Thursday, July 10, 2008

States Loosen Prohibition Liquor Laws

The times they are a-changin’ and so are state liquor laws. A host of what some may consider antiquated liquor laws have been overturned this year in Colorado, Idaho, Utah, Wisconsin and Virginia, marking a victory for larger distillers and Discus.

Colorado became the 35th state this week to allow residents to buy alcohol on Sundays, reports the Associated Press. The new law replaces a 1933 statute requiring liquor stores to close on Sunday, and also allows Coloradans to buy normal-strength beer on Sundays. Before, residents could only purchase reduced-strength, 3.2 percent alcohol beer at grocery stores on Sundays.

Owners of supermarkets and other stores that sell weaker beer feel the new law will put them out of business. As a result, they are pushing the General Assembly to approve full-strength beer sales in their stores. Only liquor stores are currently allowed to sell full-strength beer.

In Idaho, residents can now purchase spirits on Election Day, with a new law that replaces a 1939 measure intended to prevent the trading of alcohol for votes.

Virginia, meanwhile, overthrew a state law that banned restaurants from mixing spirits with wine or beer, which meant restaurants couldn’t serve sangria. The law took effect in July.

Wisconsin legislators revised a law prohibiting municipal officials from selling products or services to bars or other establishments with liquor licenses. The strange law drew attention when a local elected official in the city of Stevens Point was forced to resign a year ago after it became known that he ran a business that sold vacuum cleaners to pubs and restaurants, reports the AP.

Utah Gov. Jon Huntsman Jr. has called for “greater normalcy” in the state’s liquor and beer regulation to help boost tourism. He was able to pass a law increasing the amount of alcohol in a standard cocktail from 1 ounce to 1.5 ounces, but had to agree to ban wine coolers from Utah grocery stores as a compromise. The state also prohibited residents from ordering extra shots of alcohol to add to their drinks.

David Wojnar, vp for state government relations with Discus said in the article that “people’s attitudes are maturing.” He said that many state alcohol laws are “vestiges of Prohibition” that hurt businesses and serve few modern practical purposes.

FRANCE TO FOLLOW IN NEW WORLD PRACTICES

There’s another interesting article today on France losing the top spot in world wine production to Spain. As we reported yesterday, France is slated to fall behind Spain in 2015 if current trends continue, according to a study by Credoc, a research group for the Vignerons Independants winemakers association. The expected drop follows decades of decline due to falling consumption at home and France's failure to adapt to new consumption habits and competitors from the new world, says the AP. Spain, however, is adapting where France has failed.

Eric Rosaz, director of France's independent wine producers association, says France is making improvements.

"I am convinced that France has the arms to fight and keep her place as leader, but for this we need to get away from weight of history, the weight of our culture, and enter a new dynamic," he told The Associated Press.

He says French producers are working to make their wine more accessible by administering screw tops, boxed wine, easy-to-read labels and advanced marketing.

The survey recommends that independent producers band together to promote their wines abroad and gain better distribution to supermarkets and other outlets. It also says winemakers need to adapt to the tastes of new consumers, including women, young people and oversea drinkers. The study shows that France is not doing a good job catering to British and American taste buds.

In 2015, the U.S. will be the world's largest wine consumer with 33 million (871 million gallons) hectoliters, ahead of France's 26 million (686 million gallons) and Italy's 23 million (607 million gallons), according to the study. Britain is moving up the chart with an expected consumption of 13.5 million hectoliters (356 million gallons) in 2015.

France’s champagne and fine Bordeaux does well overseas, but it is the lesser known regions that struggle against competitors. Chronic overproduction by European winemakers also prevent many producers from selling their wine at a decent price.

BACARDI ELECTS NEW DIRECTORS TO BOARD

Facundo L. Bacardi, chairman of Bacardi Limited, today announced that Melanie Liddle Healey and Roman Martinez have been elected to serve on the company's board of directors.

Melanie serves as group president, global feminine and health care for the Procter & Gamble.
Previously Ms. Healey served as president of global feminine care (2005-2007) and vice president of North America feminine care (2001-2005). She joined Procter & Gamble in 1990 and held a variety of marketing roles in Brazil and Mexico on leading P&G brands before being appointed general manager of feminine care for Latin America in 1998. Ms. Healey began her 25 year career in marketing at Johnson & Johnson.

Roman Martinez is the retired managing director of Lehman Brothers, where he had a more than thirty year career with the company. He is currently a private investor and serves on various corporate and non-profit boards including Alliant Techsystems, Inc., CIGNA Corporation and New York Presbyterian Healthcare System. Mr. Martinez is also a member of the Council on Foreign Relations. He has been involved in a broad spectrum of U.S. and international investment banking activities covering advisory as well as financing assignments.

CEDC CLOSES INVESTMENT IN RUSSIAN ALCOHOL

Central European Distribution Corporation (or CEDC) says it has closed its strategic investment in Russian Alcohol Group, the leading vodka producer in Russia and owner of Green Mark. US-based CEDC's equity investment is $181.5 million and provides the company with an initial stake of approximately 42%. The company also purchased $103.5 million of exchangeable notes which bear interest from 8.3% to 10.5% and can be fully exchanged into additional shares of Russian Alcohol starting in 2010. CEDC’s transaction coincides with Lion Capital LLP's acquisition of a controlling stake in Russian Alcohol, which constitutes 10% market share in Russia's vodka market.

WSD BRIEF:

GOV. SCHWARZENEGGER SIGNED LEGISLATION that allows the California wine industry to donate wine to non-profit fundraising events. AB 1964 allows non profits to obtain up to three temporary alcohol licenses each year to conduct wine dinner and wine auction fundraisers.


Until tomorrow, Megan

“Perhaps, after all, America never has been discovered. I myself would say that it had merely been detected.”
Oscar Wilde

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