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BevAlc Roundup | TTB Crackdown on Consignment Sales, Whither American Whiskey, and the Six Types of American Wine Drinkers

Mon, 11/26/2018 - 10:42

The holiday season can so often end up filled with chaos and stress that it distracts from the reasons we value this time of year — as a chance to reflect on those we love and care about and everything that brings us joy. And so, as we prepare for a period of busy sales and hectic shipping, we at ShipCompliant by Sovos want to extend our deepest gratitude to our clients, our partners, our friends who all together strive everyday to make each other’s lives better and further this wonderful industry we share. Thank you all so much, and we hope you all had a lovely Thanksgiving holiday!

For this week’s Roundup we look at the Amicus briefs filed before the Supreme Court in favor of the position of the Tennessee Wine and Spirit Retailer’s Association — this will surely capture a lot of attention in the months ahead; if you are an interested party, look around for ways you can get your voice in front of the Court. Speaking of which, this week’s Roundup also has a report on a citizen’s action to file an Amicus, which anyone in favor of expanding the consumer’s interests can subscribe to. We then look at some end-of-year reports for the wine and beer markets, see how tariffs are affecting the bourbon industry, and take a more nuanced look at what trade and market forces actually affect sales of U.S. wine in France.

Stay up to date with the latest trends in the DtC wine market with the Sovos/Wines & Vines 2018 DtC Report. Make sure to download your copy here!

 

Regulatory News and Discussions

TTB Newsletter | This special edition of the TTB Newsletter announces that we have published rulemaking designed to significantly update and improve the alcohol advertising and label regulations, which is a part of our strategic goal to modernize our labeling program. TTB

Fourteen Briefs Filed in Support of Tennessee Wine and Spirits Retailers Association’s Appeal to the Supreme Court | These parties both supported the positions of the Tennessee Retailers, and offered other perspectives to paint a more complete story for the Supreme Court’s consideration. Alcohol Law Review

Wine Consumers to Fund Supreme Court Brief on Wine Shipping Case | A GoFundMe Campaign has been launched that gives wine consumer across the country the opportunity to help fund a “Friend of the Court” Amicus brief in the upcoming Byrd v. Tennessee Supreme Court case. Wine Industry Advisor

TTB Imposes One-Day Suspensions on Napa Valley Wine Companies Over ALleged Illegal Consignment Sales | The suspension of the winery and three other wine companies stems from a joint operation TTP conducted with the California Department of Alcoholic Beverage Control in March. Wine Business

California Winer to Change Labels for Oregon Brands | A Napa Valley winery at the center of a labeling dispute in Oregon has agreed to put new labels on two brands of Oregon Pinot noir, including Elouan and The Willametter Journal. Capital Press

Wineries Run Afoul of Obscure Law | An arcane part of the Americans with Disabilities Act is causing headaches for some producers. Wine-searcher.com

New U.S.-Mexico-Canada Trade Deal Could Open up B.C. Grocery Stornes to Washington Wine Sales | Washington winemakers have chafed for years over the unequal treatment their bottles receive in grocery stores in British Columbia. Spokesman

 

Industry Updates: Market Conditions and Developments

2018 U.S. Wine Sales Are Up, Especially Red Wine Shipped Direct | The U.S. wine market is both up and in the red — red wine, that is. Forbes

As US Beer Shipments Decline, Off-Premise Sales Remain Flat | Shipments of domestically brewed beer are down about 2.9 percent, according to the Beer Institute, but year-to-date volume sales at off-premise retailers are still basically flat. Brewbound

Craft Bourbon Craze Is Over in Europe Thanks to 25% Import Tax | Europe had been blossoming as a source of new revenue — but this market has been effectively cut off for producers that lack the clout or brand recognition of titans like Brown-Forman Corp. and Diageo Plc. Bloomberg

Planning for the Future of American Whiskey | Distillers discuss strategies for keeping up with market demand, forecasting sales, and driving growth. SevenFifty Daily

Sustainability Produces Good Small Winery Financial Performance, Says a Recent Study | Reported last month in Science Daily, a comprehensive study that stretched from the U.S. to Europe points to financial success when small-to-medium-sized (SME) wineries follow sustainable viticultural and winemaking practices. Forbes

 

Digestif

Trump’s Right — It’s Harder to Sell U.S. Wine in France. Tarifs Aren’t the Whole Story | “American makes some good wines, but we have everything we need here in France.” Bloomberg

US Wine Drinkers Defined in Six Segments | US drinkers are changing their behaviour towards the wine category, the US Portraits 2018 from Wine Intelligence has revealed. Harpers

Is Less Really More for Wine Labels? | Wine labels have a habit of being dense and over-complicated. Wine-searcher.com

Cocktails At Kroger? Why Supermarket Bars Are Going National | Shopping drives most of us to drink, it seems; and savvy grocery chains figure they might as well capture those dollars by turning supermarkets into destinations for excellent craft beer and wine. VinePair

 

 

Find out how ShipCompliant by Sovos can help your business stay on top of compliance by signing up for a free demo.

 

The post BevAlc Roundup | TTB Crackdown on Consignment Sales, Whither American Whiskey, and the Six Types of American Wine Drinkers appeared first on ShipCompliant | The software leader of the beverage alcohol industry.

TTB Issues Circular Regarding Trade Practice Guidelines

Mon, 11/12/2018 - 16:02

One of the biggest news stories in the beverage alcohol industry over the last year or two has been the intensified enforcement of trade practice violations by the federal Trade and Tax Bureau (TTB).

An industry circular posted by the TTB on Friday, November 8, 2018 points to the agency’s current engagement with this trend of enforcement, and provides all beverage alcohol suppliers and wholesalers guidance on what activities they should avoid in order to remain in compliance with federal rules. Increased enforcement has been a developing topic since early 2017, when the TTB first received an additional $5 million in appropriations from Congress to expand its investigations activities. For the TTB, trade practices violations were seen as a critical area of rules and regulations that required intensified education and enforcement.

As the circular indicates, despite these increased efforts by the TTB, the agency continues to see “significant and widespread” violations of trade practice rules. According to the circular, the violations that it sees includes such activities as (quoted from the circular, but not a complete list) :

  • Industry members paying fees or providing other things of value to retailers in exchange for display space or shelf space (including designated tap space), commonly referred to as slotting fees.  In some cases, such payments are hidden in the company’s books as payments for samplings that never take place.
  • Industry members and retailers altering invoices in an effort to conceal the nature of inducement payments.
  • Industry members and retailers altering invoices in an effort to conceal the nature of inducement payments.
  • Industry members illegally operating without a valid Federal permit due to not timely reporting changes of ownership, management, or control over their operations.

Trade practice rules are intended to create fair competition and equal access within the beverage alcohol industry. They prevent certain actors from using their established wealth and presence in the market from getting unfair edge over other members of the industry. As the circular says, “[The TTB] believe[s] that the industry as a whole has the ability and desire to operate within the law.“

The circular includes encouragement for industry members to undergo a voluntary disclosure with the TTB for any violations the industry member may have committed. By voluntarily disclosing, an industry member will mitigate whatever action the TTB may take against them for the violation.

The TTB takes its role in enforcing trade practice violations seriously, especially with the additional resources it has had in recent years to engage in enforcement actions. Industry members would do well to also take the TTB’s actions seriously and ensure that they remain in compliance with the federal rules that govern their license.

We at ShipCompliant by Sovos recommend everyone to read this circular and review the federal (and relevant state!) rules regarding trade practice, and take any necessary action to get compliant and stay compliant.

 

 

Find out how ShipCompliant by Sovos can help your business stay on top of compliance by signing up for a free demo.

 

The post TTB Issues Circular Regarding Trade Practice Guidelines appeared first on ShipCompliant | The software leader of the beverage alcohol industry.

BevAlc Roundup | ADA Compliance for Winery Websites, Pabst and MillerCoors Clash, and Southern Oregon Wineries Blend Tradition and Modernization

Mon, 11/12/2018 - 15:39

For the second year in a row, this season — the post-harvest and pre-holiday time — is being marked by devastating wildfires in both North and South California. While this year’s conflagrations have not directly affected wine country as last year’s did, the fires’ toll does not occur in isolation. Everyone is impacted when communities are reduced to ashes, when our friends and neighbors suffer. We at ShipCompliant by Sovos again extend our deepest sympathies to those who have been impacted so far, and fervently hope that the weather improves and those brave souls fighting the fires can turn the tide of ruin.

In this week’s Roundup, we look at a circular issued by the TTB cautioning the industry to review their Trade Practice compliance efforts in light of the agency’s continued enforcement actions, the Brewers Association mulls amending the definition of craft beer to incorporate more “non-traditional” styles, and has the Robert Parker rating system lost its sense of proportion or was 2016 just really great for wine?

Stay up to date with the latest trends in the DtC wine market with the Sovos/Wines & Vines 2018 DtC Report. Make sure to download your copy here!

 

Regulatory News and Discussions

TTB Newsletter | Top stories includes two grape varieties that have been approved for use on American wine labels, information about service delays in our TTB call centers, an invitation to apply for the Assistant Director position in the Alcohol Labeling and Formulation Division, and another permit suspension resulting from a trade practice investigation. TTB

TTB Circular: Industry Compliance With Trade Practice Laws and Regulations | Since the beginning of its increased enforcement efforts, TTB has found significant violations of Federal trade practice laws and regulations by some members of the alcohol beverage industry. TTB

Winery Websites and ADA Compliance | The recent news of lawsuits filed against New York wineries has caused industry members to ask if they face any litigation risk if their websites are not accessible to people with disabilities under the Americans with Disabilities Act (“ADA”). JD Supra

Briefs Filed With 8th Circuit Urge Support of Missouri Tied House Law and Advertising Regulations | The State of Missouri has filed its brief and addendum appealing the district court decision to strike down on emIssouri tied house law and two alcohol advertising regulations. Alcohol Law Review

Wine, Consumers and the Court | There is no other category of consumer whose day to day commercial habits are more impacted by politics than wine consumers. Fermentation

 

Industry Updates: Market Conditions and Developments

Pabst Says MillerCoors Is Trying to Put it Out of Business | Pabst Brewing Company and MillerCoors are going to trial, with hipster favorite Pabst contending that MillerCoors wants to put it out of business by ending a longstanding partnership through which it brews Pabst’s beers. Washington Post

2018 Craft Beer Report: Craft Beer Market Experiencing Marginal Growth | IPAs make up nearly a quarter of the craft beer production industry, the largest shar for a single style by a fairly large margin. Beverage Industry

2019 DTC Wine Symposium Announces Workshop Sessions | Content to focus on case studies, practical recommendations. Wine Business

Jim Bernau Responds to Copper Cane’s Joe Wagner | The article regarding Oregon Vintners Pushing Back on Copper Cane’s Labels generated a lot of interest, as did last week’s Joe Wagner Responds: Copper Cane owner explains his side of the story, published by the Oregon Wine Press. Wine Business

Brewers Association Board Proposes New Craft Brewer Definition, Intends to Form Political Action Committee | The Brewers Association board of directors today informed members of proposed changes to its bylaws that would significantly alter the trade organization’s official craft brewer definition, and create a new voting member class. Brewbound

 

Digestif

Why So Many 2016 Napa 100-Point Wines? | None of these were given lightly or without careful consideration of the hallowed position they hold among all the other great wines of the world that have received the pinnacle of wine criticism accolades throughout our 40-year history of Robert Parker Wine Advocate. Robert Parker Wine Advocate

Old World Tradition and New World Innovation The Wines of Southern Oregon | From Peter Britt, who grew grapes in Jacksonville in 1855 to the establishment of the Rogue Valley Vintners in 2018, South Oregon’s wine industry has come a long way. JPR

How Millennials Made the Modern Somm | The role of sommelier has been redefined by a younger generation looking for adventure. wine-searcher.com

 

 

Find out how ShipCompliant by Sovos can help your business stay on top of compliance by signing up for a free demo.

 

The post BevAlc Roundup | ADA Compliance for Winery Websites, Pabst and MillerCoors Clash, and Southern Oregon Wineries Blend Tradition and Modernization appeared first on ShipCompliant | The software leader of the beverage alcohol industry.

BevAlc Roundup | A DtC Initiative in New Jersey, Brewers Say They’re Preparing for Climate Change, and New Grape Varieties Found in Chile

Mon, 10/29/2018 - 18:48

Happy Halloween! We hope that everyone celebrates the fall season — the colorful leaves, the harvest, the night of spooks and treats — festively and safely. While you’re at it, why not also celebrate with the Roundup?

This week we report on a tax change occuring in Colorado that may affect wineries shipping DtC into the state. We then look at all the nuances for suppliers to be aware of when setting up in a state with franchise laws, a new career survey of industry members points out areas for change, and a new story reports on the missing story behind the Judgment of Paris.

Stay up to date with the latest trends in the DtC wine market with the Sovos/Wines & Vines 2018 DtC Report. Make sure to download your copy here!

Regulatory News and Discussions

TTB Newsletter | Top stories includes the publication of our latest strategic plan, a reminder for breweries that use wine or spirits barrels for aging beer, an announcement about our next malt beverage formula webinar, and three recent field enforcement actions.. TTB

Colorado Announces New Rules For Remote Sellers That Could Affect DtC Wineries | Colorado, recently announced that it will soon begin requiring out-of-state sellers to start collecting and remitting sales tax on their sales to Colorado residents. ShipCompliant by Sovos

A Bridge Too Far For Granholm? Florida Importer Challenges California Three-Tier System | A Florida-based wine importer is hoping to shake up the California three-tier system. DPF-Law

How to Do Business in a Franchise State | A drinks lawyer explains how franchise law works and how suppliers can protect their businesses. SevenFifty Daily

“Frees the Grapes,” Campaign Launches to Give New Jersey Wine Consumers Freedom of Choice | Current shipping restrictions limit New Jersey residents’ access to only 4% of wineries nationwide. Insider NJ

Industry Updates: Market Conditions and Developments

Industry Leaders Weigh in on the State of the Drinks Business | New Career & Salary Survey Report has the industry talking about the future — and opportunities for change. SevenFifty Daily

U.S. Wine Sales Led by Value Increases | Sonoma overtakes Napa in DtC shipment volume as total DtC grows 14%. Wines&Vines

Bye-Bye, Beer? Brewers Say They’ve Got a Plan on Climate Change | Research published this week predicting that beer prices could double as rising global temperatures and more volatile weather cause shortages of barley created a big splash. NPR

Wine Supply is Hitting a Tipping Point | At some point as demand in volume flattens while bearing acres increase, we should expect to see a change in grape buying patterns from wineries and ensuing price changes depending on the specific region and variety. SVB on Wine

Digestif

The Hidden Figures Behind the Judgment of Paris | Many retellings of California wine’s most popular myth omit the women who made the Judgment of Paris happen. SF Chronicle

World’s Most Consumer Liquor Tries to Make It in the U.S. | A distiller of baijui, whose sales in China exceed the global sales of vodka, seeks to expand the high-alcohol spirit to the West. WSJ

26 New Grape Varieties Identified in Bío Bío | A research project into old vines in southern Chile has identified 26 new varieties, previously unknown in the world, and over 60 ‘uncommon’ varieties growing in Bío Bío. Decanter

4 Steps to a Profitable Cyber Monday for Your Winery | The holidays are just around the corner — now’s the time to capitalize on two of the biggest months for wine shipments. VineSpring

 

 

Find out how ShipCompliant by Sovos can help your business stay on top of compliance by signing up for a free demo.

 

The post BevAlc Roundup | A DtC Initiative in New Jersey, Brewers Say They’re Preparing for Climate Change, and New Grape Varieties Found in Chile appeared first on ShipCompliant | The software leader of the beverage alcohol industry.

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