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ABL Dispatch
ABL DISPATCH — THE LATEST INDUSTRY NEWS FROM WASHINGTON
BY JOHN BODNOVICH, ABL EXECUTIVE DIRECTOR
TLW president elected to ABL Executive Committee; Pete Madland recognized with award
American Beverage Licensees (ABL) celebrated its 20th anniversary of representing independent on- and offpremise beer, wine and spirits retailers at the ABL Annual Meeting July 10-11 in New Orleans. The annual meeting also saw the election of a new slate of leadership to the ABL Executive Committee, including TLW President Keith Kern of Jimmy’s Saloon in Superior. He will serve as an at-large member, joining at-large member Terry Harvath of the Wishing Well Bar & Grill in Appleton on the ABL Executive Committee.
ABL also recognized former TLW board member and Executive Director Pete Madland with the ABL President’s Award for his more than four decades of service to ABL, its predecessor associations and the Tavern League. Madland received a standing ovation from his peers and colleagues during the ABL Honors Luncheon.
Annual meeting attendees heard from an array of speakers from the public and private sectors who covered a wide range of topics. Industry analysts Danny Brager and Dale Stratton provided an overview of beverage industry trends and economics, and where the beverage business is headed. Chris Black from Falling Rock Tap House of Denver, Colorado, shared his views on how bars and taverns can compete with taprooms, while J.T. Griffin, a former lobbyist for Mothers Against Drunk Driving, offered perspective on impaired driving laws and regulations based on his deep policy experience. Attendees also learned about the issues facing liquor law enforcement agencies from Carrie Christofes of the National Liquor Law Enforcement Association.
As ABL executive director, I spent time on stage interviewing Dave Christman of the National Beer Wholesalers Association about trends in state alcohol policy, and talked with Carrie May from the Alcohol and Tobacco Tax and Trade Bureau (TTB) on TTB priorities — including the Treasury Department’s report on competition in the alcohol industry. Harry Schuhmacher and Sarah Barrett of Beer Business Daily and Wine & Spirits Daily, respectively, closed the general session with their reflections on a range of issues from ready-to-drink (RTD) products to other emerging trends in the marketplace.
ABL recognized former TLW board member and Executive Director Pete Madland with the ABL President’s Award for his more than four decades of service to ABL, its predecessor associations and the Tavern League. Madland received a standing ovation from his peers and colleagues during the ABL Honors Luncheon.
(Remaining) congressional outlook
With the passage of the Inflation Reduction Act of 2022, Congress is largely finished with its work until it returns in the fall when it will tackle legislation to fund the government before legislators leave Washington, D.C., to
campaign for November elections. A lame-duck session may loom after the elections, but it remains to be seen what Congress will take up at that time.
Have you talked to your member of Congress? With members of Congress returning to their districts, now is a great time to speak with them about issues you care about or, even better, invite them into your business for a tour to see first-hand the impact you have on your community. Please contact ABL if you are interested in setting up an in-district meeting this summer with your senator or member of Congress.
Credit Card Competition Act introduced
There’s big news on the payment card policy front! On July 28, Sens. Dick Durbin (D-IL) and Roger Marshall (R-KS) introduced the Credit Card Competition Act (CCCA), legislation that would give bar and tavern owners who accept credit card payments the ability to process many Visa and Mastercard cards over different networks. This is a development that is two years in the making, and a positive step forward in improving credit card transparency and competition for beverage licensees.
What would the bill do? The bill would direct the Federal Reserve to ensure that giant credit card-issuing banks offer a choice of at least two networks over which an electronic credit transaction may be processed, with certain exceptions. “The legislation would give small businesses a meaningful choice when it comes to card networks and it would enable innovators to gain a foothold in credit cards,” says Durbin.
“Under the CCCA, the Federal Reserve would issue regulations, within one year, ensuring that banks in fourparty card systems [Visa, Mastercard, American Express and Discover] that have assets of over $100 billion cannot restrict the number of networks on which an electronic credit transaction may be processed to less than two unaffiliated networks, at least one of which must be outside of the top two largest networks.
“This would inject real competition into the credit card market — opening the door for new market entrants, such as current debit-only networks, encouraging innovation and enhanced security, creating backup options if a network crashes, and exerting competitive constraints on Visa and Mastercard’s fee rates,” according to a press release.
ABL has long championed increased competition in the payment card industry and addressing the negative impact of increasing credit card fees on beverage licensees. This issue has only become more acute since the COVID-19 pandemic, and the onset of the subsequent inflationary climate in which bars and taverns are operating. ABL previously supported
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a similar bill, commonly known as the Durbin amendment, which became law in 2010, and requires that merchants have the ability to choose from at least two unaffiliated debit card networks when routing transactions.
TLW members should be on the lookout for more information and grassroots activation on this legislation. It’s important to bring attention to and create support for this bill. It is a bottom-line and fairness issue for all beverage licensees, and is sure to be fiercely opposed by those in the financial service sector. Senators are already hearing from the banks and credit card companies, and we need to make sure they hear from us as well.
Privacy bill marked up and passed by House Energy and Commerce Committee
On July 20, the U.S. House Committee on Energy and Commerce marked up the American Data Privacy and Protection Act (ADPPA). ABL previously weighed in with a letter to the committee, acknowledging its “efforts to develop federal data privacy legislation.” ABL has been involved in collaborative efforts with other aligned groups to provide specific comments and legislative language to improve the bill, including changes to ensure that customer loyalty programs are protected.
However, parts of the bill pertaining to federal preemption of state laws and private rights of action are challenging for small retail businesses to support. ABL is working to address language in the bill that would allow trial lawyers to sue bars and liquor stores for privacy law violations — even if they didn’t commit them — seeking cash settlements in lieu of expensive litigation.
Why should bar owners care about federal privacy legislation? If you are a tavern owner who keeps a list of customer email addresses for loyalty programs or to provide information about events at your bar, you have a stake in the privacy conversation. State and federal privacy legislation that seeks to protect consumers may call for government fines or allow for litigation against your business by customers if you are not in compliance.
Unlike state-based alcohol policy, which is enshrined by the 21st Amendment of the Constitution, a national standard that balances the privacy interests of consumers with hospitality businesses makes sense. ABL will continue to work with legislators and their staff to make sure the legislation does not move forward without those stipulations being fixed.
ABL comments on Standards of Fill proposal
On July 25, ABL submitted a letter commenting on the TTB’s Notice No. 210: Standards of Fill for Wine and Distilled Spirits. The proposal would add 10 additional authorized standards of fill for wine or, as an alternative, eliminate all but a minimum standard of fill for wine containers, and all but a minimum and maximum for distilled spirits containers. As ABL’s letter states: “ABL’s view on Notice of Proposed Rulemaking (NPRM) 210 is similar to the perspective it shared in letters responding to NPRM 183 and NPRM 182 on October 30, 2019. ABL recommends that no changes be made to current ‘standard of fill’ requirements for wine and distilled spirits containers.
“ABL acknowledges that NPRM 210 may be part of a dutiful response by TTB to the Department of the Treasury report, ‘Competition in the Markets for Beer, Wine and Spirits.’ ABL supports efforts to promote a competitive alcohol industry — including addressing increasingly common inter-tier competition retailers are facing from suppliers … but given the growth of the industry and the success of alcohol suppliers, it is difficult to see that the already recently adjusted standards of fill are such an impediment to competition as to warrant additional change.”
ABL sends letter to Treasury Department on industry competition report
This summer, ABL sent a letter to the U.S. Department of the Treasury expressing concerns regarding the Department of the Treasury’s findings in the “Competition in the Markets for Beer, Wine and Spirits” report. ABL wrote, “We are concerned that the Treasury Department — through the TTB — is preparing to propose new federal rules that would have an adverse impact on a well-functioning and competitive industry that plays an important role in local communities across the country.
“The report does not justify modifying longstanding and effective regulation that has allowed for phenomenal industry growth and consumer satisfaction under a regulatory structure that relies on a finely calibrated Constitutional balance at the state and federal levels.”
Opposing economic discrimination against small beverage businesses
ABL has been working as a founding member of the Main Street Competition Coalition (MSCC) to bring Congress and the Administration’s attention to competition issues in the alcohol industry, and encourage the enforcement of the Robinson-Patman Act. Large national chains often have the size and dominant market power to demand access to products and favorable pricing that small beverage licensees don’t get.
A newfound interest in antitrust and competition issues by the Federal Trade Commission (FTC), and bipartisan concern in Congress with Big Tech antitrust issues have opened the door for a discussion about economic discrimination in the alcohol beverage industry. ABL has been part of that conversation, offering the perspective of independent beverage licensees. This has included outreach to Congress and direct lobbying. TLW
ABL is the voice of America’s beer, wine and spirits retailers in Washington, D.C. ABL represents the TLW and its many members, as well as thousands of other on- and off-premise retailers of beverage alcohol across the United States.
