Spring 2017 INSIDER

THE V OICE OF AMERICA’S BEER, WINE & SPIRITS RETAILERS

ABL INSIDER VOL. 11, NO. 1 | SPRING 2017

A PUBLICATION OF AMERICAN BEVERAGE LICENSEES

Tavern Month Returns This May

Legislative Updates

2017 Annual Meeting Preview

2017 ABL Top Shelf Award

(p. 3)

(p. 6-7)

(p. 10-11)

(p. 13)

17 Spring - 16page.indd 1

3/2/2017 7:15:41 AM

VOL. 11, NO. 1 | SPRING 2017

contents 3 heritage

This May, Join ABL in Celebrating Tavern Month

10-11 convene

Previewing ABL’s Annual Meeting Sessions & Speakers

4 leading

12 at-a-glance

5 where we stand

13 top shelf

Warren Scheidt, ABL President

Preview: ABL Annual Meeting Schedule of Events

John Bodnovich, ABL Executive Director

6-7 legislative update

Swipe Fee Reform Repeal Potentially in Financial Bill

ABL to Honor to Tito Beveridge with 2017 Top Shelf Award

14 perspective

Bars & Liquor Stores Have to Compete: Why Shouldn’t Banks?

8 industry voices

15 state & industry update

9 industry voices

16 associate & affiliate members

Craig Purser, President & CEO, NBWA

Craig Wolf, President & CEO, WSWA

industry calendar March 2017

May 2017

ABL 15th Annual Meeting

Massachusetts Package Stores Association 75th Anniversary Celebration & Tasting

March 26-28 | Las Vegas, NV

May 2 | Randolph, MA

March 27-29 | Las Vegas, NV

May 22-25 | Marco Island, FL

Night Club & Bar Convention & Trade Show

National Alcohol Beverage Control Association Annual Conference

April 2017

April 3-6 | La Crosse, WI

June 2017

American Distilling Institute Craft Spirits Conference

June 10-12 | Minneapolis, MN

Tavern League of Wisconsin Spring Convention & Trade Show

June 5 | Spring�ield, IL

Illinois Licensed Beverage Association Annual Golf Outing

April 3-6 | Baltimore, MD

ABL Summer Board Meeting

April 10-13 | Washington, DC

2017 Craft Brewers Conference & BrewExpo America

April 18-21 | Orlando, FL

Wine & Spirits Wholesales of America 74th Annual Convention & Expo

April 24-25 | San Francisco, CA

Responsible Retailing Forum National Conference

June 11-14 | Denver, CO

National Conference of State Liquor Administrators Annual Conference

June 12-14 | Minneapolis, MN

Beverage Alcohol Retailers Conference

April 30-May 3 | Washington, DC

National Beer Wholesalers Association Legislative Conference

Published by: American Beverage Licensees 5101 River Rd, Suite 108 Bethesda, MD 20816 (301) 656-1494 www.ablusa.org editor MATTHEW EVANS

2 17 Spring - 16page.indd 2

ISSN# 2331-6594 (c) 2017 American Beverage Licensees.

All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the publisher.

AMERICAN BEVERAGE LICENSEES

executive director JOHN BODNOVICH director, trade relations & operations SUSAN DUFFY communications manager MATTHEW EVANS

ABL INSIDER 3/2/2017 7:15:42 AM

heritage May Is Tavern Month This May, Join ABL in Recognizing Bar & Tavern Owners by Celebrating the 64th Annual Tavern Month Did You Know?

The Fraunces Tavern is considered as one of the most famous taverns in the United States. Located at the corner of Broad and Pearl streets in Manhattan, the tavern was home to several historical events, including merchants’ meetings regarding taxes post-1763, and then-General George Washington saying his goodbyes to his family and officers inside the tavern’s Long Room.

S

ince 1953, Tavern Month has served as an opportunity to support local hospitality businesses, promote the responsible service and enjoyment of beverage alcohol, and educate the public about the economic engine formed by the hundreds of thousands of on-premise beverage licensees throughout the United States. Which is why this May, ABL and America’s Beer, Wine & Spirits Retailers encourage everyone to recognize their local bars and taverns by celebrating Tavern Month.

The Green Dragon Tavern was known for its drinks, but it was also an important meeting spot where the Founding Fathers made important decisions about this country—like to throw the Boston Tea Party (and the equally important decision to save their rum and toss the tea!), and the resolutions that built our Federal Constitution.

Long known as the “Friendliest Place in Town,” the American bar and tavern represent the epitome of community spirit and social culture – both of which are at the core of this nation’s civic fabric.

Be it the corner pub, a trendy lounge, a wine bar, or a family-owned and operated tavern, they all have the same essential function: serving as a place where people come together for meetings, celebrations, and remembrances. Simply put, they are places where people come to share.

On November 10, 1775, Robert Mullan, the proprietor of the Tun Tavern in Philadelphia, was commissioned by an act of Congress to raise the first two battalions of Marines, under the leadership of Samuel Nicholas, the first appointed Commandant of the Continental Marines. The Tun Tavern which has been officially acknowledged as the birthplace of the United States Marine Corps.

Bars and taverns have played an integral role in the development and formation of this nation for nearly 250 years: in 1773, the Sons of Liberty planned the Boston Tea Party at the Green Dragon Tavern in Boston; in 1787, 55 delegates to the Constitutional Convention celebrated at Philadelphia’s City Tavern two days prior to the signing of the Constitution; and in 1833, Abraham Lincoln and associate William Berry opened three stores that doubled as bars, selling brandies, gin, wine, rum and whiskey.

Until Joseph Bramah patented the beer engine in 1785, beer was served directly from the barrel and carried to the customer. The Old English dragan (“carry; pull”) developed into a series of related words including drag, draw, and draught. By the time Bramah’s beer pumps became popular, the use of the term draught to refer to the acts of serving or drinking beer was well established and transferred easily to beer served via the hand pumps. In time, the word came to be restricted to only such beer. |

establishments account for as many as 1.41 million jobs; $35.9 billion in wages and benefits; and more than $76 billion in economic impact annually. When including all sales by on-premise, full-service restaurants and drinking places, those numbers climb to 5.66 million jobs; $136.7 billion in wages and benefits; and over $275 billion in economic impact.

As the retail tier within the Three-Tier System, bar and tavern owners also work with elected officials and state regulators on an on-going and continual basis to support sensible beverage alcohol policy.

These owners also place a strong emphasis on providing the public with responsible service, as evidenced through various employee training programs and the implementation of programs and initiatives designed to both discourage and prevent drunk driving and underage access to alcohol.

This May, join ABL and its state and local bar and tavern association affiliates in embracing the historic and modern roles of the American bar and tavern, the hardworking individuals who strive to keep the doors of their businesses open, and the good jobs they provide to those in their communities. Celebrate Tavern Month this May by raising a glass to the American tavern – the friendliest place in town! |

“The important role played by bars and taverns in the history of this nation should not be overlooked,” noted ABL Executive Director John Bodnovich. “Whether it’s serving as a location for like-minded individuals to meet and discuss the pressing issues of the day, the sponsoring of local youth athletics programs, or working with local civic organizations to promote and support community initiatives, on-premise beverage retailers are there – and often times, they are leading the way.”

According to the 2016 Economic Impact Study of America’s Beer, Wine & Spirits Retailers, direct retail alcohol sales for on-premise, licensed

SPRING SPRING2016 2017||ABL ABLINSIDER INSIDER 17 Spring - 16page.indd 3

3 3/2/2017 7:15:43 AM

leading Participation Makes for Stronger Alliances: Reflecting on Two Years as ABL President ith my two-year term as ABL President W drawing to a close at the 2017 ABL Annual Meeting this March, it is with somewhat of a heavy

WARREN SCHEIDT President American Beverage Licensees

heart that I find myself writing the final column in my official capacity. When my term as president began back in 2015, I came into the position with a philosophy that I wanted to instill in the organization: that participation makes for stronger alliances. Reflecting on these past two years as your president, I am proud of the many successes the organization has experienced under my leadership.

Within the organization, I have worked diligently with staff on a number of fronts in an effort to ensure we are operating at the highest standards.

This includes the restructuring and consolidation of ABL board committees to create a more streamlined and efficient governance apparatus, as well as the implementation of a new ABL Board of Directors Policy Manual, with an updated disclosure policy. I also oversaw the updating and expansion of the ABL Economic Impact Report, which has proved extremely beneficial to members in their meetings with state and local officials.

On the membership side of things, one of the primary areas of focus during my time in office has been to forge stronger ties and relationships with both existing and potential members. From the beginning of my term, I made it known that I would make myself available to all members by attending any meetings or industry events to which I was invited. To those who took me up on this offer, I would like to say thank you for allowing me to discuss the role and impact of ABL with your members. Another area of member outreach that I am proud of is with regard to the efforts I made to place calls and make outreach efforts to every single ABL Affiliate Member during my tenure.

During this period, we also saw the addition of the Delaware Small Business Leadership Council to the ranks of State Affiliate Members, along with the additions of R.J. Reynolds Tobacco Company and Wine Institute as Associate Members.

I have also been hard at work externally, working to promote the organization to members of Congress as well as industry partners. Under my leadership, ABL was instrumental in the formation of the Congressional Responsible Hospitality Caucus, a bipartisan group formed to provide members of Congress with a better understanding of the challenges faced by the American hospitality industry. The caucus also provides our industry the recognition it deserves for the steps it has taken to promote responsible consumption as well as the impact it has had on our local economies. ABL has also partnered with a number of organizations during this time, forming coalitions to address ongoing concerns of, and threats to, our members.

These include:

4 17 Spring - 16page.indd 4

The MIC Coalition, a group associations whose members provide music in stores, hotels, restaurants, bars and taverns throughout the country, and is committed to a rational, sustainable and transparent system that will drive the future of music and ensure that consumers have continued access to music across a variety of platforms, venues and services; and The Family Business Coalition, which represents a diverse collection of organizations and industry groups united for the common purpose of protecting America’s family businesses across the country.

Another area where I have focused my attention on is that of serving as the public face of the retail tier within the Three-Tier System. Soon after being sworn in as ABL President, I served on a panel of distinguished industry representatives to discuss the growth of the hospitality industry and the importance of the Alcohol and Tobacco Tax and Trade Bureau (TTB) at a briefing for the Congressional Responsible Hospitality Caucus.

I was also a featured speaker at an event at the National Archives, The History & Impact of Alcohol Regulation, which discussed the origins, effects, and current debate over the regulation of alcohol.

During the past two years, I have also met with top executives from industry trade groups on multiple occasions, including the Beer Institute, Distilled Spirits Council, National Association of Beer Wholesalers, and Wine & Spirits Wholesalers of America. These meetings have proven to be extremely beneficial, in that we have been able to discuss pertinent issues affecting not just the retail tier, but also the producer and distributor tiers, and ways in which we can work together to bring about change and resolve issues that may arise.

As I mentioned in my opening, coming into this role I had a philosophy in mind that I wanted to apply not just to my role as ABL President, but also to the organization as a whole: that participation makes for stronger alliances. In this respect, ABL has experienced immense success over the course of the past two years – though there is still work to be done.

That being said, I would like to take this opportunity to sincerely thank our Board of Directors, Executive Committee, affiliate and associate members, and staff and for the commitment to the organization and the great work done on its behalf. These individuals have graciously and selflessly given their time and effort to supporting the interests and causes of the national organization – efforts that often go unrecognized and underappreciated.

So, to them, I say THANK YOU. |

ABL INSIDER 3/2/2017 7:15:44 AM

where we stand Death & Taxes…But Mostly Taxes s the saying goes, there are only two certainties in life: death and taxes. In Congress these A days, it is taxes that seem to be on everyone’s

JOHN BODNOVICH Executive Director American Beverage Licensees

mind. From efforts to completely overhaul the U.S. Tax Code for the first time since 1986, to smaller, standalone tax legislation that would address a variety of tax issues, there is plenty to discuss. And while tax reform may be the second most important issue for Republicans to address after the Affordable Care Act, it is not far behind.

Small businesses are already beset by a variety of taxes, and beverage alcohol businesses contributed just under $10 billion in federal excise tax revenue in 2016. Here are some of the tax issues before Congress that could affect beverages licensees: Craft Beverage Modernization and Tax Reform Act: For the past few years, beverage alcohol suppliers and their trade groups have coalesced around the Craft Beverage Modernization and Tax Reform Act (CBMTRA). Despite its name, the bill would address tax issues for all alcohol suppliers, including those considered to be “craft” and those that are not. As noted by the legislation’s sponsor, Sen. Ron Wyden (D-OR), the bill is intended to help “5,300 breweries, 8,000 wineries, and 800 distilleries across the country” by reducing excise taxes and/or expanding tax credits; simplifying ingredient and inventory rules; and reducing compliance burdens for all suppliers.

The legislation, which has unified the supplier tier of the beverage alcohol industry (and was almost passed into law three times in the previous Congress), could be paired with other tax legislation in what is expected to be a busy first six months of 2017 as Congress and the Administration look to make their law-making marks before we enter the 2018 mid-term season.

Estate Tax: A perpetual issue for family-owned businesses, the estate tax (sometimes known as the “death tax”) is officially on the chopping block this year, as its repeal is listed as a priority in the House GOP’s tax reform blueprint. Already, stand-alone bills to fully repeal the tax have been introduced and are gaining co-sponsors. This year’s developments follow five years of relative estate tax stability, after nearly a decade of uncertainty ended in 2012 when a permanent compromise was reached in deal to avert the so-called “fiscal cliff ”. While tax reform negotiations are not likely start in earnest until later this year, ABL has already reestablished its support of efforts to the repeal the tax on family-owned businesses.

Border Adjustment Tax: A relatively new approach to broader tax reform, though one that you may be hearing more and more about as the tax debate rages on in Washington, is a “border adjustment tax” (BAT). Under this plan, taxes on exports would be eliminated, while taxes on products imported into the U.S would increase.

House GOP leadership views this tax plan as

the way to raise trillions of dollars to pay for massive corporate tax cuts – including lowering the corporate rate from 35 percent to as low as 20 percent. By changing tax incentives, it would theoretically drive more domestic manufacturing and create more American jobs. This remains an untested theory, however, with serious downside risks in the form of hundreds of thousands of lost jobs. Additionally, should it fail to stimulate the domestic growth it promises, the average American family could be faced with an effective tax of approximately $1,700.

For beverage licensees, the impact could be felt when it comes to the cost of the imported beer, wine and spirits they sell. While the same t-shirt can be made in Vietnam or California – albeit at vastly different costs – it is essentially impossible to make beverage alcohol products who are defined by their very provenance. This is to say, for example, that it’s impossible to make scotch anywhere other than Scotland. Tequila, by its very nature, comes from Mexico – just as Burgundy wine comes from France. It’s likely that cost increases would eventually reach the consumer, hitting customers that enjoy beer, wine and spirits as affordable luxuries, the hardest.

U.S. retailers have mobilized a national campaign to educate consumers and lawmakers about the impact of a border adjustment tax on basic goods and services such as such as food, gas, clothing and medicine. It remains unclear, however, if some of these items – or beverage alcohol products – could be exempted from a border adjustment tax.

ABL has supported efforts to improve the tax climate for small businesses (including S-Corps) and looks forward to working with likeminded retailers, Congress and the administration on how to improve the business environment. e-Fairness: As brick-and-mortar businesses on real property and with state-issued licenses, beverage retailers have long sought a level-playing field with out-of-state shippers of beverage alcohol, who are not required to collect sales tax.

Currently, thousands of brick-and-mortar beer, wine and spirits retailers are forced to do business at a competitive disadvantage because they abide by their legal obligation to collect sales taxes.

Remote sellers who do not collect legally due sales taxes can gain a 5 to 10 percent price advantage in some states, which penalizes local businesses and communities.

That’s why beverage licensees seek a commerce structure that is vibrant, viable and equitable for everyone. ABL has supported the Marketplace Fairness Act in the past, and expects new e-fairness legislation to be filed in the 115th Congress that empowers states to update their sales and use tax laws to level the playing field for all sellers, protect states’ rights, and make life simpler for consumers.|

SPRING SPRING2016 2017 || ABL INSIDER 17 Spring - 16page.indd 5

5 3/2/2017 7:15:46 AM

legislative update Swipe Fee Reform Repeal Potentially in Financial Bill; “Craft Beverage Modernization” Act Reintroduced

O

utlook We’re off and running with the 115th Congress and the Donald J. Trump Administration. To say that it’s been an active few months, would be an understatement. The GOP Congress has an ambitious agenda and plans to focus its efforts on big projects over the first 100 and 200 days. So, does President Trump and those in Washington will be watching to see how a populist President and conservative Congress match-up on policy prerogatives.

For beverage licensees, there are some carry-over issues that ABL has worked on now for multiple Congresses, and there will likely be some new legislation that will require attention. As always, ABL’s strength lies in its membership’s grassroots acumen, along with sensible coalition partnerships with the alcohol, retail and small business communities.

Border Adjustment Tax: What It Could Mean for Beverage Retailers Embedded in the House Republicans’ tax reform plan is a “Border Adjustment Tax” that is quickly becoming THE topic of discussion in tax policy circles.

In order to offset a proposed lower corporate tax rate (dropping from 35% to 20%) and incentivize U.S. companies to stay in the United States, House Ways and Means Committee Chairman Kevin Brady (R-TX), with the tacit support of Speaker Paul Ryan (R-WI), is promoting a tax plan that would essentially shift taxes from goods that are exported from the U.S. to goods that are imported and sold in the U.S. (President Trump has weighed-in with his own suggestion of a 20% tax on goods from Mexico in order to pay for a border wall, but has also lamented the border adjustment tax proposal as being “too complicated.”)

Proponents of the tax argue that the border adjustment tax would raise $1.1 trillion over 10 years, and would

6 17 Spring - 16page.indd 6

do minimal economic harm because some economists contend that a border adjustment tax would lead to a stronger U.S. dollar, which would make it cheaper to import goods, and would cancel out the higher taxes on imports. Skeptics suggest that this is merely an academic theory which, should it fail to materialize, could mean the loss of hundreds of businesses and hundreds of thousands of American jobs.

The alcohol industry continues to weigh the implications of this as yet unseen final tax proposal. It has also been challenging for businesses (and the associations that serve them) to accurately forecast the exact financial impact of the tax if implemented, though some estimates suggest that it could be approximately a $1 billion cost to the alcohol industry.

Despite that projected cost, there is not yet unanimity in the alcohol industry when it comes to this tax. Beverage importers, including many foreign-based distillers and brewers with large imported beer portfolios, are very concerned.

However, domestic producers, some of which are net-exporters, see a tax shift of this nature as potentially beneficial.

From the retail perspective, any additional cost to suppliers will almost certainly be passed down to distributors, who will then pass it down to retailers, who will then be faced with passing along the cost to unhappy customers or potentially not carry products on which they don’t have a viable margin. Either way, increased cost of goods for beverage retailers is not a good thing, nor is limiting their selections. ABL continues to examine the issue and will explore ways to have a meaningful role in the debate as details emerge from Congress.

Estate Tax Repeal Bills Introduced; ABL Signs Coalition Letters of Support

ABL recently signed-on to letters from the Family Business Estate Tax Coalition (FBETC) and the Family Business Coalition (FBC) in support of the introduction of the Death Tax Repeal Act (S. 205; H.R. 631) by Senator John Thune (R-SD), Congresswoman Kristi Noem (R-SD) and Congressman Sanford Bishop (D-GA). The legislation is identical to that which was introduced in the 114th Congress, and which passed the House in 2015. It’s also worth noting that full repeal of the estate tax is included in the House GOP tax reform blueprint, though draft of an actual tax reform bill is not expected until the second 100 days of the Congress.

Swipe Fee Reform Repeal Potentially in Financial Bill With the passage of the Financial CHOICE Act out of the House Financial Services Committee (HFSC) in September 2016, ABL and its partners in the Merchants Payments Coalition (MPC) expected another attempt to repeal the “Durbin Amendment” in the 115th Congress and it looks like that will be the case. A sweeping financial bill to undo the Dodd-Frank bill of 2010 has been a top priority for big banks for the past six years, and they finally seem to have a champion in HFSC Chairman Jeb Hensarling (R-TX).

Congressman Hensarling is the author of the Financial CHOICE Act, and is expected to reintroduce it (or something similar) in the coming months. Big banks and their allies have already launched an expensive and aggressive ad campaign attacking retailers and the Durbin Amendment. ABL is working with MPC on messaging that asks legislators to support competition in the debit card marketplace by not repealing the Durbin Amendment.

ABL INSIDER 3/2/2017 7:15:46 AM

legislative update “Craft Beverage Modernization” Act Reintroduced On January 30, members of the House and Senate introduced the Craft Beverage Modernization and Tax Reform Act (S. 236; H.R. 747). Similar to 2015 legislation that garnered nearly 300 House co-sponsors and 53 Senators but ultimately failed to pass either chamber, the bill represents the alcohol supplier tier’s efforts to change what they view as “an outdated tax structure” and reap the benefits of lower tax rates. Senator Ron Wyden (D-OR) and Senator Roy Blunt (R-MO) lead the introduction in the Senate, with Reps. Erik Paulson (RMN) and Ron Kind (D-WI) introducing the House version. e-Fairness Bill to Be Reintroduced; Would Level Playing Field for Brick-&-Mortars Rep. Steve Womack (R-AR) has announced that he plans to reintroduce legislation to create a level playing field for merchants competing against outof-state businesses that can sell products tax-free. Under current federal law, a state can only force a business to collect sales taxes it is owed if the business has a connection to that state -- a physical

store, office or warehouse within its borders, for example.

A New Marijuana Normal with a New Attorney General?

While the Obama Administration’s Department of Justice made it clear that their enforcement priorities lied elsewhere when it came to states that legalized recreational marijuana (provided they implemented policies that kept it away from schools, etc.), its less clear what the Trump Administration’s DOJ, under the likely leadership of conservative Senator Jeff Sessions, will do.

Sessions has been mum on just how vigorously he would enforce federal drug laws (marijuana remains a Schedule I narcotic in the eyes of the federal government, on par with heroin and LSD) but he has a history of being tough on drug-related crimes, once advocating for the death penalty for anyone convicted of a second drug trafficking offense.

between state laws that legalize marijuana and federal laws that make it illegal. The Justice Department has established guidelines for states that do legalize, which may also be informed by the limited resources of the federal government to enforce federal marijuana laws.

Pass-Through Parity?

As the border adjustment tax debate continues, another potentially gamechanging tax issue hangs in the balance for many small businesses. House Republicans are being pressured to accept a bill (H.R. 116) that would require that the tax rate paid by owners of passthrough businesses be no higher than the corporate rate. Pass-through (S-Corp) businesses are the most common form of business, and a Tax Foundation study has found they make up 94 percent of nearly 28 million businesses that employ a majority of private-sector workers. |

The path of least resistance for the next attorney general will be to maintain the stable if somewhat uneasy relationship Affiliate News: See where ABL’s 30 affiliate members throughout the country are popping up in the news.

Industry & Association News: Learn about the industry, including associations representing the producer and distributor tiers, and other nonprofit/advocacy groups.

Y

ou’re a busy person. You make time to read the ABL Insider to learn the latest about the policy issues that affect your business, but it can be hard to keep up with industry news on a day-to-day basis.

That’s why there’s the ABL Weekly. With a new issue every Friday, the ABL Weekly is a collection of the most relevant news of the week to beverage retailers.

The ABL Weekly includes: ABL & Public Policy News: News releases and stories about relevant industry policy, legislation and issues updates from Washington.

ABL has partnered with Fintech, the leading provider of electronic data and payments solutions to the alcohol industry, to provide a secure, affordable and hassle-free way for ABL members to pay for alcohol deliveries electronically and improve the beverage alcohol purchasing process. Under the program, ABL members are eligible for a discount on Fintech's electronic payment and data solutions systems. For more information, please visit http://go.fintech.net/ABL. |

Associate Profiles & Member Benefits: ABL highlights its industry partners and other membership benefit programs.

State News: Follow important state issues affecting beverage retailers and learn how other they could affect the debate in your state.

Business & Lifestyle News: Filled with news about new products, company updates, popular trends and surveys, economic and employment updates.

The best part? It’s free! The second best part is it’s a single email. Just one.

And it you don’t like what you’re seeing, then just click “Unsubscribe” and you won’t hear from us again. It’s that simple!

To sign up, visit www.ablusa.org and click on the ABL Weekly logo. |

ABL and Intellicheck Mobilisa have joined in a new partnership to address the ongoing issue of underage access to alcohol. Building on ABL’s many efforts to support responsible, age-restricted beverage retailing, Intellicheck is offering its Age ID™ solution to improve customer service and ensure compliance with state regulatory laws by instantly authenticating a customer’s identity and age via a mobile device or integrated with a point of sale instrument. The ability to spot fake or altered identification and to positively verify a consumer’s age in real time provides ABL members with a valuable solution for keeping alcohol out of underage hands. For more information, please visit https://intellicheck.com/solutions/age-id/. |

SPRING SPRING2016 2017||ABL ABL INSIDER INSIDER 17 Spring - 16page.indd 7

7 3/2/2017 7:15:47 AM

industry voices The New Reality for Retailers: Is Consumer Choice at Risk? merica’s independent beer distributors love their independent retailer customers. In A many markets, small and independent retailers

CRAIG PURSER President & CEO National Beer Wholesalers Association

and beer distributors are some of the last familyowned and local businesses operating on Main Street. When independent retailers and local beer distributors are united on building brands, delivering consumer choice or advocating before the state legislature, great things happen.

Independent beer distributors are dedicated to the brewers of the beers they distribute. This includes brewers ranging from the largest, global, iconic brands to the newest, smallest, most local brewers. Much of the excitement in the beer category is driven by the innovation, energy and new products generated by thousands of emerging brewers across the country.

I’ve heard more than one beer distributor say that craft beer has made selling beer “fun” again.

Beer distributors take immense pride in their ability to help small brewers get established, grow these craft brands and celebrate in their partners’ successes. And sampling at the brewery has become one way that brewers can introduce their products to thirsty consumers.

But as more and more brewery-owned retailers are established, and as breweries’ direct-toconsumer sales continue to grow, the competitive landscape is being upended. In some states, brewers are aggressively expanding their retail privileges from their brewery location to standalone, non-brewery taprooms or tasting rooms.

And these modern-day “tied houses” are often exclusive outlets, selling only alcohol products that they own.

The consumer, with $20 in their pocket, may have previously gone to an independent bar or restaurant for a burger and a beer or two. Now that same consumer can go to the local brewery taproom or brewery-owned retail establishment for beers and a complete dining experience.

These taprooms are increasingly serving as competitors to licensed, independent retailers.

So, is there anything wrong with this? That is up to policymakers in state capitols.

But imagine if this rationale were applied by global alcohol giants like Anheuser-Busch InBev, Diageo or Gallo? Competition would slow as these giants grew market power at the expense of brand building beer bars.

Beer industry overall sales are traditionally flat to up 1 percent. However, the fastest growing sales in the beer industry have been sales outside the three-tier system, specifically beer sold on brewery-owned premises.

The largest international brewers have noted this small brewer trend and are now doing the same thing. Anheuser-Busch InBev has bought numerous craft breweries in the last couple years and all of them have taprooms, which makes the company the fastest growing taproom brewery.

Constellation’s Ballast Point has noted plans for increased retail operations. And now Diageo is getting in on the game with a reported Guinness taproom slated to open in Maryland.

The open system of independent distribution and retail beer sales has been an unparalleled success, providing record choice to U.S. consumers and access to market for all brewers. Is that now all at risk?

The blurring of the lines between who is a brewer and who is a retailer presents both a business and political challenge for beer distributors and independent retailers. Retailers are distributors’ customers, and brewers are their suppliers.

Distributors’ retail customers are losing sales and are not happy that their suppliers are no longer their partners but now are competitors.

The common agreement that the three-tier system is the best path to the consumer is being challenged. Suppliers see money in bypassing the distribution and retailer tier, despite the longterm implications.

As independent retailers face this issue, they must be bold in telling their story. Thousands of Main Street jobs. Local investments. Access to retailers for all breweries. Consumer choice including a wide variety of brands. And longlasting community partnerships. Independent retailers have a great story to tell.

The stakes are high, and independent retailers need to act to support the open and independent distribution system that serves consumers – your customers – so well. |

8 17 Spring - 16page.indd 8

ABL INSIDER 3/2/2017 7:15:49 AM

industry voices Today’s Work Develops Tomorrow’s CEOs

I

am excited to share with you a new project undertaken by our members, their employees, and the WSWA staff.

CRAIG WOLF President & CEO Wine & Spirits Wholesalers of America

Last year, the association launched a new program, the Women’s Leadership Council (WLC). This group provides a platform for training, professional development, education, networking and advocacy – and it seeks to build ties across the three-tier system to better unite wholesalers, retailers and suppliers.

Beyond executive development, the group reflects the marketplace – women are an increasingly dominant part of the customer and retail landscape and it’s critical that all of these customers’ views and perspectives are incorporated in wholesaler operations as well as within the association. These perspectives benefit our members and their on- and offpremise partners.

This type of member-led, member-run group is not new to WSWA. Similarly, our Council for Leadership Development is a training and educational session for rising executives. Over the last decade, we have seen several former CLD leaders rise to serve as WSWA Chairman – a tribute to the program’s success equipping young leaders with the skills they need to succeed in their own companies and careers.

Like their peers in other leadership programs, the WLC team has set high expectations and an aggressive agenda.

At our annual Convention & Exposition held last year in Las Vegas, WLC hosted its first networking reception where two dozen wholesaler owners, managers and employees came together to connect and engage with one another. During our CLD Leadership Skills Conference last summer in Nashville, WLC leaders met with and heard a presentation from Kate Latts of Heaven Hill Distilleries. She shared experiences from working in a family-owned company, as well as development tips and recommendations for crafting strong teams. This session also featured roundtable discussions on communication, work-life balance and related topics.

than 700 participants from all three tiers—and again this year is shaping up to be a can’t-miss networking and development event for owners, employees, suppliers, retailers and other beverage industry professionals.

The WLC-Women of the Vine & Spirits partnership will help showcase wholesaler voices and serve as a prime opportunity to educate this audience about the value of wholesalers and the importance of the three-tier system. These types of presentations further promote the good work wholesalers are doing with their own internal employee training and development programs and spotlight these companies as good employers.

Looking further ahead, WLC will host its first annual conference this fall in Washington, D.C. This event will feature prominent speakers, political and government leaders and targeted workshops on trends, finance and other important issues. The group will also carry out a philanthropic activity as part of its session.

One of the giants in the U.S. wine wholesale business recently told WSWA that his company’s internal training and development efforts focused on creating an organization that looks like their customers, their suppliers, and their consumers—and that includes women in leadership roles. This trend is true across each and every wholesaler member. And it’s true with family-owned taverns, retail and other on- and off-premise establishments.

Whether it’s a daughter, a spouse, a niece or sister—the ranks of next generation employees are being filled by women in family-owned and public companies across the three-tier system.

WSWA and the WLC stand ready to help equip them to face tomorrow’s challenges, and we’re excited about what tomorrow brings. |

Inspired by a number of WSWA member companies who led the way, WLC leaders entered into a formal partnership with Women of the Vine & Spirits, the industry’s leading womenled educational and networking event. The 2016 session of this conference attracted more

SPRING2016 2017||ABL ABL INSIDER INSIDER SPRING 17 Spring - 16page.indd 9

9 3/2/2017 7:15:51 AM

convene 2017 Annual Meeting Preview Eric Dopkins

Craig Purser

Steve Bene

Milestone Brands, LLC

National Beer Wholesalers Association

Pandora Media, Inc.

CEO & Founder

President & CEO

Keynote Address In a career spanning more than two decades in the spirits industry, Eric Dopkins has served in a number of senior leadership positions with companies including Diageo, Boz Spirits, Pernod Ricard, and Young’s Market Company. Immediately prior to founding Milestone Brands, Eric s spent two years as the CEO of Deep Eddy Spirits, where he helped grow Deep Eddy’s sales from $6 million to more than $73 million, while also leading the company through its 2015 acquisition by Kentucky-based Heaven Hill Brands. During his keynote presentation, he will discuss the keys to growth in the beverage alcohol industry and how to position one’s business for success.

Vivien Azer

Managing Director & Senior Research Analyst Cowen & Company

Seeds of Change: The Emerging Cannabis Marketplace & It’s Place Within Alcohol’s Sphere of Influence Forecasts predict the recreational marijuana market will grow to an estimated $50 billion by 2026, and legalization efforts continue to gain traction in states across the country.

Determining how the marijuana marketplace will grow – and what that means for the beverage alcohol industry – is not yet fully understood.

Vivien Azer, in her role as Managing Director & Senior Research Analyst at Cowen & Company, will provide an in-depth analysis of the growing cannabis industry and market trends – from investment standpoints to interplay with the existing beverage alcohol market and its key players.

10 17 Spring - 16page.indd 10

Craig Wolf

President & CEO

Wine & Spirits Wholesalers of America

A Whole Lot of Sales: Current State of the Wholesale Tier in the Marketplace Over the past five years, the wholesale tier has experienced significant developments.

These include sustained attempts to alter the Three-Tier System; federal policy initiatives; trade practice debates, the changing make-up of the producer tier; and mergers and acquisitions. To discuss this period of industry transformation will be Craig Purser, President & CEO of the National Beer Wholesalers Association and Craig Wolf, President & CEO of the Wine & Spirits Wholesalers of America. No strangers to ABL and retailers, they will address these changes – along with what the retail tier can expect from their wholesale partners in the coming years.

Danny Brager

SVP - Beverage Alcohol Practice The Nielsen Company

Where We Are & Where We’re Going: Current and Emerging Trends in the Retail Environment Beverage retailers – whether they’re an on-premise or offpremise operator – know that having accurate information and analysis of the marketplace and consumer trends is imperative for maintaining profitable businesses and achieving success. Can consumers be expected to increase discretionary income spending on beverage alcohol in 2017? Will the recession-induced trend of “staying in becoming the new night out” continue and, if so, for how long? Which Adult Beverage segments are hot, and which aren’t? What are the consumer and retail trends that could impact on and off premise operators? What impacts consumer decisions as to where to buy? Attendees will have the opportunity to hear from Mr. Brager who, with 15 years of experience in his role with Nielsen’s Beverage Alcohol Practice, will provide insights into the recent business trends in the beverage alcohol sector.

General Counsel

Update: The Current State of the Music Licensing Landscape In his role as General Counsel for Pandora, Steve Bene oversees the company’s legal operations, including commercial transactions, litigation and intellectual property. His duties also include engaging with music licensing organizations like ASCAP and BMI as these organizations that seek licensing deals with media service providers such as Pandora.

In this session, Mr. Bene will discuss the current music licensing landscape and the various challenges and opportunities that lay ahead.

Steve Schmidt

SVP - Public Policy & Communications National Alcohol Beverage Control Association (NABCA)

Alcohol Policy: State of the States Though its focus is primarily on federal policies affecting beverage retailers, ABL recognizes that many of these national issues often originate in state legislatures. Attendees will gain valuable insights from Steve Schmidt who, in his role with NABCA, oversees the research and development of policy, best practices, and communication strategies to assist states in managing alcohol control and regulatory systems to prevent alcohol-related harm. Steve’s session – Alcohol Policy: State of the States – will address pressing issues of the day facing retailers, legislators and regulators at the state level.

ABL INSIDER 3/2/2017 7:15:52 AM

convene 2017 Annual Meeting Preview (Cont.)

Nicholas P. Scutari

New Jersey State Senator Democrat - District 22

Recreational Marijuana Legislation: Parallels to the Alcohol Industry’s Regulatory Framework As Senator to the 22 Legislative district, Senator Scutari has spearheaded several initiatives that benefit both the citizens within the 22nd district and the State of New Jersey as a whole. He is a strong advocate for insurance reform and has sponsored legislation to create a more consumerfriendly environment. During this session, Senator Scutari will share comments on his legislative efforts to legalize recreational marijuana in New Jersey, and the parallels to the alcohol industry’s regulatory framework. nd

Bryan Goodwin

SVP, Commercial Sales & Operations Drizly

Brad Rosen

CEO & Founder Drync

The Next Frontier? Mobile Alcohol Ordering Platforms The rise of mobile alcohol ordering platforms such as Drizly and Drync has raised many questions for beverage retailers. While some licensees have embraced the technology, others remain unsure about how these systems work and if they’re the right fit for their businesses. In this session, attendees will hear from representatives leading companies in this corner of the marketplace, who will discuss a wide range of issues related to their businesses. Topics will include how their respective companies partner with retailers; costs to retailers and benefits they can expect to see; where the sector is heading in the near- and long-term; and more.

Thank You to Our Generous 2017 ABL Annual Meeting Sponsors!

SPRING2016 2017||ABL ABLINSIDER INSIDER SPRING 17 Spring - 16page.indd 11

11 3/2/2017 7:15:54 AM

at-a-glance Preview: ABL Annual Meeting Schedule of Events Sunday, March 26th 3:00 - 6:00 p.m. Registration Desk Open 8:00 - 9:00 a.m. ABL Board of Directors Breakfast

Sponsor: Presidents’ Forum of the Distilled Spirits Industry

9:15 a.m. - 5:00 p.m. ABL Board of Directors Meeting 6:00 - 8:00 p.m. Opening Night Welcome Reception

Sponsor: National Association of Beverage Importers (NABI) Location: Hard Rock Cafe - Las Vegas Strip

Monday, March 27th

(Continued) 12:00 - 1:15 p.m. Annual Meeting Luncheon Sponsor: MillerCoors

1:30 - 3:30 p.m. General Session (II) Mobile Alcohol Ordering Bryan Goodwin, SVP - Commercial Sales & Operations, Drizly Brad Rosen, CEO & Founder, Drync Music Licensing Update Steve Bene, General Counsel, Pandora Media, Inc. Seeds of Change: The Emerging Cannabis Marketplace & What It Means for the Beverage Alcohol Industry Vivien Azer, Managing Director & Senior Research Analyst (Beverage, Tobacco & Cannabis), Cowen & Company

6:00 - 7:00 p.m. Retailer of the Year Reception Sponsor: Brown-Forman Invitation Only

7:00 - 9:30 p.m. ABL Honors Gala & Top Shelf Award

Sponsors: E. & J. Gallo Winery, Infinium Spirits and Tito’s Handmade Vodka Retailer of the Year Awards Top Shelf Award Dinner Honoring Tito Beveridge Recognition & Swearing-In of New ABL Officers

Monday, March 27th 8:00 a.m. - 2:00 p.m. Registration Desk Open 8:00 - 9:00 a.m. Breakfast 9:15 a.m. - 12:00 p.m. General Session (I)

Tuesday, March 28th 9:00- 11:00 a.m. State Alcohol Policy Session ABL Briefing

John Bodnovich, Executive Director, ABL

Welcome

Recreational Marijuana Legislation: Parallels to Alcohol Industry’s Regulatory Framework

Keynote Address

Alcohol Policy: State of the States

Warren Scheidt, President, ABL John Bodnovich, Executive Director, ABL Eric Dopkins, CEO & Founder, Milestone Brands, LLC

Break

Nicholas Scutari, State Senator (D-District 22), New Jersey State Legislature Steve Schmidt, SVP - Public Policy & Communications, National Alcohol Beverage Control Association

A Whole Lot of Sales: Current State of the Wholesale Tier in the Marketplace Craig Purser, President & CEO, National Beer Wholesalers Association Craig Wolf, President & CEO, Wine & Spirits Wholesalers of America

Where We Are & Where We’re Going: Current and Emerging Trends in the Retail Environment Danny Brager, SVP - Beverage Alcohol Practice, The Nielsen Company

12 17 Spring - 16page.indd 12

ABL INSIDER 3/2/2017 7:15:57 AM

top shelf ABL to Present 2017 Top Shelf Award to Tito Beveridge at Upcoming Annual Meeting’s Honors Gala

A

BL recently announced that Tito Beveridge, Founder & Owner of Tito’s Handmade Vodka, is the recipient of the 2017 ABL Top Shelf Award honoree and will be recognized at the ABL Honors Gala on March 27 at the Monte Carlo Resort & Casino in Las Vegas, Nevada.

is one of the fastest-selling and fastest-growing micro-distilleries on the market and remains one of the purest spirits available.

The ABL Top Shelf Award, the highest honor presented by Tito Beveridge Founder & Owner America’s beer, wine and spirits Tito’s Handmade Vodka retailers, recognizes those who have demonstrated professional excellence in the beverage alcohol industry and have had a positive influence in their community.

What began as a hobby some 20 years ago – gifting flavor-infused vodka to friends – has become one of the world’s leading beverage brands. “I listened closely to the advice of those who advised me to start small, saying, ‘Try to own your hometown, then, if you do that, try to own your home state, then if you do that, try to own your home country,’” recalls Beveridge. It took the company more than eight years to turn a profit, but today, Tito’s Handmade Vodka

A native Texan and entrepreneur, Tito Beveridge was born in San Antonio and attended The University of Texas in Austin, where he earned degrees in both Geology and Geophysics. His professional life began as a Geophysicist, working around the globe at jobs in and out of the field, including dynamite-blasting oil reserves, subsurface mapping, processing seismic data, analyzing ground water, and even at one time, as a mortgage banker.

As with all Top Shelf Award recipients, philanthropy has played a major role in Tito Beveridge’s life – both personally and professionally. “My belief has always been that if you can go and be a good partner with your community, everybody gets ahead. I think it’s great that some people devote their life to helping other people, and I’m happy to help,” he noted. His commitment to philanthropy can be seen in the donation of his time and product to more than 3,500 charitable events annually – including many within the LGBT community last year alone.

Tito Beveridge will be honored with the ABL Top Shelf Award at the ABL 15th Annual Meeting being held in Las Vegas, Nevada March 26-28, 2017. |

Going Out Guide: The Seven Best Things to Do in Vegas Make a Show of It See the World Without Leaving Vegas Many of the more preposterously themed hotels in Vegas pay homage to notable locales around the world that would seem tacky anywhere else than here. You want Paris and the Eiffel Tower? Try Paris Las Vegas. Venice? There are gondolas and a St. Mark’s Square at the Venetian.

Head to Bellagio for a replica of Italy’s Lake Como. The Big Apple? New York New York has the Statue of Liberty, the Empire State Building, Central Park and much, much more. Such is the magic of Las Vegas.

Get into the Spirits (and Wines) of Sin City

The most striking thing that sets the Strip’s bars apart from most watering holes elsewhere is the sheer number of bottles. Cocktail connoisseurs should head to the Downtown Cocktail Room, where specialty drinks are rated on a level of 1 (“very approachable”) to 5 (“advanced palate”).

Wine drinkers should set their sights on Aureole, where the bottles are housed in a four-story wine tower that requires harnessed “wine angels” to retrieve them. Speaking of angels, if you like to imbibe while taking in a view from the heavens, visit the Level 107 Lounge on the 107th floor of the Stratosphere, with a fine smattering of signature cocktails, top-shelf liquors, and beer and wine.

Rise Above the Stratosphere

There are two reasons to follow Las Vegas Boulevard as far north as Sahara Avenue. One is Bonanza Gifts, which claims to be the “world’s largest gift store,” and offers a pleasantly kitschy ride back in time to the Route 66 era. A very different ride is in store if you head north along the Boulevard to the tower where all the shrieks

are coming from. Stratosphere, the tallest building in Nevada, has at its summit a quartet of thrill rides: Big Shot, X-Scream, Insanity: the Ride and SkyJump—all as terrifying as they sound.

Splash Out on a Water-Based Show

The most eye-catching attraction at the Bellagio, a supersize, all-American Italian villa, is the signature dancing fountains. The geysers—more than 1,200 in all—are nestled in the eight-and-ahalf acre lake in front of Bellagio on the Strip.

They erupt every half-hour beginning at 3pm and every 15 minutes from 8pm until midnight.

Consider the fountains a free appetizer for Bellagio’s main (ticketed) attraction: Cirque du Soleil’s most sophisticated show, O, comprises more than 70 swimmers, divers, aerialists, contortionists and clowns performing acrobatic feats around a pool/stage containing 1.5 million gallons of water. If you see only one show while you’re in town, make it this one.

Go on an Offbeat Bar Crawl

There’s no shortage of deeply off-kilter places to raise a glass in Las Vegas, but the Mermaid Bar & Lounge at Silverton is the most extraordinary.

Sip cocktails in the company of silver-finned fishwomen—the Mermaid Lounge features a bar that faces an underwater tank populated by its aquatic namesake. If mermaids (and a few drinks) don’t put you in a Las Vegas state of mind, nothing says “Sin City” like a Polynesian hallucinations and a headful of rum. You’re likely to find both at Frankie’s Tiki Room toward the northern end of the Strip, a colorful, local dive that will open a whole new Vegas dimension for you. If going offStrip is too outré for you, enjoy your weirdness in safer but endlessly fascinating watering holes like the Chandelier Bar at the Cosmopolitan.

You are coming to Las Vegas to have some fun and submitting to entertainment is the key to enjoying yourself while you’re here. There is no easier way to let the fun flow over you than taking in a show while in town. With eight Cirque du Soleil shows and dozens of other options around the area, hitting up one of the city’s production shows is one of the most popular activities for Vegas visitors. There are plenty of excellent choices, including Blue Man Group’s rhythmic take on alienation at the Luxor, or Penn & Teller’s magic secrets revealed at Rio. Or catch the smashhit Four Seasons musical, Jersey Boys—one of the city’s most enduring Broadway shows—at Paris Las Vegas. And did we mention Cirque?

Lounge Around the City

Lounge acts have been a staple of Las Vegas entertainment since the original paint was drying on the Flamingo. No doubt the pinnacle of Vegas lounges has long since passed, but there are still many “lounging” options around the city. That means you will want to edify yourself at one of these local institutions. At Harrah’s, head to the Piano Bar for Peter Vallee’s not-to-be-missed Fat Elvis impersonation, or, for the more upscaleminded among you, the vibe at Lily Bar & Lounge at Bellagio is like a low-key nightclub. The partElton-John-owned lounge Fizz, right off the casino floor in Caesars Palace, feels intimate but not crowded, and is an excellent spot to view some amazing artwork - displayed on every visible wall inside - while grabbing a cocktail. |

Source: Time Out America, LLC www.timeout.com/las-vegas

SPRING2016 2017|| ABL INSIDER SPRING 17 Spring - 16page.indd 13

13 3/2/2017 7:16:02 AM

perspective Bars & Liquor Stores Have to Compete: Why Shouldn’t Banks?

T

he hundreds of thousands of bars and liquor stores across America know a thing or two about competition.

When it comes to buying beer, wine and spirits, customers can vote with their feet and their wallets. That’s because a well-regulated and highly competitive beverage-alcohol marketplace has ushered in more consumer choice than ever before.

Congress brought some of this type of competition to debit cards a few years back. Those reforms said the Visa and MasterCard networks could no longer block their competitors from trying to get business and allowed their customers, merchants, to choose which network (including smaller companies like Star, Pulse, NYCE and others) they wanted to use.

Most people had no idea this was happening when they swiped a card to pay their bar tab, or that it was raising the price they paid for a six-pack of beer or a bottle of bourbon.

But the fact was that these “swipe fees” were hurting Main Street businesses that were trying to provide jobs and benefits to their communities.

Now, the gains that have been made in this David vs. Goliath battle could be wiped out if some in Congress have their way.

Even with the modest reforms to debit cards, banks are still marking up their debit card fees an astonishing 500 percent according to the figures the banks themselves report to the Federal Reserve.

Still, Congress did usher in badly-needed, pro-competition measures to the debit-card marketplace.

Beverage licensees, with their fellow members of America’s retail community, aren’t asking for a leg up. They want a level playing field; they want the swipe-fee market to behave the way the rest of our economy does: with competition ensuring fairness and bringing efficiency and lower prices to consumers.

And make no mistake: These problems become everyone’s problems. Swipe fees (including those on credit cards) have ballooned into many merchants’ second-largest operating cost after labor. Tighter margins for retailers mean they are forced to raise prices to at least partially cover the exorbitant cost of price-fixed swipe fees and, most critically, keep their doors open.

Congress should not even consider repealing these proconsumer debit reforms, especially with big banks enjoying soaring profits.

That’s why hundreds of thousands of merchants, large and small from all over the country, are asking Congress not to turn the clock back.

And, the reforms gave banks incentives to compete on price rather than let Visa and MasterCard price-fix their fees. If they go with price-fixed fees, the Federal Reserve limits how high they can be.

Keeping in place swipe fee reforms signals support for a level playing field for businesses of all sizes and would continue to save consumers hundreds, if not thousands, of their hardearned dollars annually.

The reforms have started to make a real difference and help Main Street businesses and their customers.

Congress should protect the progress made on debit-card reform and explore other ways to increase transparency and competition to truly make the payment card market a free one.

Before these reforms were put in place, whenever a customer swiped a card, local beverage businesses were plunged into a murky backwater of price-fixing where big banks used their muscle to squash competitors and charge outrageous fees for their services.

14 17 Spring - 16page.indd 14

This op-ed was written by ABL Executive Director John Bodnovich and was published February 3, 2017 on TheHill.com. |

ABL INSIDER 3/2/2017 7:16:08 AM

state & industry

S

tate

Colorado: State Considers Permitting Cities to Set Own Bar Hours State Rep. Steve Lebsock (D-District 34), recently co-sponsored a new bill to extend on-premises retail alcohol beverages sales hours across the state. Currently, state law prohibits on-premise businesses from make alcohol sales between 2:00 – 7:00 a.m. Under HB 1123, however, individual cities and municipalities would be able to determine their own policies as they relate to hours where alcohol sales are permitted.

“The issue for me is giving local cities and counties and districts the ability to control their own alcohol policies rather than having control by the state,” said Dan Thurlow, R-Grand Junction, one of the bill’s sponsors.

Georgia: Compromise Beer Bill Introduced in Georgia Senate State Senator Rick Jeffares (R-McDonough), recently sponsored a bill which would permit the direct sale of beer at brewpubs and craft breweries across the state. SB 85 would allow consumers to purchase up to a case/day directly from a brewery to take home, while also permitting brewpubs to sell products for off-premise consumption.

Texas: Bill Would Prohibit Carrying of Firearms While Intoxicated State Rep. Gina Hinojosa (D-District 49), recently introduced legislation that would prohibit intoxicated individuals from carrying any type of firearm. HB 1827 would look to close a loophole in existing state law, which only prohibits the carrying of handguns while intoxicated. “While we do have a strong culture of gun ownership in the state, we also have a strong culture of responsible gun ownership and that’s something that needs to be reflected in our laws,” Rep. Hinojosa said.

Virginia: ABC Launches Free Online Alcohol Responsibility Training The Virginia Department of Alcoholic Beverage Control recently launched a new training systems for employees of on- and off-premise retailers across the state. The new online training systems, Responsible Sellers and Servers Virginia’s Program (RSVP) and Managers’ Alcohol Responsibility Training (MART), are now being offered for free online.

“Business is booming in Virginia, and the continued growth in Virginia’s craft beverage and food industry reminds us of how important these trainings are,” said ABC Chairman Jeffrey Painter. “Alcohol responsibility is essential to public safety and in turn the success of Virginia’s businesses and its economy. I am proud Virginia ABC is leading the way by taking

these courses online, making them widely available to Virginians who sell or serve alcohol.”

Washington: Lower DUI Threshold Proposed by State Lawmaker State Rep. John Lovick (D-District 44), recently introduced legislation that would lower the state’s DUI threshold from its current limit of.08 down to .05. If passed, HB 1874 would be among the strongest laws in the country.

In response to the bill, the Washington Association for Substance Abuse Prevention noted its support for lowering the DUI threshold, but also urged the state legislature to consider the mixed signals they’re sending on the consumption of alcohol – noting that the legislature passed a number of bills last year which allow people increased opportunities to consume alcohol in the state.

Industry

Swipe Reforms Are Beneficial to Consumers & Retailers Alike The reforms mandated under the 2010 “Dodd-Frank” Act require that retailers be provided with at least two options when selecting which company would process their financial transactions. From the beginning, the big banks have cried foul, arguing that the reforms place merchants in charge of selecting which network they will utilize. “Banks have long gouged merchants for these processing services because Visa and MasterCard price-fix the swipe fees.

The card companies and banks have long tried to [quash] other companies that dare to compete in this business,” said Lyle Beckwith, SVP of Government Relations with NACS. “And that’s what they want to go back to, with the result of higher prices for consumers, unfairly heavy burdens on Main Street small businesses, fewer jobs and a slower economy.”

Lawsuit Claims Walmart’s Private Label Craft Beer Is “Wholesale Fiction” An Ohio resident recently filed a lawsuit in Hamilton County alleging that Wal-Mart’s private label “craft beers” – including Cat’s Away IPA, After Party Pale Ale, Round Midnight Belgian White, and Red Flag

Amber – aren’t actually “craft” but rather mass-produced “macro beers.” According to the lawsuit, the private label brewer – Trouble Brewing – only exists on paper and is, in fact, a front for “Winery Exchange Inc.”, which has since turned into WX Brands.

“WX Brands ‘develops exclusive brands of wine, beer and spirits for retailers around the world’ according to its website,” the lawsuit notes. “But under the ‘brewery address’ section of the TTB filings, Genesee Brewing’s business office in Rochester, NY, is listed instead. Genesee is owed [sic] by another company that brews Costa Rican lager among other industrial brands. Upon information and belief, Genesee produces well over the prescribe amount that would be considered ‘small.’”

Merchant Groups: Swipe Fee Reform Vital to Main Street In early February, representatives from retail groups – including restaurants, convenience stores and grocers – met with lawmakers in Washington, DC to discuss the need to keep the Dodd-Frank swipe fee reforms in place. Members from NACS, the Food Marketing Institute, Merchant Advisory Group, National Restaurant Association, National Retail Federation and Retail Industry Leaders Association visited Capitol Hill to tell their story of how procompetitive debit reforms have positively impacted their businesses and implore Congress to stand with Main Street retailers by opposing any efforts to weaken or repeal the law.

Smithsonian Hires Scholar to Document Brewing History The Smithsonian’s National Museum of American History has appointed Theresa McCulla as historian to oversee its American Brewing History Initiative, which will take place over the course of the next three years. She will work out of the museum in Washington, D.C., conducting research and new collecting, with special emphasis on homebrewing and the craft brewing industry.

The initiative aims to collect, document and preserve the history of brewing and the beer industry, as well as exploring how brewing connects to larger themes in American history. Paula Johnson, the museum’s curator of food history, further noted that “brewing history connects us to stories of tradition and innovation, agriculture and industry, and other broad strands of the American experience.” |

SPRING SPRING2016 2017||ABL ABL INSIDER INSIDER 17 Spring - 16page.indd 15

15 3/2/2017 7:16:08 AM

American Beverage Licensees 5101 River Rd, Suite 108 Bethesda, MD 20816 (888) 656-3241 www.ablusa.org info@ablusa.org

facebook.com/ablusa

@ablusa

American Beverage Licensees is the preeminent national trade association for retail alcohol beverage license holders across

the United States. Its members are comprised of on-premise and off-premise retailers who annually help infuse billions of dollars into the American economy. ABL represents the interests of American small business owners and a historical part of the American way of life. Many members are independent, family-owned operators who assure that beverage alcohol is sold and consumed responsibly by adults. |

associate members

DIAMOND

Beer Institute Diageo National Beer Wholesalers Association Wine & Spirits Wholesalers of America

PLATINUM Bacardi USA

Beam Suntory, Inc.

GOLD

Distilled Spirits Council

Breakthru Beverage Group Brown-Forman Castle Brands Pernod Ricard USA Republic National Distributing Company Southern Glazer’s Wine & Spirits, LLC Wine Institute

SILVER

Constellation Brands Moët Hennessy USA

BRONZE

Monarch Beverage Company Patrón Spirits Company

Presidents’ Forum of the Distilled Spirits Industry

Sidney Frank Importing Co.

R.J. Reynolds Tobacco Co.

affiliate members ALABAMA Alabama Beverage Licensees Association

ILLINOIS Illinois Licensed Beverage Association

ALASKA Alaska CHARR

INDIANA Indiana Association of Beverage Retailers Indiana Licensed Beverage Association

CONNECTICUT Connecticut Package Stores Association

KENTUCKY Kentucky Association of Beverage Retailers

COLORADO Colorado Licensed Beverage Association

KANSAS Kansas Licensed Beverage Association

DELAWARE Delaware Small Business Leadership Council

MARYLAND Maryland State Licensed Beverage Association

GEORGIA Georgia Alcohol Dealers Association

MISSISSIPPI Mississippi Hospitality Beverage Association

FLORIDA Florida Independent Spirits Association

MASSACHUSETTS Massachusetts Package Stores Association

MONTANA Montana Tavern Association

NEW JERSEY New Jersey Liquor Stores Alliance NEW YORK Empire State Restaurant & Tavern Association New York State Liquor Stores Association

OKLAHOMA Retail Liquor Association of Oklahoma PENNSYLVANIA Malt Beverage Distributors Association of Pennsylvania

RHODE ISLAND Rhode Island Liquor Stores Association SOUTH CAROLINA ABC Stores of South Carolina

SOUTH DAKOTA South Dakota Licensed Beverage Dealers & Gaming Association

TENNESSEE Tennessee Wine & Spirits Retailers Association TEXAS Texas Package Stores Association VIRGINIA Virginia Licensed Beverage Association

WISCONSIN Tavern League of Wisconsin

WYOMING Wyoming State Liquor Association WINE & SPIRITS GUILD OF AMERICA

If you would like to stop receiving physical copies of the quarterly ABL INSIDER, please contact ABL staff at info@ablusa.org and you will be removed from the INSIDER mailing list.

16 17 Spring - 16page.indd 16

ABL INSIDER 3/2/2017 7:16:14 AM