Dear Senator:

As a winery and small, family-owned business in your state, we strongly urge you to cosponsor and support the Craft Beverage Modernization and Tax Reform Act (S. 362), introduced by Senators Ron Wyden (D-OR)  and Rep. Roy Blunt (R-MO). A two-year version of the bill was passed and signed into law as part of the Tax Cuts and Jobs Act of 2017. The new tax credits enacted as part of the Tax Cuts and Jobs Act will go away on December 31 of this year if S.362 is not passed. This could be potentially damaging to the new jobs and investments wineries in our state have made with their savings.

Today there are more than 9,000 wineries spread across all fifty states.  The overwhelming majority of these are small, family-owned businesses that bring incredible economic benefit to their agricultural communities wherever they are located.  Wine is one of agriculture’s greatest value-added products and generates substantial benefits in the form of investments, jobs, tax revenue, and significant support for local businesses through wine tourism.  In total, the American wine industry has an annual economic impact on the U.S. economy of over $220 billion.

Wineries are also some of the most heavily taxed and regulated businesses in the country, and this legislation will continue to provide meaningful relief from some of these burdens.   We have worked closely with the authors of the bill to ensure that key provisions relating to wine are included and will focus benefits primarily on small and medium-sized producers, many of which were started in the last few years.  The provisions relating to wine will reduce the tax burden on producers, reduce costly regulatory restrictions, and allow for the innovation of new products.

We urge you to cosponsor this legislation and support local businesses across our state.    

Thank you for your time and consideration. Please let me know if you will sign on.

Sincerely,

_________

We also encourage you to email a “Thank You!” note to the Senators  who have already signed on if they represent your state, and to let WineAmerica know if you have asked those above toy sign on or thanked current cosponsors for doing so in order that we may keep track on this end.

Here’s a list of Senators who are not currently co-sponsors of S. 362, Craft Beverage Modernization and Tax Reform Act. Please voice your concerns to them.

Lamar Alexander (R-TN)

Richard Blumenthal (D-CT)

Mike Braun (R-IN)

Sherrod Brown (D-OH)

Richard Burr (R-NC)

Benjamin Cardin (D-MD)

Susan Collins (R-ME)

John Cornyn (R-TX)

Tom Cotton (R-AR)

Kevin Cramer (R-ND)

Mike Crapo (R-ID)

Ted Cruz (R-TX)

Michael Enzi (R-WY)

Deb Fischer (R-NE)

Lindsey Graham (R-SC)

Chuck Grassley (R-IA)

Mazie Hirono (R-HI)

John Hoeven (R-ND)

Cindy Hyde-Smith (R-MS)

James Inhofe (R-OK)

Doug Jones (D-AL)

Tim Kaine (D-VA)

James Lankford (R-OK)

Mike Lee (R-UT)

Joe Manchin (D-WV)

Edward Markey (D-MA)

Mitch Mc Connell (R-KY)

Christopher Murphy (D-CT)

Rand Paul (R-KY)

David Purdue (R-GA)

Jack Reed (D-RI)

James Risch (R-ID)

Mitt Romney (R-UT)

Jacky Rosen (D-NV)

Washington, D.C. • February 13, 2019 – The Craft Beverage Modernization and Tax Reform Act (CBMTRA) was reintroduced in the U.S. House of Representatives today with strong support from a broad group of industry trade associations including the beer, wine, spirits, and cider sectors.

The legislation, which was first introduced in 2015 to recalibrate federal excise taxes and streamline regulations on beverage alcohol producers, was reintroduced in 2017 by Representatives Erik Paulsen (R-MN) and Ron Kind (D-WI), garnering strong support from the majority of Congress as well as industry groups. Legislation that included a two-year provision of CBMTRA passed in December 2017 as part of the broader Tax Cuts and Jobs Act.

Representatives Kind and Mike Kelly (R-PA) are the lead co-sponsors of the bill upon its reintroduction today. They were joined by: Darin LaHood (R-IL), Chellie Pingree (D-ME), Patrick McHenry (R-NC), Earl Blumenaeur (D-OR), Peter DeFazio (D-OR), and Dan Newhouse (R-WA).

Leaders from the Brewers Association (BA), Beer Institute, WineAmerica, Wine Institute, Distilled Spirits Council, American Craft Spirits Association, and U.S. Association of Cider Makers agree that the legislation creates a more fair and equitable tax structure for beverage alcohol producers and their consumers. The legislation empowers these key economic players to continue to invest in their businesses and boost jobs across the country.

“The American wine industry generates more than $220 billion annually for the American economy through investments, jobs, tourism, and taxes,” said Jim Trezise, president of WineAmerica. “The Craft Beverage Modernization and Tax Reform Act enhanced our industry’s ability to contribute even more by channeling tax savings into purchases of new equipment, additional employees, increased wages, expanded distribution, and facility enlargements. The wine business is highly competitive, capital intensive, and labor intensive, so having extra funds available provides a real boost to our industry’s growth. We are deeply grateful for the original legislation, and respectfully urge that it be made permanent.”

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Contact:

Michael Kaiser: mkaiser@nullwineamerica.org 

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About WineAmerica

The mission of WineAmerica is to encourage the dynamic growth and development of American wineries and winegrowing through the advancement and advocacy of sound public policy.

WineAmerica was founded in 1978 as the Association of American Vintners, a trade association of wineries with membership based in the eastern U.S. By 1991, the association had expanded and merged with the National Vintners Association forming the American Vintners Association. The association was renamed WineAmerica in 2003 to reflect its national role.

WineAmerica serves the interests of wineries in all 50 states by leveraging its formidable grassroots advocacy strength to benefit the entire industry.

Washington, D.C. • February 06, 2019 –  The Craft Beverage Modernization and Tax Reform Act (CBMTRA) was reintroduced in the U.S. Senate today with strong support from a broad group of industry trade associations including the beer, wine, spirits, and cider sectors.

The legislation, which was first introduced in 2015 to recalibrate federal excise taxes and streamline regulations on alcohol beverage producers, was reintroduced in 2017 by Senators Ron Wyden (D-OR) and Roy Blunt (R-MO), garnering strong support from the majority of Congress as well as industry groups. Legislation that included a two-year provision of CBMTRA passed in December 2017. Senators Wyden and Blunt are once again the lead co-sponsors of the bill upon its reintroduction today.

“People around the world enjoy Oregon wine, craft beer, cider and spirits—providing not only a serious source of home state pride but also a huge boon to our state’s economy,” Wyden said. “By modernizing burdensome rules and taxes for craft beverage producers, this legislation will level the playing field and allow these innovators to further grow and thrive.”

“The craft beverage industry is driven by small businesses that support thousands of jobs and contribute billions in economic output,” said Blunt. “This bill will remove tax and regulatory barriers that are making it harder for Missouri’s brewers, distillers, and winemakers to grow and compete. I’m encouraged by the strong, bipartisan support this measure had in the previous Congress and look forward to working with our colleagues to get it to the president’s desk.”

Leaders from the Brewers Association (BA), Beer Institute, WineAmerica, Wine Institute, Distilled Spirits Council, American Craft Spirits Association, and U.S. Association of Cider Makers agree that the legislation creates a more fair and equitable tax structure for beverage alcohol producers and their consumers. The legislation empowers these key economic players to continue to invest in their businesses and boost jobs across the country.

“Small and independent craft brewers are grateful for the ongoing bipartisan support for the Craft Beverage Modernization and Tax Reform Act,” said Bob Pease, president and CEO of the Brewers Association. “The legislation is not just economically smart but enables Main Street brewers to do what they do best: create and innovate. Our brewers can be found in every state and employ more than 135,000 Americans. They are at the heart of what makes small businesses so important to the nation’s greater economy. We remain hopeful that this legislation will be made permanent to support the small brewers of today and tomorrow.”

“I want to thank Senators Blunt, Portman, and Wyden as well as numerous members of Congress from both sides of the aisle and across the country for their continued commitment to providing excise tax relief to all of our nation’s brewers and beer importers,” said Jim McGreevy, president and CEO of the Beer Institute. “Since our nation’s inception, brewers and beer importers have been integral to our national fabric. Today, America’s beer industry continues to be a crown jewel in our nation’s manufacturing sector, supporting more than 2.2 million good-paying jobs and pouring more than $350 billion into the national economy. Making federal excise tax relief permanent for our nation’s brewers and importers will enable them to continue to innovate, invest in their businesses, support jobs, and give back to their communities.”

“The American wine industry generates more than $220 billion annually for the American economy through investments, jobs, tourism, and taxes,” said Jim Trezise, president of WineAmerica. “The Craft Beverage Modernization and Tax Reform Act enhanced our industry’s ability to contribute even more by channeling tax savings into purchases of new equipment, additional employees, increased wages, expanded distribution, and facility enlargements. The wine business is highly competitive, capital intensive, and labor intensive, so having extra funds available provides a real boost to our industry’s growth. We are deeply grateful for the original legislation, and respectfully urge that it be made permanent.”

“Without a doubt, CBMTRA is having the intended positive effect on wineries all over the country,” said Bobby Koch, president & CEO of the Wine Institute. “Wineries are using the tax savings to invest in the future growth of their businesses, and in doing so, are supporting their families, their employees, and their communities.”

“The Craft Beverage Modernization and Tax Reform Act marked the first federal excise tax reduction for distilled spirits since the Civil War and enabled distilleries to invest back into their businesses and communities across the United States,” said Distilled Spirits Council CEO Chris Swonger. “Making this legislation permanent would provide stability for distillers in moving forward to generate new jobs and support local agriculture and tourism.”  

“Federal excise tax reform has dramatically helped to stimulate craft spirits growth, and a permanent relief is critically important to securing the future of our industry,” added Margie A.S. Lehrman, CEO, American Craft Spirits Association. “As of August 2018, the number of active craft distillers in the U.S. had grown by 15.5% over the last year to nearly 2,000, yet without permanent and immediate reform, the stability of this vibrant industry is bound to be paralyzed. Without the certainty of a long-term reduction, it is impossible for any new or existing distillery to implement a business plan when the wide tax variable threatens the ability to hire new employees,  purchase equipment, provide staff benefits, and continue to grow.”

“Regional-brand cider sales increased 22 percent last year, and more than 100 cideries opened their doors for the first time. Hard cider is now produced in 48 states. Much of the cider category’s growth is attributable to the excise tax credits these companies are now receiving,” said Michelle McGrath, executive director, U.S. Association of Cider Makers. “Small cideries are expanding their staff and operations in a direct response. The industry can continue to support manufacturing, neighborhood renewal projects, rural economies, and orchardists, but we need these credits to stick around on a permanent basis to do so. Sunset clauses are no way to plan a business, and cider taxes are extremely complex—uncertainty makes navigating them even more challenging. We’re hopeful to once more see broad bipartisan support for making these credits permanent with the Craft Beverage Modernization and Tax Reform Act. The margins are so tight in cider that many family-owned cideries are literally depending on it.”

A full list of Craft Beverage Modernization and Tax Reform Act co-sponsors and supporters can be found here.

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Contact:

Maggie McClain (on behalf of the Brewers Association)

mmcclain@nullbannerpublicaffairs.com

703.485.6551

Ramsey Cox (on behalf of the Beer Institute)

rcox@nullbeerinstitute.org

202.737.2337

Michael Kaiser (on behalf of WineAmerica)

mkaiser@nullwineamerica.org

202.223.5172

Gladys Horiuchi (on behalf of the Wine Institute)

Communications@nullWineinstitute.org

Frank Coleman (on behalf of the Distilled Spirits Council)

fcoleman@nulldistilledspirits.org

202.682.8840

Alexandra Clough (on behalf of the American Craft Spirits Association)

alexandra@nullgatherpr.com

516.428.7210

Michelle McGrath (on behalf of the U.S. Association of Cider Makers)

Michelle@nullciderassociation.org

503.593.1716

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About the Brewers Association

The Brewers Association (BA) is the not-for-profit trade association dedicated to small and independent American brewers, their beers and the community of brewing enthusiasts. The BA represents 4,800-plus U.S. breweries. The BA’s independent craft brewer seal is a widely adopted symbol that differentiates beers by small and independent craft brewers. The BA organizes events including the World Beer Cup®, Great American Beer Festival®, Craft Brewers Conference® & BrewExpo America®, SAVOR: An American Craft Beer & Food Experience, Homebrew ConTM, National Homebrew Competition and American Craft Beer Week®. The BA publishes The New Brewer® magazine, and Brewers Publications® is the leading publisher of brewing literature in the U.S. Beer lovers are invited to learn more about the dynamic world of craft beer at CraftBeer.com® and about homebrewing via the BA’s American Homebrewers Association® and the free Brew Guru® mobile app. Follow us on Facebook, Twitter and Instagram.

The Brewers Association is an equal opportunity employer and does not discriminate on the basis of race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, or marital/familial status. The BA complies with provisions of Executive Order 11246 and the rules, regulations, and relevant orders of the Secretary of Labor.

About the Beer Institute

The Beer Institute is a national trade association for the American brewing industry, representing brewers of all sizes, as well as beer importers and industry suppliers. First founded in 1862 as the U.S. Brewers Association, the Beer Institute is committed today to the development of sound public policy and to the values of civic duty and personal responsibility. For additional updates from the Beer Institute, visit our website, follow @BeerInstitute on Twitter, like the Beer Institute on Facebook, and follow the Beer Institute on Instagram.

About WineAmerica

The mission of WineAmerica is to encourage the dynamic growth and development of American wineries and winegrowing through the advancement and advocacy of sound public policy.

WineAmerica was founded in 1978 as the Association of American Vintners, a trade association of wineries with membership based in the eastern U.S. By 1991, the association had expanded and merged with the National Vintners Association forming the American Vintners Association. The association was renamed WineAmerica in 2003 to reflect its national role.

WineAmerica serves the interests of wineries in all 50 states by leveraging its formidable grassroots advocacy strength to benefit the entire industry.

About the Wine Institute

Established in 1934, Wine Institute is the public policy advocacy group of nearly 1,000 California wineries and affiliated businesses that works to enhance the environment to responsibly produce, promote and enjoy wine. Wine Institute also supports the economic and environmental health of its communities through its leadership in sustainable winegrowing and a partnership with Visit California to showcase California’s wine and food offerings and the state as a top travel destination. Wine Institute’s membership represents 80 percent of U.S. wine production and over 90 percent of U.S. wine exports. For information visit www.wineinstitute.org or its consumer website at: www.discovercaliforniawines.com.

About the Distilled Spirits Council

The Distilled Spirits Council is the national trade association representing the leading producers and marketers of distilled spirits in the United States. The Council guards the sector against higher taxes and works diligently to reduce trade barriers across the globe, while supporting policies that increase adult market access for spirits products, provide greater convenience and choices for adult consumers, and encourage responsible and moderate consumption. The Council is a go-to resource for sector data, changes in public policy, cultural acceptance programs, U.S. spirits exports to foreign markets, and alcohol and science.  For more information about the Council, go to www.distilledspirits.org.

About the American Craft Spirits Association

The American Craft Spirits Association is the only national, registered non-profit trade association that exclusively represents the U.S. craft spirits industry. Its mission is to elevate and advocate for the community of craft spirits producers, and membership in ACSA is open to anyone.  

ACSA is governed by a Board of Directors elected by the eligible voting members of the Association.  Voting members must be independent, licensed distillers (DSPs) annually removing fewer than 750,000 proof gallons from bond (the amount on which a Federal Excise Tax is paid.) who subscribe to ACSA’s Code of Ethics.

About the United States Association of Cider Makers

The USACM is an organization of cider and perry producers in the United States. Our mission is to grow a diverse and successful U.S. cider industry by providing valuable information, resources and services to our members and by advocating on their behalf.

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6.20.16

The Food Safety Modernization Act (FSMA) was passed by Congress in late 2010 and signed into law by President Obama on January 4, 2011. The intent of the FSMA is to allow FDA to “focus more on preventing food safety problems rather than relying primarily on reacting to problems after they occur.” The FSMA broadens the enforcement power of the Food and Drug Administration and creates higher rates of compliance with new prevention and risk based food safety standards. Additionally, it holds imported foods to the same standards and domestic foods and requires the FDA partner with local and state authorities on implementation.  The FSMA brings the wine industry under FDA jurisdiction more to than ever before.

The FSMA is a multi faceted piece of legislation that has taken nearly five years to fully implement. The last regulations authorized by the law were published on May 27. The preventative enforcement powers of the FDA have been expanded in the FSMA. The new powers are as follows and next week we will examine the regulations that have been written to enforce these new powers.

Prevention

• Mandatory preventive controls for food facilities: Food facilities are required to implement a written preventive controls plan.  This involves: (1) evaluating the hazards that could affect food safety, (2) specifying what preventive steps, or controls, will be put in place to significantly minimize or prevent the hazards, (3) specifying how the facility will monitor these controls to ensure they are working, (4) maintaining routine records of the monitoring, and (5) specifying what actions the facility will take to correct problems that arise.  
• Mandatory produce safety standards:  FDA must establish science-based, minimum standards for the safe production and harvesting of fruits and vegetables.  Those standards must consider naturally occurring hazards, as well as those that may be introduced either unintentionally or intentionally, and must address soil amendments (materials added to the soil such as compost), hygiene, packaging, temperature controls, animals in the growing area and water. )
• Authority to prevent intentional contamination:FDA must issue regulations to protect against the intentional adulteration of food, including the establishment of science-based mitigation strategies to prepare and protect the food supply chain at specific vulnerable points.

Throughout the summer we will be examining the Food Safety Modernization Act and how it impacts the wine industry.

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Questions? Contact Michael Kaiser, Director of Public Affairs, mkaiser@nullwineamerica.org.

WineAmerica is the national voice the American wine industry. Based in Washington, D.C., WineAmerica represents wineries in 43 states and leads a coalition of state and regional wine and grape associations.  As an industry leader, WineAmerica encourages the dynamic growth and development of American wineries and winegrowing through the advancement and advocacy of sound public policy.

By Michael Kaiser

Small Bills Bubbling Under the Radar

With the presidential election in full swing, and with many Senators and Members of Congress seeking re-election, there will not be many substantive bills either passed or signed into law this year.  However, there are several active bills that could impact the wine and grape industries.

GMO Labeling

The Senate Agriculture Committee passed a bill out of committee that would invalidate any state GMO labeling requirement and establish a federal voluntary labeling system. The bi-partisan proposal would implement the following standards:

• Provides definitions for the voluntary labeling of genetically modified (or bioengineered) foods
• Authorizes the Secretary of Agriculture to draft and implement regulations establishing a national voluntary bioengineered food labeling standard. The regulation must prohibit express or implied claims regarding safety or quality based on whether food is or is not bioengineered or produced or developed with the use of bioengineering and include a process to determine other factors and conditions for food to be labeled as bioengineered
• Directs USDA to provide science-based education, outreach and promotion in coordination with other Federal agencies.
• Requires a mandatory report to Congress on the availability of information regarding whether food is or is not bioengineered or whether bioengineering was or was not used in the development or production of food, including labels authorized under Federal and state authorities, as well as private voluntary programs.
• Defines food according to the Federal Food, Drug, and Cosmetic Act.
• Establishes a federal labeling standard and prohibits state labeling of products

It is unclear what, if any, the impact will be for the wine industry. As this would establish a voluntary labeling standard and prohibit individual state labeling standards, wineries would not be required to change any of their labeling. The Vermont state bill that requires mandatory GMO labeling currently exempts alcohol. That bill, which goes into effect on July 1, would require food manufactures to create labels specific to Vermont.

Along with this voluntary bill (which now will face a full Senate vote) a group of four senators have introduced a mandatory labeling bill. The Biotechnology Food Labeling Uniformity Act, introduced by Democratic Sens. Jeff Merkley of Oregon, Patrick Leahy of Vermont, Jon Tester of Montana and Diane Feinstein of California, would create a mandatory federal labeling standard. The bill would amend the Food, Drug  and Cosmetic Act and would allow manufactures to label the following ways:

• Allowing the use of a parenthesis following an ingredient to indicate that the ingredient is “genetically engineered.”
• Identifying GM ingredients with an asterisk and providing an explanation at the bottom of the ingredients list.
• Applying a catch-all statement at the end of the ingredient list stating the product was “produced with genetic engineering.”
• An FDA approved symbol to indicate genetically modified ingredients

It is unclear if the Senate will act on the mandatory bill, the House passed a voluntary labeling bill last year, and the full Senate is expected to take up the bill soon.

Menu Labeling Delay

The House has passed the “Common Sense Nutrition Disclosure Act” by a vote of 266-144. The bill, written to amend the chain restaurant menu labeling requirements that go into effect on December 1, would delay the implementation of the requirements and change how the requirements are listed. Alcohol products listed on standard menus of establishments with twenty or more locations (see our story on it here) must include their calorie and serving size information.  The bill would allow restaurants to develop their own serving size standards and develop calorie counts on their recommended serving size and would allow for the use of USDA and FDA accepted ranges for calorie counts. The bill would also allow establishments that primarily derive their sales from delivery will be allowed to disclose their nutritional information in an online format. If the bill is passed as written, the Secretary of Agriculture will have a year to draft the new regulations amending the current requirements, and then allow a year before they are implemented.

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Questions? Contact Michael Kaiser, Director of Public Affairs, mkaiser@nullwineamerica.org

WineAmerica is the national voice of the American wine industry. Based in Washington, D.C., WineAmerica represents wineries in 43 states and leads a coalition of state and regional wine and grape associations. As an industry leader, WineAmerica encourages the dynamic growth and development of American wineries and winegrowing through the advancement and advocacy of sound public policy.