#Chris Swonger

[chrisswonger]

Chris Swonger is the President & CEO of the trade association the Distilled Spirits Council of the United States and Responsibility.org.

[luxebeat]

Americans Continue to Make Responsible Choices About Alcohol 10 Months into COVID-19 Pandemic

Americans Continue to Make Responsible Choices About Alcohol 10 Months into COVID-19 Pandemic

The proportion of adults who report consuming alcohol within the last 30 days has declined during the pandemic, from 79% in 2020 to 63% in 2021, reported in a survey recently commissioned by Responsibility.org.  Additionally, most American adults (87%) are confident that they drink responsibly, with the proportion of individuals surveyed saying they felt extremely confident increasing…

[orbemnews]

U.S. and Europe Seek to End Trump-Era Dispute Over Steel and Aluminum Many of the European tariffs targeted the constituencies of powerful Republicans. The duties on whiskey hit makers of bourbon in Kentucky, home of Mitch McConnell, the Senate minority leader. The planned increases would have raised the tariff on whiskey to 50 percent, forcing many small producers out of the European market, according to the Distilled Spirits Council, an industry group. Today in Business Updated  May 17, 2021, 12:48 p.m. ET “Distillers across the United States are breathing a huge sigh of relief,” Chris Swonger, the council’s president, said in a statement. “We greatly appreciate the Biden administration’s ongoing efforts to resolve these longstanding trade disputes and reduce the economic pain felt by those industries unfairly caught in the middle.” The association that represents U.S. steel makers was more restrained, emphasizing that the talks should focus on the problem of subsidies that encourage companies to produce more steel than the market can absorb, pushing down prices. “While China is the single largest source of global steel oversupply, subsidies and other market distorting policies in many countries are contributing to the overcapacity crisis,” Kevin Dempsey, president of the American Iron and Steel Institute, said in a statement. “Injurious surges in imports have come from every region of the world.” The announcement Monday was the most recent sign of gradual improvement in trade relations since Mr. Biden took office, and comes ahead of a planned visit by the president to Europe in June. In March, the United States and the European Union temporarily suspended tariffs on billions of dollars of each others’ aircraft, wine, food and other products as they worked to settle a long-running dispute involving Boeing and Airbus, the two leading airplane manufacturers. The United States also temporarily suspended retaliatory tariffs against British products like Scotch whisky that had been imposed as part of the dispute over aircraft subsidies. Trade officials will discuss how to address a global supply glut that poses “a serious threat to the market-oriented E.U. and U.S. steel and aluminum industries and the workers in those industries,” Katherine Tai, the U.S. trade representative; Gina M. Raimondo, the secretary of commerce; and Mr. Dombrovskis said in a joint statement Monday. Source link Orbem News #aluminum #dispute #Europe #Seek #Steel #Trumpera

[perfectirishgifts]

Liquor Industry Calls For Day Of Action To Save Craft Spirits

New Post has been published on https://perfectirishgifts.com/liquor-industry-calls-for-day-of-action-to-save-craft-spirits/

Liquor Industry Calls For Day Of Action To Save Craft Spirits

SANTA ANA, CA – OCTOBER 14: The copper German-made still at Blinking Owl Distillery in Santa Ana is … [] the first craft distillery in Orange County. They make vodka, gin, whiskey, and the Scandinavian spirit, Aquavit. The distillery is named after the Blinking Owl Bar that uses to be on the corner of Birch and Third Streets in Santa Ana decades. The Blinking Owl Distillery is photographed in Santa Ana on Friday, October 14, 2016. (Photo by Leonard Ortiz/Digital First Media/Orange County Register via Getty Images)

The craft spirits industry is battling an existential threat—several threats, really. In addition to pandemic-related challenges—which have disproportionately affected smaller producers—potential tax hikes and an ongoing transatlantic trade war are conspiring to permanently shutter many in their midsts.

The latest dagger dangling overhead is the impending expiration of the Craft Beverage Modernization and Tax Reform Act of 2019 (CBMTRA). Initially passed at the end of 2017, the legislation reduced the excise tax rate paid by distillers on their first 100,000 proof-gallons of liquid. Virtually all craft producers yield within this quantity. If lawmakers fail to renew the act prior to December 31st, these companies are set to absorb a 400% tax increase as of January 1st, 2021.

The bipartisan CBMTRA bill (introduced by senators Ron Wyden of Oregon and Roy Blunt of Missouri and representatives Ron Kind of Wisconsin and Mike Kelly of Pennsylvania) aims to make permanent the tax cuts initially imposed in late 2017. It currently enjoys 351 sponsors in the House and 77 in the Senate. 

“This is an incredibly anxious time for craft distillers,” says Chris Swonger, President & CEO, Distilled Spirits Council of the United States—the industry’s largest trade group. “Prior to the pandemic, these thriving small distilleries were boosting employment and tourism in cities and towns across the country. After having their tasting rooms closed down for months, many craft distillers are now hanging on by a thread.”

Today, Swonger and his colleagues are calling on consumers to reach out to their local congresspeople in a campaign dubbed “Last Call: Day of Action.” The event is co-sponsored by the CBMTRA Coalition, a group of trade associations including everyone from vintners and brewers to cider and mead makers. More information can be found here.

“The savings craft producers have achieved from the reduced tax rate have helped many of them survive this unexpected crisis,” adds Swonger. “I can’t think of a worse time to hit these small distilleries with a huge tax increase.”

Indeed, this particular uncertainty arrives on the heels of other challenges on the trade front. Last month, the European Union announced $4 billion worth of renewed tariffs on American goods. It was the political body’s latest round of economic retaliation related to a dispute over airline subsidies. Despite Boeing and Airbus being the primary players in that squabble, it is agricultural producers—including distilleries—who are caught in the crossfire.

In June of 2018, the EU implemented a 25% tariff on American whiskey imports. The added tax had a swift and severe impact on sales within the United States’ largest export market. Between August of 2019 and July of 2020, American whiskey revenue in Europe dropped from $757 million to $449 million, according to new research released by the Distilled Spirits Council.

HUNTINGTON BEACH, CA – NOVEMBER 30: About 20 container ships wait in line to be unloaded at the … [] Ports of LA and Long Beach as surfers wait for a wave to roll through in Huntington Beach Monday, Nov. 30, 2020. (Allen J. Schaben / Los Angeles Times via Getty Images)

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[delfinamaggiousa]

Off-Premise Alcohol Sales Are a Lifeline for Bars and Restaurants That Should Continue Permanently

When the Covid-19 pandemic first took hold in the U.S., most bars and restaurants across the country were forced to close or transition their operations to delivery or takeout. As on-premise sales dropped off a cliff, state governments responded with temporary executive orders allowing bars and restaurants to sell sealed, unopened bottles of wine, beer, and spirits — and, in some cases, pre-made cocktails — to go.

In the ensuing two months, it has become clear that the provision is not a cure-all: Off-premise alcohol purchases replace just a sliver of sales at many restaurants and bars. Looking at the national picture, combined food and drinks sales across the U.S. are 68 percent lower than would normally be expected for this time of year, according to the most recent Nielsen CGA on-premise report, published April 29. VinePair spoke with cocktail and wine bar operators in four states who have been offering alcohol (and in some instances food) for curbside pickup or delivery. These operators reported revenue losses of between 75 and 96 percent since Covid-19-related closures began.

While the contribution of off-premise sales is small, operators say the continued ability to do so will be crucial for the industry’s recovery. At the same time, they acknowledge that the current to-go models present their own challenges, and are wary of the obstacles that stand in the way of making alcohol to go a permanent reality.

Nationwide, 32 states plus the District of Columbia have relaxed licensing laws to allow bars and restaurants to sell sealed, unopened bottles of wine, beer, and spirits. Of those states, almost 20 are also allowing sales of pre-made cocktails to go. This is an important distinction, operators say, as mixed drinks offer exponentially greater profits than selling sealed liquor bottles.

In other states, where cocktails to go are allowed, contrasting messages from city and state officials left some bars in limbo for a period, missing out on crucial revenue. Others found themselves in a “do we or don’t we?” situation, as the initial executive orders were signed for 30- or 60-day periods, but have since been extended. Those operators that are now selling alcohol to go operate in a reality where their current business model could be taken away with little notice.

Setting the Trend

New York became the first state to allow bars and restaurants to sell alcohol, including cocktails, for off-premise consumption, when Gov. Andrew Cuomo signed an executive order on March 16. The only proviso set out by Cuomo was that the drinks should be accompanied by food, but that could be something as insignificant as a pack of chips.

Chris R. Swonger, president of the Distilled Spirits Council of the U.S. (DISCUS), describes the move as “an important trendsetter,” providing a template that was soon replicated to varying degrees in multiple states around the country. Crucially, he says, the provision offered valuable income for on-premise businesses during a particularly trying time.

And it’s not just businesses that are benefiting from the new landscape, Swonger adds. “Cocktails to go is a provision that consumers are embracing today and I think they���ll continue to embrace,” he says. Swonger wants bars and restaurants to be allowed this revenue stream post-Covid-19 and says it will help relieve “the crush of the economic impact” of the pandemic.

Competing as an Alcohol Retailer

Not all the states that have temporarily relaxed their alcohol laws followed New York’s lead. In Illinois, bars and restaurants are allowed to sell wine, beer, and spirits in their original, unopened containers, but selling cocktails to go is not allowed.

At Kumiko, a cocktail bar in Chicago’s West Loop neighborhood, beverage director Julia Momose contends that the math of selling full bottles at retail prices doesn’t add up for an on-premise venue. Established retailers, which buy in much larger quantities, have access to larger discounts, she explains. In order to compete with these stores, her bar would have to accept profits of around $5 for every $30 bottle of liquor it sells. Even then, “no one’s going to come to the bar to buy a full bottle of gin every day,” Momose says. But, if she were instead able to use that bottle to make cocktails, Momose says she could mix 16 drinks with it and sell them for a total profit of more than $100.

In the meantime, Kumiko is generating revenue by selling rare spirits and liqueurs, along with beer, sake, mixers, and non-alcoholic cocktails. The bar is also offering cocktail kits and meal kits but is only open for business one day a week because its entire staff is currently furloughed. Sales during the one day that Kumiko is open stand at around 20 percent of a normal, non-Covid day, Momose says.

While some bars in Chicago have flouted state laws and are offering cocktails for sale illegally, Momose is tackling the issue by lobbying for change. Along with other industry advocates, she founded Cocktails For Hope, an organization that aims to raise awareness for the cause, putting pressure on politicians to allow license-holding establishments to sell sealed, pre-mixed cocktails.

Chicago-based alcohol lawyer Sean O’Leary is helping the organization draft a bill to send to the governor. The proposal sets out a clear guideline for how to-go cocktails can be sold safely and responsibly.

Among the measures, the group believes all deliveries should be carried out by bartenders and servers rather than third-party services. This will reduce any risk of alcohol being sold to minors or those who are overly intoxicated, because bartenders and servers are educated on these factors during BASSET training. (Illinois state law requires all on-premise servers and those checking IDs for alcohol service to be BASSET-certified.) This provision also means license holders will be fully accountable for any violations. “We know the concerns and now we are bringing our solutions,” O’Leary says.

Continuing Alcohol to Go as Bars and Restaurants Reopen

As of last week, on-premise establishments in some California counties are now permitted to offer limited dine-in services. But throughout the state, bars and restaurants can still act as off-premise retailers of wine, beer, and spirits.

According to John Carr, public information officer for California’s Department of Alcoholic Beverage Control (ABC), the temporary licensing laws will remain until the state determines that normal business operations can resume. “At that time, ABC would provide 10 days notice to ABC licensees that the temporary Notices of Regulatory Relief will conclude,” Carr explains.

Like New York, many operators within the state are generating revenue by selling cocktails to go. But not all license holders are enjoying this provision.

In California, two types of liquor licenses allow on-premise businesses to sell wine, beer, and spirits: Type 47 and Type 48. The former designates restaurants and bars that have fully functioning kitchens — establishments that “make actual and substantial sales of meals for consumption on the premises,” according to the ABC. The latter is typically held by nightclubs and bars that do not have kitchens.

During Covid-19, only establishments with Type 47 licenses have been able to offer cocktails to go, while those holding the Type 48 license have been limited to selling unopened bottles of alcohol. H. Joseph Ehrmann, owner of San Francisco’s Elixir, says the provision unfairly discriminates against bonafide cocktail bars such as his, which operate with the latter license. “[Elixir] is one of the original bars that brought cocktail culture back, and now the government’s telling me I can’t make cocktails,” he says.

In the early stages of the pandemic, Ehrmann generated cash by selling off a large portion of the bar’s notable whisk(e)y collection. Now he’s looking at the to-go model as something that will be much longer-lasting and has started selling cocktail kits that pair packaged mixers with unopened bottles of liquor.

Elixir’s gross revenue during the pandemic is 75 percent lower than normal. And the profit margin on sales is lower than normal because the bar is operating as a full-bottle retailer rather than a cocktail bar. As Ehrmann explains, cocktails allow for markups of between 80 and 85 percent, while selling full bottles returns a profit margin of around 30 percent.

The Challenges of Alcohol Delivery

In Missouri, bars and restaurants can sell full bottles of liquor as well as cocktails to go. But operators are still unsure whether they’re allowed to offer delivery, which could increase their earning potential. “We are still waiting to make sure delivery is legal,” says Brock Schulte, beverage director of The Monarch, an acclaimed cocktail bar in Kansas City.

Schulte says there was similar confusion at the start of the Covid-19 pandemic over whether he could sell any form of alcohol to go. On the one hand, the Kansas City mayor’s office told businesses they would not be punished for selling bottles of unopened wines, beer, and spirits, and cocktails to go. But the state government took a further two weeks to give the green light. Not wanting to jeopardize his bar’s liquor license, Schulte waited for state approval. Based on The Monarch’s current sales of full bottles of alcohol and cocktails, along with a small selection of bar snacks, Schulte estimates the bar lost out on between $20,000 and $30,000 of sales in the two weeks before the state granted formal approval.

For others, the quandary of alcohol delivery is a question of financial, rather than legal, viability. Washington D.C. wine bar The Eastern is offering wine, cocktails, and food — ranging from charcuterie to full family meals — for curbside pickup. General manager Robert Morin expects to be allowed to do so until at least November. While his bar can technically also offer delivery, Morin says the numbers don’t add up.

The Eastern’s sales are currently less than 10 percent of what they were prior to Covid-19. Morin says he can’t afford to pay the fees associated with working with third-party delivery apps, which typically amount to between 20 and 30 percent of each order total, according to Eater. Rehiring a staff member to carry out delivery also isn’t viable, Morin says, because of the cost of the courier insurance required to cover them. “The insurance alone is about a week of sales,” he explains. “Spread that out from here until November and then past that, it does not make sense.” Either way, the additional costs negate the value of offering delivery.

Looking to the Future

All the professionals interviewed for this piece — from the bar operators in four different states to beverage lawyers to the president of a national trade organization — agree that on-premise businesses should be allowed to offer alcohol and cocktails to go permanently. On that front, there appears to be some hope on the horizon, with the governors of Florida and Texas recently publicly stating their support for continuing alcohol to go once Covid restrictions are lifted.

As part of its response to Covid-19, Florida has allowed the sale of unopened bottles of alcohol, as well as cocktails to go. Florida Gov. Ron DeSantis recently stated to a local news organization: “I allowed (restaurants) to deliver alcohol, I think that’s been pretty popular. We’re probably going to keep that going, maybe we’ll have the legislature change the law on that, but I think that that’s been good.”

Meanwhile, Texas Gov. Greg Abbott announced alcohol-to-go sales will continue indefinitely, even as restaurants in the state are now allowed to operate at 25 percent capacity. “Alcohol-to-go sales can continue after May 1,” Abbott tweeted on April 28. “From what I hear from Texans, we may just let this keep on going forever.”

(In Texas, alcohol-to-go orders must be accompanied with food, and all bottles must be sold in their original, sealed packaging. Operators are not allowed to sell cocktails to go, and distilled spirits can be sold in formats no larger than 375 milliliters.)

Other positive signals for the movement? Some states are gearing up to allow cocktails to go, even as the national conversation for bars and restaurants shifts toward reopening with capacity caps.

On Friday, New Jersey Gov. Phil Murphy signed legislation allowing restaurants, bars, and taverns to sell cocktails to go. (Bars and restaurants were previously limited to selling unopened bottles of wine, beer, and spirits.) The temporary legislation will not expire until six months after the end of the state of emergency, or six months after Covid-related occupancy restrictions have been lifted — whichever falls later. In Pennsylvania, the Senate passed a similar bill last week. All that’s now required before cocktails to go become a reality in the Keystone State is the signature of Gov. Tom Wolf.

While the words and actions of governors show a positive signal of intent, the executive orders do not mean selling alcohol to go will continue permanently.

“Typically, an executive order will remain in place during the emergency and remain in place through its expiration, unless extended,” explains Miami-based beverage lawyer Ryan Malkin. “In the case of cocktails to go, some governors have suggested that this will continue after the pandemic, meaning after the executive order expires. To do so, the likely path will be through legislative action.”

That process will require a member of a state legislature to propose a bill, which will then need to be voted on and approved by the legislature, and finally signed into law by the governor. Many of the operators VinePair spoke with predicted strong opposition for these potential bills from alcohol retailers, signaling a potential roadblock to permanent change.

Some operators, including Schulte and Ehrmann, are in contact with lobbyists who plan to write and propose bills. They’re also communicating with fellow bar owners in their cities to gain traction for the movement. Through its organization Spirits United, DISCUS has provided a platform for consumers to petition for such causes like allowing cocktails to go in New Jersey. Spirits United is now running a similar campaign for Oregon.

Selling alcohol to go has given bars and restaurants a lifeline during Covid-19. The temporary orders have also shown that selling wine, beer, spirits, and cocktails to go can be done responsibly. That opportunity might  never have been available in many states otherwise — and certainly not at this scale. If potential legislation is met with opposition down the line, evidence of the measures bars implemented to sell responsibly during the Covid-19 crisis will be crucial in making their case.

The article Off-Premise Alcohol Sales Are a Lifeline for Bars and Restaurants That Should Continue Permanently appeared first on VinePair.

source https://vinepair.com/articles/off-premise-alcohol-sales-bars-restaurants/

source https://vinology1.wordpress.com/2020/05/19/off-premise-alcohol-sales-are-a-lifeline-for-bars-and-restaurants-that-should-continue-permanently/

[olko71]

New Post has been published on All about business online

New Post has been published on http://yaroreviews.info/2021/06/u-s-and-eu-agree-to-suspend-airbus-boeing-trade-fight

U.S. and EU Agree to Suspend Airbus-Boeing Trade Fight

BRUSSELS—The U.S. and the European Union agreed to suspend their trade dispute over government subsidies to Boeing Co. and Airbus SE, EADSY 0.28% significantly easing trade tensions amid a broader effort to improve trans-Atlantic relations.

The agreement would suspend for five years tariffs that have been authorized by the World Trade Organization, U.S. Trade Rep. Katherine Tai told reporters on Tuesday. The tariffs had been temporarily suspended in March.

“We have resolved these disputes because we are putting away our litigation briefcases,” said Ms. Tai. The U.S. and EU are now focused on “what is going to be best for competition between us in the context of a world where our industries and workers will be facing competition like we’ve never seen before,” she said.

President Biden crossed his fingers as he answered questions about the deal on Tuesday.

Photo: kenzo tribouillard/Agence France-Presse/Getty Images

The 17-year trade fight is the longest and most costly in the history of the WTO. U.S. importers have paid more than $1.1 billion of tariffs since the duties in the dispute took effect in 2019, according to data from U.S. Customs and Border Protection.

Setting aside trans-Atlantic differences on the aviation dispute allows the allies to jointly focus on China. “Instead of fighting with one of our closest allies, we are finally coming together against a common threat,” Ms. Tai said.

China is pursuing heavily subsidized efforts to develop large passenger jetliners. The country faces challenges catching up with Boeing and Airbus, but both companies are concerned that Chinese-made airliners would pose a big commercial threat to their large sales in the world’s most populous country and others in Beijing’s economic orbit. China currently accounts for a quarter of their aircraft deliveries.

Separate tariffs that the U.S. imposed on imported steel and aluminum under former President Donald Trump remain in place and will likely take longer to unwind, officials have said.

Progress on aviation tariffs follows a recent preliminary agreement among members of the Group of Seven largest rich countries to overhaul international tax rules.

The agreement includes details on how the EU and the U.S. will work together to push for a global level playing field for competition, which would likely include taking on large-scale subsidies provided by China for their aircraft sector.

Ms. Tai said Tuesday’s agreement will allow the two sides to start addressing these challenges after Brussels and Washington had “been at each others’ throats fighting” for the past two decades over Boeing and Airbus.

“We have been too busy fighting each other to pay attention,” she said.

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Notes on the News

Today’s headlines, news in context, and good reads you may have missed, with Tyler Blint-Welsh.

European Trade Commissioner Valdis Dombrovskis said the agreement details information sharing arrangements, coordination and exploring common approaches for outward and inward investment in the sector.

Mr. Dombrovskis acknowledged the two sides still have a lot of work to do to come up with an agreed approach ensuring that neither the U.S. nor the EU unfairly helps their own aircraft manufacturers.

He said in coming months, a working group will jointly define what kind of support can be given and in what ways.

The deal comes at a crucial time for the two plane makers, wrestling with the pandemic-driven downturn in air travel that has left many customers unwilling or unable to take new jets.

Boeing is also deciding whether to launch a new jetliner, with much of the longstanding dispute linked to government loans, contracts and other support for clean-sheet aircraft.

Spokesmen for Airbus and Boeing said their companies welcomed the settlement.

Airbus said it would “provide the basis to create a level-playing field which we have advocated for since the start of this dispute.”

Boeing said it would “fully support the U.S. Government’s efforts to ensure that the principles in this understanding are respected.”

The U.S. and EU agreed in March to a four-month suspension of tariffs on aircraft and a range of other goods including wine and whiskey in an effort to hammer out a deal and improve strained bilateral ties. Ms. Tai said that as part of Tuesday’s deal, the U.S. maintained the ability to reimpose aviation tariffs should the EU violate the terms of the agreement.

The now-suspended tariffs were imposed following twin cases at the World Trade Organization. The suspension reflects the easing of trade tensions between Washington and its trading partners following the aggressive trade policies of Mr. Trump, who contended that global trading partners had long been taking advantage of the U.S.

The Airbus-Boeing dispute started in 2004 when the U.S. filed a complaint with the WTO, claiming the EU’s subsidies for Airbus put Boeing at disadvantage. Under the Trump administration, the dispute turned into a tariff fight that snared food and beverage industries unrelated to aircraft manufacturing. Washington imposed tariffs on $7.5 billion worth of European wine and food items in late 2019.

The EU hit back with levies on U.S. whiskey, nuts and tobacco valued at around $4.5 billion. The U.S. stepped up the sanctions on Dec. 31 with additional tariffs, placing virtually all wine imports from France and Germany under its 25% tariff.

As the coronavirus pandemic rocks the aviation industry, two industry giants are fighting to protect their legacies. WSJ’s Jaden Urbi explains what Boeing and Airbus are doing to survive this unprecedented crisis – and how it could reshape the future of aviation. Photo Composite: George Downs (Originally published May 11, 2021)

The duties had weighed on industries that were also struggling with a collapse of business during the pandemic, who lauded the deal to remove the tariffs.

“Lifting this tariff burden will support the recovery of restaurants, bars and small craft distilleries across that country that were forced to shut down their businesses during the pandemic,” said Chris Swonger, president of the Distilled Spirits Council of the U.S.

In the aircraft manufacturing industry, jetliner deliveries are well below pre-pandemic levels as cash-strapped airlines defer or cancel orders. However, some customers have said the tariffs—and who pays them—remain a constraint on the number of deliveries.

Delta Air Lines Inc.’s expansion of its Airbus fleet made it among the U.S. carriers most affected by the EU action, while Ryanair Holdings PLC’s Boeing 737 MAX planned delivery schedule made it the most exposed European airline this year. Ryanair is still waiting for its first MAX because of quality issues that forced Boeing to pause deliveries.

Carriers haven’t disclosed whether they or the manufacturer previously paid the tariffs.

—Paul Hannon, Josh Zumbrun and Laurence Norman contributed to this article.

Write to Daniel Michaels at daniel.michaels@wsj.com, Andrew Restuccia at andrew.restuccia@wsj.com and Doug Cameron at doug.cameron@wsj.com

Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

[usgag]

Coronavirus is draining craft booze makers’ sales, study claims

The coronavirus pandemic has left craft booze makers with one big hangover, a new study says.

The nation’s craft distilleries expect to lose 41 percent of their sales now that the virus has made it harder to pour drinks for curious visitors, according to the Distilled Spirits Council of the United States.

Small producers of spirits like whiskey and rum have suffered from restrictions to their on-site tasting rooms, where about 4 in 10 craft distillers get the majority of their business, the trade group said.

With that key source of revenue strained, craft distillers expect more than $700 million in annualized sales to dry up when combined with the wholesale business they’ve lost during the pandemic. They’ve also had to furlough almost 31 percent of their staff — or 4,600 employees — because they can’t afford to sustain such heavy losses.

That’s according to a survey conducted in June by the American Distilling Institute, a trade group for craft distillers, and analyzed by the Distilled Spirits Council. The study released Thursday “makes clear the extreme challenges these small businesses are facing and the need for Congress to immediately act to help these cherished distilleries recover,” spirits council president and CEO Chris Swonger said in a statement.

Giant booze makers have also suffered amid widespread closures of restaurants and bars, but they have far more resources than craft producers to weather the crisis. Diageo, the British conglomerate behind Johnnie Walker scotch and Smirnoff vodka, reported a nearly $2.8 billion operating profit for the year ending June 30 despite an 8.7 drop in net sales.

That’s more money than the roughly $1.8 billion in revenues that America’s craft distillers generated last year — $919 million of which came from on-site sales, according to the Distilled Spirits Council study.

Small distillers also sell their products to bars, restaurants and retail stores, who raked in $3.1 billion in revenues from craft spirit last year, the group said. But pandemic has also dried up much of that money stream — more than 40 percent of craft distillers reported that their wholesale business is down at least 25 percent, the survey found.

“Craft distillers are a special community of men and women who entered this industry with a passion for spirits and a dream to build a craft distillery in their local town,” American Distilling Institute president Erik Owens said in a statement. “For many, these dreams have been shattered in the blink of an eye.”

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[johnboothus]

Off-Premise Alcohol Sales Are a Lifeline for Bars and Restaurants That Should Continue Permanently

When the Covid-19 pandemic first took hold in the U.S., most bars and restaurants across the country were forced to close or transition their operations to delivery or takeout. As on-premise sales dropped off a cliff, state governments responded with temporary executive orders allowing bars and restaurants to sell sealed, unopened bottles of wine, beer, and spirits — and, in some cases, pre-made cocktails — to go.

In the ensuing two months, it has become clear that the provision is not a cure-all: Off-premise alcohol purchases replace just a sliver of sales at many restaurants and bars. Looking at the national picture, combined food and drinks sales across the U.S. are 68 percent lower than would normally be expected for this time of year, according to the most recent Nielsen CGA on-premise report, published April 29. VinePair spoke with cocktail and wine bar operators in four states who have been offering alcohol (and in some instances food) for curbside pickup or delivery. These operators reported revenue losses of between 75 and 96 percent since Covid-19-related closures began.

While the contribution of off-premise sales is small, operators say the continued ability to do so will be crucial for the industry’s recovery. At the same time, they acknowledge that the current to-go models present their own challenges, and are wary of the obstacles that stand in the way of making alcohol to go a permanent reality.

Nationwide, 32 states plus the District of Columbia have relaxed licensing laws to allow bars and restaurants to sell sealed, unopened bottles of wine, beer, and spirits. Of those states, almost 20 are also allowing sales of pre-made cocktails to go. This is an important distinction, operators say, as mixed drinks offer exponentially greater profits than selling sealed liquor bottles.

In other states, where cocktails to go are allowed, contrasting messages from city and state officials left some bars in limbo for a period, missing out on crucial revenue. Others found themselves in a “do we or don’t we?” situation, as the initial executive orders were signed for 30- or 60-day periods, but have since been extended. Those operators that are now selling alcohol to go operate in a reality where their current business model could be taken away with little notice.

Setting the Trend

New York became the first state to allow bars and restaurants to sell alcohol, including cocktails, for off-premise consumption, when Gov. Andrew Cuomo signed an executive order on March 16. The only proviso set out by Cuomo was that the drinks should be accompanied by food, but that could be something as insignificant as a pack of chips.

Chris R. Swonger, president of the Distilled Spirits Council of the U.S. (DISCUS), describes the move as “an important trendsetter,” providing a template that was soon replicated to varying degrees in multiple states around the country. Crucially, he says, the provision offered valuable income for on-premise businesses during a particularly trying time.

And it’s not just businesses that are benefiting from the new landscape, Swonger adds. “Cocktails to go is a provision that consumers are embracing today and I think they’ll continue to embrace,” he says. Swonger wants bars and restaurants to be allowed this revenue stream post-Covid-19 and says it will help relieve “the crush of the economic impact” of the pandemic.

Competing as an Alcohol Retailer

Not all the states that have temporarily relaxed their alcohol laws followed New York’s lead. In Illinois, bars and restaurants are allowed to sell wine, beer, and spirits in their original, unopened containers, but selling cocktails to go is not allowed.

At Kumiko, a cocktail bar in Chicago’s West Loop neighborhood, beverage director Julia Momose contends that the math of selling full bottles at retail prices doesn’t add up for an on-premise venue. Established retailers, which buy in much larger quantities, have access to larger discounts, she explains. In order to compete with these stores, her bar would have to accept profits of around $5 for every $30 bottle of liquor it sells. Even then, “no one’s going to come to the bar to buy a full bottle of gin every day,” Momose says. But, if she were instead able to use that bottle to make cocktails, Momose says she could mix 16 drinks with it and sell them for a total profit of more than $100.

In the meantime, Kumiko is generating revenue by selling rare spirits and liqueurs, along with beer, sake, mixers, and non-alcoholic cocktails. The bar is also offering cocktail kits and meal kits but is only open for business one day a week because its entire staff is currently furloughed. Sales during the one day that Kumiko is open stand at around 20 percent of a normal, non-Covid day, Momose says.

While some bars in Chicago have flouted state laws and are offering cocktails for sale illegally, Momose is tackling the issue by lobbying for change. Along with other industry advocates, she founded Cocktails For Hope, an organization that aims to raise awareness for the cause, putting pressure on politicians to allow license-holding establishments to sell sealed, pre-mixed cocktails.

Chicago-based alcohol lawyer Sean O’Leary is helping the organization draft a bill to send to the governor. The proposal sets out a clear guideline for how to-go cocktails can be sold safely and responsibly.

Among the measures, the group believes all deliveries should be carried out by bartenders and servers rather than third-party services. This will reduce any risk of alcohol being sold to minors or those who are overly intoxicated, because bartenders and servers are educated on these factors during BASSET training. (Illinois state law requires all on-premise servers and those checking IDs for alcohol service to be BASSET-certified.) This provision also means license holders will be fully accountable for any violations. “We know the concerns and now we are bringing our solutions,” O’Leary says.

Continuing Alcohol to Go as Bars and Restaurants Reopen

As of last week, on-premise establishments in some California counties are now permitted to offer limited dine-in services. But throughout the state, bars and restaurants can still act as off-premise retailers of wine, beer, and spirits.

According to John Carr, public information officer for California’s Department of Alcoholic Beverage Control (ABC), the temporary licensing laws will remain until the state determines that normal business operations can resume. “At that time, ABC would provide 10 days notice to ABC licensees that the temporary Notices of Regulatory Relief will conclude,” Carr explains.

Like New York, many operators within the state are generating revenue by selling cocktails to go. But not all license holders are enjoying this provision.

In California, two types of liquor licenses allow on-premise businesses to sell wine, beer, and spirits: Type 47 and Type 48. The former designates restaurants and bars that have fully functioning kitchens — establishments that “make actual and substantial sales of meals for consumption on the premises,” according to the ABC. The latter is typically held by nightclubs and bars that do not have kitchens.

During Covid-19, only establishments with Type 47 licenses have been able to offer cocktails to go, while those holding the Type 48 license have been limited to selling unopened bottles of alcohol. H. Joseph Ehrmann, owner of San Francisco’s Elixir, says the provision unfairly discriminates against bonafide cocktail bars such as his, which operate with the latter license. “[Elixir] is one of the original bars that brought cocktail culture back, and now the government’s telling me I can’t make cocktails,” he says.

In the early stages of the pandemic, Ehrmann generated cash by selling off a large portion of the bar’s notable whisk(e)y collection. Now he’s looking at the to-go model as something that will be much longer-lasting and has started selling cocktail kits that pair packaged mixers with unopened bottles of liquor.

Elixir’s gross revenue during the pandemic is 75 percent lower than normal. And the profit margin on sales is lower than normal because the bar is operating as a full-bottle retailer rather than a cocktail bar. As Ehrmann explains, cocktails allow for markups of between 80 and 85 percent, while selling full bottles returns a profit margin of around 30 percent.

The Challenges of Alcohol Delivery

In Missouri, bars and restaurants can sell full bottles of liquor as well as cocktails to go. But operators are still unsure whether they’re allowed to offer delivery, which could increase their earning potential. “We are still waiting to make sure delivery is legal,” says Brock Schulte, beverage director of The Monarch, an acclaimed cocktail bar in Kansas City.

Schulte says there was similar confusion at the start of the Covid-19 pandemic over whether he could sell any form of alcohol to go. On the one hand, the Kansas City mayor’s office told businesses they would not be punished for selling bottles of unopened wines, beer, and spirits, and cocktails to go. But the state government took a further two weeks to give the green light. Not wanting to jeopardize his bar’s liquor license, Schulte waited for state approval. Based on The Monarch’s current sales of full bottles of alcohol and cocktails, along with a small selection of bar snacks, Schulte estimates the bar lost out on between $20,000 and $30,000 of sales in the two weeks before the state granted formal approval.

For others, the quandary of alcohol delivery is a question of financial, rather than legal, viability. Washington D.C. wine bar The Eastern is offering wine, cocktails, and food — ranging from charcuterie to full family meals — for curbside pickup. General manager Robert Morin expects to be allowed to do so until at least November. While his bar can technically also offer delivery, Morin says the numbers don’t add up.

The Eastern’s sales are currently less than 10 percent of what they were prior to Covid-19. Morin says he can’t afford to pay the fees associated with working with third-party delivery apps, which typically amount to between 20 and 30 percent of each order total, according to Eater. Rehiring a staff member to carry out delivery also isn’t viable, Morin says, because of the cost of the courier insurance required to cover them. “The insurance alone is about a week of sales,” he explains. “Spread that out from here until November and then past that, it does not make sense.” Either way, the additional costs negate the value of offering delivery.

Looking to the Future

All the professionals interviewed for this piece — from the bar operators in four different states to beverage lawyers to the president of a national trade organization — agree that on-premise businesses should be allowed to offer alcohol and cocktails to go permanently. On that front, there appears to be some hope on the horizon, with the governors of Florida and Texas recently publicly stating their support for continuing alcohol to go once Covid restrictions are lifted.

As part of its response to Covid-19, Florida has allowed the sale of unopened bottles of alcohol, as well as cocktails to go. Florida Gov. Ron DeSantis recently stated to a local news organization: “I allowed (restaurants) to deliver alcohol, I think that’s been pretty popular. We’re probably going to keep that going, maybe we’ll have the legislature change the law on that, but I think that that’s been good.”

Meanwhile, Texas Gov. Greg Abbott announced alcohol-to-go sales will continue indefinitely, even as restaurants in the state are now allowed to operate at 25 percent capacity. “Alcohol-to-go sales can continue after May 1,” Abbott tweeted on April 28. “From what I hear from Texans, we may just let this keep on going forever.”

(In Texas, alcohol-to-go orders must be accompanied with food, and all bottles must be sold in their original, sealed packaging. Operators are not allowed to sell cocktails to go, and distilled spirits can be sold in formats no larger than 375 milliliters.)

Other positive signals for the movement? Some states are gearing up to allow cocktails to go, even as the national conversation for bars and restaurants shifts toward reopening with capacity caps.

On Friday, New Jersey Gov. Phil Murphy signed legislation allowing restaurants, bars, and taverns to sell cocktails to go. (Bars and restaurants were previously limited to selling unopened bottles of wine, beer, and spirits.) The temporary legislation will not expire until six months after the end of the state of emergency, or six months after Covid-related occupancy restrictions have been lifted — whichever falls later. In Pennsylvania, the Senate passed a similar bill last week. All that’s now required before cocktails to go become a reality in the Keystone State is the signature of Gov. Tom Wolf.

While the words and actions of governors show a positive signal of intent, the executive orders do not mean selling alcohol to go will continue permanently.

“Typically, an executive order will remain in place during the emergency and remain in place through its expiration, unless extended,” explains Miami-based beverage lawyer Ryan Malkin. “In the case of cocktails to go, some governors have suggested that this will continue after the pandemic, meaning after the executive order expires. To do so, the likely path will be through legislative action.”

That process will require a member of a state legislature to propose a bill, which will then need to be voted on and approved by the legislature, and finally signed into law by the governor. Many of the operators VinePair spoke with predicted strong opposition for these potential bills from alcohol retailers, signaling a potential roadblock to permanent change.

Some operators, including Schulte and Ehrmann, are in contact with lobbyists who plan to write and propose bills. They’re also communicating with fellow bar owners in their cities to gain traction for the movement. Through its organization Spirits United, DISCUS has provided a platform for consumers to petition for such causes like allowing cocktails to go in New Jersey. Spirits United is now running a similar campaign for Oregon.

Selling alcohol to go has given bars and restaurants a lifeline during Covid-19. The temporary orders have also shown that selling wine, beer, spirits, and cocktails to go can be done responsibly. That opportunity might  never have been available in many states otherwise — and certainly not at this scale. If potential legislation is met with opposition down the line, evidence of the measures bars implemented to sell responsibly during the Covid-19 crisis will be crucial in making their case.

The article Off-Premise Alcohol Sales Are a Lifeline for Bars and Restaurants That Should Continue Permanently appeared first on VinePair.

Via https://vinepair.com/articles/off-premise-alcohol-sales-bars-restaurants/

source https://vinology1.weebly.com/blog/off-premise-alcohol-sales-are-a-lifeline-for-bars-and-restaurants-that-should-continue-permanently

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Distilleries trying to stay up to date with demand for hand sanitizer, follow federal standards

Paul Skrbina, Nashville Tennessean Upgraded 1: 12 p.m. CT March 28, 2020

The white, all-capital letters composed nicely on the black easel blackboard obstructing the entryway to Corsair Distillery headquarters in Nashville begin to inform the story.

” We are no longer contributing sanitizer to the public,” the indication read Friday afternoon. “All of it is being directed towards healthcare facilities.”

All of it that can be produced and bottled, anyhow.

Distilleries large and small throughout the state and nation have switched from making alcohol to producing hand sanitizer, which has been in brief supply in the wake of the COVID-19 pandemic

However several issues have actually arisenover the last number of weeks, including a lack of supplies, confusion about U.S. Fda standards and issue that big federal excise tax costs may wait for those producing the hand sanitizer due to the fact that of the kind of alcohol being used.

The majority of distilleries have undenatured alcohol on hand, which is alcohol that has nothing contributed to it to make it undrinkable, unlike denatured alcohol, which is typically used in sanitizer offered on the retail market.

The fear is that young kids might be hurt, even fatally, if undenatured alcohol is consumed. Distilleries contend they are distributing the sanitizer they produce to very first responders, healthcare facilities and the like and not to places where it would end up in the hands of young children.

High demand

Darek Bell, who owns the Corsair Distillery, stated his phone has been calling off the hook with demands from everywhere, consisting of healthcare facilities, nursing homes, police departments and fire departments.

” You call it,” Bell said. “I’m hoping things begin to cool down, however I sense it’s going to get even worse.”

Bell and other distillery operators, such as Kris Tatum, stated they have been following the standards presented by the World Health Organization, but are concerned that if they do not follow FDA guidelines they might deal with penalties, such as tax bills for utilizing undenatured alcohol.

Tatum, who is the general supervisor of the Old Forge Distillery in Pigeon Forge, said some firefighters drove from Michigan to get 50 gallons of sanitizer from him.

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Tatum said the sanitizer he’s producing is safe. He said the FDA made three revisions in the last week to its guidelines– dealing with everything from the way sanitizer is labeled to the alcohol used.

” This is a pivot point,” Tatum stated. “We have a need, and we are providing. I promise you I am making nowhere near what I make when we do liquor. And we are giving away a lot, too.”

The FDA stated in a statement to The Tennessean on Friday it does not mean ” to object to the manufacture of denatured or undenatured alcohol for usage in hand sanitizers, so long as a denaturant (bitterant) is included prior to the final production of the hand sanitizer.

” Including these denaturants to the alcohol renders the product less enticing to ingest.”

Low supply

Finding materials, particularly peroxide, likewise has caused problems for distillers.

” The supply chain is killing us,” Bell stated. “Everything is hard to solve now.”

Packing, Bell said, likewise has ended up being a problem. Corsair was prepared to bottle sanitizer Thursday and Friday however will need to wait till Monday due to the fact that of a supply scarcity. Bell had the ability to secure some service to denature the alcohol used in his sanitizer.

Chris Swonger, president and CEO of the Distilled Spirits Council of the United States, stated his group has been working closely with the FDA and added that distillers want to be “part of the service.”

Under the $2 trillion stimulus costs signed by President Donald Trump on Friday, distillers will be exempt from the typical federal excise tax connected with undenatured alcohol, which is on a sliding scale varying from $2.70 per gallon for the very first 100,00 0 gallons and $1350 per gallon after that.

” We also require their ongoing versatility for guidance on undenatured alcohol,” Swonger said. “We stand all set to work with them, whether it’s labeling, or only utilizing the hand sanitizers or disinfectants for emergency responders or hospital neighborhoods.”

Swonger also stated they would deal with the FDA to make sure the sanitizer produced by the distilleries isn’t available to young kids.

” At the end of the day we had actually like to be making scotch, not hand sanitizer,” Swonger said. “It’s proud minute for our market to be able to help initially responders and hospitals.

” Some of the larger companies have the elegance to produce (sanitizer) with denatured alcohol, however a lot of the smaller distillers were dealing with the FDA guidance. Hopefully we’re decreasing a course to get that buttoned up with the FDA.”

Reach Paul Skrbina at pskrbina@tennessean.com and follow him on Twitter @PaulSkrbina

Read or Share this story: https://www.tennessean.com/story/news/health/2020/03/28/ tennessee-distilleries-trying-keep-up-sanitizer-guidelines/2929528001/

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[itsfinancethings]

(DES MOINES, Iowa) — As hospitals and nursing homes desperately search for hand sanitizer amid the coronavirus outbreak, federal regulators are preventing ethanol producers from providing millions of gallons of alcohol that could be transformed into the germ-killing mixture.

The U.S. Food and Drug Administration’s roadblock has been frustrating the health care and ethanol industries, which have been calling for a relaxed regulation to deal with the public health care emergency.

“Hand sanitizer is a big part of our lives,” said Eric Barber, CEO of Mary Lanning Healthcare, a hospital in Hastings, Nebraska. “We can’t get any. We order it and it’s just not available.”

The problem for the ethanol industry is that most plants make food-grade ethanol, one step below the highest pharmaceutical grade. But since the plants aren’t certified to comply with stringent production standards designed to protect quality of medicines, food ingredients and dietary supplements, the FDA doesn’t want the alcohol used for a product to be applied to the skin.

In addition, the alcohol is not denatured or mixed with a bitter additive to make it undrinkable. The FDA insists this step is “critical” because of cases of poisoning, sometimes fatal, among young children who have accidentally ingested hand sanitizers.

An FDA spokesman said Thursday that regulators have already seen a rise in poisonings linked to hand sanitizers in recent weeks, “heightening this public concern.”

The FDA is also skeptical of industry claims that undenatured sanitizers could be distributed in a way that would keep them away from children.

“It is unclear what, if any, measure could be instituted to ensure that the product does not make its way into consumer hands, where children could have access,” FDA’s Jeremy Kahn said in an emailed statement.

Facing a nationwide shortage, Barber said the FDA should temporarily relax regulations to allow alternative production.

“You’re talking about alcohol. Does it matter if it’s fuel grade or whatever the stuff is they’re trying to price gouge now? I think its common sense,” he said.

The American Hospital Association encouraged flexibility to help protect patients and caregivers, without directly weighing in on the sanitizer dispute.

“We may need to consider a range of possible solutions that were not on the table before the pandemic,” said Nancy Foster, a vice president with the group, in an emailed statement to the AP.

The Consumer Brands Association, formerly the Grocery Manufacturers Association, has had conversations with the FDA to push the agency to reconsider its guidelines. The group, which represents branded food, consumer products and beverage companies, said that hand sanitizer supplies are running so low that its members have had to ration it out to workers in stores, distribution centers and manufacturing plants.

“We need a temporary solution,” said Mike Gruber, vice president of regulatory and technical affairs at the trade association. “This goes toward ensuring basic food safety practices.”

Distillers that produce vodka, whisky and other alcoholic drinks have been given some regulatory waivers by the Alcohol and Tobacco Tax and Trade Bureau allowing them to produce hand sanitizer. Many have done that, but they produce much smaller volumes of alcohol than an ethanol plant could produce. They also receive a benefit in the Senate-passed stimulus bill.

The Distilled Spirits Council of the United States, which represents dozens of large and small distillers, applauded Congress for easing taxes on distillers who make hand sanitizer.

Under the stimulus package passed late Wednesday, distillers don’t have to pay federal excise taxes on alcohol used for hand sanitizer through Jan. 1, 2021.

“Hundreds of U.S. distillers are stepping up to produce hand sanitizer and they should not be hit with a huge tax bill for producing this much-needed item, especially at a time when so many of them are struggling,” said Chris Swonger, the group’s president and CEO.

But the council said it’s urging the FDA to update its guidance and let distillers use undenatured alcohol for hand sanitizer. The stimulus bill requires distillers to follow the FDA’s guidance if they want to receive the tax breaks.

The FDA has waived dozens of regulations in recent weeks to boost production of key medical supplies, including coronavirus tests, ventilators, gloves and hand sanitizers.

Under the latest FDA guidelines, regulators maintain standards for alcohol, requiring new producers to use alcohol that meets federal or international standards for use in either drugs or food products.

The regulatory hurdles are especially frustrating for Midwest ethanol producers who are facing plunging fuel demand and a petroleum fight between Saudi Arabia and Russia that caused prices to plummet. The factors are forcing more plants to curtail production and close.

For ethanol producers relaxed rules, including a requirement of the hard-to-acquire denaturant, would allow them to step in and help in a national emergency.

“If we could get the FDA to say yes you can use the beverage grade and for the duration of this emergency at least for some point in time here for the next two weeks you can waive the denaturant we would literally have millions of gallons of hand sanitizer available within a matter of days,” said Monte Shaw, CEO of Iowa Renewable Fuels Association, an ethanol trade group. “Every one of our plants has gotten contacted by people who want this stuff and we can’t send it to them.”

Andrew Vrbas owner of Pacha Soap, a boutique soap shop in Hastings, Nebraska, had just finished renovating a 100,000-square-foot former bread factory as a project to boost the community. Now, he’s preparing to set up hand sanitizer production there to supply to hospitals. He’s received calls from hospitals in Nebraska, Florida and New York City seeking hand sanitizer.

“We are literally three miles from a plant that has as much ethanol as you could imagine,” he said. “We’re sitting on millions of gallons of alcohol. If we could rally the federal government to say look if you just let us work with local ethanol producers we have the expertise, we have the ability to provide hand sanitizer to hospitals not only in Nebraska but all across the country that are just reaching out through my network saying if you could send us hand sanitizer, we’re out.”

___

Retail Writer Anne D’Innocenzio contributed from New York City, Health Writer Matthew Perrone from Washington and Auto Writer Dee-Ann Durbin from Ann Arbor, Michigan.

[newstechreviews]

(DES MOINES, Iowa) — As hospitals and nursing homes desperately search for hand sanitizer amid the coronavirus outbreak, federal regulators are preventing ethanol producers from providing millions of gallons of alcohol that could be transformed into the germ-killing mixture.

The U.S. Food and Drug Administration’s roadblock has been frustrating the health care and ethanol industries, which have been calling for a relaxed regulation to deal with the public health care emergency.

“Hand sanitizer is a big part of our lives,” said Eric Barber, CEO of Mary Lanning Healthcare, a hospital in Hastings, Nebraska. “We can’t get any. We order it and it’s just not available.”

The problem for the ethanol industry is that most plants make food-grade ethanol, one step below the highest pharmaceutical grade. But since the plants aren’t certified to comply with stringent production standards designed to protect quality of medicines, food ingredients and dietary supplements, the FDA doesn’t want the alcohol used for a product to be applied to the skin.

In addition, the alcohol is not denatured or mixed with a bitter additive to make it undrinkable. The FDA insists this step is “critical” because of cases of poisoning, sometimes fatal, among young children who have accidentally ingested hand sanitizers.

An FDA spokesman said Thursday that regulators have already seen a rise in poisonings linked to hand sanitizers in recent weeks, “heightening this public concern.”

The FDA is also skeptical of industry claims that undenatured sanitizers could be distributed in a way that would keep them away from children.

“It is unclear what, if any, measure could be instituted to ensure that the product does not make its way into consumer hands, where children could have access,” FDA’s Jeremy Kahn said in an emailed statement.

Facing a nationwide shortage, Barber said the FDA should temporarily relax regulations to allow alternative production.

“You’re talking about alcohol. Does it matter if it’s fuel grade or whatever the stuff is they’re trying to price gouge now? I think its common sense,” he said.

The American Hospital Association encouraged flexibility to help protect patients and caregivers, without directly weighing in on the sanitizer dispute.

“We may need to consider a range of possible solutions that were not on the table before the pandemic,” said Nancy Foster, a vice president with the group, in an emailed statement to the AP.

The Consumer Brands Association, formerly the Grocery Manufacturers Association, has had conversations with the FDA to push the agency to reconsider its guidelines. The group, which represents branded food, consumer products and beverage companies, said that hand sanitizer supplies are running so low that its members have had to ration it out to workers in stores, distribution centers and manufacturing plants.

“We need a temporary solution,” said Mike Gruber, vice president of regulatory and technical affairs at the trade association. “This goes toward ensuring basic food safety practices.”

Distillers that produce vodka, whisky and other alcoholic drinks have been given some regulatory waivers by the Alcohol and Tobacco Tax and Trade Bureau allowing them to produce hand sanitizer. Many have done that, but they produce much smaller volumes of alcohol than an ethanol plant could produce. They also receive a benefit in the Senate-passed stimulus bill.

The Distilled Spirits Council of the United States, which represents dozens of large and small distillers, applauded Congress for easing taxes on distillers who make hand sanitizer.

Under the stimulus package passed late Wednesday, distillers don’t have to pay federal excise taxes on alcohol used for hand sanitizer through Jan. 1, 2021.

“Hundreds of U.S. distillers are stepping up to produce hand sanitizer and they should not be hit with a huge tax bill for producing this much-needed item, especially at a time when so many of them are struggling,” said Chris Swonger, the group’s president and CEO.

But the council said it’s urging the FDA to update its guidance and let distillers use undenatured alcohol for hand sanitizer. The stimulus bill requires distillers to follow the FDA’s guidance if they want to receive the tax breaks.

The FDA has waived dozens of regulations in recent weeks to boost production of key medical supplies, including coronavirus tests, ventilators, gloves and hand sanitizers.

Under the latest FDA guidelines, regulators maintain standards for alcohol, requiring new producers to use alcohol that meets federal or international standards for use in either drugs or food products.

The regulatory hurdles are especially frustrating for Midwest ethanol producers who are facing plunging fuel demand and a petroleum fight between Saudi Arabia and Russia that caused prices to plummet. The factors are forcing more plants to curtail production and close.

For ethanol producers relaxed rules, including a requirement of the hard-to-acquire denaturant, would allow them to step in an help in a national emergency.

“If we could get the FDA to say yes you can use the beverage grade and for the duration of this emergency at least for some point in time here for the next two weeks you can waive the denaturant we would literally have millions of gallons of hand sanitizer available within a matter of days,” said Monte Shaw, CEO of Iowa Renewable Fuels Association, an ethanol trade group. “Every one of our plants has gotten contacted by people who want this stuff and we can’t send it to them.”

Andrew Vrbas owner of Pacha Soap, a boutique soap shop in Hastings, Nebraska, had just finished renovating a 100,000-square-foot former bread factory as a project to boost the community. Now, he’s preparing to set up hand sanitizer production there to supply to hospitals. He’s received calls from hospitals in Nebraska, Florida and New York City seeking hand sanitizer.

“We are literally three miles from a plant that has as much ethanol as you could imagine,” he said. “We’re sitting on millions of gallons of alcohol. If we could rally the federal government to say look if you just let us work with local ethanol producers we have the expertise, we have the ability to provide hand sanitizer to hospitals not only in Nebraska but all across the country that are just reaching out through my network saying if you could send us hand sanitizer, we’re out.”

___

Retail Writer Anne D’Innocenzio contributed from New York City, Health Writer Matthew Perrone from Washington and Auto Writer Dee-Ann Durbin from Ann Arbor, Michigan.

[elizabethcariasa]

Congress extends some extenders, makes other tax changes in last-minute holiday funding spree

Congress just came up with more tax breaks to wind down 2019 than the number of ornaments we have on our upstairs' mini Christmas tree! (Photo by Kay Bell)

Congress finally decorated its Christmas tree early this morning. The ornaments were myriad tax breaks. Or, in some cases, elimination of taxes.

With Dec. 25 bearing down and special interest groups sending more requests to Capitol Hill than kiddos' letters to Santa, the House and Senate negotiators finally agreed on, among other things, what to do about those expired tax provisions popularly known as extenders.

They OK'ed a handful of them and plan to tack them onto government fiscal year funding legislation that must become law by Friday, Dec. 20, to avert shutdown of federal offices.

Extended tax gifts for individuals: Yep, Representatives and Senators operate most Decembers just like you and me doing our holiday shopping.

We have the wish lists from all our loved ones — in Congress' case, they're "I want" requests from constituents and lobbyists — but we don't pick up the present — or enact the law authorizing the tax breaks — until the last minute.

Among the gifts to individual taxpayers is renewal of a handful of popular tax breaks that technically had expired.

Around two dozen of these tax breaks ended with the 2017 tax year. A few were renewed retroactively just for the 2018 tax year and then evaporated again.

Now they have another new life, retroactively for the 2019 tax year and through the 2020 tax year.

The resurrected, at least temporarily, Internal Revenue Code provisions include:

The ability to exclude from gross income the amount of discharged debt in connection with the reworking of a mortgage on your principal residence.

The option to count private mortgage insurance (PMI) premiums as qualified residence interest and deduct it as an itemized expense.

The continuation of the 7.5 percent deduction floor for itemized medical expenses;

The renewal of the educational above-the-line deduction for tuition and qualified fees.

That certainty is welcome by those who can benefit from these tax breaks, both from filing and planning perspectives.

If any of these provisions apply, you can file your 2019 return on time next year. There's now no need to extend filing in the hopes the provisions will be renewed.

As for planning, with the extension through the coming New Tax Year, you also can evaluate your 2020 tax moves with more confidence.

Retirement changes included: The massive spending measure — both in size (1,773 pages without the add-on tax provisions) and cost ($1.4 trillion over 10 years) — also makes substantive changes to retirement provisions, many of which will affect our taxes.

The Setting Every Community Up for Retirement Enhancement Act of 2019, or SECURE Act, was rolled into the funding bill. The House handily approved the retirement bill 417-3 in May, but had stalled (like most other measures sent over by Representatives) in the Senate.

Here are some key provisions that could affect you and me as we save for our post-work years.

Part-time workers would be allowed to participate in 401(k) plans.

The age at which required minimum distributions (RMDs) must be made would go from 70½ to 72.

Contributions could be made to traditional IRA contributions by those older than 70½.

New parents, including adoptive moms and dads, could make penalty-free retirement plan withdrawals from qualified retirement plans.

Inherited IRAs, instead of being stretched out tax-deferred over beneficiaries' lifetimes, now must be drawn down completely within 10 years.

Obviously, these provisions will variously and simultaneously delight and enrage affected individuals.

Also obviously, each of these provisions is worthy of a blog post on its own. Until I get around to unwrapping at least some them here on the ol' blog in the coming weeks, I suggest you check out a couple of Forbes' articles with more on the SECURE Act from staff writer Ashlea Ebeling and contributor Jamie Hopkins.

Toasting the bill: In addition to the individual extenders, the tax proposal also renews breaks for several industries.

Among those literally toasting the late-night tax work are specialty brewers and distillers.

"We are thrilled that lawmakers included a one-year extension of the federal excise tax reduction for distillers in the year-end legislative package," Distilled Spirits Council President and CEO Chris Swonger said in a statement.

The Craft Beverage Modernization and Tax Reform Act's provisions were rolled into the Tax Cuts and Jobs Act (TCJA) back in December 2017. That reduced federal excise taxes for a range of producers, including brewers, winemakers, distillers and even importers.

But unlike other parts of TCJA that are permanent for big business, this potent potables tax break was temporary. Without the extension that is set to be part of the federal government measure, craft distillers and brewers across the country could have faced a tax increase up to 400 percent on Jan. 1, 2020.

Presents for other businesses, too: Other industries also thrilled with the Congressional tax gifts are

A cause near and dear to extender supporting Senate Finance Committee Chairman Charles Grassley (D-Iowa) and his corn-growing constituents made it into the measure — the $1 per gallon biodiesel blender's tax credit. It will be extended through 2022 and retroactively to when it expired beginning in 2018, a move welcomed by an industry that has seen 10 plants shut since the credit lapsed.

The credit began in 2005 as a way to help farmers and reduce petroleum imports by supporting biofuels, particularly biodiesel, a fuel made from cooking oil, soybean oil and animal fats. It costs nearly $2 billion per year, making it among the most expensive U.S. energy subsidy programs.

Added tax horsepower also is gifted to owners of racehorses and motorsports complexes.

The healthcare industry also was rewarded rewarded with the elimination of three Affordable Care Act, still popularly known as Obamacare, taxes that had been disliked by both Republicans and Democrats. The so-called Cadillac tax on health insurance benefits, an excise tax on medical devices and the Health Insurance Tax, an excise tax paid by, you guessed it, health insurance companies are axed under the measure.

And a TCJA provision that was bipartisanly disliked also is gone. The 21 percent unrelated business income tax (UBIT) on certain benefits churches and other nonprofits offer to their employees, such as parking benefits, will be repealed.

Congressional coal for others: In both personal and Congressional gift-giving situations, some folks don't get what they wanted.

That's true with this Congressional package. Although it's huge, lawmakers couldn't find a way to include provisions that both Democrats and Republicans were hoping would be in the year-end legislation.

Democrats had wanted tax extenders to be paired with the expansion of tax credits benefiting low- and middle-income families. The also wanted expansion of several renewable energy tax credits.

Republicans had wanted to use the end-of-year effort to fix some errors in the hastily written 2017 tax reform law.

Both sides were disappointed.

And advocacy groups across the ideological and political spectrum who wanted Congress to let the expired extenders stay that way were upset. Their main complaint is with the cost of the bill and tax amendments.

"This budget deal just keeps getting worse," said Maya MacGuineas, president of the Committee for a Responsible Federal Budget. "After massively increasing spending caps earlier this year and agreeing to eliminate important revenue sources designed to fund the Affordable Care Act and slow health care cost growth, policymakers now want to charge more to the national credit card by reviving zombie tax extenders. When will the madness stop?"

Holiday legislative tree trimming: Such end-of-year legislation gets lots of attention because of its timing and also because, in large part, the bills usually are, well, large.

But the tactic is not new. The latest-until-now example is the previously-mentioned TCJA, which didn't become law until Dec. 17, 2017.

I lived in the D.C.-area for almost two decades, spending my working hours first in House and Senate offices, then as part of a government relations — OK, lobbyist — office in the National Capital. I saw and participated in this procrastination firsthand.

Since becoming a [semi]normal U.S. resident, I've blogged over the years about the tedious Congressional tradition of "decorating" an annual legislative Christmas tree.

This metaphorical holiday fir even has made it into official legislative glossaries.

Lexis Nexis says Christmas tree legislation is "Any bill 'adorned' like a Christmas tree with unrelated amendments. Generally occurs when the Senate takes up a relatively minor House-passed bill and 'trims' it with any number of non-germane amendments. Frequently occurs at the end of a Congress, but recently supplanted by omnibus reconciliation legislation."

The Senate glossary is more succinct, avoiding sugarcoating of who, per its definition's last sentence, tends to get the best gifts:

Christmas tree bill — Informal nomenclature for a bill on the Senate floor that attracts many, often unrelated, floor amendments. The amendments which adorn the bill may provide special benefits to various groups or interests.

Even in the few years when there is no last-minute, just-before-holiday-recess scramble, I still think about the process, thanks to the Congressional ornaments — those are pictures of some of them scattered throughout this post — that are on our own Christmas tree.

When we take down the holiday paraphernalia in early (maybe) January, I and other taxpayers still will have this year's Congressional trimmings to provide tax cheer through 2020.

You also might find these items of interest:

Tax extenders 2015 winners and losers

Extenders one of top tax issues for 2019

3 fiscal & tax matters facing Congress as 2019 winds down

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[isaiahrippinus]

Off-Premise Alcohol Sales Are a Lifeline for Bars and Restaurants That Should Continue Permanently

When the Covid-19 pandemic first took hold in the U.S., most bars and restaurants across the country were forced to close or transition their operations to delivery or takeout. As on-premise sales dropped off a cliff, state governments responded with temporary executive orders allowing bars and restaurants to sell sealed, unopened bottles of wine, beer, and spirits — and, in some cases, pre-made cocktails — to go.

In the ensuing two months, it has become clear that the provision is not a cure-all: Off-premise alcohol purchases replace just a sliver of sales at many restaurants and bars. Looking at the national picture, combined food and drinks sales across the U.S. are 68 percent lower than would normally be expected for this time of year, according to the most recent Nielsen CGA on-premise report, published April 29. VinePair spoke with cocktail and wine bar operators in four states who have been offering alcohol (and in some instances food) for curbside pickup or delivery. These operators reported revenue losses of between 75 and 96 percent since Covid-19-related closures began.

While the contribution of off-premise sales is small, operators say the continued ability to do so will be crucial for the industry’s recovery. At the same time, they acknowledge that the current to-go models present their own challenges, and are wary of the obstacles that stand in the way of making alcohol to go a permanent reality.

Nationwide, 32 states plus the District of Columbia have relaxed licensing laws to allow bars and restaurants to sell sealed, unopened bottles of wine, beer, and spirits. Of those states, almost 20 are also allowing sales of pre-made cocktails to go. This is an important distinction, operators say, as mixed drinks offer exponentially greater profits than selling sealed liquor bottles.

In other states, where cocktails to go are allowed, contrasting messages from city and state officials left some bars in limbo for a period, missing out on crucial revenue. Others found themselves in a “do we or don’t we?” situation, as the initial executive orders were signed for 30- or 60-day periods, but have since been extended. Those operators that are now selling alcohol to go operate in a reality where their current business model could be taken away with little notice.

Setting the Trend

New York became the first state to allow bars and restaurants to sell alcohol, including cocktails, for off-premise consumption, when Gov. Andrew Cuomo signed an executive order on March 16. The only proviso set out by Cuomo was that the drinks should be accompanied by food, but that could be something as insignificant as a pack of chips.

Chris R. Swonger, president of the Distilled Spirits Council of the U.S. (DISCUS), describes the move as “an important trendsetter,” providing a template that was soon replicated to varying degrees in multiple states around the country. Crucially, he says, the provision offered valuable income for on-premise businesses during a particularly trying time.

And it’s not just businesses that are benefiting from the new landscape, Swonger adds. “Cocktails to go is a provision that consumers are embracing today and I think they’ll continue to embrace,” he says. Swonger wants bars and restaurants to be allowed this revenue stream post-Covid-19 and says it will help relieve “the crush of the economic impact” of the pandemic.

Competing as an Alcohol Retailer

Not all the states that have temporarily relaxed their alcohol laws followed New York’s lead. In Illinois, bars and restaurants are allowed to sell wine, beer, and spirits in their original, unopened containers, but selling cocktails to go is not allowed.

At Kumiko, a cocktail bar in Chicago’s West Loop neighborhood, beverage director Julia Momose contends that the math of selling full bottles at retail prices doesn’t add up for an on-premise venue. Established retailers, which buy in much larger quantities, have access to larger discounts, she explains. In order to compete with these stores, her bar would have to accept profits of around $5 for every $30 bottle of liquor it sells. Even then, “no one’s going to come to the bar to buy a full bottle of gin every day,” Momose says. But, if she were instead able to use that bottle to make cocktails, Momose says she could mix 16 drinks with it and sell them for a total profit of more than $100.

In the meantime, Kumiko is generating revenue by selling rare spirits and liqueurs, along with beer, sake, mixers, and non-alcoholic cocktails. The bar is also offering cocktail kits and meal kits but is only open for business one day a week because its entire staff is currently furloughed. Sales during the one day that Kumiko is open stand at around 20 percent of a normal, non-Covid day, Momose says.

While some bars in Chicago have flouted state laws and are offering cocktails for sale illegally, Momose is tackling the issue by lobbying for change. Along with other industry advocates, she founded Cocktails For Hope, an organization that aims to raise awareness for the cause, putting pressure on politicians to allow license-holding establishments to sell sealed, pre-mixed cocktails.

Chicago-based alcohol lawyer Sean O’Leary is helping the organization draft a bill to send to the governor. The proposal sets out a clear guideline for how to-go cocktails can be sold safely and responsibly.

Among the measures, the group believes all deliveries should be carried out by bartenders and servers rather than third-party services. This will reduce any risk of alcohol being sold to minors or those who are overly intoxicated, because bartenders and servers are educated on these factors during BASSET training. (Illinois state law requires all on-premise servers and those checking IDs for alcohol service to be BASSET-certified.) This provision also means license holders will be fully accountable for any violations. “We know the concerns and now we are bringing our solutions,” O’Leary says.

Continuing Alcohol to Go as Bars and Restaurants Reopen

As of last week, on-premise establishments in some California counties are now permitted to offer limited dine-in services. But throughout the state, bars and restaurants can still act as off-premise retailers of wine, beer, and spirits.

According to John Carr, public information officer for California’s Department of Alcoholic Beverage Control (ABC), the temporary licensing laws will remain until the state determines that normal business operations can resume. “At that time, ABC would provide 10 days notice to ABC licensees that the temporary Notices of Regulatory Relief will conclude,” Carr explains.

Like New York, many operators within the state are generating revenue by selling cocktails to go. But not all license holders are enjoying this provision.

In California, two types of liquor licenses allow on-premise businesses to sell wine, beer, and spirits: Type 47 and Type 48. The former designates restaurants and bars that have fully functioning kitchens — establishments that “make actual and substantial sales of meals for consumption on the premises,” according to the ABC. The latter is typically held by nightclubs and bars that do not have kitchens.

During Covid-19, only establishments with Type 47 licenses have been able to offer cocktails to go, while those holding the Type 48 license have been limited to selling unopened bottles of alcohol. H. Joseph Ehrmann, owner of San Francisco’s Elixir, says the provision unfairly discriminates against bonafide cocktail bars such as his, which operate with the latter license. “[Elixir] is one of the original bars that brought cocktail culture back, and now the government’s telling me I can’t make cocktails,” he says.

In the early stages of the pandemic, Ehrmann generated cash by selling off a large portion of the bar’s notable whisk(e)y collection. Now he’s looking at the to-go model as something that will be much longer-lasting and has started selling cocktail kits that pair packaged mixers with unopened bottles of liquor.

Elixir’s gross revenue during the pandemic is 75 percent lower than normal. And the profit margin on sales is lower than normal because the bar is operating as a full-bottle retailer rather than a cocktail bar. As Ehrmann explains, cocktails allow for markups of between 80 and 85 percent, while selling full bottles returns a profit margin of around 30 percent.

The Challenges of Alcohol Delivery

In Missouri, bars and restaurants can sell full bottles of liquor as well as cocktails to go. But operators are still unsure whether they’re allowed to offer delivery, which could increase their earning potential. “We are still waiting to make sure delivery is legal,” says Brock Schulte, beverage director of The Monarch, an acclaimed cocktail bar in Kansas City.

Schulte says there was similar confusion at the start of the Covid-19 pandemic over whether he could sell any form of alcohol to go. On the one hand, the Kansas City mayor’s office told businesses they would not be punished for selling bottles of unopened wines, beer, and spirits, and cocktails to go. But the state government took a further two weeks to give the green light. Not wanting to jeopardize his bar’s liquor license, Schulte waited for state approval. Based on The Monarch’s current sales of full bottles of alcohol and cocktails, along with a small selection of bar snacks, Schulte estimates the bar lost out on between $20,000 and $30,000 of sales in the two weeks before the state granted formal approval.

For others, the quandary of alcohol delivery is a question of financial, rather than legal, viability. Washington D.C. wine bar The Eastern is offering wine, cocktails, and food — ranging from charcuterie to full family meals — for curbside pickup. General manager Robert Morin expects to be allowed to do so until at least November. While his bar can technically also offer delivery, Morin says the numbers don’t add up.

The Eastern’s sales are currently less than 10 percent of what they were prior to Covid-19. Morin says he can’t afford to pay the fees associated with working with third-party delivery apps, which typically amount to between 20 and 30 percent of each order total, according to Eater. Rehiring a staff member to carry out delivery also isn’t viable, Morin says, because of the cost of the courier insurance required to cover them. “The insurance alone is about a week of sales,” he explains. “Spread that out from here until November and then past that, it does not make sense.” Either way, the additional costs negate the value of offering delivery.

Looking to the Future

All the professionals interviewed for this piece — from the bar operators in four different states to beverage lawyers to the president of a national trade organization — agree that on-premise businesses should be allowed to offer alcohol and cocktails to go permanently. On that front, there appears to be some hope on the horizon, with the governors of Florida and Texas recently publicly stating their support for continuing alcohol to go once Covid restrictions are lifted.

As part of its response to Covid-19, Florida has allowed the sale of unopened bottles of alcohol, as well as cocktails to go. Florida Gov. Ron DeSantis recently stated to a local news organization: “I allowed (restaurants) to deliver alcohol, I think that’s been pretty popular. We’re probably going to keep that going, maybe we’ll have the legislature change the law on that, but I think that that’s been good.”

Meanwhile, Texas Gov. Greg Abbott announced alcohol-to-go sales will continue indefinitely, even as restaurants in the state are now allowed to operate at 25 percent capacity. “Alcohol-to-go sales can continue after May 1,” Abbott tweeted on April 28. “From what I hear from Texans, we may just let this keep on going forever.”

(In Texas, alcohol-to-go orders must be accompanied with food, and all bottles must be sold in their original, sealed packaging. Operators are not allowed to sell cocktails to go, and distilled spirits can be sold in formats no larger than 375 milliliters.)

Other positive signals for the movement? Some states are gearing up to allow cocktails to go, even as the national conversation for bars and restaurants shifts toward reopening with capacity caps.

On Friday, New Jersey Gov. Phil Murphy signed legislation allowing restaurants, bars, and taverns to sell cocktails to go. (Bars and restaurants were previously limited to selling unopened bottles of wine, beer, and spirits.) The temporary legislation will not expire until six months after the end of the state of emergency, or six months after Covid-related occupancy restrictions have been lifted — whichever falls later. In Pennsylvania, the Senate passed a similar bill last week. All that’s now required before cocktails to go become a reality in the Keystone State is the signature of Gov. Tom Wolf.

While the words and actions of governors show a positive signal of intent, the executive orders do not mean selling alcohol to go will continue permanently.

“Typically, an executive order will remain in place during the emergency and remain in place through its expiration, unless extended,” explains Miami-based beverage lawyer Ryan Malkin. “In the case of cocktails to go, some governors have suggested that this will continue after the pandemic, meaning after the executive order expires. To do so, the likely path will be through legislative action.”

That process will require a member of a state legislature to propose a bill, which will then need to be voted on and approved by the legislature, and finally signed into law by the governor. Many of the operators VinePair spoke with predicted strong opposition for these potential bills from alcohol retailers, signaling a potential roadblock to permanent change.

Some operators, including Schulte and Ehrmann, are in contact with lobbyists who plan to write and propose bills. They’re also communicating with fellow bar owners in their cities to gain traction for the movement. Through its organization Spirits United, DISCUS has provided a platform for consumers to petition for such causes like allowing cocktails to go in New Jersey. Spirits United is now running a similar campaign for Oregon.

Selling alcohol to go has given bars and restaurants a lifeline during Covid-19. The temporary orders have also shown that selling wine, beer, spirits, and cocktails to go can be done responsibly. That opportunity might  never have been available in many states otherwise — and certainly not at this scale. If potential legislation is met with opposition down the line, evidence of the measures bars implemented to sell responsibly during the Covid-19 crisis will be crucial in making their case.

The article Off-Premise Alcohol Sales Are a Lifeline for Bars and Restaurants That Should Continue Permanently appeared first on VinePair.

source https://vinepair.com/articles/off-premise-alcohol-sales-bars-restaurants/ source https://vinology1.tumblr.com/post/618553334209691648

[biofunmy]

Why Trump Just Made Your Dinner More Expensive

American shoppers may not have paid close attention to a 15-year controversy involving generous subsidies that the European Union provided Airbus, its largest aircraft manufacturer.

But that long-running dispute between Europe and the United States is about to turn up at the supermarket. The Trump administration said on Wednesday that, starting Oct. 18, it will begin imposing a 25 percent tariff on a wide range of popular European food, drinks and other products.

Here’s what you need to know about the trade fight, and how it will affect your grocery list.

What is the fight about?

The United States and Europe have been arguing for more than a decade about the subsidies and other kinds of special financing that the European Union has given Airbus.

The United States argues that these subsidies allow Airbus to sell its products at unfairly low prices around the world, hurting America’s largest plane maker, Boeing. So the Americans brought a case against the Europeans at the World Trade Organization, the global body that handles trade disputes.

On Wednesday, the W.T.O. handed down the final decision in that case, giving the Trump administration the green light to impose tariffs on up to $7.5 billion of European products annually — or until the European Union ends its subsidies. Later that day, the Trump administration released a list of the goods it will start taxing.

Many trade experts argue that the United States is justified in imposing the tariffs. Unlike some of President Trump’s other trade moves — including tariffs on $360 billion worth of Chinese imports — these levies are permitted under global trade rules.

But the tariffs will still weigh heavily on some American companies and households — including consumers at the grocery store, major U.S. airlines, liquor importers, specialty wine shops and some manufacturers.

What is the Trump administration going to tax?

Some of the most beloved — and delicious — European imports are on the list, which reads like the menu for a fancy dinner party. French wine. Olives, virgin olive oil, cherries, oranges and lemons from Spain. Pork sausages and roasted coffee from Germany. Italian cheeses like Pecorino, Parmesan and Provolone. Gruyere and Emmentaler from Switzerland. Stilton cheese, sweet biscuits and Scottish whiskies from the United Kingdom.

All of these items will be subject to a new 25 percent tax at the border as of Oct. 18.

A few other items beyond food will also face a tax, including aircraft, anoraks, wool suits, blankets, bed linen, axes, pneumatic tools for metal working, and backhoes.

Aircraft will be subject to a 10 percent tariff, while other goods will be taxed at 25 percent. Those price increases will likely take a toll on airlines, department stores, manufacturers and other businesses that sell imported goods.

Who pays the tariff?

Who actually absorbs the cost of that tariff will vary from product to product.

In some cases, European producers will be forced to foot the bill, likely by dipping into their profits or forgoing spending on new hires and other expenses. In other cases, European companies will pass those costs on to American businesses that import and sell their products and to the customers here who buy them.

Ultimately, it’s very likely that American shoppers will see some price increases at the store. And that could slow spending on European wine, liquor and other goods heading into a normally busy holiday season, industry groups say.

Louis-Fabrice Latour, the president of the Federation of French Wine and Spirits Exporters and head of the Burgundy wine producers’ association, said the 25 percent tariff could hike the retail price of French wines in the United States by up to 30 percent.

Pouilly-Fuissé, a popular white Burgundy wine, could rise from an average of around $25 per bottle to over $30, with price increases starting to be felt mainly after Christmas, when existing stocks of French wines in the United States run down, he said.

“It’s not good news for American consumers who like our wine,” said Mr. Latour.

Hours after Mr. Trump announced the tariffs, Mr. Latour, whose family has sold wine in America since the Civil War, said that a New York wine importer called him to cancel a big order of Beaujolais Nouveau red wine that was supposed to be shipped by boat for delivery in November.

The pain could get worse for American companies, whose products may face retaliation by the European Union down the line.

The World Trade Organization is currently considering a separate trade case that the European Union has brought against the United States for subsidizing its plane maker, Boeing. The World Trade Organization is expected to announce that decision early next year. It’s unclear how many tariffs could be imposed as a result, but European officials have already drawn up a list of $20 billion in American products, including food and agricultural goods, that it could tax in response to that case.

Chris Swonger, the president of the Distilled Spirits Council of the United States, called the move “a devastating blow to the U.S. spirits industry,” adding that “distillers on both sides of the Atlantic have become collateral damage in matters that are completely unrelated to our industry.”

What’s the reaction so far?

Unsurprisingly, European companies and trade associations are deeply upset about being drawn into a trade conflict over aircraft subsidies.

“It seems ironic that in a dispute about aircraft, our sector is being hit pretty hard,” said Karen Betts, the chief executive of the Scotch Whisky Association.

But that pain that European producers will feel is actually part of the goal. The levies are meant to put pressure on the European Union to fix trade practices that the United States argues are deeply problematic and disadvantage American manufacturers, like Boeing.

European officials say they have tried to negotiate a solution with the United States, but the Trump administration says these offers still fall short. Under W.T.O. rules, the United States is allowed to keep the tariffs on until the two sides reach a negotiated settlement, or the W.T.O. decides that Europe is now following its rules.

That may be why the United States has chosen to focus so much on European food products. The sector is a particularly sensitive one for the European Union. American officials say the European government may respond more quickly if farmers and agricultural producers complain that they are collateral damage in a trade fight that has nothing to do with them.

Luis Planas, the Spanish agriculture minister, said on Thursday that if the trade conflict could not be mitigated, “the food sector, fundamental to citizens’ lives, will be hit.”

He said he had already reached out to the European Commission to work on “a common stance” to defend the interests of Spanish and other European farm producers.

Raphael Minder contributed reporting from Madrid and Amie Tsang contributed reporting from London. Liz Alderman contributed reporting from Paris.

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