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We have recently been made aware of phishing You can now find all of TTB’s COVID-19-related attempts by third parties purporting to act on behalf of news and guidance in a single location. NABCA. Please be aware that NABCA does not utilize any third-party companies to generate sales—and we have not authorized any third-party marketing ADDITIONAL LINKS company to act on our behalf in relation to our data. Visit NABCA’s website for information on: While it is too early to tell if this is part of an industry- • Control State Agency Information wide scam, we have heard concerns from other • associations currently dealing with similar types of sales Doing Business in Control States fraud. If you have received any suspicious emails • NABCA News relating to NABCA, please let us know by contacting [email protected] CONTROL STATE NEWS We greatly appreciate our partnership with you and apologize in advance for any delays this may have NC: N.C. ABC renews contract with subject of 2018 caused. If you have any additional questions, our line is audit, increases warehousing fees always open. Carolina Coast Online Kind Regards, By John Trump Carolina Journal NABCA Communications Department March 15, 2021

NABCA NEWS The N.C. Alcoholic Beverage Control Commission voted unanimously last week to recommend the state Visit NABCA’s COVID-19 Resource page for updates award a 10-year contract for warehouse services to regarding policy changes that effect on- and off- LB&B Associates, the target of an audit in 2018 that premise retail operations. has over the previous years cost the state about $13.5 New on NABCA’s website: million. The Collection: An Alcohol Research Summary To fund the new contract, bailment — which pays for (formerly Annotated Bibliography) A comprehensive warehouse operations — will increase Aug. 1 to $2.75 overview of the latest scientific evidence on per case of liquor, from $1.50 per case. important topics related to alcohol policy. Sharing Solutions E-Newsletter! A platform for the “There is no change to markup or bailment surcharge, NABCA community to share successful implement- and the resulting impact to the per-bottle price for tations and lessons learned about your good work. consumers for a typical bottle of liquor is expected to be 20 cents,” the ABC says in a statement. The bailment charge is separate from from the bailment surcharge, now at $1.15. 2

The state ABC, according to its 2019 annual report, and recommendation of the incumbent vendor’s bid collected about $1.2 billion in revenue, distributing was made by an outside evaluation committee and some $85 million to city and county governments. It then referred to the commission staff for negotiation. collected another $27 million in permitting fees, LB&B’s bid response was thoroughly reviewed and sending, in total, about $350 million to the state’s found to be well qualified. At its regular monthly general fund. meeting March 10, the commission approved the state to go forward with the award of the negotiated Further, as bars and restaurants closed during the contract.” pandemic, sales at state-run ABC stores soared. From July 1, 2019, to June 30, 2020, sales at Wake County The agreement, the ABC says, includes a requirement ABC stores increased some 11% and nearly 21% in of nearly error-free and on-time deliveries as well as Johnston County, for example. Sales throughout the increased delivery frequency to the state’s 171 local state increased almost 12%, and restrictions on bars ABC boards. “The new contract will involve a and restaurants have remained, in some form, since comprehensive computerized warehouse the end of that management and operations platform that will fiscal year. include backorder capability and increased visibility into real-time warehouse inventory that the local North Carolina has scores of distilleries with products boards have indicated are service priorities.” in state ABC stores. “The increase in costs reflected in the new contract,” That extra 20 cents, if producers do nothing, will says Strickland, “is reasonable, based on the automatically be added to the retail price, one N.C. substantial requirements of this new contract, distiller told Carolina Journal. That distiller just sent in including the enhanced delivery services and robust a price increase, so it will look as though they’re computer capabilities it will provide the ABC system.” raising prices twice in a short time. The prices will look odd, going, for instance, for $23.95 to $24.15. Bailment, Strickland said, is paid on a per-case basis, paid by the ABC boards but also factoring in to the “Why did they decide this year to increase that retail price. particular fee over 83%,” the distiller said. “The suppliers may opt to absorb the bailment costs The N.C. ABC is in charge of controlling state alcohol or may pass the increase along to the consumer. For production, storage, sales, and distribution. North 12-bottle cases of .750 liter bottles, the increased Carolina is one of just 17 control states, meaning the bailment could add 20 cents to the price on the shelf. government oversees wholesaling and/or retail Cases with higher bottle counts would have smaller operations regarding spirituous liquor. It’s the only increases per bottle (5 cents). While cases that have state that uses a system of 171 local boards to six bottles in them, for example, would have a per- regulate spirits, however. bottle increase of 40 cents.” The state posted its request for proposals for The ABC audit, released Aug. 9, 2018, in short, found warehouse services in 2020 after the commission that poor contract administration cost N.C. taxpayers committed after the audit to rebidding the contract. at least $11.3 million over 13 years. Unused A five-member evaluation committee — industry warehouse space potentially cost the state $2.1 leaders and experts who are not members of the ABC million over seven years, and a lack of monitoring left Commission — reviewed the bids, the ABC says in a the state underpaid by at least $297,537 over two news release. years. The committee in December recommended the state The ABC erred in its responsibility to follow state negotiate the contract with LB&B. The contract policies and state practices, State Auditor Beth becomes effective July 1. Wood’s office said in the news release then. The ABC, “Our process has been thorough and transparent the audit concluded, failed to administer the over the entire [request for proposal] process, which warehouse contract in the best interest of the state. has spanned nearly three years at this point,” ABC The General Assembly, at the time, Wood said, asked spokesman Jeff Strickland told Carolina Journal. “We her for an audit of the state’s six largest agencies, have confidence that the bid process for warehouse including the Department of Public Safety, where ABC services has been fair and open to all. The evaluation resides. 3

“My staff said, ‘When we looked at the ABC Commission to perform its responsibilities prudently commission, there’s something not right there,” and economically,” the audit said. Wood told Carolina Journal then. “They’ve got a “Adding this warehouse to the Alcoholic Beverage contract that’s not been put out for bid since 2004, Control Commission Warehouse contract doubled they can’t answer questions about how the contract’s the amount of warehouse space available and has being administered, this is not tied to a financial increased the cost of the contract by approximately statement audit, but it’s info they’ve gleaned about $2.54 million a year on average. that division of DPS.” “The audit process began over a year ago, so the “In state fiscal year 2017, the contract cost for discussion and tighter controls have been under way warehousing and distributing spirituous liquor was for some time,” she said after the 2018 audit. $8.3 million. The total contract cost from July 2004 through June 2017 was $77.7 million.” Auditors found In his response to the audit report, ABC chairman A.D. the commission failed to “procure, administer, and Zander Guy said he had been appointed only the prior monitor the LB&B contract for the warehousing and year and “the majority, if not all of your review distribution of spirituous liquor in accordance with period, was before my tenure as chair.” state policies and best practices.” Guy said then he took the audit seriously and would Lack of accountability for contractors is highly implement changes accordingly. concerning, Wood told CJ at the time. Strickland said the commission accepted the auditor’s LB&B was given pay increases upon demand without findings and put immediate corrective measures in documentation or proof, Wood said. place to address the points raised in the report, which focused on contract administration issues. In some cases LB&B misled the state about fuel cost increases, asking the ABC for money they didn’t really “None of the state auditor’s findings related to the need, she said. warehouse or delivery service performance of the vendor or would have disqualified LB&B from “Whatever they asked for, they got. Without any responding to the RFP. We believe the newly question, without any verification, without any negotiated contract with this vendor is appropriate consultation or proof or justification. and in the interests of the state and the ABC system.” “And in some cases what they said was their reasoning was not true. In 2008 they asked for an increase the next year, and said it was due to price VT: Burlington selectmen look to lessen town’s increases for their fuel,” Wood said. “When we seating capacities for liquor license requirements examined their fuel cost, it actually went down. Same Daily Times Chronicle thing in 2016. When we examined it, it had gone By Mark Biagiotti down. March 14, 2021 “The power of this vendor and this contractor was BURLINGTON - The Board of Selectmen started the just amazing to me that they had this much power process of reviewing and possibly updating the and the commission didn’t validate or verify town’s alcohol rules and regulations. anything.” The conversation stems from a longtime sentiment A 200,000-square-foot warehouse added in 2011 is among officials that Burlington has not created a fair largely unused, auditors found. business climate for small restaurants, specifically in ABC “failed to ensure prudent use of public funds regards to the seating requirements needed to get when it authorized the lease of a Clayton warehouse. any type of liquor license. A large amount of the warehouse space was unused The current policy requires a restaurant to have at and potentially resulted in $300,000 a year of least 120 seats to qualify for an all-alcohol license and unnecessary cost over seven years. The Commission 40 seats for wines and malt. did not verify its need for a warehouse of this size, although state policy and best practices required the With the town set to open a myriad of new restaurants in the Town Center area, including at The 4

Shoppes at Simonds Park (former Building 19 1/2 As a formal public hearing, this matter was site), the hope is smaller, non-chain restaurants can unanimously continued to the selectmen’s next occupy most of the tenant spaces in that Town Center meeting on March 22. At that point, it is hoped ample Overlay District area. The district is poised to be a feedback from the Planning Board, Board of Health main street-type of setting and layout, encouraging and Building Department will be heard, eventually pedestrian connectivity and a small-town feel. helping the selectmen make a decision on what to do. “No one is going to open a restaurant [in the Town Center] with 120 seats,” voiced Selectman Chair LICENSE STATE NEWS Joseph Morandi. “We should knock that number TX: Elimination of the Texas Alcoholic Beverage down a bit.” Commission Filed in Texas House In comparison, surrounding communities have lesser The Texas Alcoholic Beverage Commission was at the or no seating requirements for obtaining liquor forefront of coronavirus restriction enforcement last licenses. For example, Billerica, Chelmsford, and summer. Waltham have no capacity limits, while Arlington has The Texan 15 for all-alcohol and 19 for wines and malt, Woburn By Brad Johnson has 100 for all-alcohol and 50 for wines and malt, and March 15, 2021 Winchester has 24 for all-alcohol and wines and malt. If left to Rep. Mayes Middleton (R-Wallisville), the “We need to look at the fact that we have many chain Texas Alcoholic Beverage Commission (TABC) would restaurants,” declared Selectman Bob Hogan. “Other be given its last call this legislative session. communities have a much lower or no seat requirements at all. All the restaurants seeking liquor Middleton filed House Bill (HB) 4069 just before the licenses would ultimately still need to go through the deadline that would eliminate the TABC and move Board of Selectmen liquor license permit process. some of its functions under the wing of the Texas This would give the ‘mom-and-pop’ restaurants a Department of Licensing and Regulation (TDLR). chance to succeed in Burlington.” Section 17 (c) reads, “All rules of the Texas Alcoholic All the other selectmen expressed support for Beverage Commission are continued in effect as rules exploring the town’s outdated alcohol rules and of the Texas Department of Licensing and Regulation regulations. until superseded by a rule of the Texas Department of Licensing and Regulation.” “I fully support taking a deep dive into this discussion,” affirmed Selectman Vice Chair Michael The TABC found itself the source of vexation last year Runyan. “It is a great time to review our policy, which when it became the tip of the state’s spear for the has not been updated in over 30 years.” shutdown of businesses. The selectmen felt it is a good idea to include the The agency’s stated mission is to “serve the people of Planning Board, Building Department, and Board of Texas and protect the public health and safety Health in these discussions. through consistent, fair and timely administration of the Alcoholic Beverage Code.” “We do not have a specific seating capacity number requirement right now, but we would like suggestions “TABC regulates all phases of the alcoholic beverage from the other boards and departments they can industry in Texas, including sales, taxation, provide insightful input on this matter,” concluded importation, manufacturing, transporting and Chair Morandi. advertising.” Several selectmen noted that many Burlington Last summer, the agency executed numerous sting residents have informed them that they prefer more operations — one statewide undercover operation “mom-and-pop” restaurants in town. It’s input like resulted in the alcohol permit suspension of 17 bars that from residents over the years that channelled and restaurants. town officials to revisit the alcohol rules and The investigations continued throughout the state regulations. operating from the 51 percent line drawn between

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restaurants that could open with limited capacity and Ontario’s Big City Mayors are making their voices bars that spent the better part of the summer closed heard on the possibility of selling alcohol in entirely. convenience stores. That line was drawn, not by the TABC, but by the In a letter addressed to four members of the governor’s shutdown strategy. It centered on the provincial government, including Attorney General ratio between alcohol and food sales. If 51 percent or Doug Downey, Chair and Barrie Mayor Jeff Lehman more of a business’s receipts came from alcohol sales, says there are a few reasons why the mayors say no then it was classified as a “bar” and thus subject to to this proposal brought forward by the Convenience stricter limits. Store Association. Originally, that classification was based on pre- “Convenience stores have not been negatively pandemic business models and was not flexible affected by the pandemic, they have been allowed to enough to account for functional changes businesses stay open and many of us on the call felt this would implemented. After a while, the TABC loosened its give an unfair advantage relative to some other protocols and allowed businesses to file updated businesses that have suffered,” said Mayor Mauro. classifications. “There was also a number on the call that expressed concerns about the convenience store business is not Confrontations occurred frequently, though, like in the place that you might get the best control of the the Friendswood bar that said it was harassed by sale of alcohol.” authorities for social distancing and masking violations or the Fort Worth bar owner who gained a The Mayor noted the overall move to approve this following by explicitly defying the TABC and state measure is up to the province. restrictions. Below is an excerpt of the motion from the letter: A TABC spokesman told The Texan, “TABC is unable to WHEREAS Ontario’s Big City Mayors recognize the comment on pending legislation. Our focus has been, ongoing hardships faced by restaurants, pubs and and continues to be, providing outstanding customer other foodservice businesses as a result of mandated service and promoting the health and safety of all closures and patron limits due to Covid19; Texans.” AND WHEREAS municipalities have been working Middleton said in a statement, “TABC should facilitate hard to implement and advocate for business the operations of small businesses, not strive to supports (such as providing restaurants the ability to punish them and shut them down. It did not fulfill its access wine, beer and spirits at wholesale or mission to help small businesses and should be discounted pricing) to ensure more local businesses abolished.” survive the pandemic; “TABC’s actions cost many their life savings. The AND WHEREAS convenience stores have not been agency threatened fines, penalties, and the loss of mandated to close during the pandemic and have not license to operate for many in Texas — all because endured undue hardship like other industries; they were trying to make a living.” AND WHEREAS 7-Eleven Canada has applied to Back in December, Middleton legislation to prohibit a introduce in-store alcohol service at 61 stores business’s operating license from being suspended throughout Ontario to leverage their open status as a for violations of emergency management rules. competitive advantage; If the legislation passes, the TABC would expire on AND WHEREAS approval by the Alcohol and Gaming September 1, 2022. Commission of Ontario (AGCO) would mean exposing an already vulnerable and hard-hit restaurant/bar INTERNATIONAL NEWS industry to further competition; Canada: No Alcohol In Convenience Stores: Mayor THEREFORE BE IT RESOLVED THAT Ontario’s Big City Mayors oppose 7-Eleven Canada’s proposal to serve CKDR News alcohol By Kevin Jeffrey March 14, 2021 6

Canada: Limitless liquor orders a recipe for "We have three options within a community of bootlegging, MLA says restricted, unrestricted and prohibited," Hickes said. Some municipalities are calling for purchasing limits on hard alcohol orders In Nunavut, communities can apply to be unrestricted in their alcohol purchasing, or to put some CBC News restrictions on how alcohol is purchased by residents. By Beth Brown In other communities, labelled as prohibited, alcohol March 15, 2021 isn't allowed at all. Iqaluit-Manirajak's MLA says frequent large orders Alcohol is ordered from two warehouses located in from the territory's own liquor warehouses are red Rankin Inlet and Iqaluit. flags for bootlegging. Hickes says the territory wants to hear what concerns "There are currently very few limits on the amount of residents have with how alcohol is accessed in alcohol that residents living in unrestricted Nunavut — like this connection between large orders communities can order at any one time," Adam and bootlegging flagged by the municipalities — Arreak Lightstone said in the Legislative Assembly on because the Nunavut Liquor Act is being reviewed Thursday. now. "This makes it all too easy for bootleggers to "This is an excellent example of an issue that we need repeatedly place orders for large volumes of hard to get feedback on so that we can target legislative liquor for the sole purpose of resale to vulnerable changes in the new liquor act as it comes into force," people." he said. Some municipalities are calling for purchasing limits For now he says the territory is working with Nunavut on hard alcohol orders. That's according to a June RCMP on ways to track and identify when alcohol is 2020 resolution from the Nunavut Association of being purchased from the government with the Municipalities asking for these limits, tabled by intention of illegal resale, or bootlegging. Arreak Lightstone last week. "I don't want to jeopardize some of those practices to Nearly a year later, the MLA wants to know what is be discussing publicly all the measures that we are being done now to limit illegal alcohol sales. taking, but I do want to highlight that this is just one "What specific actions has this government taken avenue that alcohol flows into the territory through since then to address these concerns," he asked. "Has the legal means," he said. "There are also illegal there been any development on the regulations on means, especially in restricted communities or in the sale of import permits or how the Nunavut Liquor prohibited communities." and Cannabis Commission sells to customers from For liquor going into prohibited communities, Hickes across Nunavut." says the territory is also working with Canada Post to The Minister Responsible for the Nunavut Liquor and find ways to stop the flow of illegal alcohol. Cannabis Commission George Hickes agreed that A social responsibility committee that talks about even for communities where alcohol is allowed, issues like the overuse of alcohol has been unable to regular large orders cause concern for both the meet because of COVID-19, he said. government and law enforcement.

But not all large purchases are a problem, he said. Australia: Alcohol Beverages Australia launches "We run into scenarios where some people Vision 2030 legitimately purchase their alcohol for the year through a sealift, so that's one large bulk order versus The Shout people who are making order after order after order by Andy Young and it may equal a similar amount at the end of the March 15, 2021 year," he said. Alcohol Beverages Australia (ABA) has set out its As well, current legislation leaves limited options for Vision 2030, a 10-year plan for Australia’s alcohol how to impose purchasing restrictions, Hickes said. beverage industry which brings together a range of 7 strategies to drive jobs, exports, tourism and safer in hand across Australia. Iconic wine regions have thriving communities. long attracted high numbers of visitors, but as food and drink experiences increase across the country, Vision 2030 also encompasses technology and better the emergence of more regional distilleries and environmental outcomes with rural and regional breweries brings additional tourism to a wider range Australia seen as critical to the industry’s success. This of locations. sector-first collaboration commissioned by ABA has used modelling by Deloitte Access Economics to Wilsmore said: “The most recent research shows that identify how the beverage industry currently delivers the majority of visitors associate visits to Australia $52 billion annually to the Australian economy, plus with food and drinks experiences and almost 7.5 485,000 jobs and $9.3 billion in combined taxes and million overnight trips in Australia last year involved a where it could be in a decade. visit to a winery, brewery or micro distillery. Through the development of rural and regional “Domestic and international spending by tourists on wineries, distilleries and breweries, and the food and drinks can grow by more than $10 billion by associated businesses, the report makes specific 2030 – and that value-add goes straight to regional reference to the importance of rural and regional communities with jobs, and better infrastructure that Australia to the industry. Vision 2030 also includes make them an attractive location to live, work and recommendations on how to build stronger regions, visit. including initiatives to create over 16,000 new jobs. “Our members will partner with the state and federal “The heart of the alcohol beverage industry, as well tourism authorities, to reinforce the value of drinking as 35 percent of our workforce, is based outside the experiences, but there’s a role for Government by major cities,” said ABA CEO, Andrew Wilsmore. “Our growing the sense of importance for Australians to home is in the country. Agriculture is the source for travel within Australia, while still making us the so many of our products, from wine to whisky. destination of choice for international business travellers and tourists.” “Our Vision 2030 plan recognises our integral connection to Regional Australia and identifies ways The Deloitte modelling has suggested an extra 48,000 we can provide support to businesses throughout the jobs can be added with over 16,000 of these in supply chain, from farmers, primary manufacturers, regional Australia in agriculture and tourism, supply chain operators, wholesalers, tourism supporting a workforce across a wide range of operators, retailers and food and beverage careers, from viticulture and hospitality through to businesses. manufacturing and management. “In many regional centres pubs and clubs are often Wilsmore added: “The vast majority of operations in the only place communities can gather together. the alcohol beverages industry are small or medium Almost half the liquor licenses in Australia are in enterprises, which are disproportionately affected by regional centres and it makes sense to us that we burdensome regulation. In order for these businesses must do all we can to promote and improve to continue creating jobs and economic value, more livelihoods for all those who live there, whether it’s work needs to be done to streamline the regulatory on farms or in the towns. City quality broadband is a environment and create positive conditions for must and Governments need to do more to provide investment. We support regional employment the services that locals deserve, and the initiatives initiatives, including regional work visas and that encourage people to move there. pathways for young, unemployed and underrepresented Australians to work in regional “With the right policy settings by Government and the Australia. By propelling new regional job initiatives, cooperation of everyone across the value chain we industrial relations settings, and visa reforms the can supercharge the future for this industry from Government can make a critical and meaningful where it starts in the paddock to where it ends in the impact on communities in every state. hands of a consumer,” Wilsmore said. “We also aim to grow our industry’s present $65m Dialling back into a world with international visitors investment in technical, vocational and tertiary ABA said that alcohol beverages and tourism go hand education to $100m by 2030 to promote 8

opportunities for professional careers across the United Kingdom: Number of breweries grew 7.5% entire supply chain.” in 2020 despite pub and bar closures Vision 2030 also sets out the potential for exports of The Caterer Australian alcohol beverages to more than double to by Katherine Price $8.6bn by 2030. March 15, 2021 Exports of Australian alcohol beverages are currently The number of breweries in the UK grew by 216 in worth $3.6bn, and account for one per cent of total 2020, up 7.5% from 2019 to a total of 3,018, despite exports. Broken down by product category, the the impact of coronavirus restrictions on pubs and contribution is 85 per cent wine, 14 per cent spirits bars. and one per cent beer and cider. According to national accountancy group UHY Hacker Close to half (44 per cent) of all wine produced in Young, the closure of pubs and lockdowns may even Australia is exported, primarily to China, the United have acted as a catalyst for some entrepreneurs to States and the United Kingdom. Meanwhile, only start brewing businesses – at least 55 new brewery seven per cent of spirits and less than one per cent of companies were incorporated just during the first beer produced here are exported, highlighting the lockdown between 16 March and 1 June 2020. huge growth opportunities. The firm added that the attraction of starting a The ABA says that while wine exports will continue to brewing business in recent years has been influenced lead the Vision 2030, a specific focus on the growing by the continuing stream of craft breweries being Australian spirits market in particular, has the purchased by multinationals, for example, Heineken potential to create a similar trajectory to wine export taking control of Brixton Brewery last month having growth that started in the 1970s. Given that in 2020 purchased an initial 49% stake in the company in Australia had nearly 300 distilleries (versus 30 in 2017. 2010), and 700 breweries (versus 70 in 2010) this James Simmonds, partner at UHY Hacker Young, said: provides a rich basis for export growth. Innovations in "Growth in breweries during a very difficult period for brewing, particularly new products including zero-or- the drinks industry is a positive sign. Entrepreneurs low alcohol, also provide broader trade opportunities clearly feel confident in the prospects for a bounce for the sector. back once pubs and bars can open again. “We can double the international trade of our wines, "People's appetite for trying new beers from different spirits and beer to $8.6bn, provided we can reduce breweries has contributed to the long-term rise in barriers for new and current exports markets and new breweries being set up. The sector hasn't fallen create new support bodies for smaller producers,” into the trap of discounting. There is also the prospect Wilsmore said. “You only have to look at Japan to see of an exit to a major brewer if you can build a valuable what’s possible. What was a modest domestic whisky brand. market 20 years ago has become a billion dollar world powerhouse.” "With the closure of pubs and bars, smaller breweries have had to adapt to direct-to-consumer models. As In outlining Vision 2030, ABA Chair Bryan Fry, said: hospitality begins to reopen, these new breweries will “Through measures such as improving market access need to build on the momentum they have created for exporters, and reducing red tape and unnecessary through their direct-to-consumer sales." regulation to enable small producers to reinvest in their operations and increase employment, this statement sets out a comprehensive vision which INDUSTRY NEWS would maximise the opportunity for local businesses Whiskey named for slave, Jack Daniel's mentor to bottle the best of Australia and share it with the breaks records world.” The Tennessean For more on Vision 2030, head to the Alcohol By Cassandra Stephenson Beverages Australia website. March 14, 2021 NASHVILLE, Tenn. (AP) — Launching a whiskey brand was the last thing on Fawn Weaver’s mind as she 9

scoured records in the Moore County Library for any THE WHISKEY COMPANY THAT ALMOST WASN’T mention of a man called Nathan “Nearest” Green — At first, Weaver found only the broad strokes of the former slave who taught young Jack Daniel how Green’s story: While he was a slave on Rev. Dan Call’s to make whiskey. farm about five miles outside of Lynchburg, Green Weaver came across a New York Times article about mentored Daniel. After the Civil War, Daniel bought Green and the formation of the Jack Daniel Distillery the distillery. Daniel hired Green, now a free man, to several years ago. The author was instantly captivated be the Jack Daniel Distillery’s first head distiller. (Jack by Daniel and Green’s relationship. She had to know Daniel Distillery amended its history to recognize more. Green as its first master distiller in 2017.) So she and her husband traveled from Los Angeles to Weaver and her husband weren’t having much luck Lynchburg, Tennessee, with a mission: get to the finding information at Moore County Library when an bottom of the story, and make Nearest Green a older white woman walked in. She wore a suit and household name. scarf — a striking departure from the rest of the town’s preferred garb for duck hunting season. “That’s the story I was chasing,” she said. “Whiskey wasn’t a part of it.” She introduced herself as Judy Boyd Terjen, now the oldest living relative of Jack Daniel himself. After Four years later, Weaver’s award-winning American explaining her interest in Green, Weaver assured whiskey brand, Uncle Nearest Premium Whiskey, is Boyd Terjen she was not out to tarnish the Daniel the best-selling African-American owned and family’s legacy. She wanted to bring the full story to founded spirit brand in history, the company light. announced Tuesday. Boyd Terjen took out her cell phone and started Weaver’s purchased a 313-acre farm in Lynchburg listing the names and numbers of Green’s thats once owned by Dan Call. The farm was there descendants, many of whom still lived and worked in that Call’s slave, Nearest Green, taught Jack Daniel, a Lynchburg. Before she left, Boyd Terjen mentioned neighbor, how to make whiskey. Call’s farm, the original Distillery No. 7, was up for Uncle Nearest Premium Whiskey has sold nearly 1.5 sale. She grabbed a sticky note from the library desk million bottles of Tennessee whiskey bearing Green’s and drew Weaver a map. nickname and netted more than 160 awards since its Soon after, Weaver received a phone call from Boyd birth in 2017. Its bottles are available in more than Terjen’s cousin Sherrie Moore, another Jack Daniel 21,000 bars, restaurants and stores in all 50 states descendant and a 33-year veteran of the Tennessee and 12 countries. whiskey industry. Moore, a realtor, took Weaver and In 2020, the company saw its ninth quarter in a row her husband to the historic 313-acre farm. of triple-digit growth, and its gross revenue increased As soon as Weaver stepped foot on the property, she 94%. Uncle Nearest Premium Whiskey is on track to said she felt an overwhelming sense of peace. sell 250,000 cases of whiskey in 2021. “It took my husband and I two seconds to know we “The spirits industry has never seen anything like this wanted this piece of American history,” she said. “So in all the years data has been tracked through Nielsen, then, we bought the farm ... that’s what flipped our the International Wine and Spirits Record, or the world upside down.” Information Resources Inc., the three major data collection agencies for the (spirits) industry,” said Don Weaver moved to Lynchburg, using the farmhouse as Bichsel, founder of spirits data collection and analysis a center to research a book and movie about Green’s company 3 Tier Beverages. life. Moore dropped by often to see her progress. One day, she offered to help Weaver take her mission a “No African-American founded and led spirit brand step further. has ever come close to what the Uncle Nearest brand and team have done,” Bichsel stated in a news “She said, ‘I know that you’re doing a book and a release. “We analyzed every piece of credible data movie, but if you ever decide to honor Nearest with a and Uncle Nearest is undoubtedly the top seller of all bottle, I’ll come out of retirement to make sure you ime, with the rest of the top 10 being so far behind get it right,’” Weaver said. “That’s when I learned who that they barely registered on Nielsen’s.” Sherrie was. I had no idea before that.” 10

Weaver soon realized the path she needed to take to temporarily closed to the public due to the COVID-19 make Nearest Green a household name. pandemic, will reopen on June 19. “It became clear to me that the only reason we still Weaver now lives in Shelbyville close to the Uncle know who Jack Daniel is, who Johnny Walker is, who Nearest distillery. The Jack Daniel Distillery is just a Jim Beam is, all of these people — it’s because every few miles down the road. time we go into a store we’re looking at them on the The news of the company’s record-breaking success shelves,” Weaver said. “If we were going to cement is welcome to Victoria Eady Butler, the brand’s master Nearest Green’s legacy, it could not be through a blender and a fifth-generation descendant of Nathan movie, it could not be through a book. It had to be “Nearest” Green himself. through whiskey.” “I couldn’t be more excited that this announcement And it had to be good whiskey. A brand like Jack is coming on the heels of International Women’s Day, Daniel’s that would last more than 150 years. given that we are the only major spirit brand with an A Tennessee whiskey named after the former slave all-female executive team,” Eady Butler wrote in a who mentored Jack Daniel is now the best-selling statement. “Reaching this achievement at this minority owned and founded spirit of all time. moment in time is important as it reminds folks that whiskey, like music, is the great equalizer.” BREAKING NEW GROUND For Weaver, the brand is a testament to a remarkable Weaver started the company with a three-woman history of a “white orphan boy and an African executive team: herself, Moore as head of whiskey American elder who worked side by side and treated operations and Katharine Jerkens as head of sales. each other with mutual respect.” Now, the Weaver and Jerkens were entirely new to the spirits descendants of both Daniel and Green are working industry. The trio soon discovered their calls to together to make whiskey once again. whiskey sources, bottle partners and suppliers were “I think the fact that it came out of a town called being ignored. Lynchburg, Tennessee, and that’s where their roots “The first hurdle was the fact that we were women are, I think it’s something that this state can be coming into an industry that was not yet accustomed extraordinarily proud of. This brand is home grown,” to strong women,” Weaver said. “And I’m not lacking Weaver said. for confidence, and for Black women in this industry ... they’ve not seen a whole lot of that. So then you have this sort of (attitude of) ... ‘Who the hell does UK’s First Indian Wine Specialist Launches she think she is?’” The Drinks Business Weaver gave a list of contacts to her husband, who by Lucy Shaw immediately received calls back. The experience March 15, 2021 didn’t slow them down, she said. India’s only Master of Wine, Sonal Holland, has They received a barrage of advice on who to market launched the UK’s first Indian wine specialist – Wines to: Black people, since the company was founded by in India – to help bring the nation’s best wines to Weaver, a Black woman. White men. Men in general. Britain. They spent the first year and a half criss-crossing the Focused entirely on Indian wines, the portfolio country, sometimes holding multiple sales meetings currently comprises six producers, the majority of in different cities and states in one day. which are based in Nashik, north east of Mumbai. “We had to work like four or five times as hard as Wines in India’s mission is to dispel any someone else out in the field, because we were misconceptions the trade and consumer may have already starting out with the disadvantage of people about Indian wines by ensuring the focus is on top- not believing we could pull this off,” Weaver said. end offerings. The potential demand for Indian wine But they did. in the UK is strong, with the country boasting over 17,000 Indian restaurants, very few of which list The 270-acre Nearest Green Distillery opened in Indian wines. Shelbyville on Sept. 5, 2019. The property, which was 11

In addition to Sonal Holland MW, the company, aimed One of the most common problems we see on alcohol at both the on- and off-trade, was co-founded by beverage labels is errors in the mandatory health Mayank Gupta, Chris Holland and Nilesh Kamble. warning statement, including punctuation and formatting problems. Within the on-trade, the focus will be on fine dining Indian restaurants, wine-focused venues and bars The following health warning statement must appear specialising in emerging regions. The importer has on all alcohol beverages that contain 0.5% or more already secured listings with Diogenes The Dog, alcohol by volume: Darbar, and Thyme & Chillies. GOVERNMENT WARNING: (1) According to the In the off-trade independent merchants, multiple Surgeon General, women should not drink alcoholic specialists and e-commerce wine specialists will be a beverages during pregnancy because of the risk of focus, alongside grocers with a fine wine portfolio – birth defects. (2) Consumption of alcoholic beverages Waitrose has just listed Vallonné Vineyards Cabernet impairs your ability to drive a car or operate Sauvignon Reserve. machinery, and may cause health problems. The company has also landed listings with Wine Follow these tips: Monkey, Winebound and The Grape Slayer. • The words "GOVERNMENT WARNING" must “We believe there is significant potential for an Indian appear in capital letters and in bold type wine specialist in the UK, given that the UK trade is • Don't omit or change any punctuation marks particularly open-minded to emerging territories (periods, commas, colon, parentheses) coupled with the British love affair with Indian cuisine,” said Wines in India director, Chris Holland. You may not include health warnings specifically related to alcohol consumption that are required by a “Knowledge of India’s wines is relatively low among foreign government the trade, so our key strategy will be one of education, with a series of Instagram Live tastings and See the regulations in 27 CFR part 16 for the full rules interviews planned as well as partnering with 67 Pall about how to meet the health warning statement Mall on its webinar series,” he added. labeling requirements and speed your label approval process. Wines In India will exhibit at this year’s London Wine Fair for the first time, with a digital pavilion showcasing 19 wines from its six estates, samples of Editorial Article: Behind every beer: Microbiologist which will be available to visitors in advance. shares secrets to brewing success It will also host a masterclass for retailers and Learn how the beverage industry performs tests to sommeliers, the details of which will be announced safeguard consumer health, beer taste, and quality nearer the time. The producers currently represented Select Science by the importer are: Charosa, Good Drop Wine Published by Charlotte Carter Cellars, Reveilo, Fratelli, York and Vallonné Vineyards. March 15, 2021 The news comes as Vinexpo’s CEO, Rodolphe Beer production is no easy feat. Behind every Lameyse, confirmed plans to launch a new show in beverage exists a carefully planned and optimized New Delhi this December, placing his trust in the scientific process. Meticulous tests performed at growing Indian market, which he described as “the different points in the production line help meet high next big thing”. regulatory standards before reaching a consumer. “The quality of beer, a drink loved by Brazilians and TTB NEWS people all over the world, is closely related to the quality of raw materials and the overall TTB News: Avoiding Common Errors On Your Labels manufacturing process,” says Margareth Krauter, the – Government Health Warning head microbiologist and Quality Assurance (QA) Alcohol & Tobacco Tax & Trade Bureau specialist at Grupo Petrópolis, one of Brazil’s largest March 12, 2021 beverage manufacturers. 12

In this SelectScience® article, we speak with Krauter composition, foam content, and other features that about the many considerations of beer quality make the drink enjoyable. “Microbiological tests in control. the beverage industry are aimed at both ensuring consumer health and meeting the taste preferences Innovation and competition in the beer industry of the consumer,” Krauter adds. “These tests are “In the food industry, we need to generate a product important to us because, in addition to detecting that meets the needs of the consumer and is in possible sources of contamination, they also enable compliance with the regulations,” says Krauter. “As a us to adopt corrective measures and cleaner part of the QA team, it’s our responsibility to ensure environments to guarantee the final quality of our that our products are free of physical, chemical, or products.” biological contaminants. We check the pH levels of Using the 316L stainless steel Microsart® Manifold in the drink at different stages of the process, perform combination with a conical shaped funnel and a microbiological examinations, and ensure the quality cellulose nitrate membrane help ensure that beer of water, among other tests.” filtration runs smoothly and efficiently while reducing An experienced microbiologist since the 1980s, the risk of cross-contamination. Krauter took over the coordination of QA programs at Quality filtration and personalized services Grupo Petrópolis in 2015, bringing tools and processes to facilitate testing with greater accuracy While several methods can be used to detect and moderate costs. “Our industry is very potential microorganisms in beverage samples, the competitive,” notes Krauter. “We’re always being membrane filtration technique is most preferred, challenged by the search for ‘the next new thing’ – mainly due to its speed of execution and new products, new technologies, new target reproducibility of results. “The filter membrane audiences, new inputs, new tools, and so on.” technique is extremely valuable for the determination of microbial species with a low “The greater challenge,” Krauter adds, “is to keep the concentration of viable cells as it allows the filtration team updated and stay receptive to innovative of large volumes of samples,” says Krauter. “It allows concepts, so we can introduce new routines into the easy interpretation and visualization of results and laboratory and make sure we always have the highest requires little incubator space. quality of work.” “More recently, the use of Sartorius filter membranes The recipe for safe, tasty beer on tap has been very significant within Grupo Petrópolis due The QA processes that uphold the quality of to their quality and ease of handling” adds Krauter. beverages, such a beer, involve microbiological “These stainless-steel funnels are widely used with testing. “In a brewery, there are several critical points the Sartorius manifold system. It’s small yet versatile where contaminating microorganisms can potentially and doesn’t come with maintenance costs.” Cleaning develop,” says Krauter. These can be attributed to the and sterilization of these membrane funnels directly quality of water, malt, brewer's yeast, and other depend on the material they are made of. “Funnels ingredients used, as well as the overall hygiene in the made of stainless-steel offer unmatched durability production and human operation areas. Having clean and service life compared to plastic or glass ones,” environments and using high-quality supplies Krauter notes. minimize the chances of contamination. Krauter Given the prolific production cycle at Grupo continues: “The microbiological control of the Petrópolis, the QA team has fine-tuned the microbial production process becomes extremely important in testing process to maintain traceability and create standardizing drinks. Deviation from due process or internationally accepted quality standards. In doing quality breakdown can require us to discard entire so, team members collaborate closely with batches in the brewery, bringing about economic manufacturers to troubleshoot and optimize losses for the company and distrust among the methods. “Our relationship with Sartorius is far consumers.” beyond a commercial one. We see them as our Microbiology also plays an important role in giving partners,” says Krauter. “I must admit that we’re a the beer its sensory characteristics. Any abnormal demanding customer,” she quips. “We seek microbial activity influences the taste, color, innovation and continuous improvement on our side. 13

Sartorius focuses on these needs by offering us their Big Jones is among a handful of restaurants in Chicago personalized service. We respect their transparent moving away from the long-standing practice of communication, practical tips, and guidelines. This paying some workers less than minimum wage if makes for a unique experience between us – that of customer tips make up the difference. kindness, honesty, and attention to detail.” The restaurants are raising prices, adding service Brewery microbiology has been and will continue to charges to bills, or finding new sources of revenue so be a passion for Krauter. While her career has they can raise wages and become less dependent on spanned over three decades, laboratory processes in tipping. It’s a risky move, both financially and the food and beverage industry have evolved, but culturally, but some restauranteurs say they are their core purpose remains the same. In present emboldened to try because of the disruption caused times, it’s more likely that laboratories will start by the pandemic. adopting automation for microbial testing with ready- Their actions come as proposals to support restaurant to-use culture media and online sample collection workers by getting rid of the subminimum wage hit systems to identify contaminants. Krauter concludes: roadblocks. Although the federal minimum wage “As much as the production process gets modernized, stands at $7.25 an hour, employers can pay tipped the industry becomes automated, and the raw workers a subminimum wage of $2.13 an hour as long materials diversify, one aspect will never change: the as their tips make up the difference. Democrats need for microbial evaluation.” recently proposed raising the federal minimum wage to $15 an hour and phasing out the subminimum DAILY NEWS wage, but the Senate parliamentarian decided the proposal couldn’t be tacked onto a big COVID-19 Could restaurant tipping become obsolete after relief bill, which will make it more difficult to pass a pandemic? wage hike. The Chicago Tribune Some restaurant owners hope to show that it’s By Alexia Elejalde-Ruiz possible to pay servers at least minimum wage. March 14, 2021 Big Jones, which specializes in Southern cuisine, since Paul Fehribach, owner of Big Jones in Chicago’s June has added a 20% service fee to dine-in bills and Andersonville neighborhood, has wanted to eliminate orders placed with a live person, and 10% to online tipping at his restaurant for years. orders. That revenue goes to payroll, allowing He didn’t like having the whims of customers Fehribach to raise the hourly wage of servers to $18 determine how much his waitstaff got paid. Even to $25 per hour, depending on experience. when tips were generous, it felt wrong that the Kitchen staff also got a pay bump, to $16 to $20 per kitchen staff earned much less in comparison. hour, and he hopes to raise wages more once But relying on customer tips to subsidize servers’ business picks up. wages underpins the restaurant business model in The change has dinged his bottom line for now, but the U.S. and is embedded in the cultural fabric. as dining room capacity restrictions loosen and sales Fehribach worried customers and employees would improve he expects it will make financial sense and balk if his restaurant was among the first in Chicago also allow him to offer everyone health insurance. to abandon that structure. While a few customers have posted nasty reviews Then came the pandemic. online, the feedback largely has been positive, With restaurants forced to close their dining rooms, Fehribach said. Fehribach had a clean slate. He started paying his Some customers still want to tip on top of the service tipped workers an hourly wage they could live on, and fee, so he plans to bring back the tip line to credit card when dining returned last summer, the tipping slips to give the option. system didn’t. Servers are trained to explain that a 20% service fee “It’s wrong, it’s always been wrong,” Fehribach said. has been applied. “Our workers deserve the security of knowing what they are making when they come to work.” 14

Employees also are pleased, as the volatility of the of color than any other group, and he imagines that pandemic made them appreciate a predictable affects their tips. paycheck, he said. “Had we done this at another time “It is not acceptable that customers will decide what I’m not sure what the reaction would have been,” to compensate my employee based on skin color, Fehribach said. race, gender identity,” he said. Garrett Allain, 37, a server at Big Jones for nearly Pete Ternes, co-owner at the Bungalow by Middle three years, said he is earning about the same with Brow, a pizzeria and brewery in the Logan Square his higher hourly rate as he was making with tips neighborhood, said he always thought the tipping before the pandemic. system was “immoral” but feared the costs On some busy nights he might make $50 an hour in associated with paying servers more. tips, but there would be slow nights when he’d make That changed when the pandemic halted dining barely anything at all, so “it balances out,” he said. service and the restaurant pivoted to a takeout and Servers also stick around now to help with tasks like grocery model, prompting it to rethink how to pay filling salt and pepper shakers and wrapping tipped workers without alienating customers. silverware instead of asking to leave once their tables “We sat down deep in some spreadsheets and empty. determined that with an obligatory service charge we “You’re not working for your own tips in your own could thread this needle,” Ternes said. section, so everyone works together more, so I think The restaurant has added a tiered service charge to it creates a better atmosphere with both employees customer bills — 10% for a grocery item, 15% for and the staff,” Allain said. goods made in-house and 20% for takeout — and Still, the change might not go over well at busy plans to move to a uniform 20% fee this year that will downtown restaurants. stay once dining service returns. Servers at higher-end or high volume restaurants can Employees, no matter their role, now make $15 an make a lucrative living on gratuities, but at small or hour if they’re part-time and $20 if they’re full time. inexpensive restaurants or in poorer neighborhoods, While that’s less per hour than some servers made in they barely scrape by. tips when serving dinner, they are working longer shifts doing different tasks — prepping food, washing Employers are legally required to make up the dishes, cleaning up — so their overall pay is the same, difference if an employee’s tips don’t add up to the Ternes said. regular minimum wage, but worker advocates say that doesn’t always happen because of exploitative Customers haven’t complained about the fee, which practices or shoddy record keeping. Ternes owes to the pandemic making people “more generous and understanding.” Tipped workers also can be reluctant to push back against unwanted sexual advances or other poor He hopes the goodwill endures once dining service treatment because their compensation is tied to the returns because the higher wages mean he won’t be customer’s happiness. able to have as many servers working, which could affect the speed of service. One Fair Wage, an advocacy group pushing to end the subminimum wage, has been trying to draw attention “You may have to talk a bit more in between glasses to the discriminatory aspects of tipping. of wine,” Ternes said. “If that means the person serving you is living a happier and safer life and can Studies have shown Black servers receive less in tips afford all the things they need, that seems worth it.” than white servers even when customers rate the service the same. Since the pandemic hit, Black At Paulie Gee’s, a pizza restaurant in Logan Square restaurant servers were more likely than servers with a second location opening soon in Wicker Park, overall to report a steep drop in tips and experience owner Derrick Tung scrapped the traditional tipping retaliation for enforcing mask rules, according to a structure well before the pandemic because he February report from One Fair Wage. couldn’t stomach the vast disparity between the pay of servers and kitchen staff. On a good night, some Fehribach said his restaurant receives more servers and bartenders earned $38 to $72 per hour unjustified complaints about servers who are women 15 while kitchen workers made $15 to $19 an hour even servers above the minimum wage, ensuring they though they were just as responsible for the customer were covered when business was slow. experience, he said. “When it rained during the pandemic they still made He raised servers’ hourly wages, pooled their tips and money,” Soble said. split them across the staff, based on an equation that The increased automation in restaurant service, such took into account their tenure and the shifts they as ordering and paying through your phone, has worked. Tung said some servers resented the change, helped hasten the shift away from tipping for service, though he didn’t lose anyone. he added. He is evaluating other ways to structure employee The move away from tipping remains an aspiration pay because the pandemic has allowed him to do “a for Terri Evans, owner of Windy City Ribs & Whiskey full reset.” He posed the possibility of a service fee on in the South Loop. Instagram and got mixed responses. One of the goals of her business is to create “Some guests are very vehement about not wanting generational wealth for her employees, including to be nickel-and-dimed,” he said. “They would rather through a 401(k) savings program, which is hard to just see price increases.” achieve when they rely on unpredictable tips. His kitchen staff is happy, he said, and servers are “You can’t have a healthy financial situation until you averaging $20 to $25 an hour. Still, making it work will can predict what your wages are,” Evans said. be challenging as long as he is an outlier. Evans has committed to abolishing the subminimum “The concern from management is why would a great wage by 2025 as part of her association with High server come work for us if they can go down the Road Kitchens, an initiative of One Fair Wage that street and make double or triple,” Tung said. supports and rewards restaurants that commit to “As long as there are other restaurants using the old paying living wages and following equitable model it will be difficult to get the best of the best.” employment practices. Many restaurants are reluctant to abandon the She plans to do it by cutting costs, such as by curbing tipping system and worry how they would manage if food waste, and growing the business so employees local or federal policy eliminates the subminimum can own franchises. wage. She hasn’t made the jump yet, though, hoping others “If the labor cost goes up substantially, we will be will move in the same direction. forced to increase prices,” said Manish Mallick, “If we’re moving away from a tipped wage but our majority owner of Rooh Chicago, which serves neighboring restaurants are not there, it puts us in a progressive Indian cuisine in the West Loop. “How will position where we can’t be competitive in our pricing the guests treat that? A lot of guests already say or with employees,” she said. “That’s where the pricing is really high.” legislation to push our organization and sector is key.” Finances already are squeezed given the huge drop in sales during the pandemic and increased costs, This email and any files transmitted with it are intended including a hexadome tent Rooh installed in the solely for the use of NABCA members, free-of-charge. If adjacent parking lot for outdoor dining and a new air you do not wish to receive this daily service, please respond filtration system. Some nights diners are so sparse with “UNSUBSCRIBE” in the Subject line. In addition, if that servers don’t make enough in tips to hit there is another individual within your company who minimum wage so Mallick has had to dig into his own should also be receiving this service, please forward their pocket to make up the difference. name, title, employer, and email address to [email protected]. Thank you for your time and But Steve Soble, owner of Southport Lanes in attention as we continue to work to improve upon the Lakeview and the Daily Bar & Grill in Lincoln Square, services and benefits that we provide to our members. has found that changing the pay structure has blunted Please note that any views or opinions presented in this some of those risks. email are solely those of the author(s) and do not necessarily represent those of the National Alcohol Last summer he added an 18% service charge to Beverage Control Association. customer tabs so he could raise the hourly wage of