Wednesday, March 31, 2021 www.nabca.org

• MS: Legislature passes home delivery of alcohol. Liquor privatization dead • SC: Senate to soon vote whether to OK bill that would lure wine giant to SC TODAY’S • Asia: Chinese liquor company to set up plant in Pakistan HIGHLIGHTS • Southern Glazer’s Wine & Spirits Denounces Discrimination and Acts of Hate Against People of Asian Descent • Brewers Association Unveils Top 50 Craft Breweries List For 2020 (excerpt)

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Visit NABCA’s website for information on: NABCA's 84th ANNUAL CONFERENCE • Control State Agency Information R th egistration is now open for the 84 Annual • Doing Business in Control States Conference which is virtual this year. • NABCA News The conference will be held May 17-19, 2021. This year’s theme is SHARING SOLUTIONS. Click here for more details. For questions, contact the Meetings Department at . [email protected] CONTROL STATE NEWS NABCA NEWS MS: Legislature passes home delivery of alcohol. Visit NABCA’s COVID-19 Resource page for updates Liquor privatization dead regarding policy changes that effect on- and off- Mississippi Today premise retail operations. by Geoff Pender The Collection: An Alcohol Research Summary March 30, 2021 (formerly Annotated Bibliography) A comprehensive Lawmakers have passed a measure that would allow overview of the latest scientific evidence on home delivery of beer, wine and liquor, similar to important topics related to alcohol policy. grocery deliveries that have become popular, Sharing Solutions E-Newsletter! A platform for the particularly amid the COVID-19 pandemic. NABCA community to share successful implement- tations and lessons learned about your good work. But a push to privatize Mississippi’s liquor warehousing and distribution died this session. TTB NEWS House Bill 1135, now before the governor who has You can now find all of TTB’s COVID-19-related not indicated whether he’ll sign it into law, would news and guidance in a single location. allow home delivery of alcohol from liquor stores and other retailers within 30 miles of the stores. Delivery would not be allowed to any “dry” areas where alcohol sales are prohibited and would be allowed only from 10 a.m. to 10 p.m. Monday through Saturday, not on Sundays nor on Christmas day. Purchasers would have to be 21 or older, as would delivery drivers. 2

If signed into law, it would take effect July 1. “I am not going to it here and represent to you that everybody is pleased with this amendment,” said LICENSE STATE NEWS state Sen. , R-Spartanburg. “And I think we were very clear in our meetings that we SC: Senate to soon vote whether to OK bill that encourage the parties to continue to work together.” would lure wine giant to SC Retailers, wholesalers and advocates for restaurants The State and bars have ripped the legislation as being too By Maayan Schechter partial to one company, giving Gallo an unfair March 30, 2021 advantage in the wine, beer and spirits market. COLUMBIA, S.C. - South Carolina senators hesitantly On their side are some lawmakers, who questioned agreed Tuesday to advance legislation that would why the Legislature would bend over backwards for help lure a major California wine manufacturer and Gallo when similar legislation has not passed to do distributor to Chester County and add a small almost the same for distilleries. number of tasting rooms in the state — an addition “We always seem to be in a rush to fashion new law that competitors have criticized as unfair. for some shiny object coming from out of state, bend The Senate Judiciary Committee voted to advance a over backwards to get rid of a system that we’ve had bill that would allow California-based Gallo Winery in place for a number of years,” said state Sen. to open three satellite tasting rooms, sending the Marlon Kimpson, D-Charleston. controversial measure to the Senate floor where its “But the local restaurants tell me that these testing proponents hope it will pass before the Legislature’s rooms unnecessarily drive up the competition,” April crossover deadline, ensuring it gets to the Kimpson added. House before the session ends. State Sen. , R-Pickens, meanwhile, said he The bill advanced with new restrictions under a was most concerned about his mom-and-pop stores. change proposed by Senate Minority Leader , D-Orangeburg. “First of all, there would not be a tasting room set up in Pickens County ... with all due respect,” Hutto said. Gallo would only be able to open three, not four, satellite tasting rooms, could only sell six bottles of Senators also took turns jabbing the state’s product and not 12 and would have restricted hours commerce department, a state agency, along with of operation, requiring Gallo’s satellite stores to the state’s Department of Revenue, that helped to close at 5:30 p.m. so they don’t compete with local craft the legislation. “Another Bobby Hitt special,” restaurants and wine bars, Hutto said. said state Sen. of the commerce director, who the Richland Democrat has tangled Gallo Winery wants to invest $400 million to build its with repeatedly since Harpootlian was elected to first East Coast hub on roughly 600 acres in Fort serve in the Senate. Lawn, a former mill town, that would serve as the company’s second U.S. location handling bottling, State Sen. , D-Darlington, questioned canning, warehousing, distribution and, one day, the deal Tuesday but attempted to make more clear manufacturing its own cans. where he stands. The company would be required to add at least 300 “I drink water — I just believe in Jesus,” he said. jobs, but testified it’ll add closer to 500.

Gallo also wants to open satellite tasting locations, MD: Senate Approves Nominees To Alcohol giving consumers the chance to try and buy its wine, Commission After Short Delay not beer or liquor. The Maryland Senate gave unanimous approval Monday Gov. Henry McMaster supports the legislation and to two nominees to a new statewide commission that has asked the Legislature to move quickly on the regulates alcohol and tobacco. investment. Patch.com By Danielle E. Gaines, Maryland Matters March 30, 2021 3

The Maryland Senate gave unanimous approval through advocacy and education. The 501(c)(6) non- Monday night to two nominees to a new statewide profit trade association relies heavily on in-person commission that regulates alcohol and tobacco. events like the annual Texas Craft Brewers Festival which pivoted to a smaller virtual experience in Votes on the two nominees — Eric J. Morrissette and 2020. Purchasing a Liquid Bake Sale beer is a way Barbara A. Wahl — had been postponed Friday by beer enthusiasts can patronize a local brewery and Sen. Benjamin F. Kramer (D-Montgomery). help support the TCBG’s mission. Kramer said last week he asked for the short delay to “Sometimes we feel like the PTA for breweries, but learn more about the nominees to the newly formed in the best way possible,” Texas Craft Brewers Guild Alcohol and Tobacco Commission, the creation of a Executive Director Charles Vallhonrat said. “When bill he sponsored in 2019 to remove regulatory the idea came up to throw a fundraiser for the Texas authority over alcohol from the comptroller's office. Craft Brewers Guild, a bake sale seemed like a On Monday, Kramer said he'd researched the natural thing to do. When we found out we could candidates and they were well qualified for the partner with our friends at TexMalt, we knew for panel. certain it was something we had to do. We simply But Kramer also warned that the commission could couldn’t pass up the opportunity to feature Texas take on greater importance in coming years if the grown malt in some of the most creative ways state legalizes marijuana and shifts oversight of that possible with breweries across the state, while at the drug to the panel as well. Kramer noted that there same time ensuring the on-going operations of the remains one vacancy on the panel. non-profit trade association that advocates, educates, and promotes Texas craft breweries.” "I hope that the governor ensures that whomever the governor appoints will be extremely well Just like flour forms the base of a cake recipe, malted qualified to take on the important duties of this new grain is foundational to any beer recipe. From commission because it has an exceedingly important decadent pastry stouts, to double IPAs, to farmhouse role to play," he said. saisons, each brewery’s Liquid Bake Sale creation showcases Texas-grown malt from Fort Worth based The nominees were approved without further TexMalt in a different, unique way. discussion or debate. “We cannot tell you how excited we are to see our malt in the hands of so many talented Texas TX: Texas craft breweries team up for Liquid Bake Brewers!” TexMalt Cofounder Chase Leftwich said. Sale, raise funds for the Texas Craft Brewers Guild “The Liquid Bake Sale collaboration left the door wide open for creativity at the participating Craft Brewing Business breweries and the crew here at TexMalt are dying to March 30, 2021 try the different variations!” Dozens of Texas breweries are joining forces this Participating breweries began brewing their Liquid spring to throw an old school community bake sale. Bake Sale beers in early March, and the first few Only, instead of baking up brownies and lemon bars, creations — including an Imperial Babka Stout from they’re brewing handcrafted beers with a foundation Austin-based Jester King Brewery, a Lemonbar of Texas-grown malt and releasing them from their Blonde Ale from Corpus Christi based B&J’s Pizza taprooms across the state. Just like with a Brewpub, and a double dry-hopped IPA from San conventional bake sale, it’s all about variety. Liquid Antonio-based Freetail Brewing Co. — have already Bake Sale beers are not limited to a single recipe, or started to roll out. even a specific style. Each brewery is bringing something different — and delicious — to the table. More Liquid Bake Sale beers will be released in the weeks ahead with bottled and canned beers The statewide collaboration and fundraiser come featuring retro, bake sale inspired label art from after an immensely challenging year for Texas craft Austin-based designer Lauren Dickens. For beer brewers, including for the Texas Craft Brewers Guild, enthusiasts looking to further support the initiative, which works to advance the brewing industry Liquid Bake Sale T-shirts and stickers are available in the Texas Craft Brewers Guild’s online store. 4

INTERNATIONAL NEWS Dr Anthony Khawaja, who led the research, added: “We observed a dose-response with our findings – in United Kingdom: British study links alcohol with other words, there was evidence for reducing chance lower risk of developing cataracts of requiring future cataract surgery with Research finds lower risk among those who drink up to 14 progressively higher alcohol intake, but only up to units a week – especially if they drink red wine moderate levels within current guidelines.” The Guardian The authors stressed, though, that while there By Dennis Campbell, Health policy editor appeared to be a close association between March 31, 2021 moderate drinking and cataracts, they had not found People who consume up to 14 units of alcohol a a definite causal link. week have less chance of developing cataracts, The NHS has identified drinking as one of the risk especially if they drink red wine, a new British study factors for cataracts, alongside smoking, diabetes has found. and family history. Antioxidants found in wine could help explain why Dr Sadie Boniface, the head of research at the moderate drinkers are at up to 23% less risk of having Institute of Alcohol Studies thinktank, cast doubt on to have cataract surgery than people who shun the findings. Longitudinal studies such as UK Biobank alcohol, the researchers believe. could give a skewed picture of the nation’s health Cataracts – cloudy patches that form in the lens of because many volunteers were often in good health, the eye – are a major cause of impaired eyesight and she said. blindness, mainly in older people. Removing them in “Comparing the health of moderate drinkers with a short procedure is the commonest surgery carried that of non-drinkers also carries problems. Non- out by the NHS, which performs about 450,000 such drinkers are a diverse group, including people who operations a year in England. have stopped drinking because of health problems. Academics from Moorfields eye hospital in London This means moderate drinking can artificially look and University College London’s institute of like it carries health benefits, because the moderate ophthalmology studied the medical and lifestyle drinkers are compared to people on average in poor history of 492,549 participants in either the UK health,” said Boniface. Biobank or Epic-Norfolk studies of people’s health “The bigger effect seen among wine drinkers may be over many decades. because of other characteristics of this group to do They found that people who drank within the 14 with their cataract risk which weren’t accounted for. units a week maximum recommended by the If the amount of alcohol or number of units government – equating to about six and a half somebody drinks was having a direct effect, you’d glasses – were less likely to have cataract surgery. expect this to be similar regardless of drink type.” Risk was lower among wine drinkers than those who consumed beer or spirits. In the Epic-Norfolk study those who drank wine at least five times a week were Asia: Chinese liquor company to set up plant in Pakistan 23% less likely to have cataract removal than non- drinkers while those in the UK Biobank study were ANI 14% less likely. March 31, 2021 “Cataract development may be due to gradual Islamabad [Pakistan], March 31 (ANI): A Chinese damage from oxidative stress during ageing. The fact liquor Company will be setting up a plant in Pakistan, that our findings were particularly evident in wine the first such alcohol firm from China to establish a drinkers may suggest a protective role of polyphenol unit in the Islamic nation, according to local media antioxidants, which are especially abundant in red reports. wine,” said Dr Sharon Chua, the first author of the The company making an entry into the Pakistani findings, which have been published in the journal market, Hui Coastal Brewery and Distillery Limited, Ophthalmology. was registered with the country's financial 5 regulatory agency on April 30, 2020, Geo News Research Institute (TDRI), a Bangkok-based think reported. tank. "The company formally started its beer production Craft beer promoters see the industry as a potential last week, which product will be supplied to Chinese wellspring of economic opportunity for nationals working at various projects launched in homebrewing entrepreneurs, now more than ever as different areas of Pakistan under the China-Pakistan the kingdom seeks new growth drivers with the Economic Corridor and mines and mineral projects in pandemic-induced collapse of the crucial tourism Balochistan," Mohammad Zaman Khan, director- industry. general, Excise and Taxation South, told Dawn. Yet the legal scales have steadily tipped against craft "The application took over a year for approval and in beer brewers during the Covid-19 pandemic, 2018 the former Balochistan government agreed to including through a law passed in December 2020 issue a licence to the Chinese company," the Zaman that banned online advertising and sales of alcohol. Khan said. The bans, while applied to both big and small According to the local media reports, the licence was brewers, have had a much bigger impact on craft issued by the Balochistan Excise, Taxation and Anti- beer suppliers who have only been operating for a narcotics department. few years and have yet to establish their brands and distribution networks. There are an estimated 50-80 The company, Hui Coastal Brewery has been craft beer brewers in Thailand; it's unclear how many launched as a joint venture with Balochistan at the have gone under during the pandemic. Lasbela Industrial Estate Development Authority. The company's plan is to introduce two famous Boonrawd has produced and promoted Singha Beer brands in Pakistan for export. as the 'national beer' since 1933. ThaiBev launched competing brew Chang in 1999 with the huge market Alcohol beverages are banned in Pakistan for advantage of having the most extensive distribution consumption. However, there is some exception for network nationwide thanks to its near-monopoly its use for the non-Muslim population. (ANI) over the Thai 'spirits' industry through its Mekong and SangSom brand rums. Asia: Thailand's outlaw brewers fight for their lives Anti-competitive complaints brought against the (excerpt) politically influential ThaiBev have consistently Mebafn failed. Both Boon Rawd and ThaiBev are two of March 31, 2021 Thailand's biggest advertisers across all media and via the sponsorship of various high-profile events. (MENAFN - Asia Times) BANGKOK – Thailand's craft beer makers are a rebellious lot, and for good The new bans on online booze advertising and sales reason. The legal system is widely viewed as stacked were handed down by the government's ad-hoc against them in favor of the country's duopolistic Center for Covid-19 Situation Administration (CCSA) beer giants – Boonrawd Brewery and ThaiBev. – the doctors-led committee that has dominated Thai policymaking since the pandemic hit last year. Boonrawd (Singha, Leo, U-Beer brands) and ThaiBev (Chang, Archa) have traditionally claimed around The bans have arguably upended the last level 95% of the local beer market, leaving about 5% for playing field for craft beer makers and suppliers premium beers, imports and local craft beers, which enjoyed against their Goliath rivals, especially during account for between 0.5-1% of the total market. the pandemic when sales have shifted online as imbibers were forced to drink at home when bars Thailand's total beer market sold close to 2 billion and restaurants were closed or at least prohibited liters and was worth 180 billion baht (US$5.8 billion) from serving alcohol. in 2018, according to the most recent market data. Opposition to the big brewer-friendly legislative While craft beers account for a tiny portion of overall framework is mounting, however, including in sales, they represent one of the few growth sectors, parliament. ringing up sales growth of between 40-50% in 2018, according to research by the Thailand Development 6

Australia: New project supports middle-aged ACT Dr Hutchison said she helped her patients look for women to avoid risky alcohol use alternative ways to reduce their stress levels, like Cranberra Weekly exercise and relaxation activities. By Rosa Ritchie “If people are unable to stop drinking that’s March 31, 2021 absolutely fine. But reducing alcohol consumption is A project to discourage “risky levels” of drinking something we should all try to do.” amongst middle-aged ACT women launches this ACT Health Minister Rachel Stephen-Smith showed week, run by the Foundation for Alcohol Research full support for the project and encouraged ACT and Education (FARE) with support from the ACT women to visit and share links to the Ripple website. Government. “Risky drinking has a ripple effect and cutting down Speaking at its announcement yesterday, 30 March, on drinking has a positive ripple effect on people’s FARE policy and research director Melanie Poole lives.” cited an ANU study that found women between the ages of 40 and 65 were using alcohol “significantly She said the ACT Government was committed to more” than they were two to three years ago. improving the health and wellbeing of the community in an evidence-based way, hence the “There’s a range of factors that have influenced that; importance of the randomised control trial, which we know that one really strong indicator of risky will be run by the Centre for Alcohol Policy Research. alcohol use is when people have childcare duties – so that’s correlated with things like stress and other FARE’s Ms Poole said she described alcohol mental health impacts,” she said. consumption as ‘use’ rather than ‘drinking’ to draw attention to the fact it was a potentially harmful “We know that women in that age group also drank activity. significantly more during COVID.” “Language that normalises what can be a harmful The project, called Ripple, will involve a randomised activity is not conducive to educating people about control trial to test whether an “online intervention” why it’s important to cut back. could motivate women in the specified demographic to change their behaviour. “Drinking is something that everybody does – we drink water, and it’s a critical part of our diet – but Today Ripple’s informative website is live, sharing alcohol is a harmful substance.” resources and tips to reduce alcohol consumption, with the option for ACT women to sign up to INDUSTRY NEWS participate in the study. Drinking no more than two standard drinks on any Southern Glazer’s Wine & Spirits Denounces day and having alcohol-free days is less risky, Discrimination and Acts of Hate Against People of according to the National Health and Medical Asian Descent Research Council (NHMRC). Businesswire Local general practitioner Dr Anita Hutchison said March 30, 2021 drinking was known to cause a range of health MIAMI & DALLAS--(BUSINESS WIRE)--Southern problems, and she observed her patients who fit the Glazer’s Wine & Spirits (“Southern Glazer’s”)—the Ripple demographic having difficulty sleeping, world's pre-eminent distributor of beverage waking up tired or anxious, and lacking motivation. alcohol—today reaffirmed support for equality and “When you delve into the story behind that, there’s justice, following the disturbing increase in violence usually a bit of work stress, a bit of anxiety at work,” against people of Asian descent. The Company also she said. recognizes that to effectively address anti-Asian racism, the business community must be actively “And you come home after a really long day and pour engaged in fighting against all forms of racism – yourself a couple of glasses of wine to try and wind through workplace culture, business practices, down.” philanthropic and community engagement initiatives. 7

On this topic, Wayne E. Chaplin, Chief Executive and the entire business community to stand with us Officer, issued the following statement: “At Southern and continue to engage in efforts to promote Glazer’s, we take pride in fostering a culture that diversity and eradicate inequality. supports Diversity, Equity, and Inclusion in all areas of our business. Whether it be discrimination against the Black community and people of color, acts of US whiskey makers face hangover from trade violence against Asians, Asian Americans, or Pacific dispute Islanders, or any future injustices or crimes against The North State Journal. any minority group, we want to make it perfectly The Associated Press clear that we denounce discrimination and violence March 30, 2021 in any form, now and always. As a leader in our industry and a responsible business, we take LOUISVILLE, Ky. — Tariff disputes could become even seriously our responsibility to speak out, speak up more painful for American whiskey distillers unless and serve as allies for victims of discrimination and their entanglement in a trans-Atlantic trade fight is hate. We will continue to partner with and support resolved soon. organizations that fight for racial justice and equality, Bourbon, Tennessee whiskey and rye whiskey were while also working to ensure our own Southern left out of recent changes in U.S. trade relations with Glazer’s FAMILY members feel supported and safe. the European Union and the United Kingdom. Tariffs In line with this commitment and in response to the were suspended on some spirits, but the 25% tariffs reprehensible increase in violence against people of on American whiskey by the EU and UK remain in Asian descent, Southern Glazer’s has pledged to place. And the EU’s tariff rate is set to double to 50% financially support two organizations that are taking in June in the key export market for U.S. whiskey action to fight against acts of hate against the Asian makers. community – the Asian American Legal Defense and A leading spirits advocate is imploring top U.S. trade Education Fund and Stop AAPI Hate.” envoy Katherine Tai to not leave whiskey producers The Asian American Legal Defense and Education behind. The Distilled Spirits Council of the United Fund, a New York-based national organization States urged her to press for an immediate founded in 1974, protects and promotes the civil suspension of the European tariffs and to secure rights of Asian Americans. By combining litigation, agreements removing them. advocacy, education, and organizing, the Asian “Swift removal of these tariffs will help support U.S. American Legal Defense and Education Fund workers and consumers as the economy and (AALDEF) works with Asian American communities hospitality industry continue to recover from the across the country to secure human rights for all. pandemic,” the council said in a recent statement In response to the alarming escalation in xenophobia after Tai was confirmed by the Senate. and bigotry resulting from the COVID-19 pandemic, American whiskey makers have been caught up in the Asian Pacific Planning and Policy Council the trans-Atlantic trade dispute since mid-2018, (A3PCON), Chinese for Affirmative Action (CAA), and when the EU imposed tariffs on American whiskey the Asian American Studies Department of San and other U.S. products in response to the Trump Francisco State University launched the Stop AAPI administration imposing tariffs on European steel Hate reporting center on March 19, 2020. The center and aluminum. tracks and responds to incidents of hate, violence, harassment, discrimination, shunning, and child Since then, American whiskey exports to the EU are bullying against Asian Americans and Pacific down by 37%, costing whiskey distillers hundreds of Islanders in the United States. millions in revenue between 2018 and 2020, the council said. American whiskey exports to the UK, This support follows workplace, philanthropic and the industry’s fourth-largest market, have fallen by business actions taken by the Company in 2020 to 53% since 2018, it said. promote racial equality for Black citizens and people of color in the United States. Southern Glazer’s But, the tariffs on foreign steel and aluminum have encourages our supplier partners to join us in been “effective,” said President Joe Biden’s financially supporting the organizations listed above, commerce secretary Gina Raimondo. U.S. steel 8 industry leaders and the United Steelworkers union KDA President Eric Gregory said. “And it will get have urged Biden to preserve the steel tariffs, calling much worse if we can’t deescalate this dispute.” them “essential” to the domestic industry’s viability. Kentucky distilleries craft 95% of the world’s Whiskey producers can either absorb the tax in bourbon supply, the association estimates. reduced profits or pass along to customers through The thaw in the U.S. disputes with the EU and UK higher prices. were part of an effort to resolve a longstanding Amir Peay, owner of the Lexington, Kentucky-based Airbus-Boeing dispute. The tariff suspensions James E. Pepper Distillery, said American whiskey applied to duties that had been imposed on some has become “collateral damage” in the trade spirits producers on both sides of the Atlantic. But disputes. It’s cost him about three-fourths of his the breakthroughs left plenty unresolved, including European business. disputes that led to the retaliatory tariffs still hitting American whiskey. “That could possibly end our business in Europe as we’ve known it over the years,” Peay said in a phone The suspended tariffs mean some European spirits interview Thursday. producers can ship their products into the U.S. duty free, while American whiskey makers are still subject He’s already curtailed some whiskey shipments to to tariffs, Whiting said. Europe as a hedge against the potential doubling of the EU tariff. His distillery’s signature bourbon and “We just want a level playing field for American rye brand is James E. Pepper 1776. whiskey,” he said.

Peay spent years and significant money cultivating European markets, especially in Germany, France What Is Craft Beer? and the UK. He was planning to double his European Craft beers are made in small batches and feature quality business before the trade disputes hit. ingredients and robust flavor. “The way things are going, everything that we CStore Decisions invested to date looks like it could be destroyed,” he By Erin Del Conte said. March 30, 2021 The tariffs have hurt spirits industry giants as well. Craft beer has taken convenience store beer caves by “We estimate that our company … has borne roughly storm in recent years. 15% of the entire tariff bill levied against the U.S. in The Brewers Association has reported that retail response to steel and aluminum tariffs,” Lawson dollar sales of craft beer grew 6%, up to $29.3 billion Whiting, president and CEO of Louisville, Kentucky- in 2019, and now account for more than 25% share based Brown-Forman Corp., said recently. “They of the $116.0 billion U.S. beer market. have become a big problem for us and it’s imperative But what exactly is craft beer and how is it different that we get it resolved as soon as possible.” from regular beer? Brown-Forman’s leading product is Jack Daniel’s Traditional or regular beer is mass produced in big Tennessee Whiskey, a global brand. batches often using cost-effective ingredients. Craft For Kentucky bourbon producers, tariffs slashed beer, by contrast, is produced in smaller batches. The their exports by 35% in 2020, with shipments to the Brewers Association pointed out that craft brewers EU plummeting by nearly 50%, the Kentucky are small — meaning that annual production must Distillers’ Association said. measure six million barrels of beer or less to qualify The EU had traditionally been the largest global as craft. Craft brewers are also independent, market for Kentucky distilleries, accounting for 56% meaning less than 25% of the craft brewery is owned of all exports in 2017. It’s now about 40%, the by/connected via investment to non-craft brewer, association said. per The Brewers Association. “Our signature bourbon industry has sustained Quality, often hand-selected ingredients are a key significant damage for more than two years because component of craft beer. of a trade war that has nothing to do with whiskey,” 9

“The hallmark of craft beer and craft brewers is A comprehensive State of the Industry report will be innovation. Craft brewers interpret historic styles presented via online webinar on April 8, 2021. with unique twists and develop new styles that have The Brewers Association’s full 2020 industry analysis, no precedent,” The Brewers Association explained, which shows regional trends and sales by individual adding that craft beer is usually made with breweries, will be published in the May/June issue of traditional ingredients such as malted barley. As The New Brewer®, available in May 2021. innovation is a huge part of craft beer, many times non-traditional ingredients are added to give the 1Figure based on companies that met the craft brewer craft brew a distinctive taste. definition for all or part of 2020. An American craft brewer is a small and independent brewer. Small: annual Flavor is king when it comes to craft beer, and similar production of 6 million barrels of beer or less varieties of craft beer can vary wildly from brand to (approximately 3 percent of U.S. annual sales). Beer brand. Craft beer goes far beyond lagers into a wide production is attributed to the rules of alternating range of beer types from American Pale Ale to proprietorships. Independent: less than 25 percent of the Hefeweizen to Amber Ale to Porters and Stouts — craft brewery is owned or controlled (or equivalent the list goes on. economic interest) by an alcoholic beverage industry member that is not itself a craft brewer. Brewer: has a TTB Convenience stores often see success showcasing brewer’s notice and makes beer. craft beer made by local craft breweries. Craft beer brands often come out with seasonal limited-time- only varieties, such as a Summer Ale, Winter Porter Will home delivery of alcoholic drinks increase and Pumpkin Ale. dangerous drinking trends? Will it really save the restaurants? DAILY NEWS Healthy Alcohol Marketplace By Pamela S. Erickson, M.A., CEO, Public Action Brewers Association Unveils Top 50 Craft Breweries Management, PLC List For 2020 (excerpt) March 30, 2021 The Full Pint During the Pandemic restaurants and bars were March 30, 2021 often forced to close. Initially, it was thought this (Boulder, CO) — The Brewers AssociationOpens in would last a few weeks or a month or so. But many new window—the not-for-profit trade association weeks passed and these establishments dedicated to small and independent Opens in new hemorrhaged money and staff remained window American brewers—today released its unemployed. States responded by allowing take out annual list of the top 50 producing craft brewing via home delivery or pick-up. Recognizing that companies and overall brewing companies in the alcohol is a high profit product, many states also U.S., based on beer sales volume. Of the top 50 temporarily allowed drinks-to-go. There were overall brewing companies, 40 were small and conditions, such as only one or two drinks in a sealed independent craft brewing companies.1 container along with a meal. According to the Distilled Spirits Council, over 30 states allowed some “The COVID-19 pandemic drastically changed where type of “alcohol to-go”. Americans purchased alcohol in 2020. Breweries who had established packaging and distribution As the Pandemic has subsided, many are seeing the capacity were best positioned to take advantage of economic devastation wrought by public health the boom in off-premise sales and weather market shut-downs and want to help those businesses make uncertainty,” said Bart Watson, chief economist, up some of the losses by loosening alcohol Brewers Association. “These businesses also saw regulation. But the method they’re using will only variation in performance based on geography and work if the general public buys more alcohol…and, business model, with different parts of the country presumably, drinks it. Such measures include seeing very different beer trends, and draught-heavy making home delivery of alcohol permanent, breweries suffering.” extending open hours (until 4 am!) and other “rule relaxations.” View and download map of top 50 producing craft brewing companies 10

It is important to examine how these changes may consumption of any alcoholic beverage in the impact current alcohol problems and whether they passenger area of any motor vehicle that is located are enough to really help restaurants. on a public highway or right-of-way.” To conform to federal standards, an open container law must meet Will Changes Continue Trends Toward Heavy this requirement: “An open alcoholic beverage Drinking? container is any bottle, can, or other receptacle that Before the Pandemic, there was good news and bad contains any amount of alcoholic beverage, and that news about excessive drinking. While underage is open or has a broken seal, or the contents of which drinking was at historically low levels, drinking are partially removed.” States need to ensure that among older adults had increased at alarming rates. their requirements for sealing containers is sufficient According to a study done by NIAAA using death to conform to federal law or they risk losing federal certificates, deaths attributed to alcohol more than dollars. doubled from 35,914 in 1999 to 72,558 in 2017! Costs Even more concerning were the high rates of female drinking. The study found that while more men than While home delivery is a convenience, one must women died of alcohol causes, the increase for recognize that it is an extra service that involves women was 85% whereas for men it was 35%. costs and someone has to pay for it. While Americans are too used to “free delivery”, there is no such thing. And, to top it off, there is evidence that drinking These costs include: among women has continued to increase during the pandemic. According to a study by the Rand • Advertising and an order mechanism: To effect Corporation, “American adults have sharply delivery, there must be a way to order. This increased their consumption of alcohol during the usually means creating, monitoring and shutdown triggered by the coronavirus pandemic, managing a web-based site to ensure that with women increasing their heavy drinking episodes customers get their orders. (four or more drinks within a couple of hours) by • Transportation: This is the cost for a driver and 41%…” We must be careful that changes to alcohol vehicle to deliver the product to the customer’s regulations do not exacerbate these trends. home. For restaurants that use a third-party “Cases of alcoholic liver disease — which includes delivery company, the cost can be as high as 30% milder fatty liver and the permanent scarring of of the items purchased. This pretty much cirrhosis, as well as alcoholic hepatitis — are up 30% eliminates any profit. Many restaurants are over the last year at the University of Michigan’s focusing on pick up as a better option than health system, says Dr. Jessica Mellinger, a liver delivery due to the costs. specialist there.” • Regulatory compliance and training: During the “Sharp ‘Off the Charts’ Rise in Alcoholic Liver pandemic, home delivery became a major Disease Among Young Women”, by Yuki Noguchi, method of buying commodities as well as food NPR Health News, 3/16/2021 and drink. This required alcohol regulators to shift resources to ensure widespread illegality Will pick up drinks increase DUI? Impact federal does not occur. Of particular concern is the sale transportation funds? to minors or intoxicated patrons. Many states While most states with alcohol-to-go laws require faced widespread non-compliance by delivery such drinks to be in sealed containers, some have drivers and a need to train delivery staff. interpreted that requirement in minimal ways. For Best Practices for Law Enforcement example, some plastic lids have been “sealed” with tape that covers the straw hole. How easy would it The National Liquor Law Enforcement Association be to drink on the way home? In order to receive recently produced a guidance document which has a federal transportation funds, a state must enact list of best practices and recommendations for certain laws and those laws must conform to federal enforcement of delivery of alcohol to homes. It also standards. As NHTSA’s website states, “A state’s includes a description of the potential harms that can open container law must prohibit the possession of come from increased access to alcohol. And, it calls any open alcoholic beverage container and the 11 for increased funding for enforcement which is Here’s what it costs a takeaway every time you order already at low levels. via UberEats, Deliveroo or Just Eat, by Rosalind Erskine, Scotsman Food and Drink, February 2021 I would further advise states to consider rule making or legislation that limits the amount of alcohol to be Assembly Launches Statewide DUI Experiment delivered and the time of delivery. Delivery of Editorial, Free Lance-Star, March 18, 2021 bottled alcohol as well as alcohol accompanied by Alcohol-related deaths increasing in the United food from a restaurant may be limited for health and States, NIAAA safety reasons. Also, consideration should be given to avoiding situations where delivery is used to Alcohol Consumption Rises Sharply During Pandemic “refuel a party.” Late night deliveries in residential Shutdown; Heavy Drinking by Women Rises 41%, or college areas are likely to violate expectations for Rand Corporation “quiet hours” when parents and children go to bed. Virginia Governor Signs Bill Extending Cocktails To- Better Ways to Save Restaurants Go Until July 2022, Distilled Spirits Council of the United States Restaurants that were forced to close all or part of their operation experienced a major drop in revenue, Restaurant Revitalization Fund, National Restaurant but costs such as rent and other services continued. Association Some places had substantial loss in food spoilage. Others attempted to help employees by granting them pay or retaining their health insurance. It is unlikely that selling additional alcohol is going to This email and any files transmitted with it are intended generate enough money to offset these costs. solely for the use of NABCA members, free-of-charge. If you do not wish to receive this daily service, please Another way to help is to waive license fees or other respond with “UNSUBSCRIBE” in the Subject line. In government assessments. It seems particular unjust addition, if there is another individual within your for licensees to pay the full cost for a license they company who should also be receiving this service, were not able to make full use of. please forward their name, title, employer, and email address to [email protected]. Thank you for One of the best ways to help is to assist restaurant your time and attention as we continue to work to operators access federal/state/local funds designed improve upon the services and benefits that we provide to make up losses. There seems to be a lot of money to our members. Please note that any views or opinions available and some of it is earmarked for very small presented in this email are solely those of the author(s) operators. Proprietors of small businesses rarely and do not necessarily represent those of the National have the time or expertise to apply for grant money. Alcohol Beverage Control Association. Government grants tend to be complicated and require a fair amount of paperwork. Staff working for business associations and government need to find ways to help if they want to actually save their restaurants. Sources: NABCA COVID Resources (This web resource is available to the public and gives a state-by-state review of measures impacting alcohol licensees.) With COVID Cases Surging, Restaurants Must Keep Delivery Top of Mind | QSR magazine, by Ido Levanon, January 2021. NLLEA, Best Practice Guidance for Alcohol Sales and Deliveries, December 2020. Companies busted for illegally shipping liquor to Michigan, February 12,2021.