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Repeal Gave States Long-sought Control Over Alcohol
Alcohol consumption in 19th century America was far higher than today. Regulation was virtually nonexistent. Indeed, scholar W.J. Rorabaugh, in “The Alcohol Republic,” characterized the United States in that era as “a nation of drunkards.”
Not surprisingly, these higher consumption rates spawned waves of temperance movements by organizations such as the Woman’s Christian Temperance Union and the Anti-Saloon League, and debate over the “alcohol problem” dominated our political discourse.
Initially, prohibition advocates pursued local option laws to permit localities to ban liquor traffic and shut down tied-house saloons. Once communities went dry, they pressured the rest of the state to follow suit. By the end of 1916, 23 states were dry. The evolution of our national economy and the growth of interstate commerce ultimately gave rise to lawsuits challenging state statutes which limited the sale of alcohol.
In the late 19th century, the United States Supreme Court narrowly circumscribed the power of states to regulate the importation of intoxicating liquor under the Dormant Commerce Clause. The crippling of state regulation by the court provoked a congressional response in an effort to safeguard the state’s right to regulate alcohol, including the importation of alcohol into the state. Congress passed the Wilson Act, 27 U.S.C. ¬ß 121 (1890), declaring that, upon arrival in the state, the sale, distribution and transportation of intoxicating liquor was subject to state regulation.
The court narrowly construed the Wilson Act and concluded that the Dormant Commerce Clause prohibited state regulation of direct shipments to in-state consumers by out-of-state distributors.
As a result, railway express began to function as retail outlets. Congress responded with the passage of the Webb-Kenyon Act, 29 U.S.C. § 122 (1913), which gave the states power to prohibit the sale, distribution, transportation or importation of intoxicating liquor into the state in violation of its laws. The constitutionality of the Webb-Kenyon Act was upheld by the court in 1917.
Thereafter, the states pursued adoption of the 18th Amendment, a Herculean task because it required a two-thirds majority in both the House and Senate and then an affirmative vote by three-fourths of the states. Only two states, Connecticut and Rhode Island, refused to ratify the amendment. Prohibition took effect on Jan. 16, 1920.
Indeed, Prohibition engendered both organized crime and a nationwide disregard for the law. “Men can not be made good by force. In the end, intelligent lawmaking rests on the knowledge or estimate of what will be obeyed. Law does not enforce itself,” wrote John D. Rockefeller in the forward of Raymond Fosdick and Albert Scott’s “Toward Liquor Control.”
Prohibition proved to be “a noble but failed experiment” which had the unfortunate ancillary effect of engendering organized crime. There were two great lessons learned from Prohibition. First, noble motives alone were insufficient and ineffective in changing behavior without broad public support. Second, the nation was too large and diverse to accept a single standard of temperance or regulatory control.
Dave Raber is a partner with the Columbus law firm of Lumpe & Raber.
Fat Head’s Beers Shines Despite GABF Snafu
DENVER — An Ohio brewer saw a brewery of the year award taken away due to a mistake by another entrant at this year’s Great American Beer Festival competition.
On the strength of winning three medals, Fat Head’s Brewery & Saloon of North Olmsted initially was named the 30th competition’s Mid-Size Brewing Company of the Year. Following the initial announcement, however, GABF staff discovered that Karl Strauss Brewing Co. had mistakenly registered as a mid-size brewpub; GABF competition guidelines classify the San Diego brewer as a production facility, placing it in the Mid-Size Brewing Company category. The results were recalculated, resulting in Karl Strauss’ three medals, two golds and a bronze, trumping Fat Head’s gold, silver and bronze to win Mid-Size Brewing Company of the Year. Read more
CraftWorks Acquires Seven Old Chicago Restaurants From Franchisee
BROOMFIELD, Colo. (PRNewswire) — CraftWorks Restaurants & Breweries last month announced the acquisition of seven Old Chicago Pizza & Taproom locations from longtime franchise partner OCI Enterprises Inc.
The restaurants are located across the Southeast, with a presence in Tennessee, Kentucky and Indiana, and will operate as corporate-owned restaurants. Read more
Who’s News – November
Who’s News summaries are compiled from news releases provided by the suppliers.
DISTILLED SPIRITS COUNCIL — Michele Famiglietti was promoted to Senior Vice President of Member Relations. Famiglietti, who has been at the council for 15 years, will be responsible for member recruitment and services, grassroots advocacy and management of the association’s many events.
Kelly Pike Poulsen was named Vice President of Federal Government Relations. She most recently was Vice President of Government Affairs at the American Frozen Food Institute.
MICHTER’S — Pamela Heilmann was promoted to Master Distiller, previously held by Willie Pratt, who will transition to Master Distiller Emeritus. Vice President Andrea Wilson will add the position of Master of Maturation to her duties, and Distillery Manager Dan McKee will move up to the Distiller position formerly held by Heilmann.
GRANITE CITY FOOD & BREWERY — Phil Costner was appointed CEO. He most recently was President and CEO of the Elite Sports Bar Group, and previously was Senior Vice President of Food, Beverage & Retail at Universal Studios Hollywood, Vice President of Food & Beverage at TGI Friday’s, President and COO of La Madeleine and President of Mimi’s Cafe. He is a graduate of Loyola University in Chicago and holds an MBA from the University of Minnesota Curtis L. Carlson School of Management.
Dave Brantner was promoted to Corporate Executive Chef. He has a culinary arts degree from Washburne Trade School and previously worked for The Cheesecake Factory and Marriott’s Corporate Services and Clubs.
MISSION HILL FAMILY ESTATE — Ian Morden was named Managing Director of the British Columbia winery. He previously was the Estate Director of New Zealand’s Cloudy Bay Vineyards, which is part of the LVMH Group.
TRUETT-HURST — Evan B. Meyer was appointed Chief Financial Officer, replacing Paul Forgue. He most recently was CFO of Avantel SAS, a mobile operator in Bogota, Colombia.
J VINEYARDS & WINERY — Carl Shelton was named Executive Chef. He will lead the design and execution of the tasting menu for the winery’s Bubble Room, as well as other wine pairing options available on property. He previously was Chef de Cuisine at Boka restaurant in Chicago, and most recently worked at the Healdsburg, Calif., Spoonbar restaurant and The Restaurant at Meadowood.
Canadian Whisky Riding Segment’s Surge, Enjoying Growth
Just as the overall whisk(e)y segment has enjoyed growth in recent years, Canadian whisky is holding up its end of the bargain, recording 2.2 percent growth in 2015, according to Distilled Spirits Council data.
Compare that to sales of vodka, says Hood River Distillers Senior Brand Manager Tia Bledsoe. During the same period, the clear spirit logged only half a percentage point of growth.
“I believe Canadian whisky fares well in a bar’s hierarchy,” Bledsoe said. “Recent reports indicate a steady upward trend for Canadian whiskies.”
She credits Hood River’s Pendleton products — blended Canadian whiskies featuring an “exceptionally smooth finish,” making for an easily enjoyable and drinkable spirit — for some of the segment’s success. It can be sipped neat, on the rocks or integrated into any classic whisky cocktail.
“Or really mix it up and use in place of vodka,” she suggested.
Another influence on the segment’s success is the ongoing cocktail craze that has no end in sight with mixologists bound by only basic elements.
“The effects of the cocktail craze are nothing but positive,” Bledsoe said. “Bartenders continue to defy the traditional norms of cocktail making by exploring new recipes with new spirits — like Canadian whisky.
“These cocktails are just another avenue for consumers to experience and enjoy the taste and complexities of Canadian whisky.”
Especially for those who might be intimidated by the idea of trying a new spirit either neat or on the rocks.
“For Canadian whisky, it’s really about education and trial: Find local spirits tastings, research tasting notes and the product’s history,” she suggested. “The whisky segment, in general, offers a wide variety of options.
“It takes spending time with the products and understanding the different noses and flavors that really helps beginners understand and appreciate what they are consuming.”
Bledsoe said the seasoned connoisseurs of the spirit are well acquainted with the smooth finish of their favorite Canadian whisky on the rocks, neat or with a splash of water.
“People are drinking Canadian whisky in all forms and fashions,” she said. “One hot trend that seems to be making an impact in the cocktail-making industry is replacing bourbon in traditional cocktails — like the Kentucky Mule, Old Fashioned, or Sazerac — with Canadian whisky.
Bledsoe said she has just put away her Canadian Mule mug now that chillier fall temperatures have become the norm.
“Now that the weather is changing, I’m back to my go-to Pendleton on the rocks with a splash of water and a lime,” she said.
As for what the future holds for Canadian whiskey, Bledsoe said she expects to see a continuation of the good times.
“The growth of whisky continues to dominate formerly leading spirits, like vodka,” she said. “We’re definitely excited about the potential for premium whiskies based on the current trends.”
Bar, Bowling Owners Desperate For More Machines From Ohio Lottery
Thanks to all of the hospitality community for, once again, supporting the 15th annual Buckeye Bar Expo.
There are topics that are always fun or educational to hear about. Then, there are aspects of the input from members that turn into a call for action. We heard that loud and clear on the issue of more “new Keno” machines from the Lottery.
We received responses from almost 100 participants asking for three or more “new Keno” machines. This was expressed at many parts of the show. In addition, following the show we heard from others. We estimate that the existing call for more machines just to the OLBA to be somewhere over 600 requests.
Interestingly enough, the exhibit that was most in demand was the Ohio Lottery showcasing their new Keno device. Bar and bowling proprietors flocked to the exhibit to see the latest in technology that the Lottery has to offer. The first 1,000 machines were placed in locations this past summer and the results have been outstanding. Locations that didn’t receive one of the initial units are desperate to quickly receive a machine.
“Sometimes our members aren’t sure about approaching the Lottery, so we brought the Ohio Lottery to them. It was very successful.” said OLBA President Kathy Bean.
Kenny Rehm, owner of Kenny’s Sports Bar in Cincinnati, said he came to the expo just to hear more about the devices. He said a bar owner near him has been trying unsuccessfully to get the new games. He desperately needs to get a machine for his bar to remain competitive with the growing gaming landscape in Ohio.
Any bar that is interested in obtaining the new machines should call the Ohio Lottery at 800-686-4208.
If you have questions about what kind of games that you can offer legally in your bar, then contact the OLBA state office at 800-678-5995. Kevin Braig, partner at Shumaker, Loop & Kendrick, is ready to help. He practices gaming law with an emphasis on skill-based amusement machines, charitable gaming, daily fantasy sports wagering, sports betting and software development related to all types of gaming.
Phil Craig is executive director of Ohio Licensed Beverage Association, 37 W. Broad St., Suite 480, Columbus, Ohio, 43215, 614-224-3840 or 800-678-5995.
Remember When – November
50 Years Ago-Nov. 8, 1966 — Thomas Vlasic of Trumbull County received an award of merit from the Retail Licensed Beverage & Food Dealers Associati…
15 Years Ago-Nov. 6, 2001— Ohio Investigative Unit Agent Harold Torrens was a co-recipient of the National Liquor Law Enforcement Association’s Agent of the Year award…
10 Years Ago-Nov. 7, 2006 — Woodstone Creek, Ohio’s first microdistillery, released its first product, Cincinnati Vodka…
5 Years Ago-Nov. 1, 2011 — Fat Head’s Brewery of Middleburg Heights and Hoppin’ Frog Brewing Co. of Akron won gold medals at the Great American Beer Festival….
1 Year Ago-Nov. 3, 2015 — Jim Matesich of Matesich Distributing Co. in Newark was elected secretary of the National Beer Wholesalers Association.
Study Finds More Than 1,300 Active Craft Spirits Producers in U.S.
NEW YORK (PRNewswire) — More than 1,300 craft distillers operate in the U.S., according to research spearheaded by the American Craft Spirits Association.
The Craft Spirits Data Project found that the country’s 1,315 craft distillers produced 4.9 million cases and generate $2.4 billion in retail sales in 2015, up 27.5 percent and 27.9 percent, respectively, since 2010. Additionally, the market share of U.S. craft spirits reached 2.2 percent in volume and 3 percent in value in 2015, up from 0.8 percent and 1.1 percent in 2010. Read more
Brand Stories Help Market Spirits To millennials
NEW YORK (PRNewswire) — Brand stories are the emotional glue that connects spirits brands to millennial consumers, according to research by a global public relations company.
Brands with compelling narratives appeal to millennials’ desire to be “in the know” and also motivate them to share their discoveries, according to the research study “Millennials & Spirits: Influencing the Path to Discovery,” by PR agency MWWPR. Read more
Teen Drivers Need Extra Attention
Buckle up. Put the phone away. Slow down. Don’t drive drunk.
That is the message the Foundation for Advancing Alcohol Responsibility advocated during its recent support of National Teen Driver Safety Week.
During the past 25 years — first as The Century Council and now under its current name — the foundation has educated the public about safe driving practices and seen a reduction in crashes. But there is a lot of work to do, and one segment of the driver population that requires additional attention is teen drivers, who historically have crash rates greatly exceeding those of older, more experienced drivers.
The good news, according to the foundation, is progress is being made in many areas that can be attributed to driver education, teen driver safety laws and increased public awareness. One of those areas is drunken driving. Drunken driving fatalities among those under age 21 declined 80 percent from 1982 to 2014, the foundation reported, and in the last decade, there has been a reduction of 48 percent.
Despite progress, a recent report released by the Governors Highway Safety Association shows that teen drivers are still 1.6 times more likely to be involved in a crash than adult drivers, with teen crashes increasing by 10 percent last year compared to 7.2 percent for adult drivers. Motor vehicle crashes remain the leading cause of death for all 15 to 20 year olds, and teens continue to have the highest crash rate of any group of drivers in the United States.
To address this issue, the foundation encourages everyone to speak with their kids and friends about how to be safe behind the wheel. Parents play a pivotal role in promoting good driving habits among their children by setting a good example. Teens who say their parents set rules and monitor their activities in a helpful, supportive way are half as likely to crash and 70 percent less likely to drive intoxicated than teens who describe their parents as less involved.
That’s why parents should always model safe driving behavior, discuss safe driving with their teen on an ongoing basis, and sign a “safe driving contract” such as the one described under the “Parents” tab of Responsibility.org’s www.iknoweverything.com website.