Friday, July 13, 2018 Issue 340

August 4-5 – Mississippi Hospitality & Beverage Association Convention & Trade Show | Philadelphia, MS August 12-13 – Texas Package Stores Assoc. 71st Annual Convention & Trade Show | Houston, TX September 7 – Indiana Association of Beverage Retailers Annual Golf Outing | Indianapolis, IN September 16-18 – Illinois Licensed Beverage Association 133rd Annual Convention | Springfield, IL September 23-26 – NBWA 81st Annual Convention | San Diego, CA September 24-27 – Alaska CHARR Convention | Sitka, AK October 1-4 – League of Wisconsin Fall Conference & Trade Show | Wisconsin Dells, WI October 9 – 16th Annual Spirit of Mt. Vernon | Mt. Vernon, VA October 9 – New York State Stores Association Trade Show | Albany, NY October 9-11 – Center for Alcohol Policy Conference | St. Paul, MN October 11 – New York State Liquor Stores Association Trade Show | Rochester, NY October 15-17 – ABL Fall Board Meeting | Washington, DC March 24-26 – 2019 ABL Annual Meeting | Las Vegas, NV March 29-April 1 – & Spirits Guild of America Spring Meeting | Miramar Beach, FL March 31-April 3 – WSWA 76th Annual Convention & Exposition | Orlando, FL April 1-4 – Tavern League of Wisconsin Spring Conference & Trade Show | Appleton, WI April 7-10 – NBWA Legislative Conference | Washington, DC

Main Street Largely Cheers Trump's Pro-Business Supreme Court Nominee Brett Kavanaugh: Main Street advocacy groups are largely cheering President Donald Trump’s nomination of Brett Kavanaugh to succeed Justice Anthony Kennedy on the U.S. Supreme Court, hopeful he will continue the Trump administration’s deregulatory tone, which has boosted sentiment among small businesses. Kavanaugh, a federal appeals court judge, is considered an ideological conservative, expected to lean right on issues including business regulation.

D.C. Judge Delays FDA Warnings: In a decision that has significant implications for the many beverage alcohol retailers who also sell cigars, a Washington D.C. judge issued an injunction yesterday postponing the looming effective date for the FDA’s onerous warning label scheme for cigar packaging and advertisements—marking a huge victory for the cigar industry. While the order does not outright ban the new warning label requirements, which were scheduled to go into effect on August 10, it should delay their implementation for at least a year, if not longer.

Marijuana Politics Evolving in Red States: Supporters and opponents of legalizing marijuana are preparing to fight over ballot measures in half a dozen states this year, shifting the political battleground away from traditionally liberal states and into some of the country’s most conservative areas. Two measures are already scheduled to appear on November ballots: Michigan voters will decide whether to become the ninth state to legalize marijuana for recreational purposes, while the electorate in Utah will choose whether to join 22 other states by legalizing pot for medical use.

Hopes Fade for Senate Action on Self-Driving Bill: The legislative effort to bring more certainty to autonomous vehicle development faces an increasingly uncertain future. Nearly a year ago, a House panel easily approved a bill, the Self Drive Act, liberalizing rules for testing and deploying self-driving vehicles, including provisions that would exempt more vehicles from rules designed for conventional vehicles, and preempt state regulation of the vehicles. A similar bill, the AV START Act, cleared the Senate Commerce Committee unanimously the following month.

Obama Urges Wine Industry to Collaborate in Climate Change Fight: Business should unite to share ideas and exert influence over governments about climate change, said Barack Obama at a summit in Porto dominated by wine industry delegates. ‘For winemakers to share best practice in the face of rising temperatures makes perfect sense,’ said Obama, speaking on Friday 6 July. Technological solutions are often out there, ‘but how we organise ourselves is a problem’, said the former US president. ‘Too late, and the solutions are sub-optimal,’ he warned.

Department of Justice Seeks to Terminate “Legacy” Antitrust Judgments in Federal District Court in Washington, D.C.: The Department of Justice’s Antitrust Division today filed a motion and supporting papers, seeking to terminate 19 “legacy” judgments in the District Court for the District of Columbia. Today’s court filing is part of the Antitrust Division’s effort to terminate decades-old antitrust judgments that no longer serve their original purpose. “Today we have taken an important next step toward eliminating antitrust judgments that no longer protect competition,” said Assistant Attorney General for Antitrust, Makan Delrahim.

National Restaurant Association Sues to Protect Tip Credit: The litigation arm of the National Restaurant Association has sued the U.S. Department of Labor to overturn a requirement that restaurants forgo the tip credit when paying front-of-house employees who’ve spent more than 20% of their time on side work or other nontipped activities. The suit alleges that the regulation was formulated through a change in the DOL’s internal handbook for enforcing wage and hour laws, and not through the usual rule-making process.

American Beverage Licensees 3x3 Insights Joins ABL as Associate Member

Alcohol and Tobacco Tax and Trade Bureau (TTB) TTB Newsletter – Weekly News (July 13)

Constellation Brands Company Acquires Four Corners Brewing from Texas

Law360 Could Your Business Avoid an ADA Drive-By Lawsuit?

Liquor.com 6 Frozen to Drink in Bars Now

NACS Don’t Assume You Know Your Customers, Study Them Protests Against Cashless Restaurants Grow

Patron Spirits Company Patron’s New Citronge Pineapple Liqueur Is Here to Make Tropical Cocktails for Your Next Tiki Party

SevenFifty Daily 9 Ways to Upsell Wine

Shanken News Daily Changing of the Guard: Ernest J. Gallo to Lead California Wine Giant

VinePair Unoaked Chardonnay Could Win Fans Back to the Variety

Wine & Spirits Wholesalers of America WSWA Says Federal Government Should Allow Industry to Operate if Regulated Similarly to Beverage Alcohol

United Beverage Retailers of Arkansas Arkansas Liquor Stores See Drop in Sales Following Grocery Wine Expansion Grocery stores like Kroger said they’re seeing strong results now that they can sell an expanded selection of wine in Arkansas. This came after the state Legislature last year approved Act 508, which allows grocery stores including Walmart, Kroger, and Harps in wet counties to sell from any winery. Arkansas Business reported this has left independent wine and spirits stores seeing sales declines. Before the new law, stores like Walmart and Kroger could only sell wine from small wineries. Those that produce less than 250,000 gallons per year. But Act 508, which went into effect in October, dramatically expanded how much wine grocery stores could sell.

Massachusetts Package Stores Association Liquor Coupon Add-On Yanked Coupon clippers are out of luck when it comes to buying , wine and spirits because state law forbids package stores to offer them. State Rep. Ted Speliotis of Danvers tried to change that, adding an amendment to the state economic development bill that would allow package stores to offer discount coupons. The bill was being debated in the House on Tuesday. But Tuesday afternoon, faced with opposition from small package stores, Speliotis withdrew his amendment.

Alabama: Ignoring State's Open Meetings Law Is as Easy as ABC: Last week IAP got word that a secret meeting took place before the regularly scheduled Alabama ABC board meeting. When we followed it up we did not find evidence for that. Frankly that kind of evidence is nearly impossible to find, by its nature. What we did find was that when we asked questions about the meeting the answers were malleable and contradictory. Many Alabamians probably think it is completely legal for State, County and local commissions, councils, boards, authorities and other public bodies to get together before a meeting and discuss the details of future meetings.

Arkansas: Grocery Sales of Wine Hit Liquor Stores: As of July 3, the Arkansas Alcoholic Beverage Control Division had awarded 334 permits for “grocery store wine,” the permits that allowed grocery stores and other retailers to sell an expanded selection of wine. The retailers range from grocers like Kroger and Harps to every variety of Walmart store to convenience stores like Kum & Go to the New Blaine General Store in Delaware (Logan County). Even Walgreens and CVS stores have gotten in on the act. They’re taking full advantage of Act 508 of 2017, which allows grocery stores in “wet” counties to sell an expanded selection of wine and which went into effect Oct. 1.

Arkansas: State Criminalizes Drowsy Driving, But How Effective Is That?: Arkansas is one of just two states in the country that has criminalized drowsy driving, but it’s almost never enforced. Just three convictions have occurred under the state’s 2013 law, according to the most recent data from 2016. To convict someone under the law, a death must occur, and there must be proof a driver had not slept for 24 hours before the accident. New Jersey, the other state that criminalized drowsy driving, requires proof that a driver missed 16 hours of sleep in order to convict them.

Colorado: As Denver Weighs Changes, Will Other Cities Loosen Alcohol Rules at Parks?: As Denver considers lifting many of the restrictions on alcohol sales and consumption in public parks, other cities in Colorado may soon be forced to do the same. That's because of a state law that will allow full strength beer to be sold in grocery stores throughout Colorado starting in 2019. Currently, many parks departments in the metro area allow only the consumption of 3.2 beer in parks. This is the rule for parks in Boulder, Aurora, Adams County Parks and Centennial Parks.

Delaware: State's Liquor Industry Growing Through Collaboration: Although small, Delaware’s distilled spirits industry is relying on a creative and collaborative recipe to grow. With the newest addition of easySpeak Distilling in Milford last December, there are about four in the state. Several of them are making large investments in their future, and with the signing of House Bill 373 last month — a law that permits licensed Delaware craft distilleries, breweries and wineries to sell one another’s products for on-site consumption — sustained revenue growth in the sector may be possible.

Delaware: State Sees $1 Million+ from June Sports Bets: The State of Delaware took in more than $7 million in sports bets between June 5th-24th, realizing $1,000,247 in revenue over the 20-day span. Delaware sports fans placed +/- 70,000 wagers at the state’s land-based racinos (i.e. no mobile), with the average bet worth $100. 75% of the dollars placed were on baseball games, with the World Cup (10%) and NBA Finals (8%) also drawing heavy action. The First State became the 1st state (besides Nevada) to offer single game sports wagering following SCOTUS’ May ruling to overturn PASPA.

District of Columbia: D.C. Council Members Move to Overturn Ballot Initiative Affecting Tipped Workers: At least three D.C. Council members said Monday that they will lead an effort to repeal a ballot initiative approved by voters last month that raises the minimum wage for food servers, , bellhops and others who earn gratuities. D.C. Council Chairman Phil Mendelson (D-At Large) and members Jack Evans (D-Ward 2) and Brandon T. Todd (D- Ward 4) said they intend to file a bill on Tuesday to overturn Initiative 77, which voters approved 56 percent to 44 percent in June. The ballot initiative phases out the “tipped wage” that allows D.C. employers to pay workers as little as $3.89 an hour and count tips toward the standard minimum wage of $13.25 an hour.

District of Columbia: As D.C. Dive Bars Go Extinct, Summer Interns Find Washington Less Welcoming: Svetlana Legetic remembers fondly what it was to be a D.C. intern in the early 2000s. She had to scrimp and save just to make it onto the Metro — but then it would her off to a offering $3 rail drinks and as many wings as you could devour. “I have a very romantic memory” of those days, she says. Bargain-basement happy hours were hidden all over Washington; finding a gratis steak sandwich or a 25-cent beer “was like a game to some extent.” Washington has never been an inexpensive city. But the District of past decades was at least moderately comfortable for the annual influx of baby-faced summer workers. It had bars that were all too pleased to cede their sticky dance floors to interns on slow nights.

Iowa: New Drunk Driving Law to Require More Ignition Interlocks: A new drunk driving law has gone into effect in Iowa. Backers hope it will keep more impaired drivers off of state roadways. It will require more convicted drunk drivers to install devices on their cars to lock the ignition if they’ve been drinking. In Iowa, a drunk driver’s license is suspended for six months, but you can get a temporary restricted license, or TRL, to travel to and from work. And If you’re a repeat offender, an ignition interlock is required. Under the new law, the TRL will let you drive anywhere, not just to work. Now, even first-time offenders will have to get the device.

Iowa: Alcoholic Beverages Division Releases Study of Iowa's Tied House Laws: The Iowa Alcoholic Beverages Division (ABD) released the Alcoholic Beverage Control Study on June 28, 2018. The study was ordered by the Iowa legislature and focuses on Iowa's tied house laws, in particular prohibitions on cross-tier ownership interests in the three-tier system. "This study serves as the seminal work for understanding Iowa's tied house laws in regards to prohibited cross-tier ownership interests," said ABD Administrator Stephen Larson.

Maine: 14-Year-Olds Can Bus Tables at Eateries Serving Booze: Maine 14-year-olds can bus tables at restaurants that serve liquor as the state's liquor bureau moves ahead with its plan. The state Bureau of Alcoholic Beverages and Lottery Operations says the effort will address Maine's labor shortage in the tourism and service industries. The bureau said July 5 that it's already allowing the proposed change even though it won't go into effect until August 1. That means 14-year-olds can begin bussing tables as long as they have work permits.

Maryland: to Open New $80 Million Brewery in August: Diageo’s new Maryland-based Guinness brewery is set to open to the public on August 3. The $80-million Open Gate Brewery & Barrel House is located in Relay south of Baltimore and will produce Guinness Blonde American as well as new experimental (Guinness Draught and the brand’s other will continue to be imported from ). The 10-barrel brewery features a tour, taproom, gift shop, and restaurant. Diageo North America president Deirdre Mahlan told SND earlier this year that the company expects about 300,000 visitors annually at the new brewery, which is located on the site of the former Calvert distillery, acquired by Diageo along with its purchase of in 2001.

Missouri: Latest Stage in Missouri Tied House First Amendment Litigation Could Change Economics of Industry Advertising: The latest development in a lengthy legal challenge to advertising restrictions in Missouri’s tied house laws and regulations raises practical economic issues for the alcohol beverage industry and significant legal and policy issues for legislators and regulators at all levels of government. On June 28, Judge Douglas Harpool of the US District Court for the Western District of Missouri filed a decision in Missouri Broadcasters Association vs. Dorothy Taylor

Nebraska: With Safety Questions Answered, Liquor Board OKs License for Omaha Ax-Throwing Bar: When an ax-throwing venue also wants to be able to serve alcohol, the Nebraska Liquor Control Commission hs a lot of questions. Matt Wyant, the owner of Flying Timber at 1507 Farnam St., had answers about the unconventional bar concept that has popped up in cities across the nation. Hobert Rupe, executive director of the commission, said the business model was interesting and a new concept to the state. “The idea of axes being thrown at targets with alcohol raises some concerns,” Rupe said. Wyant said it was more like throwing darts in a controlled environment and not like playing tag with axes, as some people think.

New York: Grab a Frozen Pint! New York Legalizes Sale of Beer and Hard Ice Cream: Beer and ice cream can be perfect summer treats. (But let's be serious, they can be enjoyed at any time of year.) A bill signed by Gov. Andrew Cuomo Tuesday will allow New Yorkers to combine them. Cuomo signed legislation to allow beer- or hard cider-infused ice cream. Wine ice cream has been legal in New York since 2008. The law limits the percentage of alcohol in ice cream and other frozen desserts to no more than 5 percent alcohol by volume.

North Carolina: State Ranked 1st in South with Number of Craft Breweries: The state of North Carolina boasts the largest number of craft breweries in the South, according to the North Carolina Craft Brewers Guild. After working on bombs and missiles for a living, John Oldendorf decided to make a career change. "What do I enjoy doing," said Oldendorf. "What would I be happy about doing for a living? Beer was the number one option." In 2011, there were just 59 craft breweries in the state of North Carolina. With the addition of places such as Clouds Brewery, that number now stands at over 260 in 2018. "Ten years ago we were told it hit the max," Oldendorf said at the World Beer Festival Saturday at the North Carolina State Fairgrounds. "Now we're being told it hit the max."

Ohio: Family Dollar Wants to Sell You Booze in Cincinnati: A retailer known for discount consumer products wants to be Cincinnati's new source for alcoholic beverages. Charlotte, N.C.-based Family Dollar, owned by Dollar Tree, has applied for more than two dozen liquor permits to sell beer and wine in the four-county Greater Cincinnati region. The discount store chain has applied and is pending approval for 28 liquor permits in Hamilton, Clermont, Butler and Warren counties. Those permits would allow 14 stores to sell packaged beer and wine to-go.

Oklahoma: State Board of Health Votes to Ban Sale of Smokable Marijuana: Oklahoma's Board of Health on Tuesday voted to place a ban on selling smokable forms of marijuana, according to The Oklahoman. The department also voted to mandate that marijuana dispensaries hire a pharmacist. The Board of Health voted on 75 pages of rules that will create a framework for people interested in forms of medical marijuana. In late June, Oklahoma became the 30th state to legalize medical marijuana in the country. According to Forbes, the measure was approved by a 10-point margin.

Pennsylvania: Master Brewers Association Recognizes Penn College's Brewing Major: The Master Brewers Association of the Americas has recognized Pennsylvania College of Technology’s brewing and fermentation science degree as one of only 12 approved programs — and the only approved program in the U.S. Northeast. Established in 1887, MBAA is a nonprofit, professional, scientific organization dedicated to advancing brewing, fermentation and related industries. A globally recognized authority on brewing, the international association has more than 4,000 members in over 50 countries.

Virginia: ABC Accepting Applications for Alcohol Education, Prevention Grants: In an effort to reduce underage and high-risk drinking, the Virginia ABC is now accepting grant applications for the agency’s 2018-2019 Alcohol Education and Prevention Grant program. This is the fifth year ABC is offering grant funding to support the development of alcohol education and prevention programs across the commonwealth. Last year eleven Virginia community organizations, law enforcement and universities received grants to fund marketing and media campaigns, overtime law enforcement patrols, mentoring programs and other collaborative projects to help prevent alcohol misuse in their communities.

As U.S. Temperatures Rise, Hard Seltzer Sales Heat Up: As the summer season gets into full swing, a growing number of drinkers are purchasing hard seltzers, according to recent data from market research company Nielsen. Year-to-date dollar sales of hard seltzer products across the aggregate of measured off-premise channels totaled $257 million through June 16, compared to $85 million during the same period last year (and $8.5 million in 2016), said Danny Brager, the senior vice president of Nielsen's beverage alcohol practice. Over the last 52 weeks, dollar sales are up 204 percent, Brager also shared.

The Brewers Association Hates Big Beer but Loves Big Business: Last week, the Brewers Association (BA) announced that Buffalo Wild Wings will be an official sponsor of this year’s Great American Beer Festival (GABF), one of the largest beer festivals in the country. As part of the deal, B Dubs will have its own branded pop-up sports bar at GABF. At first glance, beer industry members were scratching our heads. How can the BA, the not-for-profit trade association dedicated to small and independent brewers, partner with Buffalo Wild Wings, a corporate restaurant chain owned by Arby’s and best known for mass-produced chicken wings adorned with sauces with names like “Blazin’” and “Desert Heat?”

For Many U.S. Beer Brands, Summer Sales Continue to Be Flat: As the summer kicks into high gear, fewer U.S. consumers will be quenching their thirsts with an ice-cold beer. In fact, sales of the biggest U.S. beer brands are dropping. Bud Light, Budweiser, and Heineken have each dropped more than 3 percent during the 12-week period ended June 18, according to a recent Cowen & Co. report. Sam Adams Boston Lager saw its sales plunge 14 percent. Between January and May, U.S. brewers shipped 2.5 million fewer barrels than the year before, according to The Beer Institute trade group - a drop of about 3.7 percent.

The Short History and Uncertain Future of CBD Beer: "So, does it get you high?" This was one of my first questions when I met with brewer Elan Walsky, the co-owner of Coalition Brewing in Portland, Oregon. Coalition makes a line of beers infused with CBD, one of many compounds found in marijuana and hemp (two strains of cannabis) that make the plants unique. Walsky grinned and told me no. I knew this would be the answer, but it's an obligatory question while drinking a CBD IPA. I was visiting Coalition not only to partake in its CBD beers, but also to understand why they're so difficult to make, whether

Forget the Caribbean: Was Rum Invented in India?: When rum was invented it was already at least a thousand years old. I'd better explain. For every cultural phenomenon, be it Russian formalism, country line dancing or the production of a distilled spirit from the of the sugar cane or the byproducts of its refining (that is, making rum), there is a both a history and a History. The latter, with the capital H, is the story that we know and can more or less agree upon; the one with a firm beginning, a cast of characters and a clear narrative arc. All its paperwork is in order, with actual documents of one sort or another holding up every corner.

Why Brewers Are Turning to Can Conditioning: Several years back, canning company Iron Heart called on Transmitter Brewing, inquiring about packaging its beer. Canning? The notion had never crossed cofounder Anthony Accardi’s mind. The Queens, New York brewery sold its rustic saisons, sours, and wild creations in corked-and-caged bottles, naturally carbonated through a secondary fermentation. Called bottle conditioning, the technique creates a softer effervescence and more multifaceted flavor as compared with force carbonation, in which beers are infused with carbon dioxide. Switching to cans would likely mean losing the delicate fizz, a prospect less alluring than warm malt liquor.

MillerCoors CMO David Kroll Departs Amid Coors Light Struggles: MillerCoors has parted ways with Chief Marketing Officer David Kroll amid continued market share declines for the maker of Miller Lite and Coors Light. "My immediate priority is to appoint a CMO who will advance our marketing efforts, working decisively and taking bold action to optimize our brand portfolio, with an urgent focus on turning around Coors Light's performance and capturing more growth in above premium," MillerCoors CEO Gavin Hattersley stated in an internal memo shared with Ad Age.

Interest Brewing in Kombucha as Healthy Beer, Soda Alternative: Boasting a variety of brands and flavors, kombucha—the probiotic-rich “brew” made by fermenting sweet tea—is likely to soon rival craft beer and, eventually, the slumping soda category. Offered with alcohol or as a typically in glass bottles, kombucha is currently a tiny segment of the beverage market, but it is seeing tremendous growth. In 2017, the global kombucha market generated $1.5 billion in sales, according to research firm Mordor Intelligence, and is projected to grow at a compound annual growth rate of 23% over the next five years.

These Are the Most Popular Beers in the United States: Overall beer consumption in the United States may have dropped again in 2017, but Americans still threw back 208 million barrels of beer. That's a buttload of beer. But the kinds of drinks Americans put back are changing all the time. 24/7 Wall St. went through the last year of changes in domestic shipping volume for "26 of the beer industry’s largest brands" using data from Beer Marketer's Insights to show some of the changes inside the beer world. Some of the reasons cited for changes across the industry are millennials moving to wines and mixed drinks, changing demographics in the US, and craft beer continuing to take a larger market share from big beer.

Pink Gin Finds Audience Amid Rose Craze: For decades — even centuries — “pink gin” meant one thing: gin tinted with a few dashes of bitters. It was a simple drink, favored by the English and gin lovers. But pink gin means something different now. A weird new breed of gin produced to be pink (sans bitters) was kicked off by small craft brands like Pinkster, which launched in the U.K. in 2013, and Wölffer Estate Pink Gin, made by a winery on Long Island. Recently, however, the big boys have been climbing on the bandwagon, including Greenall’s (Wild Berry Gin), Gordon’s (Premium Pink Distilled Gin) and Beefeater (Pink).

Anheuser-Busch and Drizly Partner to Keep Office Beer Fridges Stocked: Drizly has entered into a partnership with Anheuser-Busch to keep offices across the country stocked with beer. The alcohol delivery company is now exclusively handling delivery to Anheuser-Busch's Office Bud-e fridges, which use sensors and WiFi connectivity to automatically re-order beer when stocks are running low. The fridge connects to Drizly's local liquor retailers to re- stock the supply and includes the option to set up automatic orders or send the office manager e-reminders to reorder via the Anheuser-Busch web portal.

New App Lets Small Businesses Use Apple Pay and Any iOS Device to Stream ASCAP, BMI, GMR, Socan Licensed Music into Their Establishments: Channel Maker, the NEXTUNE App exclusively available on the App Store, comes with over 150 music channels that target specific business environments like restaurants, spas, retail stores, and hotels. Business owners can even make their own channel and save it into a Favorites list. Every channel features ASCAP, BMI, GMR, and SOCAN licensed music for public performance, so business owners have no need to get direct licensing to play music in their establishments.

Massachusetts: Rivertowne Brewing Expands Distribution to Massachusetts