Your To-Go Cocktails Make It Harder to Enforce Underage Drinking Laws

During the COVID-19 pandemic, dozens of states have given a boost to struggling restaurants by allowing them to sell cocktails to-go, through takeout, curbside pickup or home delivery. But the expansion of alcohol to-go laws has placed a heavy burden on understaffed alcohol enforcement agencies, which have been hard-pressed to prevent underage drinking.

Before the changes, agents had to make sure servers and bartenders were properly trained, checking photo IDs and not serving intoxicated patrons.

Now, agents also must check whether restaurants and bars are placing cocktails to-go in the proper container with the correct labeling. They have to make sure food is being ordered with alcoholic beverages, as most states require. And they need to monitor whether drivers are checking IDs when they deliver orders, so alcohol isn’t getting into the hands of those under 21.

Sometimes, it does.

Blurred Lines: How Co-Ferments, Hard Seltzer and Zero-Alc Options Are Transforming the Beverage Industry

Once upon a time, the lines between the categories of alcoholic beverages were clearly defined and easily recognizable. Every producer had a lane to stay in, a particular audience to reach, and a clearly defined message to transmit. However, according to IWSR Drinks Market Analysis, consumers today are switching with increasing frequency between beverages and trialing new beverages. We have entered a new era of blurred lines.

While total beverage alcohol consumption rose 2% in 2020 — the most significant gain for the industry in nearly two decades — what consumers were reaching for has changed significantly. Zero and low-alcohol products saw a major gain in consumer acceptance. And spirits experienced a 4.6% increase over the year prior, with hard seltzer cans and ingredients to mix cocktails at home as the clear category winners. Co-fermentation, hard seltzer, even alcohol free: new categories of hybrid drinks and inventive packaging are receiving a hero’s welcome in an industry hitherto not renowned for its pivot potential.

GA-'Pilot' cited for alleged DUI after Atlanta 'pedal pub' tips over, injuring 15

The "pilot" of a pedal-powered vehicle that tipped over with 15 people onboard Saturday was cited for allegedly operating it under the influence of drugs or alcohol, Atlanta police said.

The driver or chauffeur, whom operator Pedal Pub calls a "pilot," was also cited for an unspecified business violation following the early evening accident in Midtown Atlanta.

That person's name was not released. Georgia laws prohibiting impaired driving cover "alcohol, drugs or other intoxicating substances." Police did not specify which was suspected.

All 15 onboard the vehicle were injured after it "tipped over while making a turn," Atlanta police said in a statement Sunday morning.

Although police said none of the injuries appeared to be life-threatening, all 15 were hospitalized. The City of Atlanta Fire Rescue Department said two riders initially suffered critical injures, and three others were evaluated for serious injuries.

MA-Braintree Dave & Buster's liquor license suspended after serving 27 drinks in 90 minutes

Dave & Buster's at South Shore Plaza has been given a two-day liquor license suspension after the town's license board found the establishment guilty of serving intoxicated patrons.

Two customers were taken into protective custody in the incident. Police said their blood alcohol content was still above the legal presumption for intoxication hours later, according to testimony at Tuesday's board hearing.

Braintree police officer Brendan McLaughlin, the board's licensing agent, was working a paid detail at the establishment March 5 when a customer called his attention to a patron at the bar who appeared to be drunk. McLaughlin investigated and saw the customer nearly fall over. A second member of the group tried to intervene, and also showed signs of intoxication.

A check of the group's bar tab showed they had been served 27 drinks in a 90-minute period, including 22-ounce beers and shots of hard liquor. The group had also been drinking at a home before they went to Dave & Buster's, he said. The two men were taken into protective custody.

McLaughlin said one of the men turned down a shot of liquor and the bartender set it aside and served it to him later, and one of the men did not have identification on him.

NE-Norfolk businesses cited for selling alcohol to minors

Seven Norfolk businesses have been cited selling alcohol to minors, Norfolk Police officials said Monday morning.

NPD, with a grant provided by Healthy Communities Initiative, occasionally checks local business NPD Police Chief Don Miller said. Underage participants work with law enforcement and use their own valid Nebraska Driver’s license during the checks.

The checks were conducted on two separate evenings over the last couple weeks. A total of 61 businesses were checked to verify their compliance. During the checks, seven businesses sold alcohol to minors, Miller said. 

Citations were issued at each location and will be forwarded to the Madison County Attorney for prosecution.

In addition, last month Norfolk Police checked businesses that sell vape products. A total of six vape shops were checked, and one reportedly sold products to an underaged person. A citation was issued and will be forwarded to the county attorney for prosecution.

California beer and spirits DTC bill gets major overhaul

For a while, it looked like California Senate Bill 620 would authorize direct-to-consumer (DTC) shipments of beer and spirits for breweries and distilleries large and small. But the latest version of the bill cuts all language related to beer and limits spirits DTC shipping to producers making less than 150,000 gallons.

Here are five key takeaways from the May 2, 2022, amendment:

1. Beer DTC shipping is out
2. Big spirits is out
3. Fulfillment houses are out
4. DTC sales now cannot exceed wholesale sales
5. Common carriers cannot use contract employees to deliver alcohol

North Carolina authorities taking action to stop illegal alcohol shipping

The N.C. Alcoholic Beverage Control Commission has mailed a series of cease-and-desist letters to at least a half-dozen out-of-state retailers that have been caught illegally shipping spirituous liquor into North Carolina, according to the NC Beer & Wine Wholesalers Association.

They say the out-of-state retailers actively advertise liquor for sale through the internet.

Cease-and-desist letter recipients include Frootbat (Lewes, DE), Irokos Group (Millbury, MA), LaPresa Liquor & Deli/The Barrel Tap (Spring Valley, CA), Mission Trails Market/ SipWhiskey.com (San Diego, CA), Caskers (Albany, NY) and Vino Fine Wine and Spirits (New York, NY).

According to North Carolina law, “It is unlawful for any person who is an out-of-state retail or wholesale dealer in the business of selling alcoholic beverages to ship or cause to be shipped any alcoholic beverage directly to any N.C. resident who does not hold a valid wholesaler’s permit.”

The cease-and-desist letters give the offenders 30 days to provide a receipt or otherwise show that applicable NC state taxes have been paid. Otherwise, it will be considered presumptive evidence of guilt.

The out-of-state alcohol retailers are reminded that a violation of this nature is a felony under North Carolina law and that the NC Attorney General is authorized to take action through the Federal court system.

OH-Illegal gambling machines seized in Pataskala

At one of the busiest intersections in Pataskala, one local business just got hit with a red light.

Eric Wolf is the enforcement commander with the Ohio Investigative Unit. He says a complaint of illegal gambling was filed against Buster’s Corner Store in Pataskala back in February.

“These were the more traditional like video gambling devices,” he said. “Like a video game.”

He says undercover officers visited the business five times in the next four months. The most recent was last Thursday when Wolf says the establishment had three machines giving out money prizes without a license.

“These locations can be found just about everywhere,” Wolf said.

Wolf says the Ohio Casino Control Commission gives casinos licenses that help to ensure a level playing field with having a chance to win. However, illegal games that pop up around the state, he says, aren’t licensed, which means they aren’t regulated and have no oversight. Wolf says some machines are reprogrammed to make your odds of winning next to nothing.

“You don’t know what you’re getting into,” he said. “The favor is clearly set to the house. The business is there to make money off of these machines.”

Wolf says he knows there’s always a risk with gambling. He believes, though, that many Ohioans don’t realize the slot machines they see in a business might not be the same, fair slot machines they see at a casino.

Age Verification Failure in Alcohol Online Sales and On-Demand Delivery

Online alcohol retail and delivery has been growing rapidly in the United Kingdom (UK) in recent years, specially during the COVID-19 pandemic. From before the pandemic in 2017 more than a fifth (21%) of UK consumers had reportedly bought alcohol online, compared to a global average of 8%. The pandemic has accelrated this trend.

Alcohol Change UK released a report exploring the fast growing online alcohol retail and on-demand delivery sector.

Alcohol Change UK’s commissioned research questions how robust current systems are in protecting children and vulnerable adults from alcohol harm.

Alcohol Change UK commissioned Wrexham Glyndŵr University to examine age verification in online alcohol retail websites. Their study found major weaknesses. The report concludes that current methods of age verification are “largely ineffectual”.

Online alcohol retail websites relied on simple ‘honour’ checks, which are easily deceived, or alternative forms of ‘authentication’ that can be bypassed in various ways. These include statements which must be ticked by the user to confirm they are over 18 years of age or inputting the date of birth to confirm age. Both measures can be easily decieved. Some sites use a credit card to confirm age since those below 18 years cannot legally hold credit cards. But this method can be bypassed by a minor using an adult’s credit card.

In fact this is exactly what the student participants in the Wrexham Glyndŵr University study did. A selection of statements from the participants on how they bypassed age verification on online alcohol retaile websites reveal the problems with the current self-regulation system:

• “Lied about age on collection”
• “Lied about age; no ID check”
• “Websites just asked for DOB or if you’re over 18”
• “Adding alcohol onto Mum’s weekly delivery without her realising”
• “Ordered on Amazon and ASDA Online; no ID check at purchase or delivery”
• “Amazon account was someone’s over 18; signed for by someone else”
• “Ordered off Amazon with Dad’s credit card”

Understanding the Ins & Outs of Alcohol Delivery

On-demand alcohol delivery can be a lucrative incremental business for convenience store retailers, but there are many details to consider before taking the plunge.

Right from the outset, c-store retailers should consider two things, according to Blaine Grinna, director of retail partnerships at Drizly, an online ordering and delivery platform that facilitates the delivery of alcohol from local retailers, including convenience stores. 

“First, are you already participating in e-commerce in any capacity? Are you delivering some subset of your food through other marketplaces or your own native channel? Or is alcohol e-commerce brand new?” Grinna said. “I would look at what my inventory set looks like, who the potential partners are I can work with and within alcohol, treat each market separately.”

A second must for any c-store retailer considering a foray into alcohol delivery is to know the regulatory landscape; namely, being familiar with all state and local laws within the area the c-store retailer serves.

“It could be at the state level, county level or local municipality level. You must know if there are any regulations that will prevent you from being able to participate in alcohol e-commerce,” Grinna relayed. “Curbside pickup is an option in some places and delivery is not. And in some places, delivery is only available via your staff vs. being able to leverage a third-party provider for last-mile services.”

Unfortunately, most states do not have one easy location to find these answers. State websites can provide some insights, Grinna said, but probably not all of them. He recommends retailers contact their local division of alcohol beverage control.

First Half of 2022 State Alcohol Litigation Roundup

Source: Alcohol Law Review

Last year I provided an update on alcohol litigation against the states. Like last year, there continues to be a significant narrowing in the types of active litigation but a stubborn volume of specific challenges under one remaining theory: the dormant Commerce Clause.

For the most part, these lawsuits are attempts by out-of-state retailers to sell to in-state consumers. The lawsuits claim that because local, in-state retailers can sell and deliver to local consumers, that state alcohol laws that prevent out-of-state retailers from doing the same violate the dormant Commerce Clause. Moreover, the plaintiffs have shifted to blur the lines between wineries and retailers to claim that because states allow wineries to ship wine, they must allow retailers to do the same. 

The states note a host of problems in the lawsuits, mainly those out-of-state entities do not comply with in-state three-tier requirements and that wineries and retailers are licensed completely differently at both state and federal levels. I am obviously biased in favor of the states’ positions for various reasons. 

The Supreme Court has passed on several attempts to revisit these state alcohol laws since the 2019 Tennessee Wine and Spirits Retailers Association case. In 2021, the Supreme Court passed on two Dormant Commerce Clause challenges —one to a Missouri law out of the 8^th Circuit and another to a Michigan law in the 6^th Circuit.

So where are we now?  We are waiting for decisions on retail dormant Commerce Clause case challenges by out-of-state retailers to an Indiana law in the 7^th Circuit and to a North Carolina law in the 4^th Circuit. The 7^th Circuit held oral arguments in December 2021. The 4^th Circuit held oral arguments in March 2022. A decision on either of these cases could be made any day now.