BevAlc Roundup | TTB Labeling Comments Period Extended, Record California Grape Crush in 2018, and Be Your AVA’s Champion!

Daniel Kostrzewa | April 16, 2019

Last week saw the publication of a number of industry and agricultural reports from 2018, including global grape production, California wine crush, and craft beer sales, and we’re happy to say that more-or-less everything looks positive. Even the lower-than-in-the-past growth numbers for craft beer are a sign of continued success, especially when considered against other non-beverage alcohol industries.

But that’s hardly all the news we have to report on today. This Roundup also includes a couple looks at the looming ill-effects caused by the ongoing trade war and what might happen if it ratchets up against Europe. We then also look at the announced Gallo-Constellation deal, and hear how women are coming to lead and dominate the conversation about beer regulations in D.C.

In case you haven’t heard, the 2019 Direct-to-Consumer Wine Shipping Report has been published. Download your copy today here.

Our annual Global Compliance Wine Summit (previously DIRECT) will be held on May 30 at the Napa Valley Marriott. We are putting together a great schedule, so make sure to sign up soon.

Thanks for reading the Roundup this week. As ever, be sure to check out the rest of the ShipCompliant blog for regular updates, and we’ll see you again in another couple of weeks.

Regulatory News and Discussions

TTB Newsletter | This week’s top news includes the top 5 reasons why you should file your permit applications online versus mailing paper forms, plus information about TTB’s fiscal year 2018 annual report that is now available online, and an adjustment to the civil penalty for violations of ABLA. TTB

Looming Trade War Bodes Ill for Wine | U.S. Editor W. Blake Gray offers his take on the threat of tariffs against European wine.

Wine Industry Floods the TTB With Its Opinions On Wine Nutritional Labeling | Last month the TTB extended its deadline for Notice No. 176, the so-called “Modernization of the Labeling and Advertising Regulations for Wine, Distilled Spirits and Malt Beverages,” until June 26, 2019. Forbes

FTC Kills Deal to Merge Alcohol Distributors | The U.S. Federal Trade Commission said on Monday it had pushed two wine and spirits distributors to scrap their merger because of “significant concerns” about the deal. Reuters

California Wineries Shut Out Form China Amid Trade War | When China imposed retaliatory tariffs on American goods last April, vintners at Wente Vineyards in Livermore feared the move would push them out of China, the world’s fastest-growing wine market, for months or years. They were right. SF Chronicle

Amazon Planning a Deeper Diver Into Alcohol Sales? A D.C.-Area Job Posting Suggests So | Inc. is looking for a booze business policy and lobbying expert, and it could portend a push into more alcohol sales for the online retail giant. Washington Business Journal

Industry Updates: Market Conditions and Developments

California Crushes Record 4.3 Million Tons of Winegrapes in 2018 | According to the report, the state crushed more than 4.28 million tons of wine grapes in 2018 – up by 7 percent compared to 2017, when the state crushed approximately 4 million tons of wine grapes. Wine Business

Global Wine Output Recovered in 2018 from 60-Year Low | After a 60-year low in 2017, when production was dented by extreme weather in Europe, including drought and storms, world output rose 17 percent last year to 292.3 million hectoliters. Reuters

CBC: Slowing Growth in 2018 Was “Not a Blip” | Slower growth and increased competition are the “new normal,” Brewers Association (BA) leaders hammered home on the second day of the trade group’s annual Craft Brewers Conference (CBC). Brewbound

What Gallo’s $1.7 Billion Buyout of Constellation’s Bargain-Priced Wines Really Means | The 30 brands include familiar winery names like Ravenswood, Clos du Bois, Manischewitz, Cook’s and Mark West, mostly bottles that sell for $11 or less. SF Chronicle


Female Lobbyists Change Face of Beer Industry | The leading voices for the beer industry in Washington, D.C., are women, breaking the stereotype that beer is a male-dominated business. The Hill

On Wine Marketing — Be the Winery That Champions Your AVA | I’m here to urge wineries to consider being the champion of their sub-appellation; to be the winery that educates about all things home turf; to be the advocate and endorser of that officially recognized region they call home. Fermentation

What Is Oxidation Doing to My Wine? | Oxidation can be responsible for the flat taste of wine that’s past its drinking window, but it can also be the element that unlocks the array of flavors that wine grapes can offer. Wine Enthusiast

Three Studies Take A Look at Various Wine Bottle Closure Preferences | in 1999 synthetic was about 2% of the wine bottle closure market, screw cap was at 3%, one-piece natural cork was about 34% and technical (composite) cork made up 61%. Forbes

What’s Fueling the Rapid Growth of Hard Seltzer? | Drinks professionals discuss the factors behind the low-ABV category’s rise — and its impact on the industry. SevenFifty Daily



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