Craft Spirits Weekly
Welcome to the 72nd issue of Craft Spirits Weekly , a service dedicated to bringing you the news most important to the craft spirits distiller. Check your inbox every Thursday to find a curated selection of articles and news pieces from the American Craft Spirits Association.
ACSA Pushes for Permanent FET Relief in Washington
WASHINGTON, D.C. –  Nearly 100 spirits industry professionals from across the country climbed Capitol Hill on Tuesday as part of the ongoing effort to ensure that the reduction in the Federal Excise Tax (FET) passed last December is made permanent.

The Craft Beverage Modernization and Tax Reform Act (CBMTRA)—passed as part of Congress’s broader tax reform bill at the end of 2017—reduced the tax burden on the first 100,000 proof gallons of distilled spirits from $13.50 to $2.70 per gallon. The reduction is set to expire at the end of 2019 and members of The American Craft Spirits Association (ACSA) and the Distilled Spirits Council made preventing that from happening priority No. 1 at the two groups’ joint Public Policy Conference this week. 
ACSA Executive Director Margie A.S. Lehrman said it’s okay to take a bit of “victory lap” for CBMTRA’s passage, but it’s also time to refocus on the battle ahead.

“Now is our time to take that same energy—that same vision of where we can go—to Congress and make that happen again,” Lehrman said. 

Mark Gorman, Senior Vice President of Government Relations for the Distilled Spirits Council, says the industry is already reaping the benefits of the tax reduction as member companies are putting the money back into their companies. “We’re working overtime to make sure this becomes a permanent part of the U.S. tax code,” Gorman said.

The attending spirits industry professionals were heartened by the words of some allies from the Hill, as Senators and Senatorial staff offered their support in the fight. 
Attendees greeted Senator Ron Wyden (D-OR), who co-sponsored the bi-partisan Senate version of the bill with Senator Roy Blunt (R-MO), with a rousing ovation as he entered the conference room at the Senatorial office building.

“You were clapping for me, but just put it on the Congressional record that I am clapping for you,” Wyden told attendees. “This is a product that is on the right side of history.”

Wyden pledged to continue to push to ensure the benefits of the CBMTRA do not expire. “We’re going to keep at it,” Wyden said, “until we make the law you all worked so hard for permanent.”

Attendees greeted Blunt with equally enthusiastic applause, underlining the bi-partisan nature of the tax reform effort. Blunt reminded the audience that the greatest tool they have is their own authentic stories. 

“[FET reduction] is a good idea and it would be much better to have it as a permanent idea,” Blunt said. “Make a case for why this matters, make a case for how it allows you to compete, make a case for what this does for you.”  

Senator Todd Young (R-IN) also stressed the importance of a good story.

“I went to business school where they tell you all businesses are basically the same,” Young said. “I never really bought into it. I find that some businesses are more fun than others, and I find your business fun. Telling your story has made it easy for me to be a key player in this.” 
For example, it will be critical for small distillers to emphasize how the FET reduction is enabling them to hire more staff and re-invest in their companies, spurring economic growth in their home states.

Mark Isakowitz, chief of staff for Senator Rob Portman’s (R-OH) also offered some insight for spirits producers. Portman was instrumental in getting CBMTRA included in the broader tax reform bill at the eleventh hour. The future of FET reduction, he noted, depends greatly on support from both sides of the aisle. “We thought it was a great victory to get [FET reform] in the law and we’ll keep fighting for it,” Isakowitz said. “We’re going to have to make this a bi-partisan to keep it.” 

Distillers also heard from Liz Strimer, legislative assistant to Senate Majority Leader Mitch McConnell, who called the larger tax bill—officially, the Tax Cuts and Jobs Act of 2017— “a once in a generation opportunity.”

Earlier in the day, spirits producers heard some encouraging words from the regulatory side of the government. John Manfreda, Administrator of the U.S. Alcohol and Tobacco Tax and Trade Bureau, expressed a desire to see all spirits producers succeed.

“I’m a real believer that that the regulators and the people they regulate should get to know each other,” Manfreda said. “The more we interact, the better we understand each other. And the better we understand each other the better we understand each other’s needs...We’re here to help you comply, we’re not here to put you out of business.”
Black Button Distilling Launches Farm & Forestry
Black Button Distilling announces the launch of Black Button Farm & Forestry, located on 19 acres in South Bristol, New York. Located in the heart of the Finger Lakes, Black Button Farm & Forestry will grow juniper for gin, white oak to make barrels for distilling, fresh herbs and spices and organic honey for cocktails. (BevNet)
Reminder: Register for Distillery Safety Master Class in Cincinnati
Safety First! Join ACSA as we kick off our 2018 Regional Education Programs in Cincinnati! ACSA has partnered with Industrial Safety and Training Services to present "Distillery Safety Management 101." Learn about hazard recognition, requirements of written policies, regulatory training, general OSHA compliance and much more over this 2-day class on June 27-28, 2018. The registration fee is $399 for ACSA members and $699 for non-members .
Rochester, N.Y.'s Iron Smoke Opens Rockin' New Venue
Rock and roll and whiskey were Tommy Brunett's lifestyle. Now they're his business. With just a few shopping days remaining before Saturday's International Whiskey Day, Brunett and his co-conspirators in the Fairport-based  Iron Smoke Distillery are preparing for a three-day celebration. The festivities will mark the opening of Iron Smoke Distillery's World Famous Spirit Factory, Watering Room and Side Show, a 4,000-square-foot tasting room, event space and stage connected to the distillery space that Iron Smoke has occupied since 2014. (Rochester City Newspaper)
Kentucky Mist Moonshine to Open Tasting Room in Lexington
The Eastern Kentucky moonshine distillery made famous by its legal battle with the University of Kentucky is set to open a new tasting room this summer in The Summit at Fritz Farm in Lexington. Kentucky Mist Moonshine has seen significant expansions recently, with one tasting room and distillery already open in Myrtle Beach, South Carolina, and another location planned for the same city. (Lexington Herald Leader)
We Still Need Your Response for 2018 Craft Spirits Data Project
ACSA, Park Street and the IWSR are again asking for your help. We are collecting, analyzing, and reporting on economic data for our craft spirits community, the media, and Congress. Reinvestment of the FET savings, job growth, in-state versus out-of-state sales, and bottom line contribution to the U.S. economy will be reported. This year, this data is all the more important as we attempt to educate your federal Representatives and Senators on how you are using your tax savings. Tell us! We cannot do this without your assistance. We will again collaborate with our industry partners to secure updates from the wholesale and retail tier.
Three Wells Distilling's Arizona-Only Tasting Room Opens Friday
Tucson-based  Three Wells Distilling Company   announced its Arizona spirits tasting room Series 19 will open at 4 p.m. on Friday, May 18. The 800-square-foot downtown space will sell craft spirits exclusively from Arizona-based distilleries via craft cocktails, flights and bottles to-go (Tucson Foodie) 
Next Stop on Virginia Craft Spirits Roadshow Scheduled for This Weekend
The Vanguard Brewpub and Distillery will host this year’s Virginia Distiller’s Association event, The Virginia Craft Spirits Roadshow: Endless Explorations, on May 19, 2018 from 1pm – 5pm. (Alt Daily)
Virginia Distillers to Join Local Arts & Crafts Festival
The Crozet, Virginia Spring Arts and Crafts Festival has served Virginia draft beer and wine from local vineyards for several years, and this year the festival will add to the local beverage options with products from two Virginia distilleries. (Augusta Free Press) 
Coppercraft Distillery Releases Canned Michigan Mule
Coppercraft Distillery has announced it will now launch a canned version of a Michigan Mule. The Holland, Michigan-based distillery has announced this will be its second ready-to-drink canned cocktail, having recently released a canned version of a Gin and Tonic. (Holland Sentinel) 
Number of Brewery-Distillery Hybrids on the Rise
Anyone who’s wandered the floor of BrewExpo America—the trade show part of the annual Craft Brewers Conference—will have noticed, among all the brewing and packaging-equipment vendors, the increasingly prominent presence of stills in the exhibit hall. While it may seem a bit incongruous to the casual observer, it’s a sign of the times: A growing number of brewers are hybridizing their operations and adding spirits to their offerings. There are already 256 American businesses that hold both brewer’s and distiller’s licenses, according to the U.S. Alcohol and Tobacco Tax and Trade Bureau. (SevenFifty Daily)
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