Control State News January 28, 2019 UT: In the new Utah legislature: the future of 3.2 beer SAVE THE DATE OH: Ohio liquor agents crack down on alcohol sales that March 17-19, 2019 lead to accidents 26th Annual Symposium on ID: Advocates of Idaho liquor license reform are hopeful a Alcohol Beverage Law and Regulation Registration is open for NABCA’s 2019 Legal Symposium. new legislative bill will hit the spot For program details, travel information and to register online, please click here. License State News WA: regulators ponder new vaping rules that NABCA HIGHLIGHTS mimic alcohol, marijuana regulations The Public Health Considerations of Fetal International News Alcohol Spectrum Disorders (White Paper) South Asia: Are we becoming a nation of boozers? Native American Nations & State Alcohol Policies: An Analysis (White Paper) Public Health News Alcohol Technology in the World of Tomorrow - (White Paper) Marijuana for pain: hype or hope? The Control State Agency Info Sheets. Please Industry News view website for more information. NABCA Survey Database (members only) The Russian market: evolving towards a healthier future Upcoming NABCA Meetings No One Is Safe From Counterfeit Statistical Data Reports Education News www.NABCA.org Dartmouth sees rise in alcohol incidents

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CBJ: What’s in a label? A lot when it comes to alcohol Prohibition Exhibit Highlights the 18th Amendment’s Historical Impact on the Brew City It took 162 years, but this Massachusetts town now has a grocery store that can sell alcohol Woman got drunk off vanilla extract

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CONTROL STATE NEWS UT: In the new Utah legislature: the future of 3.2 beer Cache Valley Daily Written by Craig Hislop January 28, 2019 Utahns consume 33 million gallons of beer a year. The only beer sold here is 3.2 percent alcohol by weight, but some of the nation’s largest brewers may stop making it. Sen. Jerry Stevenson, a Republican from Layton who is involved in liquor legislation, said the state has some options. “We could change the alcohol content to where it fits in more conformity with what’s going on around the country,” said Sen. Stevenson, “or, two, we could put a bill together that lands somewhere in the middle.” Stevenson said a lot of people like to have input into alcohol laws. “I’m sure that before this is through I will deal with all the public health departments, I will deal maybe with some religious factors on it. We will have Mothers Against Drunk Drivers. There’s a host of organizations that will have a say.” The Senator said transferring beer sales to state control would overwhelm the state-run liquor stores. There are those who would like to put this before the public in the form of a ballot initiative, but 2020 would be the soonest for that. Senator Stevenson said he has been taking meetings for months with retailers, distributors and plenty of other interested parties. At least one trade group wants to see heavier 4.8 beer moved onto store shelves in place of 3.2 beer.

OH: Ohio liquor agents crack down on alcohol sales that lead to accidents Springfield News-Sun By Lawrence Budd, Staff Writer January 27, 2019 State troopers and local law enforcement increasingly are turning to a special group of state agents who trace back to the source of alcoholic beverages suspected of playing a part in serious or fatal crashes in Ohio. Last year, the number of “trace-back cases” referred to the Ohio Investigative Unit increased 76 percent, according to state data obtained by the Dayton Daily News. The jump indicates local law enforcement agencies are contributing to the initiative designed to deter bars, bartenders and private individuals from letting their guests drink too much alcohol. Trace-back investigations are still unknown to many people outside the law enforcement world. “I think its slowly starting to trickle out to the public,” Adam Johnson, lead agent for the unit’s southern district office, said. After investigations, people who served the alcoholic beverages can face criminal charges, and businesses can face fines and liquor-license suspensions. In 2018, 467 case referrals came from the state highway patrol or local law enforcement. That was 202 more than in all of 2017 and 211 more than in 2016, according to data provide by the state in response to public-information requests from the Daily News. NABCA Daily News Update (1/28/2019) 3

Last year, state agents who work within the Ohio Department of Public Safety— including six assigned specifically to handle these cases — investigated 208 of the referrals, 53 more than in 2017, according to the data. In January 2018, the unit filed charges in a case referred to them by Cincinnati police involving a West Chester man and a Cincinnati restaurant-bar accused of serving six under-age customers who were later injured in an accident, according to a press release. After a nine-month investigation, Blake A. Williams, 25, of West Chester, was charged with six counts of sale or furnishing intoxicating liquor to a person under 21. Sushi Cafe World of Clifton, also known as Mr. Sushi, was charged administratively with furnishing intoxicating liquor to a person younger than 21. Williams was placed on diversion in Cincinnati Municipal Court, according to court records. The business paid a $15,000 fine rather than serve a 30-day suspension, according to Sarah Creedon, executive director of the Ohio Liquor Control Commission. Despite the costs and liabilities involved, the association representing the licensed establishments expressed support for trace-back investigations. “From our perspective, bar owners and bartenders need to be cognizant they bear a responsibility to the public,” said Andrew Herf, executive director of Ohio Licensed Beverage Association. Like the state investigative unit, the beverage association offers classes on the law and regulations. “They are selling a product, that if not consumed responsibly, can be very dangerous,” Herf said. Dayton police referred a case stemming from a crash on Feb. 13, 2016, in which five people in two cars were killed on Interstate 75. James H. Pohlabeln, 61, of Dayton, was southbound in northbound lanes, when he crashed into a car carrying Kyle Canter, 23, of New Carlisle; Earl Miller II, 27, of New Carlisle; Vashti Brown, 29, of Dayton; and Devin Bachmann, 26, of Huber Heights; according to the investigative unit report. Agents determined Canter, Miller, Brown and Bachmann were attending a birthday party at the Shroyer Inn. The coroner’s report indicated all five victims were under the influence of alcohol. The bartenders told agents the four in the bar before the crash “had somebody with them that was driving that wasn’t drinking,” according to the investigative unit report. One witness said one of the victims was falling asleep in the bar and two were so drunk, the other two came and picked them up. On June 3, 2016, agents served the bar with a violation notice. The Ohio Liquor Control Commission ordered a 30- day suspension or a $5,000 fine, according to Sarah Creedon. The bar appealed to the Franklin County Common Pleas Court. The court upheld the punishment. On Oct. 22, the 10th District Court of Appeals upheld its decision overturning the common pleas court’s decision, according to court records. The case is now back for consideration in common pleas court. The laws underlying the trace-back investigations have been in place for many years, but the heightened focus goes back about eight years when the Ohio Investigative Unit merged with the Ohio Highway Patrol, Johnson said. In terms of the educational focus, Johnson compared the agents to DARE officers who educate school kids about alcohol and drugs. The unit also offers a high-school program, ‘The Sober Truth,” he said. Typically the agents get referrals in cases involving under-age drivers, serious or fatal crashes. While most cases end with lesser consequences, one Ashtabula County case ended with a felony conviction. In December 2017, Tracie T. Pascoe of Geneva pleaded no contest to attempted involuntary manslaughter, as well as furnishing alcohol to under-age persons, a misdemeanor, according to court records.

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Pascoe was placed on probation and ordered to do 150 hours of community service. She was also ordered to pay a $2,000 fine or a $500 fine to the county and $1,000 to a charity devoted to drunk-driving awareness. Pascoe and two family members were charged after a 2015 house party after which Alexandria M. Struhar, 20, of Ashtabula, died in a crash. Troopers or local police investigate the crashes but turn over the trace-backs to the investigative unit. “We put together what led up to the crash,” Johnson said. The investigations sometimes take months and often involve multiple interviews. When available, video from the night of the incident is seized, along with receipts and reports indicating who was working. In most cases, charges aren’t filed, state data shows. Last year, from the 467 referrals just 22 administrative cases were filed against the establishments and 68 criminal charges filed against those accused of serving the alcoholic beverages. Johnson said the state wants to prevent these crashes. “We don’t want to have to be doing these investigations,” he said.

ID: Advocates of Idaho liquor license reform are hopeful a new legislative bill will hit the spot Idaho Statesman By Darin Oswald January 25, 2019 Bardenay owner Kevin Settles is optimistic about legislation that would reform Idaho's liquor licensing. Among other changes the bill, similar to one he helped craft in 2009, would give more latitude to city and county governments. Click to video

LICENSE STATE NEWS WA: Washington regulators ponder new vaping rules that mimic alcohol, marijuana regulations The Spokesman-Review January 27, 2019 As educators in Spokane battle the proliferation of e-cigarette puffing in the classroom, state regulators are eyeing stricter and clearer rules for the sale of vaping products. New proposed rules from the state Liquor and Cannabis Board, which were presented at a meeting held in Spokane earlier this month, require full disclosure of business owners to regulators and impose escalating fines for failure to follow state laws, including allowing those under 18 to enter stores where vaping devices can be sampled. The Washington Liquor and Cannabis Board was given enforcement duties of the vaping industry by state lawmakers in 2016. That law prohibited sales to people under 18 and required any business selling vaping products, including those without nicotine, to obtain a $175 annual license from the state. The new rules, which likely will be revised before coming to the Liquor and Cannabis Board for a final decision, are intended to put vaping products on the same regulatory playing field as alcohol and marijuana, said Mikhail Carpenter, a spokesman for the board.

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“Vapor was one of those things where you just saw the industry got way ahead of regulation,” Carpenter said. “Things are starting to catch up.” Some of that regulation falls to the state, but much of it rests with federal authorities at the Food and Drug Administration, Carpenter said. The same year the state began regulating shops selling the products in Washington, the FDA announced a rule that the industry fell under their regulatory guidelines for tobacco, which included a ban on sales to minors and required inspections of retailers by federal authorities. The FDA has threatened to institute bans on certain vaping products if underage consumption numbers, which by all accounts are skyrocketing, don’t drop. Meanwhile, the vaping industry in Washington has been making its case against what they say are burdensome local regulations on a product that is intended to get users to stop smoking, rather than hook teens on nicotine in their formative years. A coalition of vapor industry owners, called the Pink Lung Brigade, sued the health authority of Tacoma and Pierce counties after they passed more stringent regulations on vaping shops than those imposed by the Liquor and Cannabis Board. A ruling for the vaping shops is under review by the Washington Courts of Appeal. Vaping businesses are willing to work with state regulators on rules that make sense for their industry, said Kim Thompson, president and co-founder of the trade group. “If we don’t step up to the plate, and show that we care, they’ll regulate us however they see fit,” she said. Thompson said the proposed rules from the Liquor and Cannabis Board seemed like “common-sense regulations.” The new rules from the state would seemingly clear up one lingering question Thompson said her industry continues to grapple with – the sale of a type of cannabis extract called cannabidiol, or CBD, in vaping products. CBD is often marketed for therapeutic purposes, and a new Washington law passed last year eases restrictions on sales of the products if they contain trace amounts of tetrahydrocannabinol, or THC, the psychoactive element in marijuana. The proposed rules from the Liquor and Cannabis Board prohibit state-licensed vaping stores from “possession of, sale, or offer for sale of CBD vaping products,” levying a $200 fine for the first offense. After that, penalties escalate and can include taking a store’s license. But CBD products come in other forms, including lotions and tinctures, that seemingly wouldn’t be affected by the new rule. Crystal Oliver, executive director of the Washington Sungrowers Industry Association that advocates for outdoor marijuana farmers, applauded the Liquor and Cannabis Board for taking steps to regulate CBD sales at vaping shops. Limiting the sale of such products to stores licensed under the state’s legal cannabis system would require that the products be tested for potency, pesticides and heavy metals before sale. “I think that it’s pretty problematic, especially because so many people associate CBD as a miracle drug of some sort,” Oliver said. “You have people going through chemo who are seeking out CBD at a vape store or a gas station, and not getting it from a regulated source.” Carpenter said a new draft of Liquor and Cannabis Board rules on vaping stores likely would be available for public review in February. The organization sent notice of the new rules to roughly 1,400 licensed vapor shops in the state.

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INTERNATIONAL NEWS South Asia: Are we becoming a nation of boozers? Sunday Observer By Lionel Wijesiri January 27, 2019 SRI LANKA - Alcohol consumption has been increasing across Sri Lanka in unbelievable levels. According to statistics, our per capita alcohol consumption in 2005 was 2.2 litres per annum. It increased to 3.7 in 2010, and by the end of 2015 it reached 4.5. Arithmetically, 204% in 10 years! The Excise Department reports state that ethanol imports for the manufacture of hard liquor has doubled from 10.4 million litres in 2013 to 20.4 million litres in 2015. The high levels were maintained in 2016 when 18.4 million litres were imported. These are figures for legal imports only. The excise revenue from liquor production in 2012 was Rs. 60,678 Mn and by 2016 it increased to Rs.120,792 Mn. The Excise Department website does not present the situation for 2017. However, according to the World Health Organisation our per capita consumption of liquor is quite high when compared with Europe where the average is 0.5 litres. What do these figures tell us? Before, we answer this question, we need to take a look at the other side of the coin – production of illicit alcohol. In this regard, there are two different views. The Expert Committee on Tobacco, Alcohol, and Illicit drugs of the Sri Lanka Medical Association (SLMA) says, illicit alcohol production has reduced significantly during the last several years. The Committee maintains that illicit alcohol is used by less than 10% of alcohol users, often giving a figure between 2.5%-6%. Some professionals do not agree with these figures. A senior lecturer at the Colombo University’s Economics Department who carried out independent research on the illicit alcohol market in the country said, 49 per cent of the total quantity of alcohol in the market was illicit. Perhaps, we need a fresh study on this important aspect. However, it is generally agreed that alcohol consumption is a significant contributor to the burden of disease in Sri Lanka and is a major public health concern.The social and economic changes in the country are paralleled by a steady increase in the production and use of alcohol. Nevertheless, a proportion of the alcohol produced in Sri Lanka is illicit and is a cottage industry outside governmental control. The low-cost illicit alcohol makes it an attractive option for the poor sections. The lack of regulation and quality control leads to mortality due to methanol poisoning, in addition to physical morbidity. The pattern of consumption in Sri Lanka has changed from occasional and ritualistic use to social drinking and has become a leisure activity. Years ago, drinking was portrayed as a consequence of poverty, but now it is also associated with relative affluence. Injuries, suicides and many chronic diseases result from harmful use of alcohol. It also contributes to road traffic injuries and fatalities, occupational problems, domestic violence, marital and social issues, including financial debt. Harmful use results in loss of productivity, income and trained manpower. On the other hand, the production and sale of alcohol results in substantial taxes and is a major source of revenue for the Government. The industry also provides jobs and large amounts of non-taxed income. Many election campaigns of political parties often include promises to restrict access to alcohol, a vote-winner among women. However, no government so far has implemented these promises as a complete (or partial) ban due to its impact on revenue. High taxation and the high cost of alcohol result in increasing moonshine markets with their lack of regulation, poor quality and dangers of methanol poisoning, in addition to loss of revenue to the Exchequer. NABCA Daily News Update (1/28/2019) 7

The organised alcohol industry has its own sophisticated promotion campaigns which project successful lifestyles and aim at recruiting untapped segments of society. While the alcohol industry is a legitimate operation, the availability of alcohol with minimal checks results in significant health consequences to individuals at risk. The media and mass education campaigns, with their limited budgets, are no match for industry-sponsored advertising and promotion. There are many laws in statute books related to alcohol. However, many regulations, including those related to drink-driving are observed more in the breach. The strict enforcement of drink-driving laws in Western countries is a main reason for responsible drinking and for responsible driving, and thus it argues the need for similar implementation in Sri Lanka. While psychiatric treatment and rehabilitation do help individuals to quit the habit, the delay in referral often results in them seeking help at end-stages, when family, social and financial supports are low, and the motivation to quit is limited. Early identification of the problem, e.g. drinking at workplaces, would pay greater dividends in breaking the cycle of poor habits. We do not have a systematic study done on the expenditure related to alcohol, employing conservative costs, to prove the theory that more money is spent every year to manage the direct and indirect consequences of alcohol use (including health care costs, absenteeism, loss of productivity, premature deaths, loss of trained manpower) than that gained in terms of taxes from the sale of alcohol. While revenue from alcohol appears to help in social and economic development in the short term, it clearly results in huge costs in the medium and long-term. To view alcohol-related problems as a personal issue is to fail to understand the complex dynamics related to alcohol policies and their impact on individual health. While holding individuals responsible for their lifestyle choices is crucial, the Government cannot abdicate its responsibility and fail to use public health approaches, which have a greater impact on the use and consequences of excess alcohol consumption. The enforcement of laws related to alcohol should include a broad range of policies including those related to licence, taxation, restrictions on availability and purchasing, education and media information campaigns, advertising and sponsorship, laws on drink driving and alcohol-related offences and those related to treatment and rehabilitation. The current ad-hoc planning should change to one with long-term inter-sectoral perspectives and policies.

PUBLIC HEALTH NEWS Marijuana for pain: hype or hope? The Houston Chronicle January 27, 2019 Retired NFL defensive lineman Shaun Smith said that for nine years, he fired up “two blunts before every game.” He appeared with other retired players on a Bleacher Report YouTube video about marijuana use in the NFL that’s been viewed 2.773 million times. And those guys estimate that 80 percent of players and staff smoke marijuana recreationally, if not right before taking the field. Their motive? “We’re all big guys, and our bodies hurt,” said Smith. They use it as an alternative to opioid pain meds. Bo Scaife, former tight end for the Tennessee Titans and the Cincinnati Bengals, said that in his career, he had “an injury- plagued journey” and had been given pain pills and found himself in a dark place. “So it was easy for me to receive the benefits of marijuana as a viable option.” These days, he uses topicals to ease pain and arthritis. But does smoking marijuana really ease pain and treat chronic diseases? And does cannabidiol, or CBD — an active ingredient in marijuana (without the psychoactive effect of THC, its other much-touted ingredient) — really work topically to ease pain? Well, the players would say yes. But the science isn’t so clear. So, let’s review the reliable findings, pro and con, and offer our suggestions. NABCA Daily News Update (1/28/2019) 8

A word to the wise: If it’s legal where you live and marijuana for easing pain (as pill, edible, smokable or topical) is prescribed by a licensed doc, you want to be sure it’s going to be effective. Remember, smoking anything has serious health repercussions, and masking pain instead of alleviating it only prolongs or worsens your discomfort. What Studies Suggest Pro: A new study published in Neurology has found that THC in marijuana eases neuropathic pain, a complex, chronic condition caused by changes in nerve function or structure. Diabetes causes about 30 percent of neuropathy cases, but there are hundreds of diseases associated with neuropathic pain. FYI: THC binds to your body’s natural endocannabinoid system, which plays a part in regulating everything from digestion to temperature. Pro: A textbook called Contemporary Health Issues on Marijuana, published by Oxford Clinical Psychology, lays it out pretty clearly: “Medical marijuana in the United States has bypassed the standard process of scientific investigation.” But they also say, “We conclude that some benefits of marijuana’s core elements — tetrahydrocannabinol and cannabidiol — are supported by a handful of controlled clinical trials for a very limited number of health problems.” Those health problems include two types of epileptic syndromes, for which the cannabis-based drug Epidiolex was approved by the Food and Drug Administration in June 2018. Pro: The CBD potions available are derived from the hemp plant, and CBD does not cause a “high.” Some studies show that it helps reduce intraocular pressure in glaucoma. Others support its use in controlling Parkinson’s disease symptoms and easing PTSD-related nightmares. Con: In July 2018, The Lancet Public Health published “Effect of cannabis use in people with chronic non-cancer pain prescribed opioids: findings from a 4-year prospective cohort study.” Their conclusion after tracking more than 1,500 people was, “We found no evidence of a temporal relationship between cannabis use and pain severity or pain interference, and no evidence that cannabis use reduced prescribed opioid use or increased rates of opioid discontinuation.” Con: When it comes to CBD, either orally or topically, the preparations on the market seem pretty unreliable. A 2017 study in JAMA found that almost 43 percent of CBD products contained too little CBD; around 26 percent contained too much; and 20 percent contained the get-you-high pot chemical THC. Our suggestion: If you have chronic pain, see a physical therapist and orthopedic doctor for joint and muscle pain. Explore use of ice baths and saunas/whirlpools and massage. Opt for anti-inflammatory food choices (ditch red meats, go for veggies and whole grains) and try stress management using deep breathing or meditation. Acupuncture may also help, as can cognitive behavioral therapy, which changes your response to pain.

INDUSTRY NEWS The Russian market: evolving towards a healthier future Drinks Insight Network By Callum Tyndall January 28, 2019 While discussion of regional drinks industries often focuses on established giants like the US and rising interests such as China, Often left out of the discussion alongside established regional giants like the US and rising interests such as China, Russia nevertheless represents a huge consumer base and investment opportunity that should not go ignored. Callum Tyndall profiles the country’s beverage sector. Russia’s association with beverages tends to be stereotyped down to just one product: vodka. And while it certainly plays a hugely significant part in the Russian spirits market, according to GlobalData’s August 2018 report Country Profile: Spirits in Russia vodka’s market size was greater than that of the next two leading value spirits categories combined, it is not the last word in the Russian beverage market. In the spirits sector alone, rum is expected to be the fastest growing product category in Russia with a CAGR of 10.1% from 2017-2022. It is perhaps NABCA Daily News Update (1/28/2019) 9 unlikely that the national tipple will be ousted any time soon, but rum’s growth is indicative of the changing nature of the market. Notably, it should be kept in mind that the Russian Government has taken a strong stance against alcohol in recent years and has introduced several measures designed to curb alcohol abuse and push people toward healthier drinking habits. Although there is certainly still room for growth in the Russian alcohol market, it may well be that the larger opportunities exist in categories such as soft drinks and hot drinks. Although there are certainly notes of caution to be sounded regarding the country’s market, most notably the impact of international sanctions on the economy and certain political uncertainties, the Russian beverage industry still holds promise for manufacturers cautious of the coming shifts. Alcoholic drinks maintain success but must contend with regulatory hurdles According to the aforementioned GlobalData report, the spirits category was worth RUB2,328.7bn in 2017 and is expected to grow to RUB2,407.3bn by 2022. Of that value, RUB1,157bn was attributed to vodka. Meanwhile, the wine category (Country Profile: Wine in Russia) achieved a value of RUB729.9bn in 2017 and is forecast to grow to RUB824.6bn by 2022. In addition, according to GlobalData’s Russia Beer and Cider Market Insights 2018 report, beer had a market volume of an impressive 80,075.2 thousand hectolitres in 2017, compared to just 14,626 of spirits and 11,056.8 of wine. Spirits may be the dominant category for the nation when it comes to outside perception, but beer is far and away dominating the alcoholic sector when it comes to sheer volume. However, all alcoholic drinks are facing a certain level of threat to their continued success. Reuters reported in February 2018 that Carlsberg had seen 2017 beer volumes decline by 14% in Russia despite growth in all other markets. In no small part, this is due to regulations that are being implemented by the Russian administration in an attempt to reduce heavy drinking. Notably, since January 2017, the size of beer PET bottles has been limited (plastic bottled beer dominates the Russian market), thus forcing companies to reconfigure their balance of value to volume. While a hurdle for alcohol manufacturers, the regulations have seen reportedsuccess that, if perhaps not as great as claimed, is likely to only prompt the government to continue on its current path. Soft drinks threatened by the promise of a sugar tax as hot drinks find success In the non-alcoholic sector, Russia is currently facing the same change that many countries have gone through in recent years: the prospect of a sugar tax. Although the efforts to reduce obesity through the tax are laudable, there is some question as to the efficiency of such methods. In the UK for example, the recent sugar tax brought in notably less than originally estimated due to companies’ pre-emptive reformulations of their drinks. While the end result, reducing the sugar content of drinks, is the same, there is some question as to the regulatory stability of the move if it does not bring in the predicted taxes. And predictably, soft drink companies are not happy at the prospect of such a tax. Jonathan Davison, beverage analyst at GlobalData, said: “Political demand for a sugar tax in Russia is rising. In November, the government proposed a 20% excise tax on sweetened soft drinks, slated to commence in January 2019. But leading companies and producers of carbonated soft drinks (CSDs) in Russia revealed their intention to block the proposal, fearing the market would shrink significantly as a result. Further progress has been slow and the likelihood of the excise tax coming into effect within the planned timeframe remains unclear.” Davison continued: “Interest in such legislation at a consumer level is also growing but remains somewhat limited. Approximately one third of respondents to GlobalData’s 2018 Q3 consumer survey in Russia indicated a tax on soft drinks would have no impact on their shopping behaviour, much higher than the 26% who said likewise globally. For those in Russia who would cut back in the event of a tax, this would most likely be driven by spending reasons rather than health ones. The challenging economic climate continues to impact disposable incomes, although the 52% increase in niche low calorie CSD volumes in 2017 suggests there is some appetite for a more self-regulatory approach.” Instead, the Russian beverage industry may look for success in categories such as hot drinks. With a 2017 market value of RUB479.9bn and a predicted CAGR of 5.2% to 2022, hot drinks are growing as an industry in Russia. Hot tea currently reigns in sales, but coffee is expected to take the advantage in CAGR in the coming years. The sector as a whole perhaps predictably accounts for the bulk of the hot drinks industry in Eastern Europe. When it comes to non-alcoholic beverages however, the primary consideration for those looking at the market should be simple: NABCA Daily News Update (1/28/2019) 10 hot drinks in Russia already represent higher per capita expenditure than both regional and global averages and this is only expected to increase in the coming years. Instability may threaten the soft drinks sector, but hot drinks continue to ascend.

No One Is Safe From Counterfeit Wine VinePair By Ryan Smith | Illustration By Danielle Grinberg January 27, 2019 Buying quality wine has never been more fraught. Global food and beverage is reportedly a $40 billion industry. (Art theft, on the other hand, is valued at $6 billion per year.) The Interprofessional Council of Bordeaux Wine believes that 30,000 bottles of counterfeit imported wine are sold every hour in China alone. For wine collectors, it’s an enormous risk. Bottles of first-growth Bordeaux, such as Château Lafite Rothschild, Mouton-Rothschild, and Latour, as well as expensive Burgundy like Domaine Romanée Conti, have been duplicated for decades. Here’s how it might happen: Counterfeiters buy empty bottles from top producers for $1,000 or more on the black market. They then re-fill and cork these bottles and pass them off to unsuspecting buyers Now, as the size and thirst of global wine consumers are skyrocketing, counterfeiting is not limited to super-high- end . Even small, relatively inexpensive labels are at risk. Savvy winemakers like Frank Cornelissen are not sitting idly by. Cornelissen’s natural Sicilian wines, grown on 46 acres of volcanic soil, have become immensely popular in recent years. In 2014, Cornelissen decided to tackle counterfeiting head on. “Limited production wines are always at risk,” Cornelissen says. “We saw that the technology was available, so why not use it?” Now, Cornelissen’s wine labels feature unique RFID and QR codes that buyers can scan with their smartphones. He also uses a distinctive black plastic cork that forms a perfect seal with the glass neck of the bottle, while still allowing just the right amount of air to enter the bottle. “The cork is more complicated than normal, which is harder to fake,” he says. Ann Colgin, of California cult label Colgin Cellars, licensed Kodak’s Traceless system. It imprints labels with a tasteless, odorless marker that can only be read with a proprietary handheld scanner that is made exclusively by Kodak. Legendary Super Tuscan producer Sassicaia began embossing bottles with its estate name, Tenuta San Guido, after 12 people were arrested for producing 20,000 counterfeit bottles of the 1994 vintage. Each bottle was worth about $1 million. The company also began looking into embedding its bottles with microchips to add an additional layer of authenticity. Italy has instituted an array of labels and seals for all its DOC and DOCG wines. These labels include holograms, watermarks, and unique registration numbers that can be searched for on some appellation websites. Physically and ideologically, they resemble new currency. You may think that the wine from rare vintages by these legendary labels may speak for itself, but many of the top forgeries can fool even the most well-known wine tastemakers. Critic Robert Parker infamously awarded 100 points — his highest grade — to a magnum of 1921 Château Petrus, owned by fakester Hardy Rodenstock. Petrus later claimed it never produced a 1921 bottling in magnum. For this reason, wine merchants and buyers need to have their own systems to weed out fakes as well. Jamie Wolff, a partner and wine buyer at Chambers Street Wines in Manhattan, has seen his fair share of dubious wines over the years. In the 1990s, Wolff worked at Christie’s as a wine buyer. NABCA Daily News Update (1/28/2019) 11

“I’ve been working for 30 years in the wine scene, so if I don’t know you by now, I’m already suspicious,” he says. “We’ll visit a potential seller’s cellar and taste a few things, and have a look at the bottles to see if everything checks out.” Wolff adds that referrals are another way they find a potential seller. “Business is founded on relationships,” he says. If you’re looking to do your own wine investing and don’t want to be duped, experts suggest abiding by an old saying: “Buy the seller.” In other words, do your due diligence on the person selling you the bottle. Check online to see if the seller has a bad reputation, research the provenance of the bottle extensively, and avoid buying single bottles if you can. “If they’re coming to you with just a single bottle or two of [Chateau] Latour, that’s a red flag,” says Wolff, who considers that one surefire way to spot a fake wine that “fell off a truck.” If you’re still unsure, Wolff recommends going through Christie’s or another big auction house to help you source rare bottles. But remember, Wolff says (and it’s something Robert Parker knows all too well): “No one is invulnerable.”

Dartmouth sees rise in alcohol incidents Concord Monitor January 26, 2019 Dartmouth College last school year saw a 12.6 percent increase in the number of alcohol-related incidents that required the involvement of Dartmouth security officers or dorm advisers, according to newly released data from the college. The annual undergraduate student alcohol intoxication incident data showed 437 alcohol-related incidents that required intervention by either Dartmouth Safety & Security or undergraduate advisers or other residential life staffers in 2017-18, up from 388 in the 2016-17 school year. The number was the highest since such incidents were first tracked in 2011-12. The second-highest total, 414, occurred in the 2015-16 school year. The Dartmouth report showed the number of intoxication cases that required treatment at either the college’s Health Service clinic or Dartmouth-Hitchcock Medical Center remained relatively flat for the fourth straight year, at 183, and well below the 263 such cases in 2011-12. But medical encounters in which a student’s blood alcohol content was greater than 0.25 – more than three times the legal limit of 0.08 and an indication of very serious intoxication – increased from 30 to 37, on par with the 2014-15 school year, but less than the 62 such encounters reported in 2011-12. Dartmouth President Phil Hanlon banned hard alcohol for undergraduates on campus in 2015, and the college has introduced a number of “harm-reduction” strategies, including prevention programs through a Student Wellness Center and a bystander initiative that trains and encourages students to intervene if they see another student engaging in high-risk drinking behavior. Asked about the increases in alcohol-related incidents and medical encounters for high blood alcohol content levels, Dartmouth spokeswoman Diana Lawrence said the college takes all such fluctuations “very seriously” and also looks at long-term trends. “The changes last year could be related to a number of factors, including increased prevention efforts related to enforcement,” Lawrence said via email, also noting that the numbers from last fall show a “notable decline” in the same categories. “Since the launch of more evidence-based practices by the College in 2012, high-BAC incidents have declined and remained at under one percent of the student population,” Lawerence wrote. “We constantly strive to improve our community’s safety and are proud of the wide range of best practices in reducing high-risk behaviors currently occurring on campus.”

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DAILY NEWS CBJ: What’s in a label? A lot when it comes to alcohol The Daily Progress By Bryan Mckenzie January 26, 2019 Alcoholic beverage labels tease, teach and entice customers, but no brew, spirit or wine may be sold before the time the federal government gives its label approval. Meeting bureaucratic requirements while also setting a tone for the drink and a brand for the maker is not an easy proposition, however. “When you have a bottle on a store shelf with a dozen other bottles, you want a label that attracts attention,” said Michelle Sanders, of Glass House Winery in Albemarle County. Sanders owns the winery with her husband, Jeff Sanders. “When I’m in a store I look for colors and designs that catch my eye. Bright yellows and oranges stand out and we try to work those into our labels,” she said. Government regulation of the alcohol business is a tradition harkening back to Alexander before he was featured in a Broadway musical. Alcohol taxes led to the 1794 Whiskey Rebellion, put down by the U.S. military led by President George Washington. When the 21st Amendment repealed Prohibition, the role of regulating and taxing the suddenly legal-again alcohol industry fell to the Department of the Treasury and eventually to the department’s Alcohol and Tobacco Tax and Trade Bureau, or TTB. TTB personnel review label artwork to fend off the offensive, obscene, misleading, inaccurate and otherwise unacceptable. The agency sets label information requirements, including alcohol content, maker or importer, brand, category of beer, wine or liquor, a federal government-approved health warning, net contents of the container and country of origin. That would be enough for one label to do, but beverage makers also need it to attract customers and set an image. Sometimes those goals clash. Distillery near Lovingston creates single malt whiskey in the style of the Scots. The distiller even imports some single malt scotch whiskey to blend with its locally made product. Its position in the Virginia highlands led the distiller to include “Virginia Highland Malt Whisky” on the labels. The TTB agreed at first, but later changed its ruling even though the label was already in use. After discussions with federal officials about the rationale behind the wording, why it fit the product and the issues of changing an existing label, the TTB approved a modified label: Virginia-Highland Whisky. “The solution was working with the TTB to ensure our joint goal of consumer transparency, while staying within the code of federal regulations on every label,” said Jeff Heddy, operations director at Virginia Distilling. Different beverage makers use different marketing motifs on labels. Albemarle County-based Reason Beer uses a capital R in a circle on the left side of the label and varies the color and art from product to product. Charlottesville’s Champion Brewery uses art similar to the nose paintings on World War II military aircraft. Flying Dog Brewery in California uses art designed by gonzo-style artist Ralph Steadman and dog-themed names for the brews. Sometimes, a beverage producer breaks from its own tradition when creating a beverage and needs a label that does the same. NABCA Daily News Update (1/28/2019) 13

Glass House’s Vino Signora, a sweet and bouncy white wine, features a cartoon Carmen Miranda-like figurine dancing on the label, a radical departure from the colorful but dignified designs of other Glass House offerings. “We have a basic label that is a pineapple with the roofline of the winery. That represents us and what we’re about,” Sanders said. “We also have a couple of wines that are fun and loved by our customers but don’t necessarily represent the winery, so we use a different style.” Creating graphics that represent the wine and the winery and that pass government muster can be difficult. The Glass House Pinot Gris, for instance, was planned to go to market with the name Vino Maggia, or magic wine. “A lightning strike hit the wires that the grapes were growing on and the vines turned black,” Sanders recalled. “Jeff said that we might as well tear up the vines because they were clearly dead, but our consultant said to wait and see. The next year, they came back. It was like magic, and that was a great story we could use, hence the name Vino Maggia.” But the TTB had other ideas. “They turned it down. They said we were calling the wine ‘magic’ and implying that it had healing properties or magic properties,” Sanders recalled. “We pointed out that they approved Magic Hat Beer’s name and label and they said that the title didn’t refer to the beer, but to the hat. We ended up just calling it Pinot Gris and we included some stars and designs into the label and we tell the story to customers in the tasting room.” Regulation can create opportunities, though. Heddy said changes in regulations can lead to new niches and allow producers to develop new products. In Scotland, the definition of a single malt whiskey is one made from 100 percent malted barley from one distiller and aged in wood casks for at least three years. The TTB has no category and no definition of single malt, however. “We have what we believe is a world-class single malt whiskey but that is not a defined designation with the TTB,” he said. “If you can get an agreed-upon definition of what single malt is, you can provide guidance to distillers on what they need to do call their product ‘single malt’ and educate customers about what single malt is and what to expect.”

Prohibition Exhibit Highlights the 18th Amendment’s Historical Impact on the Brew City Milwaukee Independent Posted by Editor January 28, 2019 The Milwaukee County Historical Society’s 2019 feature exhibit kicked off on January 16, commemorating the 100th Anniversary year for the ratification of 18th Amendment. One hundred years ago, the 18th Amendment was signed, and the nation saw Prohibition in its future. Tapping its extensive archive on brewing, the Milwaukee County Historical Society (MCHS) put together an engaging display that looks back at the events from the tumultuous period of our nation’s history, and how those years affected the city. “How Dry I Am: Prohibition Milwaukee” will be on display through April at the Historical Center, 910 N. Old World Third Street. As an interactive experience, guests can expect to dive deep into Milwaukee’s Prohibition Era. “This exhibit offers visitors a really interesting look at that this unique and pivotal period in history through a Milwaukee lens, said Ben Barbera, curator at the Milwaukee County Historical Society. “It is exciting to show the full story of Prohibition, as well as allow people to compare the challenges and opportunities of the 1920s with those that we see today.” The exhibit explores historical topics through artifacts, images, and interactive components. Included are rarely seen items and artifacts from The Pabst Mansion, and the private collections of other partner organizations. NABCA Daily News Update (1/28/2019) 14

The Prohibition Era came as a result of a widespread temperance movement during the first decade of the 20th century. Its policies were difficult to enforce, despite the passage of companion legislation known as the Volstead Act. The increase of the illegal production and sale of liquor – known as bootlegging, the proliferation of speakeasies – illegal drinking spots, and the accompanying rise in gang violence led to waning support for Prohibition by the end of the 1920s. In early 1933, Congress adopted a resolution proposing a 21st Amendment to the Constitution that would repeal the 18th. It was ratified by the end of that year, bringing the Prohibition era to a close. “The Society chooses a topic each year to explore that has broad interest to the public and with the 100th anniversary of Prohibition, it is the perfect time to look back,” said Mame McCully, Executive Director of MCHS. “We are grateful to have the community’s support including the Greater Milwaukee Foundation, SafeHouse Milwaukee, and other private donors.”

It took 162 years, but this Massachusetts town now has a grocery store that can sell alcohol MassLive By Scott J. Croteau January 27, 2019 It took 162 years, but one town in Massachusetts will now have a grocery store that can sell alcohol for people to take home. The town of Rockport was dry since 1865, reports the Gloucester Daily Times. But last week, the town’s Board of Selectmen voted to allow the Whistlestop Market to become the town’s only store to sell booze. The store has the town’s sole grocery store liquor license, the newspaper reports. According to the Gloucester Daily Times, Rockport banned alcohol after a woman named Hannah Jumper led a rebellion against alcohol. Jumper and 200 women destroyed anything with alcohol in 1865. Beer and wine could be sold at restaurants since 2006, but the alcohol needed to be consumed inside the eateries, the newspaper reports. Residents had to leave town to buy booze. In 2013, voters agreed one grocery store could have a liquor license. For years, a new store didn’t open until Whistlestop Market decided to open, the Gloucester Daily Times reports. Owner Jay Smith told the newspaper it will take a couple weeks before the store begins to sell beer and wine.

Woman got drunk off vanilla extract A Connecticut woman was arrested for DUI, drunk on vanilla extract. NBC 2 January 25, 2019 NEW CANAAN, Conn. (AP) - A Connecticut woman charged with driving under the influence was drunk on vanilla extract, which contains a significant amount of alcohol, police said. Hearst Connecticut Media reports New Canaan police found 50-year-old Stefanie Warner-Grise sitting in a car at an intersection with her eyes closed at about 4:45 p.m. Wednesday. Officers said they found several bottles of pure vanilla extract inside her vehicle.

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