|
ACSA is working with state distilling guild leaders across the country to assist them in state-level efforts to advance the reform of direct-to-consumer (DtC) shipping for craft distilleries. Each week ACSA leads a DtC committee to plot strategy to advance craft distiller interests in consumer shipping. Shipping issues have developed in another area as well. The new Congress is looking closely at the postal service to determine what changes will be needed for it to survive into the future. A number of commenters and members of Congress have advocated for repealing any restrictions on the USPS shipping alcohol. In May, Rep. Jackie Speier (D-CA) will introduce the USPS Shipping Equity Act. The bill would provide the U.S. Postal Service with the authority to ship beer, wine and alcoholic beverages directly from licensed producers and retailers to legal consumers. Under current law, as we know, the Postal Service is prevented from shipping alcoholic goods. Private shippers such as FedEx and UPS are the only means for wineries, breweries and other producers to have their goods delivered directly to American consumers. If passed into law, the Postal Service could also be utilized. This is an important step for equity for craft distillers, but also an important move forward in DtC shipping of spirits. The legislation was introduced in the last Congress, but with the new Administration, it is believed that reforms to the USPS could be coming. Many groups see this is as an opportunity for the USPS, as well, to increase revenue. ACSA will be supporting the bill and working with Rep. Speier to advance the issue through the House. Also as part of our DtC strategy, ACSA is harnessing the power of One Click Politics, a leading advocacy technology, to help effect change at the state level. By licensing this software and working more closely with state distilling guilds, we hope to convince more state legislators to enable distilleries to ship directly to consumers. ACSA also recently unveiled a DtC campaign which includes a collection of resources for state distilling guilds and distilleries to advocate for DtC changes. It also includes a postcard to send to legislators, model guidelines necessary for elements of a model DtC bill, talking points and FAQ about DtC. Click here to access the assets.
ACSA, Organizations Send Letter to Biden Administration Urging Removal of Tariffs
|
|
|
Eighty-eight U.S. and European organizations (including the American Craft Spirits Association) representing a wide range of industries impacted by retaliatory tariffs sent a letter this week to President Joseph R. Biden and European Commission President Ursula von der Leyen urging the permanent removal of tariffs on sectors unrelated to the ongoing Trans-Atlantic trade disputes. The organizations, which range from agricultural products to consumer goods, opened the letter by stating their appreciation for the U.S. and EU’s four-month suspension of tariffs imposed in connection to the World Trade Organization (WTO) disputes concerning civil aircraft subsidies. Click here to learn more.
|
|
Register for ACSA’s Annual Distillers’ Convention and Vendor Trade Show
|
|
|
ACSA is thrilled to return to in-person events later this year with our annual Distillers’ Convention and Vendor Trade Show. The convention is scheduled for Dec. 4-6, 2021, in Louisville, Kentucky. Register today to join fellow producers and other industry experts to network, learn, and toast our incomparable, vibrant industry in Derby City. ACSA is planning a stellar conference that will showcase our LEGACY and demonstrate our GRIT. Over two and half days, you will gain from tailored educational content from top professionals and be given opportunities to mix and mingle with suppliers and friends in our craft spirits community. As the health and safety of our attendees will continue to be our main priority, expect a release of COVID-19 precautions shortly. All prior attendee and exhibitor registration fees from the July 2021 event will automatically roll over and be applied to the December dates. If you need to check registration status or have any immediate questions, please contact Teresa McDaniel at (502) 807-4249 and/or teresa@americancraftspirits.org. Please note that the following early bird rates are available now until June 30!
Member Attendee Registration
Member Attendee: $595
Additional Member Attendees (1-5): $395 per person
Additional Member Attendees (6+): $100 per person
Members must be logged in to access member registration link.
|
|
|
Non-Member Attendee Registration
Non-Member Attendee: $795
Additional Non-Member Attendees (1-5): $425 per person
Additional Non-Member Attendees (6+): $120 per person
If you register as a voting member, you’ll receive discounts on convention registration and competition fees, free webinars (including our archives), and more. Sign-up here to join ACSA’s craft spirits community!
|
|
|
Heartland Whiskey Competition Returns in May
|
|
|
ACSA is proud to announce that registration for the third biennial Heartland Whiskey Competition will open on May 1. The competition is generously sponsored by state corn marketing associations, and it is open to craft whiskeys from all 50 states that incorporate corn in their mash bill. Top mixologists, brand ambassadors and whiskey aficionados will judge the competition. Starting in May, visit americancraftspirits.org to enter by July 14—with a spirits delivery deadline of July 18.
Scam Alert: OMUFA Invoices
|
|
|
The U.S. Food and Drug Administration (FDA) alerted ACSA this week that it has received reports of a third party issuing “invoices” via email for the Over-The-Counter Monograph User Fee Program (OMUFA). In a statement on its website, FDA today noted that it “has not yet issued invoices to individual companies for fiscal year (FY) 2021 facility fees under the Over-the-Counter Monograph Drug User Fee Program (OMUFA). Prior to the due date for the FY 2021 OMUFA facility fee (May 10, 2021), we understand that some firms have received invoices from at least one third party billing company. These invoices are not from FDA and are not required for payment. If you pay directly with FDA per the instructions in the March 26, 2021, FRN, FDA does not charge handling fees or additional service fees. If you have questions, please email CDERCollections@fda.hhs.gov or call 301-796-7900.” If you received or receive a suspicious message, we recommend blocking the sender and you may also report the message to your internet service provider. To see if you will need to pay an official fee, follow this guidance from ACSA.
|
|
|
Important Announcement on Membership Dues
|
|
|
With hundreds of members in all 50 states, ACSA has earned recognition in both the domestic and global marketplace, received validation from our industry peers, and achieved legislative success, with FET reform, and more recently, with stimulus relief. We have come a long way in our short history and have accomplished much working together.
|
|
|
The craft spirits community is mourning the loss of Gable Erenzo, who died this week in his sleep. Gable was the owner of Gardiner Liquid Mercantile in New York and the former chief distiller at Tuthilltown Spirits Distillery, which he helped develop with his father, Ralph.
We at ACSA are deeply saddened by the loss of such a dynamic soul and universally beloved member of the craft spirits community and express our heartfelt condolences to Gable’s family and friends.
|
|
|
|
Advice for Distillers Interested in Exporting Craft Spirits
|
|
Editor’s Note: The following is an excerpt from an article in the May issue of CRAFT SPIRITS magazine.
Expanding into new markets beyond the U.S. may at first seem like a daunting endeavor to craft distillers. But with the right guidance and insurance, exporting craft spirits can help grow your business. To get a better sense of what aspiring exporters should consider, we recently checked in with Ursula Wegrzynowicz, broker account manager for the Export-Import Bank of the United States (EXIM), a U.S. federal government agency with the mission of supporting U.S.-based jobs by facilitating U.S. exports. EXIM helps companies of all sizes compete for global sales by offering financing solutions including export credit insurance to protect sellers from nonpayment by international buyers and working capital guarantees to help small businesses improve liquidity and cash flow. Sonat Birnecker Hart of Chicago-based KOVAL Distillery, which is a client of EXIM, also offered her advice.
ACSA: In a nutshell, why should distilleries that are interested in exporting their products turn to EXIM?
Ursula Wegrzynowicz of EXIM: Distilleries should turn to EXIM when exporting so that they can offer competitive terms to foreign distributors, much like they would to domestic distributors. EXIM is here to take the worry about collecting payment from halfway around the world out of the equation. Distilleries need to consider that 95% of the world’s consumers live outside the U.S. borders, so why limit sales to just the U.S.? EXIM can also assist distillers with accessing vital working capital, so that no international order needs to be turned downed or delayed in filling, because of a lack of access to working capital. There is a whole world out there ready to try your spirits!
How can a distillery know if it’s ready to start exporting and what are the first steps to that process?
Wegrzynowicz: Distilleries should turn to their local U.S. Commercial Service (USCS) office, which is part of the Department of Commerce. The role of USCS is to assist U.S.-based companies find qualified international distributors. That involves researching which countries currently import the spirits sold by the U.S. distillery and then digging in and finding a distributor match. USCS can also prepare the U.S. distillery with knowledge about how to do business in any given foreign market.
|
|
|
Sonat Birnecker Hart of KOVAL Distillery
|
|
|
What are the regulatory requirements for bringing the product into the country?
Sonat Birnecker Hart of KOVAL Distillery: It is always important to check to see what the label requirements are for every country, and even province. For example, in Canada there are different label requirements for different provinces. In Europe there are many different regulations to consider for liquor labels.
If your product is classified as organic in the U.S., how do you classify it as organic in another country? Will that classification provide you a competitive edge?
Birnecker Hart: Even if products are classified organic in the U.S., it does not mean that they will be classified organic abroad. Sometimes there are strange regulations that render organic products un-organic, such as if a country requires a completely unbroken chain of organic certified logistics as well as retail. In Germany, for example, a liquor store cannot sell organic products unless they have a certified organic storage in their store for organic products. If they buy and sell organic products without their own organic-certified storage, they will get fined and the products will not be considered organic. Since there are very few retail venues in Germany with such a certification, it does not benefit an American organic brand to claim organic status as there will be very few retail accounts through which to sell the brand. With this in mind, it is probably best to concentrate on other halo designations such as single barrel, bottled in bond, etc., [rather] than organic, depending on the market at hand.
How familiar should you be with the customs and culture of the country?
Birnecker Hart: It is always important to learn about the business environment, customs, and culture of a country in which one wants to build a brand. It will always help.
How do you properly label your spirits so there are no issues with customs clearance?
Birnecker Hart: It is important to do all of the research and not just rely on hearsay when it comes to regulations and requirements.
Wegrzynowicz: USCS can provide assistance on these topics and many more. In addition, most states also have resources to provide assistance—in some cases even financial—to support a distilleries’ plunge into the international arena.
Any advice on which particular markets might be best to try at first?
Wegrzynowicz: To be successful in any market, it takes research and planning. U.S. distilleries should rely on the local, state and federal agencies like the USCS to understand where the best opportunities are for their specific product. Then the distillery can implement a successful, strategic export business development plan versus reacting to orders that may be coming in through a website. Of course, those e-commerce leads are great indications of market interest, but it’s important to do your homework and understand the costs of doing business in any market, so sales are profitable.
Birnecker Hart: Other factors to consider when deciding on markets abroad also include whether one has a particular language ability or cultural/business understanding that could give one an advantage.
At what point should a distillery that is interested in exporting reach out to EXIM?
Wegrzynowicz: Anytime a U.S. distillery has an inquiry from a foreign distributor, they should be reaching out to EXIM to talk about how we can assist. We always prefer to speak with a company early on in the sales process. First we can quickly advise whether the country the U.S. distillery is considering selling to is one that is viable for us to support (see Country Limitation Schedule at exim.gov/tools-for-exporters/country-limitation-schedule). If EXIM is not open for business in that country, probably best for the U.S. distillery to get payment up front—assuming there are no sanctions against selling to that country. If we are open for business, then we can quickly help the U.S. distillery determine if this is a creditworthy prospective customer. If so, we can take the next steps to get coverage in place. The U.S. distillery will know the costs up front, which helps as many of our customers build in the cost of EXIM insurance into the product cost (on average from 0.5%-1%).
What are some other considerations that prospective exporters should be thinking about?
Wegrzynowicz: U.S. distillers that are getting into the international marketplace, much like other businesses, need to ensure their service providers—their attorneys, accountants, freight forwarders—have international experience. All of these outside advisors are staying updated on developments in their particular specialties and it is so important for U.S. distillers, who are undoubtedly stretched, to rely on those advisors to stay a step ahead and problem solve when those challenges arise.
Birnecker Hart: Yet there is no substitute for doing one’s own homework and making sure that one understands the different ways of doing business in a particular country as there is never only one way.
|
|
Follow us on Instagram for Craft Spirits Live
|
|
|
Join ACSA for Craft Spirits Live, our Instagram Live show. In each episode, a leading craft spirits producer invites us into their distillery for 30 minutes of engaging conversation and a virtual tour—as well as an opportunity to answer all of your burning questions.
UPCOMING GUESTS
May 5th: Chris Sywassink, Ghost Coast Distillery
May 12th: Hilary Mann, Up North Distillery
May 19th: TBA
May 26th: No Craft Spirits Live
|
|
|
Listen to the Latest Episodes of The Craft Spirits Podcast
|
|
|
Produced by ACSA and CRAFT SPIRITS magazine, The Craft Spirits Podcast is a bimonthly program featuring in-depth conversations with distillers and craft spirits visionaries.
|
|
From the Pages of CRAFT SPIRITS Magazine
|
|
|
The American Craft Spirits Association proudly presents the May 2021 issue of CRAFT SPIRITS magazine. In our cover story, distillers around the nation weigh in on their adventures with heirloom corn. As our editor in chief writes, “Many, perhaps most, of you don’t work with heirloom corn (or even make whiskey, for that matter), but the piece is about all of you. That’s because craft spirits, regardless of what fermentable substrate you use, is an heirloom industry.”
This issue also includes:
|
|
|
Watch the Latest Episode of Craft Spirits TV
|
|
|
Elgin, Arizona’s Flying Leap Vineyards & Distillery president & CEO Mark Beres talks about making whiskey with the prized grain of the desert Southwest.
|
|
|
|
|
Download the CRAFT SPIRITS Magazine Media Kit
|
|
|
Want to get your products and services noticed? Be a part of upcoming issues of CRAFT SPIRITS magazine, the all-digital, bi-monthly publication of the American Craft Spirits Association! Check out our 2021 media kit to see what’s in store.
|
|
|
Share Your Story With CRAFT SPIRITS Magazine
|
|
|
If you’re not already sending news and updates about product releases and general happenings at your distillery, please add news@americancraftspirits.org to your mailing list.
|
Welcome Newest Voting, Affiliate and Candidate Members!
ACSA extends a warm welcome to a few of our newest members and sponsors:
Find out more about becoming a member here.
Did You Know?
- The TTB has issued 3,761 DSPs! Find the full list here.
- Don’t miss these upcoming drink holidays:
May 7: National Cosmopolitan Day
May 13: World Cocktail Day
May 15: World Whisky Day
May 30: National Mint Julep Day
|
|
|
