Friday, April 3, 2020 www.nabca.org

TODAY’S HIGHLIGHTS

• Michigan liquor commission says excessive drinking can compromise immune system • Indiana liquor distribution case returns to social-distanced 7th Circuit • Mexico: Halting beer production, alcohol sales triggers panic buying • Drinking heavily through older age can lead to larger waistlines • Wineries create a new blend of sales strategies • Texas bourbon distillery using its newest liquor to raise money for coronavirus response

NABCA News

NABCA launches a COVID Resource page. It includes interactive dashboards which includes state actions to lessen the spread of COVID-19 and policy changes that effect on- and off-premise retail operations, as well as additional information.

Visit NABCA’s website for more information

TTB NEWS

NEW COVID-19 PAGE ON TTB.GOV You can now find all of TTB’s COVID-19-related news and guidance in a single location. Check the page frequently to find new or updated information to help you and your business respond to the COVID-19 national emergency. https://www.ttb.gov/coronavirus TTB Alcohol Trade Practice Video Series TTB provides on-demand alcohol educational information Videos: https://www.ttb.gov/news/see-our-new-ttb-trade-practice-video-series)

NABCA WEBINAR NEW! Women. Alcohol. Health. - From Blackouts to Breast Cancer. webinar is now available on our website. Visit www.nabca.org/Resources/Webinars

CONTROL STATE NEWS

MI: Michigan liquor commission says excessive drinking can compromise immune system

WWMT by Newschannel 3 April 2, 2020

LANSING, Mich. — The Michigan Liquor Control Commission (MLCC) urged Michiganders to control their alcohol drinking during the coronavirus disease 2019 pandemic.

“During this time of coronavirus, be careful of excessive drinking because it can compromise a person’s immune system,” said MLCC Chair Pat Gagliardi. “Moderation is important. Don’t underestimate how much you have actually been drinking.”

As Michigan residents hunker down with a stay-at-home order in place, alcohol consumption is rapidly rising. Nationally, Gagliardi said sales of alcoholic beverages increased 55% in the week ending March 21, 2020, compared to last year.

Sales of spirits, like tequila, gin and pre-mixed cocktails jumped 75% compared to the same dates in 2019. Gagliardi said beer purchases were up by 66% and wine up 42% year-on-year.

April is Alcohol Awareness Month and MLCC reminded Michiganders the following tips:

• Know that alcohol products are increasingly more potent, such as consumer favorites of hard liquors, including tequila and gin.

• Know what a standard “drink” is: 12 ounces of beer (5% alcohol content); 5 ounces of wine (12%

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alcohol content); or 1.5 ounces of distilled spirits or liquor (40% alcohol content) -- gin, rum, vodka, whiskey, etc.

• Know consumption guidelines for healthy adults: one drink a day for women of all ages and men over age 65; up to two drinks a day for men under age 65.

• Don’t binge drink. For women, it’s those who drink more than four drinks in an outing and men who drink more than five.

• Know that heavy drinking can lead to chronic diseases, including problems with your liver, throat, larynx and esophagus. It can lead to high blood pressure, psychological problems, and pancreatitis. And, ultimately the risk of becoming an alcoholic.

• Never drink while pregnant. If you become pregnant, stop drinking alcohol.

While quarantined at home, MLCC said to drink alcohol in moderation:

• Set limits on how much you’re drinking.

• Don’t relax your rules; stick with your usual limits on alcohol.

• Consider low- or no-alcohol drinks.

• Limit sugary cocktails that can impact your immune system especially if you already have underlying health conditions.

Gagliardi said for parents to talk to their children about underage drinking. According to the Centers for Disease Control and Prevention, excessive drinking is responsible for more than 4,300 deaths among underage youth each year and can lead to early addiction, among other dangerous outcomes.

NC: Senator, ABC Boards pushing to allow bars, restaurants to sell alcohol back

Carolina Journal News Service By John Trump April 2, 2020

RALEIGH — N.C. Sen. Rick Gunn, R-Alamance, and the N.C. Association of ABC Boards want to allow bars and restaurants to sell alcohol back to N.C. Alcoholic Beverage Commission stores.

The resolution, unanimously passed by the board association Wednesday, April 1, supports local ABC policies permitting local boards to “allow any bottles that have been purchased since Jan. 1, 2020, to be returned for a refund at current retail price, less the mixed beverage tax,” a news release says.

ABC boards would adopt local policies to implement the buyback program. Bars and restaurants within a locality then could sell their unused liquor back to ABC stores, the release says.

COVID-19 is crippling restaurants and private clubs throughout North Carolina and the country, which often count on alcohol sales to thrive and, oftentimes, survive.

“This program would help struggling bar and restaurant owners raise needed cash to withstand the economic shutdown,” said Gunn, who for years in the N.C. Senate has pushed for reforming the way the state governs liquor.

“This is the hardest-hit sector in our economy, and this is a simple step we can take now to help deliver some relief.”

Scott Maitland owns Top of the Hill Restaurant and Brewery in Chapel Hill, which is temporarily closed because of the pandemic.

“This would be a great opportunity for those folks who feel the need to do this,” Maitland told Carolina Journal. “ I haven’t thought about this much, because hopefully we’ll reopen in a few months. But it’s good to know it’s there if I need it.”

Lynn Minges, president and CEO of the N.C. Restaurant & Lodging Association, is pleased with the move.

“We are thrilled with N.C. ABC Commission Chair A.D. “Zander” Guy announcement today that the commission will support a buyback policy for unused liquor during the current State of Emergency,” she said in an email. “NCRLA has been working closely with Gov. Roy Cooper’s office to push for an updated buyback policy in order to help restaurants and bars across the state. Traditionally, such a decision would be left up to each individual ABC board. This announcement will help put cash in the hands of mixed-beverage permittees at a time they desperately need it.”

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WVA: WVa allows beer, wine home deliveries during virus outbreak

Midland Daily News April 3, 2020

CHARLESTON, W.Va. (AP) — West Virginia residents can now get beer and wine delivered to their homes during the coronavirus pandemic, alcohol regulators said.

Alcohol, Beverage Control Administration commis-sioner Frederic Wooton said Thursday that licensed restaurants and bars can ship beer and wine as long as they accompany take-out food orders. The products must be in sealed, original containers.

Deliveries of liquor and mixed alcoholic drinks are not allowed, including from distilleries. Unlicensed third-parties also cannot make deliveries, Wooton said in a statement.

Businesses must verify that the purchaser is at least 21 years old and that the person is not intoxicated, the statement said.

Deliveries should be completed with as little physical contact as possible and maintain social distancing, the statement said.

Wooton said the deliveries are allowed within the state's border through executive orders issued by Gov. Jim Justice related to the virus outbreak.

ID: Idaho Chief Deputy Tony Faraca Talks Liquor Sales & COVID-19

KEJZ By Greg Jannetta April 2, 2020

Like many of you, I've paid my local liquor store a visit a time or two during this state- mandated, Coronavirus lockdown. There has been a debate about whether or not liquor stores should be considered, "essential businesses," so I though I'd reach out to the one person who knows more about the topic than anyone.

I've been asked the question a couple of times recently whether or not I consider liquor stores to be an essential business in times of crisis such as a national pandemic. Let me just say, my whiskey shelf is very plentiful, and if you knew how much sales of

liquor stimulates local government in the Gem State, you might share my opinion also.

"For people that don't know, sales from our stores do go directly into aiding city government. That includes our area parks, fire departments, police, and community colleges," said Chief Deputy Director Tony Faraca, with the Idaho State Liquor Division.

I recently read liquor sales in the country are up 20-25%, and asked Tony about this.

"I'm not sure if it's really that high, Faraca said. "We did begin to notice the first signs of a spike when the first Coronavirus case was reported in the state. Then again when the stay-at-home directive was issued. It was about March 12 we noticed people really started getting the word."

As to if there was such a timeframe when increased liquor sales in the state really showed substantial profit compared to this time last year, the director had this to say.

"The period from March thirteenth to that Monday, the sixteenth, was huge compared to last year. We also didn't anticipate the last week of March, particularly the twenty-fifth, being so busy, " said Faraca. "It rivaled sales from New Years Eve."

LICENSE STATE NEWS

SC: Liquor stores in SC, across US remain open as ‘non-essential’ businesses close

The Post and Courier By Emily Williams April 2, 2020

As cities and states across the country issue orders for non-essential businesses to close, questions have been raised about whether one particular type of business will keep its doors open: liquor stores.

Right now in South Carolina, the answer is pretty simple. Retail stores were not included in the list of “non-essential” businesses that Gov. Henry McMaster ordered to close on Tuesday. Liquor stores remain open, as well as many big-box retailers, pharmacies, grocery stores and gas stations.

In other places, it’s gotten more complicated.

All liquor stores in Pennsylvania have been closed since March 17. Starting Wednesday, the state’s Liquor Control Board announced it would re-open its

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portal for online liquor and wine sales but massive demand has overwhelmed the site.

In Denver, after the mayor declared liquor stores and recreational dispensaries were “non-essential” and would have to close, people swarmed both, prompting a quick reversal to that order, the Denver Post reported.

In addition to possibly creating a rush on stores, some addiction experts have also argued that closing liquor stores during the coronavirus crisis could cause another health problem: increased instances of alcohol withdrawal.

The American Addiction Centers lists “drastically restricted access to alcohol” as one of the challenges people with problematic drinking habits may face during the pandemic, along with anxiety and loneliness.

Multiple states have relaxed their alcohol laws in the last couple of weeks to aid struggling restaurants and keep alcohol accessible to customers as more Americans are directed to stay at home.

Since March 21, curbside pickup for beer and wine has been temporarily allowed in South Carolina. Changes in other states, like New York, have gone even further to allow restaurants to deliver alcohol directly to customers’ homes as long it’s sold with food.

Based on consumer data, booze may be one of the ways that Americans are coping with the coronavirus crisis. For the week ending March 21, U.S. alcohol sales rose 55 percent, according to the market research firm Nielsen.

Spirits showed the highest sales gains at 75 percent over the same period last year, while wine sales rose by about 66 percent. Sales for beer went up 42 percent.

Nielsen vice president Danelle Kosmal told the Associated Press those growth rates may not be sustained as Americans continue to stay home during the pandemic. The extreme spike was likely fueled by people stockpiling their homes with booze before stay-at-home orders took effect.

Nielsen also found that the highest growth rate, by far, was for online alcohol sales which rose a whopping 243 percent nationwide. That category isn’t a factor here in the Palmetto State, though,

since delivering spirits to consumers’ homes is prohibited.

For some local brick-and-mortar liquor stores, the exodus of tourists and college students downtown has meant that business has slowed, even if locals may be buying booze more often. That’s been the case for Burris Liquors on Meeting Street, an employee said Thursday.

Farther south on the peninsula at The Tavern at Rainbow Row, the loss of foot traffic from tour groups has been felt, too. But there has been a “strong response” from South of Broad residents coming to the store to stock up their bars, manager Scott Johnson said.

The store has no plans to close, Johnson said.

While South Carolina’s liquor stores haven’t been told to suspend operations, Tuesday’s order directing “non-essential” businesses to close has raised questions for other venues.

By early Wednesday afternoon, the S.C. Department of Commerce had received approximately 1,765 inquiries from businesses wondering whether or not they had to shut their doors, said spokeswoman Alex Clark.

IN: Indiana liquor distribution case returns to social-distanced 7th Circuit

The Indiana Lawyer By Marilyn Odendahl April 2, 2020

The protracted battle between Indiana and E.F. Transit over who can transport beer, wine and liquor spilled, again, into the 7th Circuit Court of Appeals, where the judicial panel heard arguments about when federal law preempts state prohibitions.

E.F. Transit, which shares a CEO, shareholders, board of directors and about 20 employees with Indianapolis beer and wine wholesaler Monarch Beverage, had twice tried to enter into a contract to transport product for Indiana Wholesale Wine & Liquor, a liquor wholesaler.

The Indiana Alcohol & Tobacco Commission never ruled on either agreement but questioned the relationship between E.F. Transit and Monarch. After an investigation, the commission found E.F. Transit’s common ownership with Monarch raised the

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possibility that an agreement to transport liquor for Indiana Wholesale would violate the state’s prohibited-interest statutes. Under these statutes, which prevent a single wholesaler from having an interest in both a beer and liquor permit, the concern was that through E.F. Transit and its contract with Indiana Wholesale, Monarch would gain an interest in a liquor permit.

E.F. Transit eventually sued the commission and the individual commissioners seeking to block enforcement of the prohibited-interest statutes. The company argued the state law is preempted by the Federal Aviation Administration Authorization Act of 1994. This federal statute overrides state laws governing motor carriers, and E.F. Transit asserted it was providing motor carrier services.

The U.S. District Court for the Southern District of Indiana dismissed on the grounds E.F. Transit’s claim was not ripe. While E.F. Transit was appealing to the 7th Circuit, the Indiana Supreme Court ruled on a separate lawsuit – Ind. Alcohol & Tobacco Comm’n v. Spirited Sales, LLC, 79 N.E.3d 371, 379 (Ind. 2017) – which looked at the relationship between E.F. Transit and Monarch. The justices concluded the two companies as “practically one in the same” under the prohibited-interest statutes.

Consequently, the 7th Circuit reversed in E.F. Transit, Inc., v. David Cook, et al., 16-3641, noting the ripeness barrier to this complaint had been removed.

With the case remanded, the district court turned its attention to the question of preemption.

Again, E.F. Transit argued it is a motor carrier and the FAAAA blocks the prohibited-interest statutes from governing motor carriers. However, the commission countered that the state’s prohibited-interest statutes are protected from preemption by the 21st Amendment, which gives states the power to regulate alcohol within their own borders.

Pointing to the Indiana Supreme Court’s ruling in Spirited Sales, the district court held the state’s interests were protected by the 21st Amendment and outweighed the federal interest advanced by E.F. Transit.

“Because the transportation function is a particularly critical and far-reaching aspect of alcohol supply and distribution in this state, a

wholesaler could circumvent Indiana’s three tier system by using a commonly owned motor carrier. And if one wholesaler held a monopoly, the Commission’s ability to regulate that wholesaler would be impeded due to a lack of transparency and industry watchdogs, where one oversized wholesaler could unduly influence regulators through its dominant market share,” Judge Richard Young wrote, citing the deposition from commission chairman David Cook.

E.F. Transit appealed to the 7th Circuit, where the same panel of judges that ruled in the first lawsuit – Judges Frank Easterbrook, Ilana Rovner and Diane Sykes – heard oral arguments Monday. The central question was whether E.F. Transit was a motor carrier or a beer wholesaler.

Rovner pressed E.F. Transit’s attorney, Amy Mason Saharia of Williams & Connolly, on how the FAAAA applied, since Indiana was imposing the restrictions based on the company’s status as a beer wholesaler not as a motor carrier.

“E.F. Transit, because of the commission’s threatened enforcement of state law, cannot provide transportation services that the market demands or would like E.F. Transit to provide,” Saharia said. “And that is precisely at the core of what Congress was attempting to fix when it enacted this preemption provision.”

Rovner replied, “You see, my problem with your argument is that it seems to me is that the prohibited-interest statute is not being applied to E.F. Transit in its status as a motor carrier. As a motor carrier, E.F. Transit would be entitled to conduct all of the activities it seeks to conduct involving beer, wine, liquor. It seems to me that any restriction on E.F. Transit is based on its status as a beer wholesaler, a status that results from its connection with Monarch.”

Aaron Craft, deputy attorney general with the Indiana Attorney General’s office, told the panel Indiana was making a “very narrow disqualification” in light of E.F. Transit’s “overlapping ownership and control with a beer wholesaler.”

Moreover, Craft asserted, “… the federal act lacks a clear statement by Congress to preempt state laws governing the transportation of alcohol.”

Saharia tried to draw a parallel with the U.S. Supreme Court’s decision in Tennessee Wine and Spirits

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Retailers Association v. Thomas et al., 18-96. She referenced Cook’s testimony about the state’s economic rationale for barring E.F. Transit’s contract with Indiana Wholesalers and, according to Saharia, his speculation that Monarch would obtain monopoly power and abuse retailers.

The Supreme Court ruled in Tennessee Wine “that kind of unsubstantiated speculation simply cannot carry the day when the state is attempting to overcome conflicting federal law by relying on the 21st Amendment,” she said.

Craft countered Tennessee Wine does not alter the E.F. Transit dispute. The Supreme Court case was “an anti-discrimination case under the Commerce Clause,” he said. “The statutes here do not discriminate against out-of-state interests,” he argued. “E.F. Transit is an Indiana Wholesaler.”

The oral arguments took place under unprecedented conditions brought by the need to social distance during coronavirus crisis. Easterbrook was alone in the courtroom while Rovner, Sykes and the attorneys all participated by phone.

“This is a more complicated hookup than the court has ever tried before so there are bound to be some teething problems,” Easterbrook said before the arguments began. “If you find that multiple people are speaking at once, might be a good idea for everybody to be quiet and we will sort this out.”

He acted as a referee, letting the attorneys know when their allotted time to present their case was ending.

No one lost contact and the audio was clear. However, argument was not as lively as when the judges and attorneys are in the same room, exchanging questions and responses. During the E.F. Transit argument, the judges did not ask many questions, giving the attorneys blocks of time to make their points.

NJ: How can liquor licensees sell and deliver alcohol during the COVID-19 shutdown?

JDSupra Written by Chiesa Shahinian & Giantomasi PC April 3, 2020

As the COVID-19 pandemic continues to move across New Jersey, Governor Murphy has taken measures to limit social interaction to slow down the spread of the virus.

If you are a liquor licensee and are wondering about what you can and cannot do, you are not alone.

All restaurants and bars with plenary retail consumption licenses are permitted offer food and alcohol for delivery and/or take-out services. If alcoholic beverages are sold, all sales must be limited to original containers sold from the principal public barroom. Plenary retail consumption licensees may sell and deliver wine, beer or spirits. However, the sale must take place on the licensed premises (either in person or over the phone), and no cash or credit card transaction may take place at delivery at the customer’s door. Also, alcohol must be delivered to a person who is 21 or over.

In addition, all alcoholic beverages sold by limited brewery licensees must be in original containers and must be delivered to customers or picked up at the licensed premises. Club licensees (non-profit organizations) are not permitted to sell package goods, and therefore may not deliver or sell alcoholic beverages for pick up or delivery. Craft distilleries are not permitted to make home deliveries, as that conduct is expressly prohibited by statute.

However, in order for any licensee to make deliveries to customers, a Transit Insignia is needed for every vehicle used to deliver alcoholic beverages. To obtain a Transit Insignia, apply online on the New Jersey Division of Alcoholic Beverage Control’s (ABC) website by accessing the NJ ABC POSSE System here (once you log into the POSSE portal, follow the prompts and select “Permits,” “Apply for Permit” and then “Transit Insignia”). The fee per vehicle is $50.

Be advised that in order to receive a Transit Insignia, the vehicle used for delivery must be owned or leased by the licensee. The Transit Insignia must be affixed to the driver’s side front bumper of the delivery vehicle.

During this time, processing by the ABC may take longer than usual. Therefore, while the Transit Insignia is being processed by the ABC, and before you receive it in the mail, you may print your receipt for the Transit Insignia from the POSSE system and display it in the window of the vehicle in which you are transporting alcohol.

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Finally, all retail liquor licensees (restaurants/ bars/liquor stores) must still follow all other local municipal and state requirements regarding sales.

March 30, 2020 ABC Notices

On March 30, 2020, the ABC issued two notices providing guidance to interested parties.

The first, SR 2020-01, is a Special Ruling allowing Limited (Craft) Breweries to engage in home delivery. This Ruling modifies the Acting Director’s May, 2019 Special Ruling that barred Limited Breweries from delivering beer to consumers, and authorizes Limited Brewery licensees to deliver their products in original sealed containers directly to consumer’s homes. Deliveries must be made in vehicles which have a transit insignia permit, and all sales must take place on the premises of the Limited Brewery either over the phone or electronically by credit card.

The second, AN 2020-03, is an Advisory that clarifies a number of topics relating to the Governor’s Executive Orders on some additional issues confronting the industry, and further clarifies what the holders of retail alcoholic beverage licenses can and cannot do during the COVID-19 crisis.

CSG is here to help you through this difficult time; we urge everyone to follow the advice of medical experts and professionals.

INTERNATIONAL NEWS

Mexico: Halting beer production, alcohol sales triggers panic buying Governor of Nuevo León concerned over alcohol-fueled conflicts among people confined to their homes

Mexico News Daily April 2, 2020

An announcement that beer production and all alcohol sales will be suspended in Nuevo León beginning on Friday shocked consumers, sending many to head to liquor vendors to stock up.

Governor Jaime Rodríguez Calderón announced at a Covid-19 update press conference on Thursday morning that brewing beer is not considered an essential activity as defined by the federal government’s Covid-19 emergency declaration, calling the decision to halt production “logical.”

“I came to an agreement with the mayors that if there is not going to be distribution, there shouldn’t be sales, period. If alcohol is sold and people are cooped up at home, we’re going to generate conflicts, problems and fights,” he said.

The governor initially said he wanted to enact a statewide prohibition on alcohol, but made sure to clarify before the end of the press conference that that was not what his administration is doing.

“We’re not [initiating a prohibition]. I said the beermakers won’t work, and if there’s no distribution there should be no sales,” he said.

But talk of prohibition appeared to outweigh his call to refrain from panic buying alcoholic beverages, and people rushed to the stores to grab what they could.

Fears of possible prohibitions also sparked panic buying in Tampico, Ciudad Madero and Altamira, Tamaulipas, on Tuesday.

In Mexico City, Mayor Claudia Sheinbaum was forced to make clear on Twitter that “No one has declared a prohibition,” after images of signs in stores saying sales would be stopped until April 30 began to make rounds on social media.

“I’m asking stores not to close or put conditions on the sale of alcoholic beverages,” she said. “If a borough decides to do it, we will make announ-cements.”

Other states enacting either halts in production or limitations on sales include Tabasco, Yucatán, Sonora, Quintana Roo, Campeche and Aguascalientes.

Beer distributor Cuauhtémoc Moctezuma suspended production at its plant in Coahuila, and the Heineken Group stopped producing all of the brands it brews and bottles in Mexico, including Tecate, Indio, XX, Carta Blanca, Affligem, Sol, Miller Lite, Lagunitas, Coors Light and Heineken.

The suspension of nonessential activities is a strategy of the federal government to mitigate the spread of Covid-19. As of Thursday there were 1,378 confirmed cases of the coronavirus in Mexico and it had claimed 37 lives.

PUBLIC HEALTH NEWS

Drinking heavily through older age can lead to larger waistlines Researchers say it also increases other health risks

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Consumer Affairs By Kristen Dalli, Reporter April 2, 2020

The dangers associated with alcohol continue to be documented by researchers, as global health experts have even warned that no amount of alcohol consumption is safe.

Now, researchers from University College London have found that excessive drinking into older age can contribute to larger waistlines and increase the risk for other health concerns.

“Alcohol misuse, despite the common perception of young people binge drinking, is common among older adults, with alcohol-related hospital admission in England being the highest among adults aged over 50,” said researcher Dr. Linda Ng Fat. “Previous studies have focused on single snapshots of consumption, which has the potential to mask the cumulative effects of drinking. This study raises awareness of the effect of alcohol consumption over the life-course.”

Risks of heavy drinking

The researchers had nearly 5,000 people between the ages of 59 and 83 participate in the study. The goal was to understand how drinking patterns, particularly those that lasted into old age, affected the participants’ health.

The participants completed the Alcohol Use Disorders Identification Test for Consumption (AUDIT-C) for each decade of their lives, which gave the researchers insight into their drinking habits. Based on the responses, participants fell into various categories in accordance with their drinking.

Though just five percent of the participants were considered “consistent hazardous drinkers,” which means their drinking was problematic throughout their entire lives, 56 percent of the participants were considered “hazardous drinkers” at some point in time.

The study revealed that participants who drank heavily throughout their lives, either consistently or just for a period of time, had larger waistlines than those who were never heavy drinkers. Consistent heavy drinkers were at the highest risk, as the drinking was associated with a waistline four centimeters larger than those who were never heavy drinkers.

“This suggests that the longer adults engage in heavy drinking the larger their waistline in older age,” said Dr. Ng Fat. “That is why it is beneficial, along with other health benefits, that adults reduce heavy drinking earlier rather than later.”

Additional health concerns

The researchers also learned that those who drank into old age -- even if they stopped at some point in adulthood -- were at a higher risk for several health concerns, including stroke, higher blood pressure, and poorer liver function.

Moving forward, the researchers recommend that healthcare professionals ask their patients about their alcohol consumption in an effort to promote better overall health among older people.

“Early intervention and screening for alcohol consumption, as part of regular check-ups, could help reduce hazardous drinking among this demographic,” said researcher Annie Britton.

Coronavirus is harming the mental health of tens of millions of people in U.S., new poll finds

The Washington Post By Joel Achenbach April 2, 2020

Nearly half the people in the United States feel the coronavirus crisis is harming their mental health, according to a survey published Thursday that demonstrates how the covid-19 pandemic has escalated into a nationwide psychological trauma.

The tracking poll by the Kaiser Family Foundation, conducted March 25 to 30, found that 45 percent of adults say the pandemic has affected their mental health, and 19 percent say it has had a “major impact.” The rates are slightly higher among women, Hispanic adults and black adults, the survey found.

The poll makes one thing clear: If you’re scared, anxious, depressed, struggling to sleep through the night, or just on edge, you’re not alone.

“It’s a huge number,” Kathy HoganBruen, a Washington clinical psychologist specializing in anxiety disorders, said in response to the poll results.

She added, “It’s not surprising given all the other huge numbers surrounding the pandemic in terms of joblessness, and social distancing, which can equal

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social isolation. And people dying. People getting sick. . . . All of these big numbers are going to have an outsized impact on our mental health collectively.”

Mental health experts say it’s normal for people to be anxious and worried amid a highly disruptive health emergency that is shot through with uncertainties.

“Given the circumstances, feeling anxious is part of a normal response to what’s going on,” said Joshua Gordon, director of the National Institute of Mental Health, after reviewing the poll numbers Thursday.

He suggested some coping mechanisms. A simple one: Write down your fears, either on a piece of paper or a computer.

“Just the act of writing them down and stepping away from them can really help you, number one, crystallize what your concerns are, and then number two, leave them behind on the paper or the computer file,” Gordon said.

INDUSTRY NEWS

Brew Talks Virtual Livestream: How the Beer Business is Dealing with COVID-19

Brewbound Brewbound.com Staff April 2, 2020

Today we pause and take the opportunity to talk about the impacts of COVID-19. Presented by Dogfish Head, Brew Talks Virtual is live today, April 2nd from 3 p.m. to 5 p.m. ET. Learn how fellow small breweries, retailers and industry leaders are working through the crisis and have the opportunity to ask your own questions.

Panel 1: Navigating the Beer Business During a National Crisis

− Sam Calagione, co-founder of Dogfish Head Craft Brewery

− John Lane, co-owner of Winking Lizard Restaurant and Tavern

− Matt Bardill, Director of Beer, Total Wine & More

− Julie Verratti, co-founder, Denizens Brewing Company

− Panel 2: Leaders of Beer Industry Trade Groups Discuss Legislative Efforts to Help Beer Companies and How the Industry Rebounds from the COVID-19s Crisis

− Bob Pease, president and CEO of the Brewers Association

− Craig Purser, president and CEO of the National Beer Wholesalers Association

− Jim McGreevy, president and CEO of the Beer Institute

Brew Talks Virtual is presented by Dogfish Head Craft Brewery. Additional sponsors include Inland Packaging, Reyes, ABS Commercial, SKA Fabricating and Wunderlich-Malec.

Additional sponsorship opportunities are available. Supplier and service companies interested in sponsoring future editions of Brew Talks should contact Bryce McDonald.

Wineries create a new blend of sales strategies

Ramona Sentinel By Julie Gallant April 2, 2020

Ramona wineries are responding to an abrupt halt to tasting room activities by offering sales of bottled wines at curbside, in restaurants and stores, and through wine club sales.

Carolyn Harris of Ramona Valley Winery Association (RVWA) said she was incredulous when she first heard in mid-March about state mandates to discontinue pouring wine and selling open bottles at wineries as a safeguard against spreading COVID-19.

Harris said all the winery operators she knows of in Ramona are respecting coronavirus-related regulations and guidelines issued by the county, state and California Department of Alcoholic Beverage Control (ABC).

“You can go into a tasting room to purchase bottles of wine as long as there’s social distancing,” said Harris, who co-owns Chuparosa Vineyards in Ramona with her husband Andy Harris. “It’s not unlike what you would see at a grocery store or market.”

Restaurants that are licensed for onsite consumption of wine can also sell closed containers of wine with a

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takeout meal. The containers must be closed and not accessible to anyone while driving.

Harris said the restrictions are hurting boutique wineries in particular because they had been prohibited from hosting events, so their main activity was offering wine tastings.

Chuparosa is holding on by selling wines by the case. Customers have stepped up their online orders, which they pre-pay and pick up at the tasting room.

“All of our established customers now are in the habit of ordering online and picking up the wine,” Carolyn Harris said. “Our customers from all over the county came to pick up wine last week while provisioning for the COVID-19 shutdown. The wine goes in the trunk and they drive off. Being a producer of a product, I can’t imagine the impact on a business that is totally dependent on folks coming in and sitting down.”

Like other wineries, coronavirus restrictions have freed up Chuparosa to do winery and vineyard maintenance.

“The onus is on us to have something to show when we reopen,” Carolyn Harris said. “In the meantime, there’s no prohibition on continued production of wine. There are weeks and months between the time wine is bottled and when it’s put in the hands of consumers. Everyone is going to have a heightened sense of sanitation, but the industry has always practiced high levels of sanitation.”

Susanne Sapier, president of the Ramona Valley Vineyard Association (RVVA), said while tasting rooms are closed, off-site sales are picking up at grocery stores and liquor stores but declining at restaurants, where brand development is strong. But distributors can also deliver wines from a warehouse to stores, restaurants and consumers.

Sapier estimates the temporary rules are having an impact valued at hundreds of thousands of dollars just on the roughly 45 wineries in Ramona. The effect is felt by furloughed staff, the local artists, musicians and caterers serving wineries, and the bars and restaurants that can’t serve open containers of wine.

“The wineries are a huge economic driver in Ramona and now that’s at a standstill,” Sapier said. “So many people are affected, just about everybody in the hospitality and service industries. It’s shown the

vulnerability of the hospitality and tourism business. You can hold your breath and stay underwater for awhile, but I’m not sure you can do it for a month or eight weeks.”

The RVVA has stepped up its assistance to members in several ways. The organization is distributing “Taste Ramona Wines” bottle hangers to retail outlets that carry local wines to promote Ramona wine sales in stores; it has increased its social media presence to advertise that most Ramona wineries are open and offering pickups by the bottle; and it’s offering virtual happy hours on the RVVA Facebook site where people can log in, socialize and show off the type of wine they’re drinking.

The RVVA also held its first virtual monthly meeting on March 24 for about 50 of its 250 members. On the upside is an innovation that may have lasting effects on providing a virtual option, but on the downside the restaurants that host the meetings are temporarily losing out on business. The annual Lum Eisenman/San Diego County Wine Competition set to be held at The MainCourse Restaurant in Ramona has also been postponed.

“The world’s going to change and we’ll probably be permanently changed in the future,” Sapier said. “The next time there’s a pandemic we’ll be prepared and know what to do.”

Laurie Wagner, co-owner and co-winemaker with partner Ian Vaux at Turtle Rock Ridge Vineyard Winery in Ramona, said current sales are not able to sustain their business. She’s had to lay off a few staff members, including her own son, Christian Wagner, who has been TRR’s tasting room manager for four years.

In ordinary times, she said the business thrives equally on wine tastings, club sales, and wholesale distribution which includes selling bottles of “Hello Gorgeous” wines at Costco on Scripps Poway Parkway. Before coronavirus struck, TRR had planned to add Thursday to its Friday through Sunday schedule and extend its hours past 6 p.m. April to September.

Now in addition to store sales and curbside pickups, the winery is hosting virtual happy hours on Fridays. Participants in the online TR Wine Night are encouraged to buy a bottle of TRR wine, open and pour a glass, take a photo and share it on social media, tagging the winery. If the event goes well, it will continue every other week or once a month.

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“People can stay connected, share stories of how they’re getting through this and continue supporting each other,” said Wagner, whose economic pinch prompted her to get creative in promoting their product. “People can still have a sense of community.”

During the lull, Wagner said she continues to work on production by pruning the grapevines while maintaining social distancing between rows, and moving wine from secondary fermentation to barrels. The winery remains open from 4 to 7 p.m. every day and accepts prepaid phone orders for pickup or free local delivery by calling 760-789-5555 or 760-533-4397 to place an order. Wagner said she’s taking precautions to keep things clean, wear gloves while handling the bottles and to place orders in carts to avoid contact with customers.

“At this point everything helps,” she said. “Even if people call and purchase gift certificates, we can put them in the mail or email them.”

Ramona Family Naturals Market is chipping in to help wineries by reducing its retail price on Ramona wines.

Robert Bradley, president and co-founder with his wife Victoria, said discount prices of $22 for a bottle of red wine and $20 per bottle of whites applies to about a half-dozen Ramona wineries that Ramona Family Naturals had an existing wholesale relationship with. Participating wineries include Barrel 1 Winery, Correcaminos Vineyard and Winery, Hatfield Creek Vineyards and Winery, Julian Wine & Chocolate, La Finquita Winery and Vineyard, Milagro Farm Winery, Pamo Valley Winery, Ramona Ranch Vineyard and Winery, and Vineyard Grant James.

“I’m cutting out our profit on it,” said Bradley, who displays Ramona’s wines beside the wine rack holding other bottles. “It’s a way for us to help them sell their wine and it’s a way for consumers to get the local wines at a lower cost. “

A flier says Ramona Family Naturals will also honor 10 percent discounts for three bottles of wine purchased. No cost changes are expected of the wineries. The sale will be effective through March 31 but may be extended through April.

“Whatever we need to do to help the local community is what we’re going to do,” Bradley said.

“Whatever we need to do to keep these guys going, that’s our objective.”

Colleen Doulgeropoulos, bar supervisor at The Par Lounge, said their golf course restaurant is shut down and along with that is the closure of Wednesday Pasta Nights that paired six Ramona wineries with buffet-style, made-to-order pasta dishes. During Pasta Nights, one Ramona winery was featured at a time. Participating wineries regularly sold at The Par Lounge are Correcaminos, Hatfield Creek, La Finquita, Ramona Ranch, Turtle Rock Ridge, and Vineyard Grant James.

“The wineries are not the only ones losing out, we’re losing drastically,” Doulgeropoulos said.

How the pandemic is affecting small family farms

Napa Valley Register By Lindsay Hoopes and Elise Nerlove Rutchick April 3, 2020

We are very grateful for the customers and friends who are checking in on us during these scary times. Our Save the Family Farms members have helped and supported Napa transform into the acclaimed wine-producing area that it is today, and we have long been committed and integrated members of the family farm community.

We are small operations, and the current economic crisis threatens our operational viability. Small wineries were struggling before the crisis as a result of the crippling regulatory barriers to entry to any sales channel. Napa does not allow small wineries without production facilities on-site to conduct tours and tastings. Tastings are the only practicable opportunity for building direct-to-consumer sales.

We have vineyards and we make our own wine, but we are not permitted to host guests on-site. We are denied this opportunity is that we cannot afford to build a production facility. Thus, we are essentially foreclosed from access to participating in most of the wine economy. It’s a massive struggle to be profitable without being able to host consumers at our properties.

In order to keep our land, and continue farming and producing wine – in other words, be a small wine business — we have had to navigate limited economic vehicles for building brand awareness. Because we cannot activate on-site visits and build a wine club,

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micro-wineries and small family vineyards will need to rely on wine events and restaurants to sell wine and build a customer base. This is a daunting proposition even for big wineries, and given the financial crisis, we now have no sales channels to sell wine. Restaurants have closed, and wine events have been canceled.

These are the challenges facing all small businesses in this sector. It’s hard to be a micro-winery, and we were struggling to stay in business before the pandemic.

Online sales are an illusory alternative. We have internet sales, but these sales are made almost exclusively by people we’ve had the opportunity to meet face-to-face. For the average Napa winery, internet sales represent 8% of total direct-to-consumer sales and the tasting room is responsible for 42% of those sales, according to the Silicon Valley Bank and Wine Business Monthly 2019 Insights to Successful Consumer Wine Sales Survey.

Micro-wineries are the small businesses of the wine industry and are necessary to maintain the diversity of land ownership in Napa Valley. Small businesses are necessary for the macro-economic health of Napa Valley as a whole. Micro-wineries provide diversity with a different “type of wine experience” available in Napa, which is increasingly important to younger generations of consumers. And, small family farms represent the historical authenticity of the region.

Without opportunities for economic viability opened to this section of small businesses, we will be forced to sell our land or stop farming. We will disappear.

We have presented a solution to the Board of Supervisors to enable small, family-owned wineries who grow grapes and make limited quantities of wine, to conduct tours and tastings on vineyard sites. This will not only ensure that our family operations can stay in business, and maintain economic sustainability for our families and small brands for generations to come.

There is no other alternative to viability. If these modifications do not take place, small family wineries will go out of business and disappear from Napa altogether.

We need to make these changes now so that when visitation returns to Napa, we can maximize all available sales channels for small winery operations. Otherwise, we will lose them. COVID-19 has highlighted in the most dramatic way why we need to make these changes now. We have to support family business because they are important in all industries, and unduly burdensome regulation that prevents access to the economy will put us out of business.

The pandemic has accelerated this end-cycle. We are still farming. If the shipping companies remain open, and we get creative with online marketing sales and virtual tastings, small wine businesses like ours might be able to weather this storm … in the short term.

But, programs for swift economic recovery are necessary to support this recovery. As it stands now, when Napa Valley opens back up for business, small family farms and vineyards will not be permitted to participate in the recovery. The more avenues to recovery, the more likely small wineries can weather this storm. We need to open avenues for economic returns, not restrict them. It is the only way to ensure small family farms do not disappear from Napa Valley.

If ever there was ever a time for Napa to support, promote and preserve the small family farms and vineyards in Napa County – this is it.

DAILY NEWS

Texas bourbon distillery using its newest liquor to raise money for coronavirus response

KXAN by: KXAN Staff April 2, 2020

HYE, Texas (KXAN) — A Texas based liquor company is doing what it can to help Americans recover from the damaging impacts of the COVID-19 pandemic.

Garrison Brothers Distillery based in Hye Texas launched a fundraising campaign called OPERATION CRUSH COVID-19. The goal of the fundraiser is to raise $2 million that will go to the veteran-led disaster response organization Team Rubicon.

Garrison Brothers had planned to release a new top shelf bourbon called the Laguna Madre in 2020. Instead, the company has decided to sell the new liquor only to those who donate $1,000 to the fundraiser.

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The distillery created 2,000 bottles of their new bourbon and with them hope to reach the $2 million goal.

Instacart to distribute health and safety kits to its shopper community Face masks, sanitizer and thermometers available to workers at no cost

Supermarket News By Michael Browne April 2, 2020

Instacart on Thursday announced plans to distribute free health and safety kits to the online grocer’s full-service shoppers as a part of its ongoing commitment to safely serve all members of its shopper community in the wake of COVID-19.

The move followed a threatened walkout of Instacart employees earlier this week because of what workers called inadequate measures by the company to protect and compensate them during the COVID-19 pandemic, although Instacart says the plan was in effect for several weeks.

According to the company, Instacart has been working for several weeks with third-party manufacturers, in consultation with medical and infectious disease experts, to source and develop new health and safety kits for shoppers that include face masks, hand sanitizer and thermometers. Additionally, on Thursday the company announced the launch of its new COVID-19 Resource Center to share details with all members of the Instacart community about how the company is responding to the evolving COVID-19 crisis.

“We're singularly focused on the health and safety of our shopper community. Our teams have been working around the clock over the last few weeks to proactively secure personal protective equipment like hand sanitizer and face masks, without taking away valuable resources from healthcare workers given inventory delays and global supply scarcity," said Nilam Ganenthiran, president of Instacart.

He added, “We want to provide customers with an essential service they can rely on to get their groceries and household goods, while also offering safe and flexible earnings opportunities to Instacart personal shoppers. As COVID-19 evolves, today's health and safety solutions will be tomorrow’s table

stakes, and our teams are working quickly to introduce new services and features to ensure our shopper community is supported as this situation unfolds.”

The health and safety kits will be available to Instacart full-service shoppers to order at no cost beginning next week, via a website built for the shopper community. Shoppers will be able to request a kit by registering with their Instacart shopper email address. For in-store shoppers, Instacart has also sourced and will be directly distributing face masks at retail locations where the company has in-store operations.

Instacart's health and safety kits include a washable and reusable cloth face mask to use while shopping that do not impact the healthcare and medical community's supply; an ethyl alcohol-based hand sanitizer that exceeds the CDC's guidance; and a reusable forehead thermometer that provides a fast and accurate temperature check in approximately 15 seconds.

“Over the last month, Instacart has been working closely with the CDC, state and local health officials, and a panel of medical and academic experts to ensure we’re providing shoppers with all of the recommended health and safety resources to support them while they shop,” said Dilshika Wijesekera, Instacart's director of food safety and regulatory compliance.”

Instacart last week announced plans to hire another 300,000 full-service shoppers over the next three months.

Instacart has also introduced a number of health guidelines and safety resources to further support Instacart shoppers, including: health and safety guidelines in partnership with Instacart’s advisory panel of medical and academic experts; sick pay for in-store shoppers; COVID-19 bonuses for in-store shoppers; increased batch promotions for full-service shoppers; extended pay for part-time employees and any shopper affected by COVID-19; and implementing pre-opening and post-closing hours access for Instacart shoppers in partnership with retailers to promote effective social distancing at some of the busiest stores.

Additionally, the company has launched several new product features to support shoppers in the wake of COVID-19, which include "Leave at My Door" delivery; contactless alcohol delivery; ratings forgiveness;

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automatically canceling out-of-stock orders; mobile checkout available everywhere; and a new “Customer Default Tip” feature.

The customer tip default setting, which has been tested over the past few months, already has had a “significant, positive impact” on shopper earnings, noted Instacart. The company said 97% of all orders over the last month have included a tip, and shoppers on average saw a 30% earnings gain from customer tips.

Instacart also launched a COVID-19 Resource Center where the company can continuously share details with all members of its community about how Instacart is responding to the evolving COVID-19 crisis. The site includes information about new shopper guidelines, resources and features; product and support information for customers; details on the health and safety advisory panel Instacart is consulting on COVID-19; and more.

Instacart last week announced plans to hire another 300,000 full-service shoppers over the next three months, noting that almost 50,000 new shoppers were added in the last week alone. Instacart also launched a 30-day extension, through May 8, of its previously announced benefit of 14 days of pay for hourly employees and full-service shoppers diagnosed with coronavirus or put in isolation or quarantine by a health professional due to the virus. The company, too, introduced a bonus payment — ranging from $25 to $200, depending on hours worked from March 15 to April 15 — for in-store shoppers, shift leads and site managers.

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