License State News

CO: Cannabis legislation could legalize cannabis tasting rooms

CA: Bill that pushes closing time at bars to 4 a.m. in six California cities passes first hurdles

International News

Canada: Quebec to ban high sugar, alcohol drinks from grocery, convenience stores

Africa: Beware! Sale of Fake Alcohol On The Rise In City Bars

United Kingdom: Welsh minimum alcohol price law passes first hurdle

Public Health News

Trends and Patterns of Geographic Variation in Mortality from Substance Use Disorders and Intentional Injuries Among US Counties, 1980-2014 (Excerpt)

Study shows bias in use of alcohol screening after traumatic brain injury

Industry News

Southern Glazer’s Wine & Spirits Announces Technology Partnership with Vermont Information Processing

William Grant & Sons ‘excited’ about growing trends in 2018

New Service Opens Up Japanese Wines to The World

Daily News

Mexico finds more fake tequila and why the US rarely faces this issue.

Wine and spirits, it's time to catch up to e-commerce (Opinion)

Why the liquor industry wants to get self-driving cars on the road

March 14, 2018

Please visit NABCA’s new website at www.nabca.org

SAVE THE DATE

Registration Is Now Open for the Legal Symposium! Visit www.nabca.org to register. MARCH 18-20, 2018 25th Annual Symposium on Alcohol Beverage Law & Regulation at the Crystal Gateway Marriott in Arlington, VA.

Join government, legal and industry professionals for a symposium that offers the chance to hear the latest on legal issues related to alcohol beverages. Session topics currently planned include Here Comes the Judge, The Lens of Time: 1st versus 25th NABCA Legal Symposium, Trade Practices: A Civil Matter? plus many others. Watch for registration materials in the coming months! Continuing Legal Education (CLE) credit is available for many states. For more information, go to www.nabca.org.

APRIL 11-13, 2018 Alcohol Policy 18: Evidence To Action -Building an Evidence-Based Social Movement Renaissance Arlington Capital View Hotel, Arlington, Virginia. For additional information on hotel, important dates and more, please visit the AP18 Conference website. AP18 Registration Now Open! APRIL 30–MAY 1, 2018 2018 RRForum National Conference - hosted by the Michigan Liquor Control Commission and will be held in Detroit.

! MAY 3, 2018 Invitation to Attend the Las Vegas Independent Spirits Expo Modern Distillery Age is a media sponsor for this year's Las Vegas Independent Spirits Expo, which takes place May 3 at the conclusion of the WSWA 75th

Annual Convention & Exposition. A free pass is available to Modern Distillery Age subscribers, independent spirits distillers/ importers, wholesalers/ distributors and others covered all year in Modern Distillery Age. This pass allows entrance to the press/trade part

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of the Expo (5-9 pm) at the Hard Rock Café (3771 Las Vegas Blvd. South). If you want to attend, please RSVP to Dave Schmier, Independent Spirits Expo producer, at this email address - indiespirits@gmail.com - and mention Modern Distillery Age. - There's no need to reply. Dave will maintain the guest

list. MAY 21-24, 2018

!REGISTRATION IS NOW OPEN FOR THE Annual Conference!

81st Annual Conference will be held at the Arizona Biltmore, Phoenix, AZ. Theme: Bridging Divides; For more information, visit www.nabca.com website.

JUNE 3-5, 2018 2ND Annual Beverage Alcohol Retailers Conference - Denver, Colorado Registration is open and sponsorship information is available at www.BevRetailersConference.com. Secure your early bird rate before prices increase on February 9.

Seating is limited.

JULY 18-20, 2018 8th Biennial Northwest Alcohol & Substance Abuse Conference Riverside Hotel, Boise Idaho

The Pre-Conference Sessions are on Wednesday. The official conference kicks off Thursday morning. Visit NorthwestAlcoholConference.org for more information.

NABCA HIGHLIGHTS

Native American Nations & State Alcohol Policies: An Analysis

Sunday Alcohol Sales (July 2017)

Alcohol Technology in the World of Tomorrow - (White Paper)

The Control State Agency Info Sheets. Please view website for more information.

NABCA Survey Database – now available for members on the website.

www.NABCA.org

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LICENSE NEWS

CO: Cannabis legislation could legalize cannabis tasting rooms

Colorado Springs Independent By Warner Strausbaugh March 14, 2018

A guy walks into a bar — and he orders a Love’s Oven chocolate chip Sativa cookie to go along with his fresh mug of dark roast coffee.

That could be the reality in Colorado by the first day of 2019. House Bill 1258, introduced in the Colorado Legislature on Feb. 26, and commonly known as the “tasting rooms legislation,” would permit both medical and retail licensed marijuana businesses to have an on-site establishment that sells marijuana products for the purpose of consuming them at the location.

“To me, it just seems like where the natural evolution is in the industry,” state Sen. Steve Fenberg, D-Boulder, says.

Fenberg is one of six sponsors of the bipartisan house bill. Another, Rep. Jonathan Singer, D-Longmont, says this bill has been three or four years in the making. Since Colorado’s Amendment 64 passed in 2012 (the law went into effect in January 2014), the goal has been to regulate marijuana like alcohol. Singer is hopeful this will be another step toward that.

He says legalization in Colorado has been “almost a bait and switch, for tourists especially” — marijuana is such a driver of statewide tourism, and yet public consumption is illegal.

And it’s possible that the law has caused confusion. In fall 2014, Colorado Public Radio reported that Denver police had a 471 percent increase in citations for public cannabis consumption in the first three quarters of that year, compared to the year prior, which was before recreational cannabis stores opened. And this year, Westword reported from the time of legalization through 2017, Boulder saw a 54 percent climb.

“What we’re doing now is we’re saying, ‘We know the world of alcohol — for wineries, breweries and tasting rooms for spirits and alcohol — it works,’” Singer says. “If we can make that work for alcohol, why can’t we make that work for marijuana?”

As the name suggests, the proposed experience would be similar to a tasting room at a winery — allowing customers to try a product before perhaps buying more of it to take home.

“It’s also a place where you can do it more socially,” Fenberg says, “and hopefully not have to do it outside and break the law. To me, it makes sense to have it in a monitored place, and there are regulations for how much they can sell on-site.”

Those limitations on purchases are as follows: 10 milligrams active THC in an infused product, 3.5 grams of flower or one gram of marijuana concentrate. Compliance with the Colorado Clean Indoor Air Act means patrons will not be allowed to smoke (but vaping or eating is OK).

The one big hiccup for locals in the Springs? Just like with Amendment 64, the individual cities can decide whether to enact this measure. The Colorado Springs City Council enacted the ban on recreational marijuana sales with a 5-4 vote in 2013.

A nearby business that may have a tasting room come next year is Maggie’s Farm, which is one of two recreational marijuana stores in Manitou Springs (and all of El Paso County).

“At a certain point, where are you supposed to consume?” asks Linden Mundekis, marketing director for Maggie’s Farm. “I think as long as it’s in compliance with state regulation … it’s a good thing.”

One store in Denver may just be the test case for a bevy of future marijuana establishments across the state.

The Neighborhood-Supported Cannabis Consumption Pilot Program Initiative (Initiative 300) passed in November 2016 with 53.6 percent approval in Denver. From The Denver Post: “Initiative 300 would create a four-year pilot

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program allowing regular businesses … to seek permits for bring-your-own marijuana, over-21 consumption areas that are indoors (allowing vaping and edibles, but not smoking) or outdoors (allowing smoking).”

The Coffee Joint will be the first store through the proverbial wall.

The Denver Department of Excise and Licenses approved the first cannabis consumption license for the southwest-of-downtown coffee shop. The store is open but not fully operational yet. Rita Tsalyuk, The Coffee Joint co-owner, hopes to receive her license within the week.

With the attention they’ve seen as the first-of-its-kind “coffee shop,” Tsalyuk says they plan to cover more ground in the industry, specifically incorporating marijuana-education classes surrounding regulation, cannabis products and psychology.

“Since we got so much publicity when we started doing it, we wanted to take it to the next level,” Tsalyuk says. “It became much bigger than we planned.”

Singer is an Initiative 300 supporter, but thinks this new proposed bill needs to be considered separately because it allows for the on-site sale of marijuana, in addition to the consumption location.

“We’re getting rid of that one degree of separation to allow people to purchase and consume,” Singer says.

House Bill 1258 is scheduled to be heard by the House Finance Committee on March 19.

CA: Bill that pushes closing time at bars to 4 a.m. in six California cities passes first hurdles

San Francisco Business Times By Katie Burke, Food/Hospitality/ Retail Reporter March 13, 2018

The last call for alcohol at some California bars could soon be as late as 4 a.m. under a new bill that just advanced in the state Senate.

The Let Our Communities Adjust Late-Night Act would allow six cities to determine whether to extend alcohol sales hours: San Francisco, Oakland, Los Angeles, Sacramento, West Hollywood and Long Beach. If it passes, SB 905 would change hours starting in January 2020 to give cities time to prepare. It would run for a five-year period, after which cities could decide whether to discontinue or extend allowing later alcohol sales.

The bill, sponsored by Sen. Scott Wiener (D-San Francisco), is now heading to the California Senate's Appropriations Committee after it was approved in the Senate Governmental Organization Committee.

Local hospitality groups such as the Golden Gate Restaurant Association, the Hotel Council of San Francisco, the San Francisco Chamber of Commerce, the San Francisco Travel Association and the San Francisco Bar Owners Alliance continue to be the largest supporters of the bill, saying it will bolster the city's nightlife.

Kevin Carroll, the executive director of the Hotel Council of San Francisco, previously said extended nightlife hours would help the city compete with most major U.S. metros as well as international destinations. New York, Miami, Atlanta, New Orleans, Chicago, Louisville and other large cities allow businesses to sell alcohol until 4 a.m.

Rideshare behemoths Uber and Lyft are also in support of the bill, especially since it requires local governing bodies to ensure sufficient transit options are available in those later hours.

“This bill gives cities the ability to extend hours wherever and however it works best for them, whether that’s in limited neighborhoods, certain nights a week or only on a few nights a year,” Senator Wiener said in a statement.

Local watchdog groups pushed back on the initial legislation, saying the bill would result in increased street violence, traffic collisions and emergency room visits.

Marin-based Alcohol Justice, an industry watchdog, cited reports that showed the state has $35 billion in alcohol-related incidents each year, a figure that costs local and state governments $14.5 billion annually.

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However, the legislation could pull in addition support now that it's on a smaller scale. The revised version will also give cities the ability to allow the extended hours only on specific days of the week or certain holidays.

INTERNATIONAL NEWS

Canada: Quebec to ban high sugar, alcohol drinks from grocery, convenience stores

The Canadian Press By Raquel Fletcher March 13, 2018

The Quebec government will move to ban sales of sugary, high-alcohol beverages in convenience (dépanneurs) and grocery stores.

Public Security Minister Martin Coiteux will introduce an amendment to his bill seeking to modernize the province’s alcohol and gaming legislation.

The new rules would apply to beverages that contain more than seven per cent alcohol and make them available only at Quebec liquor commission outlets.

“(These products) are a kind of a bait because young people drink that and they don’t even feel the alcohol within the product because of the high level of sugar,” Coiteux said.

The measure would come into effect after the law is adopted by the end of the current parliamentary session in June.

It comes amid calls for government action following the death of 14-year-old Athena Gervais, who reportedly consumed such a product last month before vanishing.

She was found dead in a stream behind her high school in Laval on March 1.

Montreal La Presse reported she had been drinking stolen cans of FCKD UP, a sweetened, malt-based alcoholic beverage with an 11.9 per cent alcohol content — the equivalent of four drinks.

The company has since ceased production of the beverage.

“The tragic death of Athena is certainly something that’s shaken everybody here in our society,” Coiteux said.

“Now that we are aware, we have the obligation to take action, that’s what they did,” said CAQ leader, François Legault.

While the minister’s amendments got a nod from the CAQ, Quebec Solidaire (QS) said the government ignored warnings from doctors and the non-profit organization, Educ’Alcool until it was too late.

“The government of Quebec waited for some tragedy to happen, before acting,” said QS MNA, Amir Khadir.

Coiteux said Quebec will maintain pressure on Health Canada, which is reviewing various products on the market with Quebec authorities and the Canadian Food Inspection Agency to assess their safety.

Africa: Beware! Sale Of Fake Alcohol On The Rise In City Bars

Nairobi News By Hilary Kimuyu March 13, 2018

Nairobi revelers have reason to worry at the quality of alcohol being sold in the capital.

Details have emerged how racketeers have managed to establish parallel distribution networks in Nairobi for the sale of counterfeit brands in pubs and shops.

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The racketeers are reaping millions by targeting premium brands as well as low cost brands.

So formidable is the network that even frequent raids by Kenya Revenue Authority (KRA) on their premises have failed to tame the tide of counterfeit alcohol flowing in the city.

Just last month, taxman announced a set of workshops to sensitise bar owners and police in the drive to curb the sale of counterfeit alcohol.

NOT EASY

According to Kenya Breweries Limited head of spirits Ann Joy Muhoro, who spoke to Nairobi News, it is not easy for consumers to know if they are paying for a genuine brand.

The company even has an App, Soma Label, to help consumers scan and determine authenticity of a drink before consuming it.

“We have a good relationship with the government and the regulator and what we would ask consumers to do is download the App which can help you know whether what you are consuming is genuine,” said Ms Muhoro.

Problem is the App takes more than 20 minutes to scan drinks on offer.

But Ms Muhoro explained that the poor lighting in bars could be why the App takes long to authenticate drinks.

FACTUAL INFORMATION

“We would like the investigators to come to us with factual information in what is true and what is not, because sometimes on social media things spread out and it might not be as accurate as might be,” she added.

A lobby group, Futa Magendo Action Network (FMAN), has been urging government to act tough on the intricate web of racketeers involved in ethanol smuggling and use of fake KRA stamps to evade tax.

In January, it wrote to President Uhuru Kenyatta on unscrupulous traders importing illicit ethanol through the Kenya-Tanzania border.

The cartel was also said to be importing untaxed raw spirit from Tanzania.

United Kingdom: Welsh minimum alcohol price law passes first hurdle

BBC News March 13, 2018

A plan to introduce minimum pricing for alcohol has passed its first hurdle in the assembly.

Assembly members backed the general principle of the law in a vote in the Senedd on Tuesday.

Health Secretary Vaughan Gething said evidence from other countries showed a link between price and consumption.

He told AMs in a Senedd debate that a minimum price for alcohol would help end "the sad spectre of people who die from drink".

But he warned minimum pricing would not work "in isolation" and promised and extra £1m for health boards to tackle substance misuse.

This is amid fears some alcoholics may switch to drugs if prices were increased.

A total of 47 AMs backed the general principles of the bill, with six against and one abstention.

It means the Welsh Government's Public Health (Minimum Price for Alcohol) (Wales) Bill has passed the first stage of its journey through the assembly and will now go on to detailed consideration by assembly committees.

If passed by the assembly later in 2018, the measure should take effect 12 months after the bill's royal assent.

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Alcohol price law plan passes first hurdle

"Wales, like so many other western countries, has a problem with cheap, strong, readily-available alcohol," Mr Gething said in the Senedd chamber.

Echoing the findings of the assembly's health committee earlier in March, the minister said minimum pricing was "not a silver bullet" but would be "a major new and important tool in our approach to reducing alcohol consumption".

"By introducing a minimum price, we can make a difference - as we have done with the smoking ban - which demonstrated our determination to create a different future for the people of Wales.

"I've been very clear that it will not work in isolation. Alcohol policy in Wales requires a variety of approaches, which taken together, can generate change."

He added the bill would not include a specific price for a minimum unit as he wanted it to "remain flexible and able to respond to changing circumstances".

He said he would consult on a proposed price which would then be put before the Assembly for AMs to agree on.

PUBLIC HEALTH NEWS

Trends and Patterns of Geographic Variation in Mortality From Substance Use Disorders and Intentional Injuries Among US Counties, 1980-2014 (Excerpt)

JAMA March 13, 2018

Laura Dwyer-Lindgren, PhD1; Amelia Bertozzi-Villa, MPH1; Rebecca W. Stubbs, MA1; et al Chloe Morozoff, MPH1; Shreya Shirude, MPH1; Jürgen Unützer, MD2; Mohsen Naghavi, MD, PhD1; Ali H. Mokdad, PhD1; Christopher J. L. Murray, MD, DPhil1

Author Affiliations Article Information

JAMA. 2018;319(10):1013-1023. doi:10.1001/jama.2018.0900

Key Points

Question What are the spatial and temporal trends in mortality due to alcohol use disorders, drug use disorders, self-harm, and interpersonal violence among US counties from 1980 to 2014?

Findings In this study of 2 848 768 deaths in the United States from 1980 to 2014, mortality rates varied widely among counties and increased by 618.3% for drug use disorders but decreased by 8.1% for alcohol use disorders, 6.0% for self-harm, and 44.9% for interpersonal violence. Mortality rates due to drug use disorders increased in every county, while mortality rates due to alcohol use disorders, self-harm, and interpersonal violence increased in some counties and decreased in others.

Meaning Between 1980 and 2014, there were important differences among US counties in the level and trend in mortality rates due to alcohol use disorders, drug use disorders, self-harm, and interpersonal violence.

Abstract

Importance Substance use disorders, including alcohol use disorders and drug use disorders, and intentional injuries, including self-harm and interpersonal violence, are important causes of early death and disability in the United States.

Objective To estimate age-standardized mortality rates by county from alcohol use disorders, drug use disorders, self-harm, and interpersonal violence in the United States.

Design and Setting Validated small-area estimation models were applied to deidentified death records from the National Center for Health Statistics (NCHS) and population counts from the US Census Bureau, NCHS, and the

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Human Mortality Database to estimate county-level mortality rates from 1980 to 2014 for alcohol use disorders, drug use disorders, self-harm, and interpersonal violence.

Exposures County of residence.

Main Outcomes and Measures Age-standardized mortality rates by US county (N = 3110), year, sex, and cause.

Results Between 1980 and 2014, there were 2 848 768 deaths due to substance use disorders and intentional injuries recorded in the United States. Mortality rates from alcohol use disorders (n = 256 432), drug use disorders (n = 542 501), self-harm (n = 1 289 086), and interpersonal violence (n = 760 749) varied widely among counties. Mortality rates decreased for alcohol use disorders, self-harm, and interpersonal violence at the national level between 1980 and 2014; however, over the same period, the percentage of counties in which mortality rates increased for these causes was 65.4% for alcohol use disorders, 74.6% for self-harm, and 6.6% for interpersonal violence. Mortality rates from drug use disorders increased nationally and in every county between 1980 and 2014, but the relative increase varied from 8.2% to 8369.7%. Relative and absolute geographic inequalities in mortality, as measured by comparing the 90th and 10th percentile among counties, decreased for alcohol use disorders and interpersonal violence but increased substantially for drug use disorders and self-harm between 1980 and 2014.

Conclusions and Relevance Mortality due to alcohol use disorders, drug use disorders, self-harm, and interpersonal violence varied widely among US counties, both in terms of levels of mortality and trends. These estimates may be useful to inform efforts to target prevention, diagnosis, and treatment to improve health and reduce inequalities.

Study shows bias in use of alcohol screening after traumatic brain injury

MedicalXpress By Wolters Kluwer Health March 13, 2018

"Has this patient been drinking?" It's a critical question for neurosurgical nurses and other professionals when evaluating patients with traumatic brain injury (TBI). But some groups of TBI patients are less likely to be screened for alcohol use, including women and younger patients, reports a study in the March issue of the Journal of Neuroscience Nursing, official journal of the American Association of Neuroscience Nurses.

Standardized approaches are needed to ensure that every patient with TBI undergoes alcohol screening in the emergency department (ED), according to the new research by Chong (Sherry) Cheever, MSN, ANP-BC, PhD candidate, of Harborview Medical Center, Seattle, and Celestina Barbosa-Leiker, PhD, of Washington State University, Spokane.

Evidence of 'Systemic Bias' in Alcohol Screening after TBI

Alcohol consumption is very common among patients with head trauma—previous studies have suggested that one-half to two-thirds of patients with TBI were consuming alcohol before their injury. The effects of alcohol can have a major impact on assessment of the patient's condition.

Patients with TBI who are intoxicated may seem to get worse after they are transferred to the neurosurgical intensive care unit (NICU). If the NICU professionals are unaware of the patient's alcohol consumption, they may suspect the "worst-case scenario" of increased intracranial pressure and possible brain herniation.

Without knowledge of the cause of the patient's agitation and worsening neurological status, additional diagnostic testing is required to confirm or to rule out if the current condition is alcohol withdrawal or a worsening of increased intracranial pressure. If tests confirm increased intracranial pressure, urgent surgery to relieve pressure on the brain (decompressive craniectomy) is required. "Alcohol screening in the ED provides crucial information that can change the treatment path if it were known that patients were intoxicated," the researchers write.

They analyzed the prevalence of and factors associated with alcohol screening in patients in nearly 1,600 TBI patients seen at the ED of a level I trauma center. More than two-thirds of patients were men; the average age was about 49 years for men and 57 years for women.

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Eighty percent of the TBI patients underwent laboratory screening for alcohol consumption. That was higher than in previous studies reporting that less than half of trauma patients undergo alcohol screening.

But some groups of patients had lower rates of alcohol screening. Women were less likely to be screened than men, and younger patients were less likely to be screened than older patients.

Alcohol screening was also less likely for patients in the critical and mild range of injury severity, based on the standard Abbreviated Injury Scale (AIS); and for those in the middle range of responsiveness, based on the Glasgow Coma Scale (GCS).

The findings suggested the AIS and GCS scores may have been skewed by lack of knowledge of the patient's intoxication status. The researchers cite previous studies reporting that GCS and AIS scores may improve significantly after patients are transferred to the NICU, as their alcohol levels decrease.

Alcohol screening was unrelated to the performance of urgent decompressive craniectomy, or to the patients' length of hospital stay. The authors note some limitations of their study, including the lack of data on the reasons why alcohol screening was not performed in the ED.

"Women, younger patients, and patients with midrange GCS scores and unsurvivable and mild AIS scores could be impacted by a systemic bias to not conduct an alcohol screen based on how the patients present to the ED," Ms. Cheever and Dr. Barbosa-Leiker write. They believe that updated ED triage processes and screening tools are needed to overcome this bias and achieve a "targeted 100 percent alcohol screening rate for all trauma patients."

INDUSTRY NEWS

Southern Glazer’s Wine & Spirits Announces Technology Partnership with Vermont Information Processing Southern Glazer’s and Vermont Information Processing will partner to provide an information platform that will deliver superior transparency in pricing and reporting in the wine and spirits industry

Business Wire March 13, 2018

MIAMI & DALLAS--(BUSINESS WIRE)--Southern Glazer’s Wine & Spirits (“Southern Glazer’s”)—the largest North American wine and spirits distribution company—today announced its technology partnership with Vermont Information Processing (VIP), a data processing, reporting, and analytics solutions specialist in the beverage industry. The multiyear partnership will leverage the power of VIP’s data management applications to provide Southern Glazer’s trading partners with superior visibility into sales activity, deal information and pricing.

The relationship will focus initially on enhancing depletion reporting access for Southern Glazer’s and its suppliers, as well as developing and rolling-out a new pricing platform for Southern Glazer’s commercial team. This platform will enhance the ability of Southern Glazer’s to provide unique and industry-leading insight to its supplier partners.

This partnership falls under the Revenue Management function at Southern Glazer’s. Amy Grantland, SVP of Revenue Management said, “The improved planning, analytics and reporting capabilities from the VIP partnership will add tremendous value to our supplier and retailer relationships and significantly transform the pricing process.”

“We are thrilled to partner with VIP for this industry transforming initiative,” added Wayne Chaplin, CEO, Southern Glazer’s. “We look forward to working together to provide Southern Glazer’s trading partners with unparalleled data insight regarding pricing and promotions.”

“VIP and Southern Glazer’s have an exciting history of working together,” said Dan Byrnes, President of VIP. “This next chapter will provide Southern Glazer’s trading partners with unparalleled transparency into pricing and a unique platform for data-driven planning. VIP’s technical architecture, combined with Southern Glazer’s expansive reach, create an ideal partnership.”

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Both companies are excited about the value their relationship will deliver to the wine and spirits industry. In the coming weeks, Southern Glazer’s will be reaching out to its supplier partners with details on the specific benefits they will experience as a result of the new partnership.

William Grant & Sons ‘excited’ about growing trends in 2018

The Shout By Andy Young March 14, 2018 Speaking to National Liquor News for its 2018 Leaders Forum issue, Colin Rochester the General Manager ANZ for William Grant & Sons (WG&S), has revealed where he sees the company’s opportunities for the year ahead and which trends he is particularly excited about.

Describing Malt Scotch whisky as an area that is underdeveloped in the Australian market, Rochester told the Leaders Forum that he sees “enormous potential” in assisting customers to premiumise their sales through building reputation and capability.

In terms of the opportunities for the year ahead, he added: “Apart from our leading brands of Glenfiddich, Hendrick’s Gin, Grant’s and The Balvenie we have a number of real emerging ‘heroes’ such as Monkey Shoulder; a blended malt Scotch, Sailor Jerry Spiced Rum; Australia’s number one spiced rum and the relaunch of one of the world’s most iconic spirit brands in Drambuie.

“Apart from Scotch whisky, we also see the Irish whiskey category as an exciting one to develop. William Grant & Sons owns Tullamore Dew Irish whiskey and this year our business commenced distilling in the new plant in Tullamore. We see our Irish blend having immense appeal for the increasingly discerning and premium Australian spirit consumer.”

Looking at the ‘big trends’ for 2018, Rochester said that the company was excited about how the market was developing long term trends that work well with the WG&S portfolio.

“We get really excited about how consumers and shoppers are exploring Scotch whisky, gin and spiced rum as well as their increasing experimentation and knowledge of cocktails,” he said.

“The reason we are excited about this trend, which isn’t particularly new but is now becoming a long term trend, is that we have a portfolio of brands that tap into this need.

“As consumers premiumise, experiment and increase their knowledge of spirits, they will continue to demand quality – another key need which our portfolio satisfies. Once again this year, William Grant & Sons was named ‘Distiller of the Year’ and ‘Scotch Whisky Producer of the Year’ at the prestigious International Spirits Challenge awards and our Master Distiller; Brian Kinsman was also awarded the title ‘Master Distiller of the Year’.”

Rochester also spoke about the key factors that he thinks the industry should be discussing in 2018, saying: “There is no doubt that our industry has never been more aligned to the joint obligation of presenting and promoting beverage alcohol in a safe and responsible manner. We all have a vested interest in the sustainability of our great industry and supporting responsible commercial practices requires ongoing diligence by everyone.

“We are very fortunate to work in the industry we do – our industry is very sociable, hospitable and friendly despite being fiercely competitive – let’s keep it this way.”

And while he is excited about the year ahead, it comes off the back of a successful 2017 for WG&S, and he spoke of a number of highlights that the business was proud of.

“Firstly, the William Grant & Sons business in Australia has continued to implement its strategic change program and I’m delighted in the way our customers and team here internally have embraced the new ways in which we go to market and present our wonderful portfolio,” he said.

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“As a small player in the Spirits category, we have worked very hard to engage with our customers to develop more collaborative working and trading relationships with them.

“We have continued to drive value growth for our customers’ premium spirits categories and we’re delighted that the trade feedback continues to indicate that our business is increasingly being recognised as improving in all aspects of what we do.

“The launch of the Glenfiddich Experimental Series was consolidated this year and new variants of IPA and XX have been well and truly established. Both these new and premium Glenfiddich expressions have brought new news to the malt category and have tapped in to shoppers and drinkers’ increasing knowledge and curiosity of malt Scotch Whisky.”

For more from Rochester including the major growth areas for WG&S and the challenges 2017 presented, take a look at the 2018 Leaders Forum issue of National Liquor News.

Wine and spirits, it's time to catch up to e-commerce (Opinion)

Food Dive Author Sean Dunn March 13, 2018

Sean Dunn is the head of digital at Astound Commerce, a private global digital commerce company headquartered in San Francisco, California. He has worked with some of the nation’s most recognizable names, including Diageo, Treasury Wine Estates, Constellation, Hahn Family Wines, Kettle Chips, ZAGAT and Independent Distillers.

With online grocery sales surging and delivery services like Postmates and Instacart growing, it’s clear that e-commerce has drastically changed the food and beverage space. Customers now expect the same convenience from supermarkets that they do from other retailers.

But there’s one vertical that has been slow to catch up to these standards: wine and spirits. For a number of reasons, the industry is lagging behind rising consumer expectations — and it’s a lose-lose for both shoppers and brands alike. Consumers want food and beverage providers that can anticipate their needs and personalize experiences, but they aren’t getting that from the companies out there today.

To make real strides, leaders must understand the challenges that have impeded a flourishing e-commerce marketplace for wine and spirits providers, where the market stands now and how to get ahead of the curve.

The challenges of alcohol and e-commerce

It’s easy to see why wine and spirits brands have adapted less quickly to e-commerce than those in other verticals. Alcohol regulations, many of which remain largely unchanged since Prohibition, have restricted the easy transportation of wine and spirits to consumers. For example, only five states today permit direct shipping of spirits to consumers. Additionally, each state regulates alcohol differently, adding further logistics challenges.

These regulatory challenges compound the struggles e-commerce companies already deal with when managing transactions and fulfillment online. The logistics of shipping high-value liquid products across the country, temperature control requirements, and the need for specialized couriers can create difficult barriers.

Additionally, the last mile is especially problematic for wine and spirit delivery considering the need for ID verification (and the fact that you can’t leave wine outside on a doorstep in extreme weather). Today’s solutions aren’t great — for many brands delivering these products, home delivery fails almost half of the time. Though brands have more success delivering to business addresses, last-mile concerns are significant.

So, where are we now?

The challenges of marrying alcohol with e-commerce haven’t stopped all companies from playing the game. But most brands that have ventured into this territory are limited in what they currently offer.

One-hour delivery players have emerged, like Mini Bar and Drizly, with convenience as their main selling point. These services get spirits to consumers quickly and easily. However, such companies offer little value when it comes

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to brand and relationship building. Brands delivered by them aren’t learning anything about their consumers since they aren’t able to collect the data.

The digital wine space is currently populated by weak players from software services, like VinSuite to Wine Direct, that specialize more in club fulfillment, often with outdated and inefficient platforms. These companies use almost zero behavior-based marketing tactics and struggle to maintain customer loyalty.

Brand-centric players will dominate the category

To succeed, brands need to take cues from the companies already mastering e-commerce. The same trends that have defined the past few years of e-commerce should be implemented here: seamlessly connected online channels, personalized and hyperlocal CX strategies and data-backed behavioral marketing tactics. The entire category presents an enormous opportunity for brands that can master these strategies.

Take companies like Vivino, an online wine community, database and mobile app where users can buy, rate and review wines, scan wine labels to learn more information about their favorite bottles and receive personalized recommendations based on past purchase history.

Companies like this offer the engaging experiences other brands must emulate to form real connections with customers, who need better reasons not to just buy from the liquor store on the corner of the street. That means providing more value than just a delivery service or a discount on wine.

The final piece of the alcohol and e-commerce puzzle brings together digital engagement and human nurturing. Because alcohol is a more unique product than other industries, the relationship cannot succeed if companies keep consumers at arm’s length. Services need to focus on personalizing the digital experience by automating the early steps through one-to-one behavioral marketing and then engaging through white-glove service that is more human. This combination is the only way to win in the alcohol e-commerce space. For anyone who can build brand-centric relationships and deliver on a unique and ownable brand promise, the future looks bright.

Mastering alcohol and e-commerce is easier said than done. To deliver these experiences, brands require robust e-commerce platforms that can not only handle the challenges that come with traditional e-commerce but that are uniquely adapted to the hurdles of selling wine and spirits. Supported by this backend technology, wine and spirits brands might finally catch up to 2018 and deliver the experiences their customers crave.

New Service Opens Up Japanese Wines To The World

The Drinks Business By Patrick Schmitt March 13, 2018

A website that specialises in the sale of Japanese spirits has added a new service offering to deliver Japanese wines to anywhere in the world.

Now live on dekanta.com is a section called ‘wine cellar’ that carries an inaugural collection of 40 red wines from Japan, all of which are available for delivery worldwide within 10 days.

The range “has been curated to showcase the best red wines the country has to offer,” according to dekanta.com, and includes Suntory’s Duo D’Amis Special Assemblage 2011, a Merlot-dominant blend of Bordeaux varieties and Muscat Bailey A – a hybrid grape that was bred in Japan.

UK customers can have a bottle of this top-end red wine that was created collaborately by Suntory and Domaines Barons de Rothschild for a little over £220, including a shipping cost of £30, making it the most expensive bottle on the site.

Other wines on offer include Chateau Mercian Kikyogahara Merlot 2013, Sadoya Chateau Brillant Cabernet Sauvignon 2012, along with a Cabernet Sauvignon 2014 and a Merlot 2014 from the Grace winery.

Red blends other than the aforementioned Duo D’Amis include the Suntory Tomi 2012 and 2013.

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Among dekantā’s collection are also wines that have been produced from grapes that are exclusive to Japan, and developed to suit the country’s challenging, humid, climate. For example, Sagami’s Dream Red Label, the flagship red of Sagami Dream Farm winery in Kanagawa, is made with the locally grown ‘Fuji’s Dream’ grape, which was created by breeding Merlot and Japanese mountain grapes. As a result, ‘Fuji’s Dream’ is well-suited to the warm, wet climate of Japan, and is said to have “the classic fruity character of Merlot” along with “strong tannins and subtle smoke from the mountain grapes”.

Meanwhile, Tokachi-Ikeda Amurensis 2014, produced by the oldest winery in Hokkaido, “offers unusual notes of soy, umami and vegetation”, from the Amurensis variety of wild grapes, which are grown in the Ikeda area.

“Taking inspiration from Western winemakers, while developing their own techniques, methods and grapes best suited to the climate, Japanese wine producers are really starting to gain momentum,” said dekantā founder and director Makiyo Masa.

“Japanese wine has quickly grown into a strong, complex category in the wine world, and the best is yet to come,” he added.

Indeed, writing in the March edition of the drinks business (which contains an 8-page feature on the Japanese wine industry), Sarah Abbott MW recorded the rapid and recent development of this craft. “In the past 10 years the diversity, quality, and export potential of Japanese wine has been transformed,” she stated.

Japan has a long history of viticulture and cultivation of grapes for table consumption, but domestic wine production with locally produced grapes only really began in the second half of the nineteenth century.

The Yamanashi prefecture is the main region for wine making and accounts for 40% of domestic production.

There are more than 200 wineries in Japan and approximately 96% are small to medium sized companies.

For an in-depth report on the Japanese wine industry, see the March edition of db.

DAILY NEWS

Mexico finds more fake tequila and why the US rarely faces this issue. But that could change!

Healthy Alcohol Marketplace By Pamela S. Erickson, CEO March 13, 2018

With Spring Break on the horizon it seems like a good time to talk about alcohol product safety. After numerous reports last year of tourists blacking out after drinking at high-end resorts in Mexico, more stories came to light about drownings, assaults, falls, and other injuries from tourists who drank even small or moderate amounts of alcohol.

This led the US Government to issue travel warnings and recommendations that travelers drink moderately, never go out alone, and seek medical attention if they begin to feel ill.

Following these reports and some pressure from US lawmakers, Mexican health authorities raided 31 resorts, restaurants and nightclubs and seized 10,000 gallons of illegal alcohol. At the end of February, Mexican authorities announced they found another black market tequila distillery and shut it down. Tests revealed that 235 gallons of the product contained dangerous levels of methanol, an extremely toxic substance.

A 2015 report by Euromonitor International found that about a quarter of alcohol consumed in Latin America is illicit, meaning it could have been manufactured without health and safety standards and could contain substances not approved for human consumption. Beyond the tragic human cost, counterfeit alcohol has enormous financial impact in the form of revenue lost by governments, and an uneven playing field among businesses.

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Incidents like this remind us of the safety of the US system.

We have few problems with counterfeit and tainted alcohol because of our state-based, three-tier alcohol regulatory system. The Constitutional amendment that repealed Prohibition gave states the authority to regulate alcohol. Most adhere to an effective system that requires alcohol to be sold through three separate market tiers: manufacturers/suppliers, wholesalers and retailers. This closed distribution system helps prevent adulterated and contaminated products from reaching consumers because alcohol is required to go from a licensed manufacturer to a licensed distributor to a licensed retailer.

The three-tier system also helps ensure consumer confidence in the alcohol industry. Even the best, licensed manufacturers can mistakenly produce a tainted batch or have an issue with packaging. In today's market, minor problems with product quality can cripple a company or disrupt a commodity market. This is much less likely to happen in the US alcohol marketplace because licensed alcohol wholesalers must track every bottle and can. This minimizes harm and can save a business.

But we are gradually moving away from a closed system by granting small brewers, wineries and distillers the ability to "self-distribute." Self-distribution involves selling out of a tasting or tap room, selling at festivals, direct shipment to customers, and direct selling to retailers (stores, restaurants, bars). All but 13 states allow this kind of distribution.

With all of these products skipping steps in the regulatory system, testing and tracking may be more difficult to monitor. According to their 2016 report, the US Alcohol and Tobacco Tax and Trade Bureau (TTB) only tested 450 products. Some companies and states do product testing, but it is not widely known which, and for what purpose.

In contrast, Ontario, Canada has an extensive testing program. In a 2016 presentation to the National Alcohol Beverage Control Association Board, Dorina Brasoveanu, Manager of the Liquor Control Board of Ontario's Quality Assurance Laboratory, revealed that they tested 24,000 products from their 650 stores. They also have a complaint system which resulted in testing of spirit products that had a higher alcohol content than what was stated on the label. The products were quickly pulled and there were no known ill effects from consumers.

Because alcohol is primarily regulated at the state level, state regulators need to review their systems to determine whether the needs for adequate testing and tracking are being met. Some discussion with the federal TTB may also be warranted. Whenever states change laws, they should determine whether product safety will be impacted. Not only could tainted products harm consumers, but publicity about the products' problems could hurt business. In addition, there are other enforcement and administrative costs in permitting alcohol products to flow outside of the three-tier system. Staff is needed to monitor the special privileges to ensure that the conditions are met, that taxes are collected and that product safety is ensured.

Meanwhile, members of the public may want to review the safeguards listed below, recommended by the UK which has recently adopted an aspect of our three-tier system. They now require wholesalers to be registered and for retailers to only by from them, versus the "white van that rolls down the street"!

Sources:

Mexican Authorities seize illicit alcohol in crackdown at resorts,Milwaukee Journal Sentinel, Raquel Rutledge

Mexico police shut down second black market tequila operation, investigate if tainted alcohol headed to resorts, Milwaukee Journal Sentinel, Raquel Rutledge

Safe and Sound: How the three-tier alcohol regulatory system promotes safe products and high revenue collections, a short report by Pamela Erickson

The 4 Ps, UK Food Standards Agency

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Why the liquor industry wants to get self-driving cars on the road

The Washington Post By Caitlin Dewey March 13 , 2018

Automakers and tech firms have long been the ones hustling to get self-driving cars on the street. But they’ve lately been joined by a surprise ally: America’s alcohol industry.

In recent weeks, two industry groups -- one representing wine and liquor wholesalers, and another representing large producers -- have thrown their weight behind coalitions lobbying to get autonomous vehicles on the road faster.

Inherent in their support, analysts say, is an understanding that self-driving cars could revolutionize the way Americans drink. Brewers and distillers say autonomous vehicles could reduce drunk driving.

Without the need to drive home after a night at the bar, drinkers could also consume far more. And that will boost alcohol sales, one analysis predicts, by as much as $250 billion.

“It makes a lot of sense that the industry is interested,” said Jim Watson, a senior beverage analyst at Rabobank, a multinational finance firm. “It’s a win-win for them: Self-driving cars could boost alcohol sales and simultaneously reduce drunk driving.”

Industry groups say they have kept tabs on this technology for years. On March 1, the Wine and Spirits Wholesalers of America, a group representing nearly 400 U.S. alcohol brokers, officially joined the Coalition for Future Mobility, which has lobbied in favor of self-driving cars.

That same week, the Foundation for Advancing Alcohol Responsibility -- an industry-funded nonprofit that battles underage drinking and drunk driving -- signed on in support of a pending bill that would speed the commercialization of self-driving vehicles. FAAR’s members include Diageo, Pernod Ricard, Bacardi and Constellation, four of the world's largest liquor and beer producers.

Both organizations say they are concerned about drunk driving and public safety. The industry has long supported technologies that keep impaired drivers off the road, such as alcohol sensor monitoring and ignition interlocks, said Ralph Blackman, FAAR’s president and chief executive.

But despite a steady, long-term decline in drunk-driving rates, alcohol-related crashes still kill 28 people each day, according to the Centers for Disease Control and Prevention.

That statistic has been a black eye for the industry. It has also prompted some jurisdictions to levy alcohol taxes and limit the density of bars and liquor stores, which reduces alcohol consumption.

“Safety is a constant concern for us,” said Craig Wolf, the president and chief executive of the wholesalers group. “When we see a new technology that could improve safety, we want to learn more about it and share our unique perspective.”

Experts say there is some evidence that true self-driving cars would reduce drunk driving. These differ significantly from the semi-autonomous cars currently on the market, which require active input from a human driver. (In January, a man in San Francisco was charged with a DUI, even though his semi-autonomous Tesla was set to "autopilot.")

Studies of ridesharing services such as Uber and Lyft, which give drinkers easy, affordable alternatives to driving their own car, have generally shown that they decrease drunk-driving accidents.

Similar observations have been made of public transit: When the D.C. metro extended its hours, DUI arrests in nightlife districts fell. At the same time, other alcohol-related arrests in those areas jumped, probably because people stayed out later and drank more, said Brad Greenwood, a researcher at the University of Minnesota who studies the unintended effects of technological innovations.

“This is purely speculative, but based on what we know, I do think drunk driving will go down [with the advent of self-driving cars],” Greenwood said. “And on the margins, I think some people will drink more, as well.”

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How much more people will drink remains to be seen. In September, analysts at Morgan Stanley published a blockbuster report suggesting that self-driving cars could increase global alcohol sales by as much as $250 billion, assuming that the cars prompt current drinkers to consume an extra two drinks per week.

Greenwood is skeptical that self-driving cars will inspire drinkers to imbibe significantly more: For most people, he points out, transportation is probably not a major obstacle to drinking, particularly given the rise of services like Uber and Lyft. But for people who live in rural areas, or cities with unreliable ride-sharing networks, the effect could be significant, he said.

New sales aren’t the only way that the alcohol industry stands to benefit from self-driving cars, said Watson, the Rabobank analyst. For years, the industry has also suffered through a major social shift, with consumers drinking more at home and less at restaurants and bars. If autonomous cars can push some drinking back outside the home, Watson said, alcohol producers and retailers will be able to take advantage of higher margins and better brand recognition there.

On top of that, autonomous delivery trucks could significantly reduce labor costs for distributors. Brewing giant Anheuser-Busch partnered with car technology company Otto in 2016 to transport a shipment of beer across Colorado -- the world's first commercial shipment by self-driving truck. The company has placed preorders for 40 Tesla semi-trucks with “autonomous driving capabilities,” the company said in a December statement. Most experts believe self-driving technology will come to trucks and other commercial vehicles before it is widely available to consumers.

“That’s where the first iteration of self-driving vehicles will have an effect, and it will be a big effect,” Watson said. “Then you can get into the issue of increased consumption.”

Wolf strongly disputed the notion that his association might be interested in increasing sales or automating delivery, particularly since so many of the employees at the wholesalers his group represents are delivery drivers.

But Greenwood, the technology researcher, says it would be short-sighted to ignore the “spillover effects” of self-driving technology. This is one innovation, he argues, that could have far larger implications beyond drunk driving.

“I don’t see the shift happening quickly,” he said. “... But how this plays out in the long run will be fascinating.”

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