ABL DISPATCH — THE LATEST INDUSTRY NEWS FROM WASHINGTON BY JOHN BODNOVICH, ABL EXECUTIVE DIRECTOR
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all is upon us and, despite what we all thought was to be a more certain operating environment, the spread of the delta variant of COVID-19 continues to create uncertainty for bars and taverns. While we don’t expect to see shutdowns like the spring of 2020, mask mandates, and proof of vaccination or a recent negative test are popping up in cities around the country. Meanwhile, Congress is wrestling with massive pieces of legislation that could shape the country for years to come, all while American Beverage Licensees (ABL) and its partners are focused on securing outstanding COVID-19 relief through grants and tax credits.
ABL Issues Comment on Competition On July 9, 2021, President Biden issued an executive order on promoting competition in the American economy. As part of this order, he directed the Department of the Treasury to write a report “assessing the current market structure and conditions of competition [for beer, wine and spirits], including an assessment of any threats to competition and barriers to new entrants.” Though it was not required to do so, the Alcohol and Tobacco Tax and Trade Bureau (TTB), which is part of the Treasury, subsequently issued a request for information to solicit input from stakeholders. Though the initial deadline was Aug. 18, the TTB is accepting comments until Oct. 1. To read the comments that have been submitted thus far, visit regulations.gov/document/TTB-2021-0007-0001/comment. A read through the comments finds that many complain about wholesale-tier consolidation and franchise laws, call for universal direct-to-consumer shipping and unlimited self-distribution, and, in general, support the nationalization of the alcohol marketplace. The comments also appear to demonstrate a disconnect when it comes to the constitutionality of state alcohol laws and states’ primary authority to regulate alcohol. ABL issued a comment, calling for even enforcement of trade practice laws and pointing out that unchecked industry consolidation can have a negative impact on beverage licensees:
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Bars, taverns and package liquor stores know and appreciate competition. ABL members compete every day with their fellow beverage alcohol retailers under state-based, three-tier systems which, when their integrity is maintained, foster a level playing field for beverage licensees large and small to the benefit of states, communities, businesses and, most importantly, consumers. This success story has been made possible by the delicate balancing of federal alcohol laws, and states’ primary authority to regulate how alcohol is distributed and sold within their borders. Retail beverage licensees acknowledge that their industry operates in a robust regulatory environment because of the unique nature of beverage alcohol and take seriously the responsibility of being the last members of the industry to handle products before they reach the consumer. It is never too late to better understand and appreciate our current alcohol ecosystem for the success story that it is, and limit changes to the current system to consensusdriven solutions, instead of imperiling its long-term health, and the value it ultimately provides to business owners, workers and consumers. Equal enforcement of current laws and regulations, while making sure that all beverage alcohol retailers have access to all products at fair prices and without conditions, will continue to serve competition and American consumers well.
Restaurant Revitalization Fund Refresher The Restaurant Revitalization Fund (RRF) provided $28.6 billion in direct relief funds to bars, restaurants and other food establishments that experienced economic distress and significant operational losses due to the COVID-19 pandemic. The $28.6 billion was depleted quickly with the Small Business Administration (SBA) receiving 362,000 applications for the program for a total of $75 billion in funding. The SBA closed the portal for new applicants, but is holding all the applications should more funds be appropriated to the RRF. For a report on the applications and distribution of the initial $28 billion in RRF money, broken down by state, visit sba.gov/sites/default/files/202107/RRF_Report-508.pdf. On June 8, 2021, the RRF Replenishment Act of 2021 www.tlw.org
