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🛁 Will We Take A Shine To Next-Gen Moonshining?

Daily Briefing
Plus, legal minds talk crossover beverages͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
 
 
BevnetJuly 25, 2024
SPIRITS NEWSLETTER
The latest news & insights for the spirits industry.

In this Issue

Welcome to BevNET’s new spirits newsletter! We’ll be serving your inbox with shots of news, analysis, and commentary to help get you an edge in the spirits business. As with any service business, tips!

This week we’ll be digging into the ruling that made hobby distilling semi-legal and what the spirits industry can learn from it.

What insiders are reading: Check out recent headlines like sales data from NIQ and how aperitif brand Mommenpop is riding the spritz wave.

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-BevNET spirits editor, Ferron Salniker

🔥Hot Take

Will We Take A Shine To Next-Gen Moonshining?

Will We Take A Shine To Next-Gen Moonshining?
Credit: Our Whiskey Foundation, Jo Hanley

Is bathtub gin soon to be offered at your crafty neighbor’s next dinner party? Despite a new ruling allowing some home distillation, it’s doubtful we’ll see backyard hooch encroaching on bottle sales. 

Two weeks ago, a federal judge ruled in Texas that the 156-year-old U.S. law banning home distilling was unconstitutional. The decision came after a Texas-based group, Hobby Distiller’s Association (HDA), had pushed for the legalization of home distillation for over a decade— now it has won a lawsuit filed against the federal government in 2023. 

“That is outstanding news for our fight, and all of you who would like to distill legally,” read a Facebook post from the group, which counts over 1,000 members.

But, does that mean Americans can distill liquor at home now? The judge’s July 10 decision said the ban exceeds Congress’s constitutional authority but gave the federal government until yesterday to appeal. Once the stay expires, HDA members will be protected from prosecution federally, however that doesn’t exempt home distillers from state laws. 

“States under the 21st amendment really have a very significant role, if not the most significant role, in defining alcohol within their own borders,” said McDermott Will & Emery Alcohol Practice head, Alva Mather. Texas, for example, doesn't allow home distilling, although a few other states do.

The HDA said on Facebook that state laws “will be round two,” but even if the federal decision is appealed and upheld, the legal arguments that were persuasive to the federal court were solely based on principles of federal law, not principles of state law, said Mather.

Apart from the legal talk, while I’m not against people tinkering in their kitchens, we also don’t need homemade booze like we used to. When Jimmy Carter made small amounts of home winemaking and brewing legal in 1978, that set off new experimentation that blossomed into the craft beer movement. It’s hard to argue that the laws against home distilling have stymied innovation or hopeful distillers: the craft spirits movement emerged decades ago when the number of legal and illegal distilleries were at an all-time low, and now spirit lovers have access to a dizzying amount of craft labels from 2,753 distillers in the U.S. alone.

The decriminalization of informal food and drink, like, say, street vending, can be a huge plus for creating jobs, economic ladders, and bringing culturally diverse offerings into the mainstream— I’m all for seeing more of that in the spirits industry. However, we still have a lot of work to do in the current commercial spirits landscape to correct disparities in access to resources, capital, and visibility so that we can foster a more inclusive and dynamic industry.

RECENT HEADLINES

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Uncle Nearest Launches Mentorship Program to Cultivate Bar Industry Leaders

Last newsletter you heard a snippet of my chat with industry vet Lucia Creed about Uncle Nearest’s new mentorship program, now you can read more about how the unique trade mentorship program is pairing up 20 bartenders with heavy hitters in the spirits industry to support a personal project. 

Diageo Offloads Brands

This month so far we’ve seen Pernod offload its wine portfolio and Diageo sell two brands (and there are still a few days to go in July). Other spirits groups have dropped wine brands in the past decade and we’ve seen a recent spurt of other sales as groups focus on their top-selling categories (just last week Pernod announced it was doubling-down on American whiskey). Suntory also sold Courvoisier last year to focus on tequila and American and Japanese whiskey.

Legal Updates: Crossover Beverage Guidance Takes Shape, DTC Laws Advance

We listened to the latest legal debrief on changing regulations so you don’t have to. Here’s the skinny on new guidance documents that are aiming to shape how crossover products (like Hard MTN Dew or Fresca Mixed) are marketed, packaged, and sold at retail; plus new direct-to-consumer shipping legislation in certain states; and how scrutiny over the shipping of alcohol can impact your brand.

📖 WHAT WE'RE READING

Why is it so hard for RTD brands to find global success?
The IWSR tackles why there’s no global one-size fits all approach to RTDs. Will partnerships between globally recognized brands fare better than trusted flavors?

America's Love of Tequila and Beer is Deepening Mexico’s Water Crisis

This article by N.C. Stevens for SevenFifty Daily asks a question for our time: how can beverage makers keep their businesses stable without water? Specifically tequila and beer producers in Mexico who have enjoyed growth thanks to American demand.

Praying Before Eating – From ‘Libations’ to ‘Pouring One Out,’ Spilling Drinks Connects Souls Across Centuries and Continents

Did you know “pouring one out” for the departed homies is one of the oldest known human customs? Yolanda Evans digs into the history of this practice and what it means today, especially for descendants of the African diaspora.

🙊LOL

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Credit: @overhearddistrict

So much for last weekend’s boozy brunch.

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    July 25, 2024 4:04pm

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