counties on or after its meeting on June 3 and will Visit www.nabca.org/Resources/Webinars update this post accordingly. At least some issues, such as “do I need to file an extension application to serve on unlicensed outside areas” have been answered and solutions exist as are outlined below (see to-go sales). Additionally, all conditions outlined in our post from last week and the Governor’s guidance must be adhered to.

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Does This Guidance Apply to All Licensees? seating and six feet or physical barrier between customers. In addition, outside service should follow the Initially, there was concern that Governor Wolf’s below requirements: guidance did not apply to all licensees. The PLCB stated it does apply to manufacturers and other • If the outside area is licensed, the service of food and retail licensees, which we expect to continue for alcohol is permitted. If the outside area is not yellow counties. licensed, the service of food is permitted but not alcohol. As stated above, we expect the PLCB to offer Indoor Service a solution to this for extending to unlicensed areas, In green counties, indoor service is permitted under but we do not have that yet and the current process the following mandatory restrictions: of extending licensed premises can take more than • Seating is limited to the lesser of 50% of stated 30 days for retail licensees due to the posting fire capacity or 12 persons per 1,000 square requirements. Breweries and taprooms are exempt feet. For example, if you have a fire capacity of from posting requirements and, as a result, those 60 persons and you have a building that is 2,000 extension applications get approved more quickly. square feet, you may have no more than 24 • If the outside area is not licensed, the licensee can customers (2,000/1,000 = 2; 2 x 12 = 24, which continue selling , or spirits to go (if is less than the 30 customers based on fire currently permitted to do so under a Wine Expanded capacity). Permit or the new “drinks-to-go” law) and the • On-premises consumption of food is required to customer can carry the products to its table and the be offered, which is a requirement for most service of food would still be permitted at that table. licenses to operate, but is not required to be How About Special Occasion, Off-Premises Catering, ordered in conjunction with alcohol to permit Exposition, and Farmer’s Market Permits? the service of alcohol (including but not limited The PLCB reminds licensees that these permits can still to restaurant, hotel, eating place, breweries, be issued, but all requirements for using those licenses taprooms, and brewpub licensees). are still required. That is all the PLCB said, but this leads • A party of customers must be at least six feet us to believe that these permits may be used in apart or separated by physical barriers. accordance with this guidance and Governor Wolf’s • No standing in areas and alcohol service is guidance, so long as they are used in a green county (if limited to table or bar service (customer must inside or outside) or a yellow county (if outside beginning be seated) and no more than four customers on June 5). These permits have been a target of with a common relationship (family, for enforcement during the COVID-19 Crisis and it is example) may sit together at a bar (not advisable to have your plans vetted to ensure separated by six feet, but separated by six feet compliance prior to utilizing any permits. from other customers). We do not expect enforcement to be taken for businesses that do UT: State Closes 2 Liquor Stores After Employee Tests not question the common relationship, because Positive For COVID-19 it is not defined in any guidance. KSL TV • Face coverings are required for every customer By Matthew Jacobson, KSL TV but may be removed when seated. June 1, 2020 Outdoor Service SALT LAKE CITY, – The Utah Department of In green counties (and likely yellow counties when Alcoholic Beverage Control closed two liquor stores after further guidance is issued), outdoor seating in both an employee tested positive for COVID-19. licensed and unlicensed areas is permitted. Outdoor Both stores are in Salt Lake City. service is subject to the same restrictions stated above for indoor service, including, but not limited According to the DABC, an employee at the store located to, no more than four customers together at bar at 205 W. 400 South recently tested positive for the 3

coronavirus. That employee also recently worked at It would also establish a new kind of "food store" license the store located at 1255 W. North Temple. for beer and wine, to be doled out at the municipal level. There would be no cap for those. “Both stores will remain closed until a professional sanitation and disinfection is completed by an According to CBSN , Democratic Attorney General independent company,” according to a statement Maura Healey had ruled that the question passed from the DABC. “At present, there is no timetable constitutional muster, but critics — including liquor store for reopening. We are in contact with the employee owners, who could experience greater competition if it is and wish for a speedy recovery.” approved — went to court to challenge Healey’s ruling, saying the question violated some of the prohibitions. According to the state, customers will continue to The Supreme Judicial Court sided with Healey. be limited inside the stores, and the locations have all implemented social distancing guidelines. Liquor The decision allows supporters to gather a second round store employees will also continue to wear masks of signatures with an eye on getting the question on the and disinfect counters after each transaction. November ballot. “We ask our customers to please follow the advice The new licenses could be issued as soon as December if of Gov. Gary Herbert and wear masks inside the the question is approved. There would also be no limits store for protection of our employees and other on the number of licenses any one company could customers,” according to the DABC. control after a phase-in period. All other state liquor stores will be open for business As News previously reported, from 11 a.m. – 7 p.m. until further notice. package stores won the first battle against supermarket chains that wanted to lift the caps 13 years ago, and The two store closings come after the state’s persuaded voters to keep a three-store-maximum in highest three-day tally of positive COVID-19 cases. place. Both sides spent $12 million-plus, representing the Utah health officials on Sunday reported more than most expensive ballot war in state history at the time. 260 new cases for three days in a row, for a total of When the prospect of another ballot question was 876 new cases since Friday. prompted in 2011, package stores and their alcohol distribution industry allies reached a truce, which quickly LICENSE STATE NEWS moved its way through the state legislature and became a law, according to the news outlet. MA: Cumberland Farms Wins Latest Battle in Its Face-Off With Liquor Stores The law states that the number of alcohol sales licenses per retailer would go up, gradually rising from three to Convenience Store News nine in January 2020. Both sides agreed to not push any June 1, 2020 further changes, at least until after the final increase took WESTBOROUGH, Mass. — After taking aim at effect next year. However, c-stores weren't part of the liquor laws, Cumberland Farms won 2011 deal. its latest battle in the face-off with liquor stores.

The Supreme Judicial Court determined the validity of a ballot question that would let convenience TX: Will Alcohol To-Go Become Permanent in ? stores and other food stores sell beer and wine, Houston Press reported CBSN Boston. By Schaefer Edwards June 2, 2020 Last summer, Cumberland Farms filed a petition proposing a 2020 ballot question that would lift the Monica Richards was elated when she heard the news cap on the number of alcohol licenses a retailer can that her family’s restaurant could finally serve their hold over time until they are eliminated entirely in popular cocktails for takeout and delivery. 2024. As Marketing and Beverage Director for Arnaldo Richards' Picos Restaurant, the local Mexican food 4

mainstay founded by her father, Arnaldo, Richards the nearly two decades since the first hard liquor daiquiri had been asked by plenty of patrons over the years drive-thru opened in Lafayette in 1981. if there was any way they could get signature ’s state Office of Alcohol and Control cocktails like El Jefe Margaritas, Oaxacan Mules, and doesn’t publish statistics about the size of the to-go Mexican Sex on the Beaches along with their daiquiri industry specifically, but it’s clearly booming — takeout orders. according to Google Maps data, the state is dotted with Once Governor Greg Abbott issued an executive at least 170 different daiquiri shops. The ATC has order back in March that expanded alcohol to-go specifically allowed Louisiana’s daiquiri businesses with sales as a temporary financial lifeline for restaurants drive-thru windows to remain open during the COVID-19 forced to close their dining rooms amidst the crisis. pandemic, Richards and her team jumped into This may make Louisiana seem like a nearby example action. They ran with the new rules, devising ways Texans could point to in support of arguments for to sell their most popular drinks both individually permanently expanded to-go alcohol sales. However, and in multi-drink mixing kits with delivery and when it comes to restaurants and bars specifically, takeout orders, which customers loved. Louisiana’s current situation is actually even more “They are joyous,” said Richards. “I can’t tell you restrictive than what’s in place in Texas right now. While how many messages I’ve received.” Louisiana’s standalone daiquiri shops can serve their hard liquor cocktails to-go, their restaurants are only In an April 28 tweet, Abbott confirmed that alcohol allowed to serve beer and wine to-go, and bars in the to-go in its current form could continue even after state aren’t allowed to serve any alcohol to-go at all. restaurants were allowed to re-open at limited capacity on May 1, along with a coy comment about The Texas Restaurant Association is one state advocacy his potential support for a more permanent group that supports the permanent expansion of alcohol enshrinement of these new rules. “From what I’ve to-go. According to a recent TRA policy brief, the COVID- heard from Texans, we may just let this keep on 19 pandemic has already led to the loss of approximately going forever,” he tweeted. 700,000 Texas restaurant industry jobs and a $4.2 billion loss in revenue for the industry. Anna Tauzin, TRA’s Chief According to several players close to the state Revenue & Innovation Officer, said that input from TRA legislature and the Texas hospitality industry, about how much Texas restaurants are struggling getting this form of alcohol to-go codified into law financially was part of what led Abbott to issue his waiver after the current crisis has ended isn’t guaranteed in the first place. by any means, but many share a cautious optimism that there’s a viable path forward. Tauzin said that TRA wasn’t shocked by the governor’s extension of the relaxed alcohol to-go rules past the May This new normal for to-go alcohol orders isn’t a Wild 1 restaurant reopening order, citing the responsible way West situation. For starters, alcohol can only be that Texas dining establishments have handled the new ordered for pickup with food, and only from to-go landscape. “We were extremely grateful, but not establishments with permanent food service surprised,” she said. “It’s something restaurants have capabilities. Any booze sold to-go has to be in its been doing very well, and frankly, responsibly.” manufacturer-sealed packaging, and liquor can only be sold in containers of 375 milliliters or less. After having successfully lobbied for a law passed last year that allowed the limited delivery of beer and wine These rules prevent the sale of pre-mixed cocktails from restaurants by third party couriers, Tauzin said that that contain liquor, like the frozen, fruity daiquiris TRA plans to push the Legislature to permanently legalize sold to-go just 90 minutes east of Houston in alcohol to-go sales with food during next year’s session. Louisiana, often via drive-thru windows. These to- go cocktails are typically served with tape on the lid Any lobbying effort to get these changes written into and a straw on the side to creatively comply with state law would benefit from the support of alcohol open container laws meant to discourage drunk producers like Zamora Company USA, the Dallas-based driving, and have become a Louisianan institution in stateside branch of the Spanish liquor distributor that owns Houston’s Yellow Rose whiskey distillery. “We 5

would definitely support it if this continues,” said “It was pretty hard to pass beer to-go, to be honest with Matthew Appleby, Zamora Company USA’s director you,” said Rodriguez. He referenced the opposition they of marketing. faced early on in the process from some Texas beer distributors represented by the trade organization Appleby mentioned the potential revenue growth Wholesale Beer Distributors of Texas and from retailers for brands like Yellow Rose that could come from represented by the TPSA, who each raised safety new offerings like customized to-go cocktail mixing concerns about allowing breweries to sell beer directly to kits, as well as rumblings of support he’s heard from consumers outside of their respective tiers of the three- Texan alcohol producers, wholesalers, and retailers. tier distribution system, the set of retail and regulatory “I haven’t heard anybody who’s had a negative checks and balances an alcoholic beverage typically goes opinion of this new move,” Appleby said. through before it gets in the hands of a Texan. However, Texas Package Stores Association The three-tier system dictates that alcohol producers like spokeswoman Jennifer Stevens was much less breweries, wineries, and liquor distilleries, the first tier in bullish when asked about the future of alcohol to- the system, must sell their products to alcohol go. In a statement on the TPSA’s behalf, Stevens said wholesalers, the second tier. These wholesalers then act their organization “understands the decisions made as distributors, selling alcohol to retailers, the system’s to respond to the pandemic crisis,” and that they third tier, who then sell the booze to consumers. Unlike “will work with legislators next session on laws that other retailers, restaurants in Texas are required to jump are sensible and safe for consumers, and preserve through another hoop to acquire some types of public safety.” alcohol—restaurants are only allowed to buy wine and She also made clear that the TPSA believes hard liquor from “package stores,” another name for expansion of alcohol to-go could have the retail liquor stores like Spec’s and Total Wine. unintended consequence of making it more difficult Each rung of the three-tier ladder involves various to prevent drunk driving and underage drinking. licensing requirements and taxes that provide funding “We do not support relaxing open container laws,” for public health and safety initiatives. Proponents of the her statement cautioned, “and must do everything three-tier system like the Wholesale Beer Distributors of within our power to curb drinking and driving and Texas and the TPSA also claim that the multiple layers prevent underage access to alcohol.” create more checkpoints and safeguards to prevent tainted, potentially harmful products from getting out If past attempts to get reforms through into the market, and to stop any alcohol from getting into the state legislature are any indication, advocates the hands of minors. Aside from these safety concerns, for expanded alcohol to-go sales from restaurants though, it’s also undeniable that these groups have a should be prepared to deal with some opposition. financial interest in opposing any change in the state’s State Representative Eddie Rodriguez, a Democrat regulatory structure that would bypass the alcohol from Austin, and Charles Vallhonrat, Executive distribution tiers they represent. Director of the Texas Craft Brewers Guild, were two Vallhonrat cautioned alcohol to-go supporters that it of the main proponents in 2019’s 86th Legislature wouldn’t be easy to get the current set of rules written for legalizing the sale of beer to-go directly from into state law based on his experience with the drawn- Texas breweries. Both Rodriguez and Vallhonrat out beer to-go battle, which played out in starts and spoke to how difficult it can be to lobby the stops between 2013 and 2019. Legislature to enact new, relaxed laws about alcohol sales. “There’s a lot involved in the political process to get something to become law versus an emergency order,” Language from a bill written by Rodriguez was Vallhonrat said. His main advice for those who hope to eventually included as an amendment to the change the laws around alcohol sales to-go from ultimately successful House Bill 1545, a larger bill restaurants is to stick to a focused, clear message. that was passed in order to re-authorize the TABC to keep operating for the next 12 years. “It’s a marketing campaign as much as it is a political campaign,” he explained. 6

Alba Huerta, owner of the award-winning Houston “For me,” she continued, “having it be legal and viable, cocktail bar Julep, believes that any campaign to it’s better this way. It might cost me a little bit more expand alcohol to-go sales long-term should be money, but I’m getting to sell drinks to-go.” inclusive to all members of the Texas food and Tauzin and her Texas Restaurant Association colleagues beverage industry, including bars. Texas bars were are optimistic about their upcoming push for an not included in the first phase of state-approved expanded, long-term framework for alcohol to-go during reopenings on May 1, and have only been given next year’s legislative session. In addition to making the permission to open for full service at 25 percent crisis-inspired expansion permanent, TRA also supports capacity as of May 22. Additionally, many bars have legalizing the sale of pre-mixed cocktails to-go with food been unable to take advantage of to-go beverage in a safe, regulated fashion, even though that might be a sales due to their lack of permanent food service harder sell than extending the currently approved infrastructure. structure. Huerta hopes to see a long-term solution enacted On the topic of doing away with the pre-sealed, limited- that would go further than the current rules in place size liquor container requirements that currently prevent by allowing cocktails with the liquor already mixed the sale of pre-mixed cocktails to-go, Texas Package in to be sold to-go under a responsible regulatory Stores Association spokeswoman Jennifer Stevens once structure. again raised the specter of drunk driving and underage A big reason she and other industry figures support alcohol abuse. such a move is because pre-mixed cocktails can be “Our association does not support the relaxation of made with liquor that is bought in bulk in larger measures that will increase drinking and driving or make bottles, while the current rules only allow for alcohol easily accessible to underage children,” her unmixed drinks with liquor on the side in small, statement concluded. sealed bottles that are more expensive by volume. This means that under current rules, the same drink Tauzin hopes that state lawmakers considering with the same amount of alcohol in it is more legislation around alcohol to-go will try to embrace a expensive to make than if it were made with bulk classically Texan, entrepreneurial cowboy spirit, “and liquor, which cuts into bar and restaurant profit think about what’s possible versus what might offend margins. people.” “I think it’s important to not lose the value of what a cocktail is,” Huerta said, describing how bars INTERNATIONAL NEWS would also be unfairly deprived of their ability to Ireland: April Saw 35.6% Decrease In Alcohol Sales In provide to customers the added-value of their Ireland highly-skilled bartenders in a world without pre- mixed cocktails to-go. “We know how to make these Hospitality Ireland drinks,” Huerta continued, “and that’s why they’re June 2, 2020 so special...would you ask restaurants to not cook Drinks Ireland has released new Nielsen data that any of their food and pre-sell it to people in that indicates that the total volume of alcohol sales in Ireland same packaging?” in April of 2020 was 35.6% less than the figure for the Not all local restaurateurs agree that pushing for same month last year. pre-mixed cocktails to-go is worth the trouble. “I The data indicates that while alcohol sales increased in don’t know if I trust pre-mixed beverages,” said the off-trade in April, the closure of the on-trade resulted Picos’s Monica Richards. “How can you gauge in a fall in the total amount of alcohol consumed in liability and fault if someone goes and does Ireland. something with a pre-mixed drink and you’re not able to truly gauge how much alcohol was actually The data shows that 24 million fewer pints were in that drink?” consumed in Ireland in April of 2020 compared to April of 2019. There was a 58% increase in the

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volume of beer and sold in the off-trade, but notably efforts mitigating the situation among the overall sales of beer and cider fell by 36% due to young. pubs being closed. According to Drinks Ireland, it is The organisation, bringing together a number of public estimated that generally approximately 60% of beer health NGOs, has highlighted that youths are the primary and cider sales take place in the on-trade. target market of the alcohol industry. Meanwhile, 4.9 million fewer 35.5ml serves of Today's appeal to the authorities coincided with the spirits were sold in April 2020 compared to the same release of the Slovenian translation of Olivier van month last year. There was a 24% increase in the Beemen's book titled Heineken in Africa. volume of off-trade sales, but a 13% overall decrease in the volume of spirits sold in Ireland. The Dutch investigative journalist reveals unethical strategies and practices of the alcohol industry in Africa "Changes In The Way People Drink" in the book, reads the association's press release. Drinks Ireland director Patricia Callan commented, Such practices are not only a problem of the third world, "There has been a perception that people are but are also very much present in , highlighted drinking more as a result of the COVID-19 the NGOs. restrictions, but these figures clearly show that this is not the case, with overall sales down by just under Slovenia ranks among countries with the highest alcohol 36%. consumption rate per adult on average. The World Health Organisation has notified Slovenia on a number of "With pubs, restaurants and hotels closed and occasions that the country is lagging behind most government restrictions in place, there's been not advanced countries in this area and that it is high time only a fall in the amount of alcohol consumed, but Slovenia stepped up its alcohol policy. changes in the way people drink. The association believes that Slovenia should raise "Many people have taken part in a virtual drink with alcohol prices and ban relevant marketing, including family or friends, but we're also seeing an array of online advertising. Moreover, event sponsorship by the online wine and drink tastings, and cocktail making alcohol business should be banned and the sales events. People are also enjoying a drink in the restriction for underage or inebriated persons should be garden in the sun, or with dinner at home after strictly implemented. work, allowing for a little bit of normality at this time. Online sales and home deliveries should be banned as well, in particular during times of epidemics or similar "It's important that people maintain a healthy and extreme circumstances, and zero-tolerance policy should balanced lifestyle at this time, and this includes not be imposed regarding drinking and driving. drinking to excess. For anyone looking for more information about alcohol consumption during the The association deems that the damage done by alcohol COVID-19 crisis or for information about low risk in society overrides any potential financial benefits of consumption guidelines, we'd urge them to visit selling alcoholic beverages. Drink Aware." An inefficient alcohol policy increases the burden on healthcare, the police, judiciary, social work organisations and local communities, and deteriorates Slovenia: Call for Stricter Alcohol Policy in Slovenia people's health and well-being, reads the press release. STA June 2, 2020 South Africa: A draft law sets SA’s drunk-driving limit to STA, 1 June 2020 - The association of chronic non- zero – and govt is keen to get it enacted contagious diseases urged on Monday the Health Ministry, the government and National Assembly to Business Insider SA introduce stricter measures concerning alcohol By Phillip de Wet policy and to strive for a joint systemic tackling of June 1, 2020 heavy alcohol consumption in Slovenia, most 8

South Africa could have a drunk-driving limit of zero PUBLIC HEALTH NEWS before the end of the year, if government has its way, with full criminal penalties for anyone caught COVID-19 has significantly affected our collective with any discernible level of alcohol in their systems. mental health. The National Road Traffic Amendment Bill was The Conversation approved by Cabinet for submission to Parliament Authors: Shalini Arunogiri, Addiction Psychiatrist, Senior in March this year, with a promise that it would take Lecturer, Monash University | Caroline Gurvich, Senior a tough line on driving under the influence. Research Fellow and Clinical Neuropsychologist, Monash University | Jayashri Kulkarni, Professor of Psychiatry, Despite delays in lawmaking caused by the Monash University coronavirus disaster, that draft law was released on June 2, 2020 Monday, and it effectively seeks to ban anyone who has had a drink from operating a motor vehicle, until For many people, social disconnection, financial strain, no alcohol can be detected in their blood or on their increased obligations in the home and ongoing breath. uncertainty have created distress – and with it, a need for new ways of coping. The Bill does not alter the methods of testing, penalties, or any other part of current legislation One way people may choose to cope with stress is that deals with drink-driving. It simply scratches out through the use of alcohol. the sections of the current law that specifies the We’re now starting to understand the degree to which permitted level of alcohol for drivers. alcohol use has increased in during COVID-19. That is less than 0.05 grams per 100 millilitres, or for While the data aren’t alarming so far, they suggest professional drivers less than 0.02 grams per 100 women are drinking at higher levels than usual during millilitres, when measured via blood sample. the pandemic, more so than men. When measured by breathalyser, the current This trend is likely linked to the levels of stress and measure is 0.24 milligrams per 1,000 millilitres, and anxiety women are feeling at the moment – which, for professional drivers it is set at 0.10 milligrams research suggests, are disproportionate to the distress per 1,000 millilitres. men are experiencing. That removal has the effect of introducing "a total Alcohol consumption and COVID-19 prohibition for the use and consumption of alcohol Early reports of increased alcohol purchasing raised the by all motor vehicle operators on South African alarm that we might see an increase in alcohol use across public roads", says the Bill's explanatory the population during lockdown. memorandum. However, recent data from the Australian Bureau of Transport minister Fikile Mbalula promised just Statistics suggests overall, alcohol consumption such a prohibition in January, with support from the remained relatively stable during April. Only 14% of politically influential police chief Bheki Cele. It met Australians reported increased use of alcohol in the with broad support at the time. previous month. Many factors influence how fast alcohol is But women are over-represented in this group. Some metabolised, including weight and whether you are 18% of women reported increased alcohol use in the eating with your booze. It will typically take around previous month, compared with only 10.8% of men. three hours to break down the alcohol in a single glass of wine, but "a few drinks" on a night out could Similarly, preliminary results from our COVID-19 mental still leave traces of alcohol in blood the next health survey of 1,200 Australians in April found a morning. significantly higher proportion of women had increased their alcohol intake: 31.8%, versus 22.5% of men.

Why are we seeing this disparity between women and men? The answers may lie in what we know about why 9

women drink, and in the disproportionate burden of Caregiver load has also been a source of stress, with stress women are facing as a result of COVID-19. women almost three times more likely than men to be looking after children full-time on their own during Women tend to drink for different reasons to men COVID-19. In Australia in 2016, 14% of men and 7% of women While we don’t have enough evidence yet to tell us drank alcohol to risky levels. conclusively whether family violence incidents have Although fewer women than men drink alcohol increased during the pandemic, this may add to the regularly, alcohol consumption among women has mental health burden for some women during COVID-19. increased in the past decade, particularly in middle- Further, younger female workers are disproportionately aged and older women. This mirrors international affected by the economic crisis in the wake of COVID-19. trends that suggest women may be catching up to The fact women make up a majority of the casual men in terms of their alcohol consumption. workforce makes them highly vulnerable at this time. Overall, Australia has observed a reduction in risky Together, it seems COVID-19 is having a different mental drinking across the population, with increasing health impact on women compared to men. And this is numbers of young people choosing not to drink. likely to be intertwined with their increased drinking In contrast, women in their 50s are the only subset during the coronavirus pandemic. of the Australian population with rising rates of Whether we’ll see higher rates of problem alcohol use or alcohol use. In 2016, data showed for the first time, dependence in women after the pandemic remains they were more likely to drink at risky levels than unclear. However, we know women who drink at unsafe younger women. levels experience complications more quickly, and enter Drinking has become more normalised among treatment later, with perceived stigma a barrier to help- women in this middle-to-older age group, seeking. potentially contributing to the rise in alcohol use. It’s vital we draw our attention to these gender-specific Alcohol has become a commonly accepted coping differences in mental health and alcohol consumption as mechanism for distress, with women feeling we formulate our mental health pandemic plan. comfortable to say “I just had a bad day. I needed to have a drink”. This highlights a theme that frequently underpins Cognitive aptitudes of young women may be more problematic alcohol use in women: what’s termed a affected with high alcohol use than men “coping motive”. Many studies have found more News Medical and Life Sciences women drink alcohol to cope – with difficult Reviewed by Emily Henderson, B.Sc. emotions or stressful circumstances – as compared June 1, 2020 to men, who more often drink alcohol in social Female college students appear to be more affected by settings or as a reward. high alcohol use than men, which may lead to less Women seem to be struggling more during the interest in academics, according to new research pandemic including by faculty at Binghamton University, State University of New York. With this in mind, it’s unsurprising we’re seeing increased alcohol consumption among women Lina Begdache, assistant professor of health and wellness during COVID-19. International data show women studies at Binghamton University, and fellow researchers have been more likely to experience symptoms of sought to compare neuro-behaviors and academic effort stress, anxiety and depression during the pandemic. among college students with low alcohol use with those of high alcohol consumption, and build conceptual Meanwhile, Australian data show loneliness has models that represent the integration of the different been more of a problem for women (28%) than men variables. (16%) during this past month under lockdown. They sent an anonymous survey to assess college students' alcohol use and frequency along with questions 10

on sleep, academic performance and attitude Another reason for the difference seen is the differential toward learning. They compared gender responses metabolism of alcohol. Women metabolize alcohol at a and found that both young men and women exhibit slower rate, therefore, they are more likely to feel the common behavioral responses to high alcohol use effect of alcohol. Consequently, their brain is more likely such as abuse of other substances and risk-taking. to accumulate a toxic metabolite, acetaldehyde, which These behaviors are regulated by the limbic system may be altering brain chemistry further to add to the of the brain. However, the cognitive functions for differential behaviors identified in this study. high alcohol use among young men and women Academic performance and risky behaviors among were different. college students may be linked to their drinking habits, Cognitive aptitudes of young women appear to be so more education and awareness should be shared with more affected than for men with high alcohol use. college students, said Begdache. Young women reported generally less interest in Going forward, Begdache would like to assess the academic work and performance than young men. interrelation of nutrition, alcohol and mental health. The latter reported more risky behaviors, such as being arrested, from excessive drinking. We also Source: Binghamton University found that young women are more likely to depend Journal reference: on alcohol to improve mental well-being, which is Begdache, L., et al. (2020) Common and differential also concerning, as they may self-medicate through associations between levels of alcohol drinking, gender- specific neurobehaviors and mental distress in college drinking." students. Trends in Neuroscience and Education. Lina Begdache, assistant professor of health and doi.org/10.1016/j.tine.2020.100129. wellness studies at Binghamton University Because the gender brain is morphologically INDUSTRY NEWS different, the long-term impact of excessive Nielsen: Off-Premise Beer Sales Top $1 Billion Leading drinking may be different. In both genders, the into Memorial Day Holiday researchers reported an increase in impulsive behaviors, which are under the control of the limbic Brewbound system (the oldest part of the brain, evolutionary By Justin Kendall speaking). However, cognitive functions and June 1, 2020 decision making are controlled by the prefrontal Off-premise beer category dollar sales topped $1 billion cortex (the newest part of the brain, evolutionary heading into the Memorial Day holiday, according to the speaking), which completes its maturity by the mid latest one-week data shared by market research firm to late 20s. Therefore, seeing differential behaviors Nielsen. could imply that excessive alcohol use has differential effects on prefrontal cortex For the one-week period ending May 23, dollar sales of function/brain maturity, which may have an impact beer, FMBs and cider increased 20.9% compared to the on mental health as well. same week a year ago. Off-premise beer sales had the strongest week of 2020, Nielsen said, and were second "These findings are also explained by the fact that only to the July 4 holiday week of 2019 over the last 52 women tend to have higher connectivity between weeks. cortices, while men have a large cortical volume in the areas on the limbic system that support The full impact of the Memorial Day holiday won’t be impulsivity," said Begdache. "Thus, the differential known until scan data for the week ending May 30 is behaviors noted with increasing alcohol levels are released next week. potentially related to the gender-based differences Here’s a look at how the week ending May 23 stacked up in the brain. We did find that men and women who against the previous 11 weeks of off-premise beer don't drink or drink minimally exhibit responsible category dollar sales during the COVID-19 period: behaviors and academic effort, which are reflective of a normal trajectory of brain maturity." 11

• +8%, to $694.1 million, for the week of +24%, but outpacing the year-to-date average of ending March 7; +17%. • +15.2%, to $792.7 million, for the week BWC also looked at where beer sales were “softest” — ending March 14; the Mid-South and Southeast regions, where sales were • +39.5%, to $968.7 million, for the week up 8% to 9%. On the West Coast, dollar sales were up ending March 21; more than 50% in . • +17.9%, to $819.8 million, for the week ending March 28; The hard seltzer segment continued its torrid triple-digit • +19.4%, to $840.3 million, for the week growth rate, increasing off-premise dollar sales 272% ending April 4; and reaching 10.1% dollar share of the beer category, • +19.8%, to $863.7 million, for the week Nielsen reported. ending April 11; Through the 11 weeks of COVID-19 in the U.S., hard • +12.3%, to $855.5 million, for the week seltzers have posted a growth rate of 326% in off- ending April 18; premise retailers and the segment holds 8.25% dollar • +20.4%, to $909.5 million, for the week share of the beer category. ending April 25; Mark Anthony Brands’ White Claw, the top-selling hard • +28.1%, to $966.8 million, for the week seltzer brand, remained atop the top growth brands for ending May 2; the entire beer category. White Claw, combined with • +29.3%, $983.6 million, for the week Boston Beer Company’s Truly Hard Seltzer, accounted for ending May 9; 32% of the total beer category growth dollars, Nielsen • +25.5%, to $964.3 million, for the week reported. ending May 16. Other top growth brands for the week included Michelob Even as one-week sales topped $1 billion in off- Ultra, Bud Light Seltzer, Modelo, Bud Light, and Coors premise retailers, Nielsen noted that growth rates Light, according to Nielsen. for alcoholic beverages have begun to decelerate. Total alcohol off-premise dollar sales increased BWC noted that Molson Coors’ Blue Moon Light Sky was 24.8% compared to a year ago, led by spirits the top ranked craft beer growth brand, leapfrogging (+33.1%), followed by wine (+27.2%) and then the Blue Moon Belgian White and outpacing Sierra ’s beer category (+20.9%). Nevertheless, alcohol sales Hazy Little Thing IPA. Molson Coors’ craft brands took continued to outpace the growth rates of other fast five of the top 15 craft growth brands, with three of the moving consumer goods (+11.7%). five — Blue Moon Light Sky, Leinenkugel’s Spritzen and Saint Archer Gold — targeting health conscious As states have eased stay at home restrictions and consumers. some restaurants have reopened in limited capacities, off-premise dollar sales “remain critical Other notes: to sustaining overall alcohol industry growth,” • Segments posting off-premise dollar sales Nielsen said. The firm has estimated that off- growth for the week ending May 23 included premise volume sales would have to maintain a premium lights (+8.2%), below premium growth rate of at least 22% to offset the loss of on- (+4.0%), craft beer (+14.8%), FMBs excluding premise sales. Both spirits (32.6%) and wine (27.1%) seltzer (+18%), Mexican imports (+19.8%), cider have maintained those rates over the last 12 weeks, (+9.4%), hard tea (+32.1%), kombucha (+89.2%), while the beer category (+17.5%) has fallen short. and non-alcoholic beer (+37.4%). Bump Williams Consulting (BWC), citing IRI point of • Consumers continue to pull larger pack sizes sale data and Nielsen data for total CPG industry from store shelves, with dollar sales of 12-packs trends, noted that the week ending May 24 posted up 40.9%, 36-packs up 40.3%, 30-packs up 26.1% an absolute increase of more than $100 million and 24-packs up 21.8%. All of this is coming at compared to the prior week. BWC added that the the expense of single-serve offerings and 6- year-over-year growth rate of 22% for the latest packs, Nielsen said. period was below the COVID-19 purchasing average 12

E-commerce sales remain strong, with online impacting everything from how they stock their alcohol sales up 253% for the week ending May 16 inventories to how they communicate with suppliers, compared to the same one-week period a year ago, customers, and even consumers. While some say those Nielsen reported. New online buyers and basket size changes will be temporary — lasting until a vaccine or are the major contributors to the growth. Average effective therapies for the virus are developed — others basket size for online alcohol purchases for the four believe it could alter the importing and distributing weeks ending May 16 was $68, compared to $23 for sector permanently. alcohol purchases made in brick-and-mortar stores. ADAPTING TO CONSUMER DEMAND Some importers have temporarily changed their How Importers and Distributors are Adapting to a purchasing habits to meet the high demand for lower- New Reality Without Restaurants and Bars priced . “It’s a retail world right now,” says Amy Atwood, owner of -based natural wine VinePair Words by Tim McKirdy importer Amy Atwood Selections. Prior to Covid-19, on- June 1, 2020 premise clients made up 60 percent of her sales, she explains. But in April, 85 percent of sales came from off- It’s no secret that retail alcohol sales have boomed premise retailers. during the Covid-19 pandemic. Most notably, the wine and spirits sectors have seen significant During the pandemic, Atwood has focused on growth. Between March 1 and May 5, retail wine maintaining a high inventory of “entry-level” wines — sales increased more than 30 percent compared to the kind of bottles restaurants might typically sell by the the same period last year, according to an IRI data glass. “I’ve been ordering those like crazy, because I report. Spirits sales, meanwhile, experienced 44.1 know they’re going to sell,” she says. (Notably, Atwood percent YOY growth during the same period. also says the demand for higher-priced cult labels has remained strong.) While the percentages are positive, not all wine and spirits importers and distributors are enjoying the But the shift in focus is only a temporary fix. Now that spoils of the retail boom. In terms of wine, it’s restaurants have slowly started reopening in many states bottles priced between $8 and $15 that have around the country, Atwood is starting to rebuild her overwhelmingly driven sales growth. This demand inventory with larger volumes of more expensive wines has been much less beneficial to businesses that to appeal to on-premise clients. focus on the on-premise sector because they COMMUNICATION IS KEY typically carry higher volumes of more expensive Because of the dynamic consumer landscape, other offerings. Spirits importers and distributors that importers noted how important it has been to keep in work with small-scale craft brands are also feeling constant contact with their suppliers and distributors. the pinch, because their portfolios are similarly “It’s allowed us all to make sure expectations were set catered toward bars and restaurants. and met,” says Jeremy Sells, director of operations at Just as on-premise businesses have been forced to New York-based fine wine importer and distributor temporarily rethink their operations, the importers Rosenthal Wine Merchant. and distributors that previously served them have also been forced to adapt. To find out how they’re Sells uses the example of the rosé market. Rosenthal had received half of its annual stock of the popular summer navigating this landscape, VinePair reached out to style of wine prior to Covid-19. With the remainder set eight U.S. importers and distributors that place to arrive over the course of May and early June, the significant focus on the on-premise sector. importer communicated with distributors to gauge All of the businesses contacted reported significant expected demand. As many rosés had been destined for — and in some cases entire — on-premise sales by-the-glass programs, distributors that reported losses. But each industry professional also said the confidence in on-premise businesses resuming were effects of Covid-19 extend beyond sales. The given higher allocations than normal. Those that were pandemic has forced importers and distributors to change the way they operate, they explained, 13

less certain of summer demand committed to lower HARNESSING DIGITAL PLATFORMS allocations. While many importers and distributors are using this With the company gearing up to place orders of period to better communicate with suppliers and clients, higher-value allocated wines for fall, maintaining others are also trying to connect with the end consumer. clear lines of communication will be crucial to Prior to Covid-19, California-based spirits importer ensuring the needs of distributors and producers Altamar Brands placed a heavier focus on bars than can both be met. retailers, because the brands it carries are curated for Tim Gagnon, general manager of California-based craft cocktail bartenders. Without those on-premise natural wine importer and distributor Selection champions, Altamar is now trying to increase retail sales Massale, agrees on the recent increased importance by directly communicating its brands’ stories to of communication. “I don’t think I’ve ever spent as consumers, says Brandon Cummins, Altamar’s director of much time on the phone as I have in the past two education. months,” he says. “Wine is such a visceral product. Like every professional contacted for this article, It’s not like you’re just selling units, so you need that Cummins says that virtual tastings through platforms personal connection.” such as Zoom have been pivotal to the process. “The ease For other importers and distributors, clear of executing a virtual tasting is so much greater and so communications with suppliers have been vital to much more convenient for all parties than in-person maintaining the confidence of business tastings,” he says. relationships, even as some accounts remain Cummins expects Zoom will remain an important part of unpaid. Altamar’s day-to-day operations after the pandemic is On March 15, the day New York State enforced bar over. He’s also using other digital platforms to facilitate and restaurant closures, New York City-based his role as a trade educator. Cummins is offering a range artisanal spirits importer and wholesaler PM Spirits of virtual spirits classes that bartenders and distributors lost 60 percent of its clients overnight. Those can book appointments for using the online scheduling closures meant the company had 34 days’ worth of tool Calendly. This negates the need for expensive travel, invoices that would likely go unpaid until on- and allows him to connect with trade clients across the premise businesses reopened, says Nicolas Palazzi, country from his office. PM Spirits’ owner. THE VALUE OF PERSONAL CONNECTIONS But with retail sales continuing, Palazzi has had to While all the professionals contacted for this article keep ordering from his suppliers to meet demand. noted the importance of digital platforms like Zoom In some instances, where Palazzi has outstanding during Covid-19, some say virtual tastings will never offer financial commitments, he’s worked with suppliers the same value as in-person experiences. to pay out of pocket, so that each business can continue functioning. “Social distancing and the wine business are almost complete contradictions,” says Rocco Lombardo, Operationally, Palazzi says Covid-19 disruptions president of Napa-based wine wholesaler and importer have changed every aspect of his business. Products Wilson Daniels. “For me personally, when [wine tastings that were previously in high demand from the on- are] done virtually, it doesn’t have the same amount of premise sector are no longer as viable. And because charm or the same impact from an experience his business focuses on artisanal spirits, Palazzi perspective.” hasn’t been able to switch to offering “value” brands. Convincing retailers to consider a broader Lombardo also believes that in-person employee range of his existing products has been complicated interactions are crucial for business efficiency. For over by the fact that delivering samples and conducting two months, Wilson Daniels’ sales, management, and in-person tastings is not possible. “Every step of the administrative teams have been working remotely. But process that used to be straightforward becomes when it’s safe for employees to do so, the company will very complicated,” he says. resume normal operations. “Productivity levels, collaboration, that sense of team building — they’re all 14

improved when you have an in-office experience,” It’s been one week since George Floyd was killed by Lombardo says. Minneapolis police officer Derek Chauvin while being detained under suspicion of using a counterfeit $20 bill Like Wilson Daniels, New York City-based wine and at a bodega. The murder triggered continuing protests spirits importer and distributor Skurnik Wines & and three nights of riots in Minneapolis and St. Paul. Spirits has also closed its offices during the During the height of the destruction several beloved pandemic. Harmon Skurnik, the company’s community restaurants were critically damaged. These president, describes Covid-19 as a “catalyst” for were restaurants already struggling after prolonged changes that were likely going to happen, but sees closures due to the coronavirus pandemic. Some had both benefits and drawbacks of the current reality. been serving take out and to go orders, others had been Skurnik says the past few months have shown that closed until the restrictions were lifted. many functions can effectively be carried out Many of these businesses are now benefitting from remotely, but agrees with Lombardo on the crowd-funded efforts to assist the owners, with some importance of having a physical office space. “Our donations far outpacing the requests for funds. These are office is the showplace where we invite customers the restaurants and funds aimed at rebuilding after the to taste wines; we mix cocktails [there] and conduct devastation. sales calls and seminars. We expect to return to that,” Skurnik says. Gandhi Mahal: this family-run Indian/Bangladeshi eatery was damaged, and its courageous response on Facebook THE IMPORTANCE OF ON-PREMISE BEYOND SALES went viral. Owner Ruhel Islam responded to the damage The fact that alcohol retailers have stayed open saying, “Let my building burn, Justice needs to be served, during Covid-19 has provided much-needed income put those officers in jail.” A fund begun by Rachael for importers and distributors — even those Joseph aimed to raise $3,500 to help the family-owned previously geared toward the on-premise sector. business rebuild. Funds raised are currently over But some professionals say the value of bars and $64,000. restaurants extends past dollar sales. Town Talk Diner & Gastropub: This restaurant with an Philana Bouvier, vice president of fine wine and iconic sign that dated back to its original iteration in the supplier business development for national 1930s was broken into and trashed during the May 27 wholesaler Republic National Distributing Company, riots, and then burned to the ground overnight on May describes the on-premise as “vital” to the success of 28, the same night the nearby Minneapolis Police fine wine in the U.S. “We have to support Precinct fell. Charles Stotts and Kacey White took over restaurants and continue our dedication and the diner in 2016 and served beautiful comfort food in a commitment to the sommeliers of this country,” she romantic setting. A Go Fund Me was started by Clay says. “We need those ambassadors.” Turbeville aims to raise $20,000 for White and Stotts. It’s Given the current consumer preference for budget- currently raised over $14,000. friendly wines and spirits, the ambassadorial role of Bolé and Bole Express: This Ethiopian restaurant at 490 sommeliers and bartenders will be more crucial North Syndicate in Saint Paul was gutted by fire just than ever — not only to rebuild the on-premise before a fast-casual outpost, Bolé Express was due to industry, but also for the success of the importers open. A remarkable fundraiser was launched by Lelna and distributors dedicated to supplying them. Desta quickly exceeded all expectations. Hoping to raising $122,000 so far. The eatery’s Facebook page DAILY NEWS promises a major comeback. DuNord Craft Spirits: This cocktail room and distillery at Fundraisers Surge for Restaurants Destroyed 2610 32nd Street East had been making and selling hand During Riots in Minneapolis and Saint Paul sanitizer along with other distilleries during the An outpouring of funds target the businesses damaged pandemic and donating funds raised to feed hungry Eater neighbors. Sales had allowed the company, owned by By Joy Summers Chris and Shanelle Montana, to donate 1,000,000 meals June 1, 2020 15

to 2nd Harvest Heartland. DuNord’s cocktail room states expecting significant pushback from beer retailers and production were spared, but the warehouse and wholesalers. was heavily damaged on May 28, destroying large Overcoming that opposition is an uphill battle that’s amounts of inventory. The Montana’s took to crowd likely to play out differently across the country. Some funding, not in an effort to rebuild their own states have already successfully made beer delivery damage, but to assist minority owned businesses legally permanent, while others are expected to revert to affected by the riots. So far, they have raised the status quo. Which scenario plays out will have long- $47,000. The distillery has since become a pop-up term consequences for breweries’ revenue streams— donation site for toiletries from 2 to 5 pm today, and for the ways drinkers buy their favorite . June1. Those in need can pick items up from 2 to 6 pm. NO SNAP OF THE FINGER Midtown Global Market: Minneapolis’ first food hall Looser regulations have been a life preserver for small inside the historic Sears building at 920 East Lake breweries without significant retail distribution—and Street is run by a nonprofit and houses several small drinkers like the flexibility, too. With many Americans businesses, beloved eateries like Safari Express, La still leery of returning to restaurants, bars, and shops, Loma tamales, Los Ocampo, Taco Cat, East Lake breweries and consumers alike have advocated for Brewery, and more. Over the weekend, the market continued home delivery or curbside sales of beer. A was home to a pop-up donation site. Nomin Maine Brewers’ Guild survey of its member breweries Angarag is organizing a fundraiser on behalf of found 35% were interested in keeping some sort of Friends of Global Market, Inc. with the goal of curbside pickup option available even after tasting rooms raising $250,000. Over $26,000 has been raised so reopen, while 21% said they’d be interested in far. continuing delivery. Despite the impressive amount of funds raised, While some state are in early phases of economic these are only a small number of restaurants and reopening, many breweries still desperately need the markets damaged to varying degrees. revenue that to-go and delivery sales provide:

• In early April, a survey by the Brewers Association found 45.8% of responding breweries said their Let’s Make This Last Forever — Looser Alcohol businesses could last between one and three months Regulations Won’t Stick Without A Fight under circumstances current to that moment in Good Beer Hunting time. That window has arrived. By Kate Bernot • While there’s no way to know how much revenue June 1, 2020 beer delivery has generated for the nation’s Alcohol regulations have changed rapidly in breweries in total, Biermi—an online platform response to COVID-19—sometimes so quickly that breweries use to fulfill online orders for pick-up and they’ve sowed confusion. The majority of U.S. states delivery—was facilitating $50,000 in daily sales for have loosened restrictions to generate new sales small Breweries in early May. channels for breweries and bars that had their on- • Breweries and customers have quickly embraced premise business evaporate. Some have allowed home delivery of beer, but as with any changes to restaurants, bars, and breweries to pursue direct- the three-tier system, that updated model faces to-consumer delivery, plus permitted selling significant pushback legislatively because of cocktails, guest beers, and whole bottles of alcohol established power structures. to go. Calls to make beer delivery and other temporary While there’s momentum behind making looser regulations permanent often overlook the bureaucratic regulations permanent, there is also significant steps it would take to do so. While governors were opposition. Executive orders that have allowed delivery and other temporary provisions would empowered during a state of emergency to make instant need to be written into law by legislators. That changes, codifying those changes will require they be would trigger a battle of the lobbyists, with many 16

written into law by legislatures—and will no doubt delivery could mean the difference between survival and spark debate along the way. failure. “It is not as if without legislation, the executive SO. WHAT'LL IT TAKE? order that some governor passed will stick around. There is a path forward to turn temporary alcohol It will be rolled back in every instance,” says Ashley regulations into law: Brandt, a Chicago-based alcohol regulatory attorney at Goldstein & McClintock LLLP. • First, it requires breweries and other businesses to play by the rules, demonstrating that all hell won’t Essentially, advocates for residential beer delivery break loose once alcohol restrictions loosen. (These and similar measures will need to pass new laws. very fears informed a Maryland task force assembled And they’ve seen some success: just a year and a half ago.) Any drunk-driving • Oklahoma legalized curbside sales for breweries accident, ill-advised gathering, or flagrant rule- as well as home alcohol delivery from breaking jeopardizes the cause. restaurants, grocery stores, and liquor stores. • Second, it requires customers and breweries, bars, This is notable considering it was just four years and restaurants to advocate for making such changes ago that Oklahoma allowed full-strength beer to permanent. Because the distributor lobby is well- be sold in grocery stores and taprooms. financed, grassroots efforts need to be more vocal • Kentucky’s legislature in early April voted to and more persuasive. In recent years, state brewers allow residents to have any type of alcohol guilds—including those in Texas and North shipped directly to their homes; it will take Carolina—have financed their own lobbying groups effect in July. to combat such deep-pocketed interests. • New York State Senator Brad Hoylman has • Third, those grassroots advocates need to find state introduced legislation that would continue to legislators willing to sponsor bills and build coalitions allow bars and restaurants to offer wine, beer, to push them through. Donations from wholesalers and cocktails for take-out and delivery for two to politicians cross party lines, creating complex years after the current state of emergency ends. affiliations and influencing votes on alcohol regulations in statehouses across the country. Ohio lawmakers are considering a bill to allow packaged and covered-cup alcohol to-go, and Legal experts say consumers have more power here than Washington, D.C. is eyeing legalizing alcohol they may realize. Yes, lobbying efforts are well-funded, delivery when paired with take-out food. but legislators can be influenced by persistent, loud, and direct calls from their constituents. Brandt says that local Such proposals aren’t likely to sail through without state governments are the bodies most responsive to facing headwinds. The Wine & Spirits Wholesalers direct public pressure. Changes are much more likely to of America (WSWA) opposed Kentucky’s bill, as it happen locally than at a federal level. has generally opposed any changes to the traditional three-tier dynamic. “The current system “That kind of hearts-and-minds campaign is the thing to is built for today’s challenges,” the distributors’ raise awareness,” Brandt says. “Breweries on their own trade group said in a statement. or through their guild need to use consumer sentiment to get their lobbying done. I see some positive results When it comes to breweries’ ability to deliver, when consumers get organized the way other groups Brandt says restaurants, retailers, and wholesalers do.” with vested interests in the status quo aren’t likely to cede new sales privileges to breweries without a The pandemic has changed consumer behavior and fight. But breweries may be up to the challenge if expectations around alcohol sales. Getting beer—or they realize their livelihoods are on the line: even in groceries, or a Target order, or anything really— states where breweries can reopen taprooms, most delivered, or picking it up curbside, is fast becoming an are doing so at reduced capacity. Many consumers expectation during the pandemic. Accelerated by online remain nervous about visiting public spaces. Beer orders during the pandemic, ecommerce is expected to represent one-third of all retail sales globally by 2024. 17

Legislation moves more slowly than consumer distributors in Illinois? Probably not”—but says there’s behaviors, but consumers and breweries could always a chance, if they’re loud enough. feasibly make the case that alcohol delivery is now “We started an organization in six weeks and made a the new normal. To keep those channels open, radical change to Illinois law,” he says. “Craft brewers advocates need to position such sales as the safe need to make the case that if they don't have delivery, option—and one they can’t do without. they won't be in business.” STEAL THIS PLAYBOOK Given the precarious financial situation many of that A recent legal change in Illinois provides a potential state’s small breweries currently find themselves in, his model to follow. Bars and restaurants in the state advice shouldn’t be hard to heed. formed an advocacy group, Cocktails for Hope, that successfully pushed for restaurants and bars to This email and any files transmitted with it are intended solely for the use of legally sell premixed cocktails to-go. NABCA members, free-of-charge. If you do not wish to receive this daily service, please respond with “UNSUBSCRIBE” in the Subject line. In addition, Sean O’Leary, president of O’Leary Law and Policy if there is another individual within your company who should also be receiving this service, please forward their NAME, TITLE, EMPLOYER, and Group, and a legal advisor to Cocktails for Hope, said EMAIL ADDRESS to [email protected]. Thank you for your time the organization wasn’t gaining any traction with and attention as we continue to work to improve upon the services and the governor or the Illinois Liquor Control benefits that we provide to our members. Please note that any views or opinions presented in this email are solely those of the author(s) and do not Commission. So it went the legislative route. necessarily represent those of the National Alcohol Beverage Control Association. The public face of the initiative was Julia Momose, partner and creative director at Chicago cocktail bar Kumiko. Prior to Cocktails for Hope, Momose had no political experience. But O’Leary says she rose to the challenge, talking with legislators and advocating for her industry. He credits “grassroots support”— including a petition signed by more than 12,000 people—for the initiative’s success. Breweries who want to see similar changes should do the same, he says, and take matters into their own hands. Momose made the case to state government that selling cocktails to-go would keep business afloat; breweries need to be equally clear about their own dire stakes. “Breweries need to get personal with their representative or senator, because the distributors are definitely doing that,” he says. “Some of these businesses say they don’t have time to do that, but that’s when you lose your rights.” He says brewers’ guilds can’t be expected to do all the work; many of them are busy fighting for their own financial survival. He notes that the Illinois Restaurant Association was in support of the cocktails to-go legislation, but was also busy with a Payroll Protection Program (PPP) bill and other member priorities during the pandemic. He’s not hopeful about Illinois breweries’ chances of securing permanent rights to deliver and ship beer to drinkers in-state—“With the strength of beer