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#Catoctin Creek Distilling Co.
johnnyccdc · 1 year
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Happy Valentine’s Day y’all! Back in 2009 we poured our first dram of CCDC spirit from our copper pot stills. So it’s our Founder’s Month and to celebrate, @catoctincreek has released the latest installment of the rare, coveted and highly awarded Rabble Rouser Bottled-In-Bond Straight Virginia Rye Whisky. Distilled from 100% local VA rye grain, aged for four years, and bottled at 100 proof, Rabble Rouser is Catoctin Creek’s most sought after limited, annual release – and was just named one of MAXIM’S Best American Rye Whiskies in 2022. This expression is particularly special because it’s the last release of this line aged in CCDC VA’s original 30-gallon barrels. They were aged in 30-gallon barrels because, back in the day, that’s all our co-founder/chief distiller @beckhar67 could carry when it was just her handling the distilling. She has now shifted to 53-gallon barrels. Rabble Rouser’s extensive tasting notes provide an unruly, rustic profile that pays homage to the history that rye whisky played in the state of Virginia, including nectarines, clover, honey, deep earthy spice, forest, sandalwood, uncured bacon, white peaches, peanuts, and a hint of mesquite. Rabble Rouser is bottled at 100 proof (50% ABV) and is available today, while supplies last for $99/750mL. Head over to the distillery or order online at www.BuyVirginiaRye.com - www.CatoctinCreekDistilling.com and give your loved one a gift that tells the story of Virginia, the marriage of Scott & Becky and the love bonded between them, the Commonwealth and our passion for making truly exceptional whisky. Enjoy and experience true love y’all! Cheers! #CatoctinCreek #TheVirginiaRyeWhisky #Distillery #Rye #Gin #Brandy #Virginia #Purcellville #Spirits #Cocktails #Restaurants #Bars #Hotels #LoudounChamber #Ambassador #Bartender #Mixologist #CraftSpirits #Alcohol #VaSpirits #VA #VisitLoudoun #CCDCVA #Booze #Drinks #Drinking #Food #Whisky #RabbleRouser #ValentinesDay 🥃 (at Catoctin Creek) https://www.instagram.com/p/CopcMgGuYrY/?igshid=NGJjMDIxMWI=
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goodspiritsnewsat · 1 year
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GSN Review: Catoctin Creek 2023 Rabble Rouser Bottled in Bond Rye Whisky
This Valentine’s Day, February 14 marks 14 years of business for Catoctin Creek Distilling Co. It is also the same day that founders/husband-and-wife duo Scott & Becky Harris are releasing their annual, limited and extremely lovable Rabble Rouser Bottled in Bond Rye Whisky.  Distilled from 100% rye whisky, aged for four years, and bottled at 100 proof, Rabble Rouser is Catoctin Creek’s most…
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noladrinks · 3 years
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New from https://noladrinks.com/broadcast/the-noladrinks-show-craft-spirits-industry-in-the-us-dec20ep2/
The NOLADrinks Show – Craft Spirits Industry in the US – Dec20Ep2
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On this week’s The NOLADrinks Show with Bryan Dias, we talk with Becky Harris, Maggie Campbell, and Chris Montana of the American Craft Spirits Association. We talk about the association and the state of the craft spirits industry in the US with an eye to the pandemic.
Please note – this show was taped in latter part of 2020. This was due in part to ensure that this show was part of the reboot of the Nitty Grits Network, which has just happened here in January 2021. Check it out!
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Pictured above from left – Becky Harris of Cactoctin Creek Distilling, Maggie Campbell of Privateer Rum, and Chris Montana of Du Nord Craft Spirits. All of whom are current or previous leaders in the American Craft Spirits Association and remain actively involved.
The NOLADrinks Show – Craft Spirits Industry in the US – Dec20Ep2
On this installment of the show, we talk with three folks from the American Craft Spirits Association (ACSA). It is an education and advocacy group that supports the craft spirits industry in the United States. It is owned and operated by the member themselves.
We chat with the association’s current president, Becky Harris, who is also the co-owner and head distiller of Catoctin Creek Distilling, Maggie Campbell, a former VP of the association and president and head distiller of Privateer Rum, and Chris Montana, a former president of the association and owner of Du Nord Craft Spirits.
We discuss the organization, its history, and its role in promoting and supporting the craft spirits industry in the US. Importantly, we talk about the state of the industry with an emphasis on the effects of the covid pandemic. We also chat about where the industry seemed headed prior to the pandemic and where things may be headed in the future.
Additionally, we learn about each of their respective roles, past and present with the ACSA, as well as each of their distillery businesses.
Becky, Maggie, and Chris stick around to chat further on our podcast-only segment, “Another Shot with NOLADrinks.”
You can subscribe to, stream, and download The NOLADrinks Show with Bryan Dias podcast using the links and player at the top of the post.
Cheers and Be Well, You All!
~ Bryan 
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cheersva · 4 years
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Posted on - February 07, 2020 at 09:50AM Via Loudoun Times-Mirror: "Purcellville-based Catoctin Creek Distilling Co. recently received high ratings from Wine Enthusiast magazine, and the distillery will be featured in the upcoming February/March issue." The Wine Enthusiast tasting panel awarded five scores of 90 points or more out of 100 for all five rye whiskies submitted by Catoctin Creek. #CheersVA #VASpirits http://bit.ly/2St7jS2
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oscaronthegloryroad · 3 years
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Something that has bugged me for a while but has recently gotten more attention due to Jim Murray of The Whisky Bible fame being the poster child of it, is the blatant misogyny and homophobia that is rife in the world of whisk (e)y. And the response to Murray being called out has been telling.
One of the first defenses a bunch of people took up regarding Murray was "He's just putting some colour and humor in his reviews.". But colour and humor should enhance the review. "Like a burning orchard" is good colour, comparing a 40 year old Canadian whiskey to having sex with a 40 year old Canadian woman is not. Making a joke about a whiskey being feminine for being ever changing/fickle but "alluring and eager to please" is not a good joke.
"You can't even make jokes without being cancelled" and variations upon that theme were also often played, along with "he has freedom of speech!"/"whatever happened to freedom of spech?". And let me tell you, this is one of their greatest hits (or you would think so based on the frequency with which they use that refrain). And indeed he jas the freedom to speak without the government muzzling him. BUT! 1. That is not freedom from criticism or consequence. 2. It doesn't matter if its a joke if it hurts others. 3. You seem to have no issue with cancel culture when it comes to others criticizing your favoured person.
"I don't think he's being sexist!", you are a middle aged white dude, your profile pic is of you in your truck wearing oakleys and a backwards baseball cap. You wouldn't know sexism if it came with a ford badge and a little metal pony on the side!
"He's been in the industry for decades! You can't just throw him out!", and people have apparently been taking issue with his writing and behavior for most of that. Tenure doesn't mean shit so we most definitely can. Besides, his reviews are awful and he is only a big name because he can throw together a half-assed new book every year.
"Women don't drink whiskey any way.", tell that to Becky Harris (Founder and Master Distiller, Catoctin Creek), Heather Greene (co-founder of Milam &Greene), Nancy Fraley (if you have found a craft whiskey you enjoy in the last five years chances are she was involved), and Joyce Nethery (Founder of Jeptha Creed Distillery). Among a great many others! Hell, my older sister is the one who got my really interested in whiskey and she is the one who introduced me to the marvelous Catoctin Creek Roundstone Rye!
Stop making excuses for the poor behavior of your peers and people you look up to, demand better behavior from them. Make this interest more welcoming for new people, let this community grow!
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johnboothus · 4 years
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Why Craft Distillers Are Calling to Expand Direct-to-Consumer Shipping
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Buying spirits online has never been more convenient for consumers. In dozens of states, drinkers can purchase their favorite liquor brands through websites such as ReserveBar, and have them shipped to their door via common carriers like UPS or FedEx. Meanwhile, third-party service Drizly delivers bottles within a matter of hours in the 15 states it currently operates in.
Such convenience is clearly a boon for consumers, especially right now as many may wish to limit their trips to liquor stores because of the coronavirus pandemic. But some spirits producers (mainly smaller-production, craft brands) say the current landscape could be vastly improved both for distillers and consumers if the laws surrounding direct-to-consumer (DTC) sales were relaxed.
While more than 40 states let retailers sell alcohol online, the number of states that allow the same privilege to producers is significantly lower. Multiple craft distillery owners, including Jaime Windon of Maryland’s Lyon Distilling, say the ability to sell DTC would provide a significant boost to their businesses. “DTC is the Holy Grail for small producers, especially [for those] who make something that’s rare and sought after but not widely available,” Windon says.
Rather than harm the wholesalers and retailers this method of sales bypasses, distillers argue that the overall outcome would prove beneficial for every level of the three-tier system. Consumers, too, would gain from the vastly increased choice of smaller spirits brands they would otherwise not be able to purchase online.
This sounds like a win-win scenario for all involved, and craft spirits brands say it is. But calls for legislative change face notable opposition from powerful trade groups, which are opposed to DTC spirits sales and are keen to uphold the current system of alcohol distribution.
DTC Versus Online Retailers
Before exploring the pros and cons of DTC spirits sales, it’s worth highlighting how this practice differs from buying liquor through online retailers. In many, but not all cases, the websites that appear to be “retailers” are actually third-party services. These companies place orders on the consumer’s behalf with a licensed retailer that is legally able to ship liquor to the buyer’s address. This generally relies on both parties (retailer and consumer) being located in the same state, though some retailers ship across state lines.
The legality of shipping spirits across state lines is another topic entirely, and one that VinePair was unable to receive a consistent answer on when we contacted three separate beverage lawyers. But because it occupies a seemingly legal gray area, cross-state shipping is something that larger, high-profile retailers typically avoid, while smaller retailers may be more willing to take the risk.
Which States Allow DTC Spirits Shipping?
The laws surrounding DTC spirits sales vary on a state-by-state basis, as they are not federally regulated. Some states allow in-state DTC spirits sales only, while others only allow their residents to purchase from producers based out of state. More than 30 states ban the practice entirely.
Eleven states currently allow consumers to buy directly from out-of-state producers. Each operates with their own complex guidelines, which are designed to ensure the state receives the appropriate duty on the inbound spirits.
By contrast, Washington and Pennsylvania allow consumers to buy only from in-state producers. Since the coronavirus pandemic began, a further eight states have granted this temporary permission to their distilleries.
Why Craft Distillers Are Calling for DTC Permissions
The loudest calls for states to relax DTC spirits regulations come from craft distillers. Their arguments focus on the difficulty of smaller brands to gain distribution in new markets through the three-tier system as it stands.
For most wholesalers, it doesn’t make sense to include craft distilleries in their portfolios because their production volumes are so small, explains Becky Harris, co-founder of Virginia’s Catoctin Creek Distilling Company. “Ninety percent of the craft distilleries out there make less than a thousand proof gallons per year,” says Harris, referencing a recent data report published by the American Craft Spirits Association (ACSA), of which she is president of the board of directors.
Even if wholesalers are willing to accept the small-scale production size of craft brands, they may also be wary of whether there is actual consumer demand in their markets, Harris says. For many producers, this is a frustrating reality: How can you prove demand in a market where you have no means of selling your products? “To me, and to a lot [craft distillers], the obvious answer here is DTC,” Harris says.
Harris’s assertion here is more than a hypothesis.
In 2017, when the ACSA polled its members on whether they would benefit from DTC shipping,  95 percent said they would. “DTC has been nothing but good for us,” says Tim Russell, founder and head distiller at Pennsylvania’s Maggie’s Farm Rum. When the state first allowed DTC spirits sales, his brand’s footprint was mostly focused around Pittsburgh, where the distillery is based. The ability to sell DTC not only allowed him to reach customers in markets like Philadelphia and Harrisburg, but when he was able to present sales figures to the state officials who run Pennsylvania’s Liquor Control Board, it resulted in greater distribution for his brand. (As a control state, Pennsylvania manages both the distribution and retail of spirits through government agencies.)
While the main arguments supporting DTC spirits sales focus on distribution, the topic has taken on heightened importance with the ongoing coronavirus pandemic. Once again, there is strong evidence to suggest that DTC sales have provided a much-needed lifeline for producers. But the situation hasn’t always played out exactly as the states or producers might have hoped where temporary permissions have been granted.
Catoctin Creek’s Harris has been able to ship to in-state consumers since Virginia relaxed its laws in April. During the first month, the distillery received “20 to 40” orders per day, Harris says, which is significantly more than it would normally sell in its tasting room. While the volume of orders has since dropped, they continue to outpace what the distillery would normally sell during a normal pre-Covid week to distillery visitors.
But in Maryland, which has also relaxed its DTC shipping laws, it’s a different story. In March, Gov. Larry Hogan signed an executive order allowing distilleries to fulfill home delivery of their products. At the end of May, that order was updated, allowing producers to also ship to consumers using common carriers. So far, most have not been able to take advantage of this provision.
What’s holding them back? Shipping companies like UPS and FedEx are worried about the liability of shipping spirits door to door, explains Lyon Distilling’s Windon. During conversations with UPS, Windon and many other craft distillers were told if they want to ship spirits they have to sign up with a third-party company called Spirits360. For its services (which we will explore in further detail later) Spirits360 takes a 10 percent cut off all sales.
“While it’s a nice option, it defeats the object of direct-to-consumer if I have to pay a percentage fee to a third party,” Windon says.
The Opposition to DTC Spirits Sales
In the states where temporary DTC permissions have been granted, distillers hope the new measures will become permanent. But standing between them and long-term change is the opposition of large-scale trade groups with significant lobbying power.
One such group is Wine and Spirits Wholesalers of America (WSWA). Headquartered in Washington, D.C., WSWA has spent more than $10 million in political donations over the past 10 years, according to OpenSecrets.org.
WSWA is directly opposed to interstate, and intrastate-only, DTC spirts sales. Instead, the group champions e-commerce solutions provided by local licensed retailers and third-party companies like Drizly. “The current system of alcohol distribution is the gold standard,” says Michael Bilello, WSWA’s senior vice president of communications and marketing.
WSWA’s opposition to DTC spirits sales arises from what it says are three potential dangers: underage drinking, unpaid taxes, and counterfeit alcohol. When alcohol is sold directly to consumers, and not through distributors and retailers, the risk of counterfeit or illicit alcohol entering the supply chain increases, Bilello says. And when spirits cross state lines, there’s a chance the producer shipping the spirit will avoid paying the appropriate local and state taxes in the destination state. On the topic of underage drinking (i.e., a delivered package falling into the hands of a minor), Bilello acknowledges this is also a possibility with wine, but he says the risk of harm is greater in the case of spirits.
Bilello says that when it comes to impairment, spirits are different from wine. “An eight-year-old comes across a case of vodka on their mom’s front doorstep; it’s clear and it’s odorless and maybe it doesn’t taste great, but they start drinking it,” he says. “This could really, really harm them. That risk isn’t worth even one child’s life.”
Others within the alcohol industry remain skeptical about the reasons given by the WSWA for its opposition.
“Common carriers like UPS and FedEx are beholden with the states and have to file detailed reports,” says Sean O’Leary, a Chicago-based beverage lawyer. The fact that these carriers require individuals receiving alcohol packages to sign and provide identification means that the “risk of abuse” is no more significant than a minor buying from a liquor store, O’Leary adds.
As for the claim that spirits are in some way more harmful than wine, Lyon Distilling’s Windon says that argument is “frustrating and borderline insulting.”
This just leaves the issue of unpaid taxes, and there already exists a tailor-made solution for this potential sticking point: Spirits360. Among the range of services the company provides, Spirits360 designs and integrates an e-commerce platform for the websites of its producer clients. When a producer receives an order through this platform, Spirits360’s “compliance engine” calculates the taxes to be paid and provides the appropriate documentation that the producer must fill out in order to ship orders. Spirits360 also generates the shipping label and tracks the package all the way to the customer via UPS, with a signature required upon receipt.
This system would appear to address the concerns raised by WSWA, and for many producers it is no doubt an attractive proposition. Whether or not a producer should be required to sign up for a service like Spirits360, especially when they can handle each matter here independently, is another topic. But as Windon pointed out, if a producer has no choice but to go through a third-party company, it’s not exactly “direct” to the consumer.
Numerous industry professionals contacted for this article believe there’s another reason wholesalers are opposed to DTC spirits sales — one that they’re not mentioning: the risk they pose to wholesale businesses and the three-tier system. (WSWA’s Bilello said he couldn’t comment on this and called it a purely “hypothetical” scenario.)
Producers say any perceived risk is inflated at best and that DTC spirits sales could actually benefit distributors. “My [New York] distributor would love for me to mail you a bottle of rum because you’re not going to pay shipping every time,” says Lyon Distilling’s Windon. “But after you’re hooked, you’ll go pick it up at the liquor store.”
There would also appear to be little threat of large distilleries pivoting to DTC en masse if, indeed, they were allowed. If a consumer wishes to buy a bottle of Jack Daniels, for example, they can pick it up from almost any liquor store. If that consumer wishes to have that bottle delivered instead, they can do so via Drizly or the already established online retailers. Given that large liquor brands already have distribution in most if not all states, there seems little incentive from a new-market perspective, either.
For now, however, the day-to-day reality for most craft distillers is probably strikingly similar to that of Maggie Campbell, president and head distiller at Massachusetts-based Privateer Rum. “Every day, I probably spend at least an hour answering emails and messages from individuals in places that want to get our rum and they can’t,” she says. “It’s hard as a business to know you’re not making that money.”
The article Why Craft Distillers Are Calling to Expand Direct-to-Consumer Shipping appeared first on VinePair.
Via https://vinepair.com/articles/craft-distillers-direct-to-consumer-shipping/
source https://vinology1.weebly.com/blog/why-craft-distillers-are-calling-to-expand-direct-to-consumer-shipping
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profoundpaul · 4 years
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FDA Goes After Distilleries Over Hand Sanitizer Production
Government regulations are hampering private businesses’ ability to aid in the fight against the novel coronavirus. Scott Harris, co-founder of Catoctin Creek Distilling Co. in Purcellville, Virginia, has been converting his distillery’s alcohol supply into hand sanitizer out of a feeling of “moral responsibility.” View this post on Instagram Another CrAzY day at the distillery…
The post FDA Goes After Distilleries Over Hand Sanitizer Production appeared first on The Western Journal.
source https://www.westernjournal.com/fda-goes-distilleries-hand-sanitizer-production/
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waltersartmuseum · 7 years
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Rye Rocks at the Walters is back on April 1! Imbibe on top shelf rye whiskeys and cocktails prepared by Baltimore's best bartenders. Enjoy hearty fare from Chef's Expressions and a variety of wines and beers, all included with your ticket. Doug Atwell of Blue Pit BBQ & Whiskey Bar and Allen Katz of New York Distilling Company will lead a talk and special tasting on the history of rye in Maryland to kick off the festivities. Make sure to make it by 7:15 to enjoy the talk! Tickets at bit.ly/ryerocks Donations and participation by: Baltimore Whiskey Company Catoctin Creek Copper Fox Distillery FEW Spirits Lyon Distilling Co. New Liberty Distillery New York Distilling Company One Eight Distilling Redemption Rye Sagamore Spirit Templeton Rye WhistlePig and more! Sponsored by Miles & Stockbridge P.C. Hosted by the Women’s Committee of the Walters Art Museum and the Walters Enthusiasts, and presented in partnership with the Baltimore Bartenders’ Guild. http://bit.ly/2noimOz
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johnnyccdc · 4 years
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For all my friends in Charlottesville Virginia! We are bringing the @catoctincreek Tasting Room to you!!! Stop by the table and taste Virginia’s most awarded whisky! We’ll have gin, brandy, bitters and distillery exclusives to sell and taste including our Quarter Branch Apple Brandy and a few bottles of our Maple Cask Proof Rye!!!! Virginia Craft Spirits Roadshow Presented by the Virginia Distillers Association Date: Saturday, November 16, 2019 from 12:00 PM to 5:00 PM Location: IX Art Park, 522 2nd Street Southeast, Charlottesville, VA 22902 The Virginia Craft Spirits Roadshow at IX Art Park Presented by @vaspirits Calling all lovers of local spirits! Come join us for the Virginia Craft Spirits Roadshow at IX Art Park in Charlottesville, Virginia, on Saturday, November 16th from 3-8pm. Tickets will include all samples of artisan spirits as well as craft cocktails from TEN Virginia distilleries; while guests can mix, mingle and engage with Virginia distillers firsthand! Purchase any bottles you enjoy to take home (we’ll store them at our concierge station while you enjoy the event). Designated driver tickets are available. TICKETS: $35 for one general admission. Designated driver tickets are complimentary. Featured Virginia Distilleries: Belle Isle Moonshine, Richmond Catoctin Creek, Purcellville Chesapeake Bay Distillery, Virginia Beach Cirrus Vodka, Richmond Ironclad Distillery, Newport News KO Distilling, Manassas Tarnished Truth Distilling Co., Virginia Beach Virago Spirits, Richmond Vitae Spirits, Charlottesville Virginia Distillery Co., Lovingston This is a 21 and up event (no children), and rain or shine. #CatoctinCreek #Distillery #Rye #Charlottesville #Gin #Brandy #Virginia #Purcellville #Spirits #Cocktails #Restaurants #Bars #Hotels #LoudounChamber #CVille #Bartender #Mixologist #CraftSpirits #Alcohol #VaSpirits #VA #VisitLoudoun #IXArtPark #Booze #Drinks #Drinking #Food #DrinkRyeAndProsper #SPOCK #Whisky 🥃🖖🏻 (at IX Art Park) https://www.instagram.com/p/B45rls3Baak/?igshid=1dknz6w72k66x
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goodspiritsnewsat · 3 years
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GSN Spirited News: May 11th 2021 Edition
GSN Spirited News: May 11th 2021 Edition
Covered Bridges Whiskey Co. is launching Ruddell’s Mill Kentucky Straight Bourbon. Named for the Ruddell’s Mill Covered Bridge, erected in 1861 over Bourbon County’s Stoner Creek, the new entry retails at $60 and is non-chill filtered and bottled at 46.1% abv. San Francisco, California’s Hotaling & Co. has brought Severo, a new luxury priced Tequila, to the U.S. The Tequila, made by the team…
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maryellen35m-blog · 6 years
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Muro Do Standard Stone.
Lately I wrote a comprehensive article on the essential tenets from Sun-Pluto connects with. Boys from Liberty Moods Co., South Kingstown, RI. This whiskey makes Uprising Bourbon, a bourbon distilled from stout, the 1765 Collection, a malt bourbon, Mutiny Rye, Fight and also Battle Cry single malts, Right Whiskey, New England Bourbon, a peated bourbon, a jump flavored whiskey as well as Raincloud Malt Scotch. They are predominantly a Scotch bottler yet have actually bottled a Paradise Hillside Bourbon, a Catoctin Creek Rye, MGP scotches, a mixture from diehard as well as rye off High West, a Few Spirits rye, a Koval whiskey and a single malt coming from Westland Distillery. J. Holly & Sons, Dane, WI. This provider markets J. Henry & Sons Bourbon which is actually bottled through Yahara Bay Moods as well as could be distilled through all of them too. Chatham Imports, The Big Apple, NY. This business offers bourbon, rye as well as various other scotch under the Michter's label. Pernah saya katakan kepada seorang doktor, Doktor, suatu ketika dahulu saya menerima gaji bulanan sebanyak RM5,000 sebulan, dilengkapi dengan pembantu rumah, pemandu dan rumah serba lengkap. Louis WALLER was actually birthed May 05, 1828 in Franklin, Illinois, U.S.A as the eleventh child from Richard WALLER and also Parryzade Melvina ODLE. Stoll & Wolfe (in the past Bomberger's), Lancaster, PA. This provider released Bomberger's Distillery Scotch, a mix of bourbon distilled at MGP and rye distilled at Hands Lakes Whiskey, After experiencing a hallmark activity by Chatahm Imports, they altered the title from the company and also bourbon to Stoll & Wolfe.
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Commonwealth Restoratives, Washington, DC. This business prepares to discharge Borough Diehard, a Kentucky bourbon. James WALLER was actually birthed Jun 18, 1745 in Stepney Parish, Somerset, Maryland, U.S.A. Atwater State Of Minds, Detroit, MI. This brewery considers to bottle a Tennessee Scotch as well as Circa Bourbon. They are actually planning on releasing Virginia Plateau Malt Whisky, bottled by Strong Sens. Mill Community Distillery, Sandpoint, I.D.. This whiskey creates corn bourbon. Turunnya Hidayah Malam itu, selesai sembahyang saya mengambil sehelai kertas dan saya tulis diatasnya, Tuhan, diantara agama Islam, Kristian, Hindu dan Buddha aku telah mengetahui semua agama ini.
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Sin City Distillery, Las Vegas, NV. This is a brand new distillery with think about a lot of whiskeys, including Nevada 150 Diehard, a wheat, rye, four grain, oat and also malt bourbon, Nevada Shine Corn Whiskey, Sin City Lucky 7 Bourbon as well as Scotch, The Author Rye, The Timekeeper malt and also The Mediator Whiskey. Mystic Mountain Spirits, Larkspur, CO. This whiskey produce an amount of "moonshines" in addition to Aces High Whiskey and is preparing to bottle Outlaw Bourbon, a bourbon, as well as Mystic Legacy Straight Bourbon, both which might be sourced.
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Nancy Ellen WALLER was actually born Apr 01, 1855 in Hamilton, Ill The bourbons were originally bottled by Glenns Spring Distilling and also are actually now bottled through 3 Young boys Whiskey. Over the well-invested opportunity I have devoted talking with others, I have actually heard several people discuss revolutionary gestures mentioning exactly what they would perform to merely reside the lifestyle from freedoms Americans have. Darkened Corner Distillery, Greenville, SC. This distillery brings in Dark Section Moonshine and Arena's Greatest Moonshine, unaged corn scotches, Stumphouse Red Wheat Or Grain Whiskey and Lewis Redmond Whiskey, solitary malt and blended bourbon as well as some flavorful moonshines and also various other sens.
Social Still, Bethlehem, PA. This distillery considers to earn Social Still Bourbon, Rye, Whiskey as well as a white colored body-caroline.info corn whiskey. Saya hairan kenapa orang yang berjubah dan bertudung mereka melintas jalan itu dengan mudah sedangkan saya langsung tidak boleh mengangkat kaki.
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wineanddinosaur · 4 years
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Why Craft Distillers Are Calling to Expand Direct-to-Consumer Shipping
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Buying spirits online has never been more convenient for consumers. In dozens of states, drinkers can purchase their favorite liquor brands through websites such as ReserveBar, and have them shipped to their door via common carriers like UPS or FedEx. Meanwhile, third-party service Drizly delivers bottles within a matter of hours in the 15 states it currently operates in.
Such convenience is clearly a boon for consumers, especially right now as many may wish to limit their trips to liquor stores because of the coronavirus pandemic. But some spirits producers (mainly smaller-production, craft brands) say the current landscape could be vastly improved both for distillers and consumers if the laws surrounding direct-to-consumer (DTC) sales were relaxed.
While more than 40 states let retailers sell alcohol online, the number of states that allow the same privilege to producers is significantly lower. Multiple craft distillery owners, including Jaime Windon of Maryland’s Lyon Distilling, say the ability to sell DTC would provide a significant boost to their businesses. “DTC is the Holy Grail for small producers, especially [for those] who make something that’s rare and sought after but not widely available,” Windon says.
Rather than harm the wholesalers and retailers this method of sales bypasses, distillers argue that the overall outcome would prove beneficial for every level of the three-tier system. Consumers, too, would gain from the vastly increased choice of smaller spirits brands they would otherwise not be able to purchase online.
This sounds like a win-win scenario for all involved, and craft spirits brands say it is. But calls for legislative change face notable opposition from powerful trade groups, which are opposed to DTC spirits sales and are keen to uphold the current system of alcohol distribution.
DTC Versus Online Retailers
Before exploring the pros and cons of DTC spirits sales, it’s worth highlighting how this practice differs from buying liquor through online retailers. In many, but not all cases, the websites that appear to be “retailers” are actually third-party services. These companies place orders on the consumer’s behalf with a licensed retailer that is legally able to ship liquor to the buyer’s address. This generally relies on both parties (retailer and consumer) being located in the same state, though some retailers ship across state lines.
The legality of shipping spirits across state lines is another topic entirely, and one that VinePair was unable to receive a consistent answer on when we contacted three separate beverage lawyers. But because it occupies a seemingly legal gray area, cross-state shipping is something that larger, high-profile retailers typically avoid, while smaller retailers may be more willing to take the risk.
Which States Allow DTC Spirits Shipping?
The laws surrounding DTC spirits sales vary on a state-by-state basis, as they are not federally regulated. Some states allow in-state DTC spirits sales only, while others only allow their residents to purchase from producers based out of state. More than 30 states ban the practice entirely.
Eleven states currently allow consumers to buy directly from out-of-state producers. Each operates with their own complex guidelines, which are designed to ensure the state receives the appropriate duty on the inbound spirits.
By contrast, Washington and Pennsylvania allow consumers to buy only from in-state producers. Since the coronavirus pandemic began, a further eight states have granted this temporary permission to their distilleries.
Why Craft Distillers Are Calling for DTC Permissions
The loudest calls for states to relax DTC spirits regulations come from craft distillers. Their arguments focus on the difficulty of smaller brands to gain distribution in new markets through the three-tier system as it stands.
For most wholesalers, it doesn’t make sense to include craft distilleries in their portfolios because their production volumes are so small, explains Becky Harris, co-founder of Virginia’s Catoctin Creek Distilling Company. “Ninety percent of the craft distilleries out there make less than a thousand proof gallons per year,” says Harris, referencing a recent data report published by the American Craft Spirits Association (ACSA), of which she is president of the board of directors.
Even if wholesalers are willing to accept the small-scale production size of craft brands, they may also be wary of whether there is actual consumer demand in their markets, Harris says. For many producers, this is a frustrating reality: How can you prove demand in a market where you have no means of selling your products? “To me, and to a lot [craft distillers], the obvious answer here is DTC,” Harris says.
Harris’s assertion here is more than a hypothesis.
In 2017, when the ACSA polled its members on whether they would benefit from DTC shipping,  95 percent said they would. “DTC has been nothing but good for us,” says Tim Russell, founder and head distiller at Pennsylvania’s Maggie’s Farm Rum. When the state first allowed DTC spirits sales, his brand’s footprint was mostly focused around Pittsburgh, where the distillery is based. The ability to sell DTC not only allowed him to reach customers in markets like Philadelphia and Harrisburg, but when he was able to present sales figures to the state officials who run Pennsylvania’s Liquor Control Board, it resulted in greater distribution for his brand. (As a control state, Pennsylvania manages both the distribution and retail of spirits through government agencies.)
While the main arguments supporting DTC spirits sales focus on distribution, the topic has taken on heightened importance with the ongoing coronavirus pandemic. Once again, there is strong evidence to suggest that DTC sales have provided a much-needed lifeline for producers. But the situation hasn’t always played out exactly as the states or producers might have hoped where temporary permissions have been granted.
Catoctin Creek’s Harris has been able to ship to in-state consumers since Virginia relaxed its laws in April. During the first month, the distillery received “20 to 40” orders per day, Harris says, which is significantly more than it would normally sell in its tasting room. While the volume of orders has since dropped, they continue to outpace what the distillery would normally sell during a normal pre-Covid week to distillery visitors.
But in Maryland, which has also relaxed its DTC shipping laws, it’s a different story. In March, Gov. Larry Hogan signed an executive order allowing distilleries to fulfill home delivery of their products. At the end of May, that order was updated, allowing producers to also ship to consumers using common carriers. So far, most have not been able to take advantage of this provision.
What’s holding them back? Shipping companies like UPS and FedEx are worried about the liability of shipping spirits door to door, explains Lyon Distilling’s Windon. During conversations with UPS, Windon and many other craft distillers were told if they want to ship spirits they have to sign up with a third-party company called Spirits360. For its services (which we will explore in further detail later) Spirits360 takes a 10 percent cut off all sales.
“While it’s a nice option, it defeats the object of direct-to-consumer if I have to pay a percentage fee to a third party,” Windon says.
The Opposition to DTC Spirits Sales
In the states where temporary DTC permissions have been granted, distillers hope the new measures will become permanent. But standing between them and long-term change is the opposition of large-scale trade groups with significant lobbying power.
One such group is Wine and Spirits Wholesalers of America (WSWA). Headquartered in Washington, D.C., WSWA has spent more than $10 million in political donations over the past 10 years, according to OpenSecrets.org.
WSWA is directly opposed to interstate, and intrastate-only, DTC spirts sales. Instead, the group champions e-commerce solutions provided by local licensed retailers and third-party companies like Drizly. “The current system of alcohol distribution is the gold standard,” says Michael Bilello, WSWA’s senior vice president of communications and marketing.
WSWA’s opposition to DTC spirits sales arises from what it says are three potential dangers: underage drinking, unpaid taxes, and counterfeit alcohol. When alcohol is sold directly to consumers, and not through distributors and retailers, the risk of counterfeit or illicit alcohol entering the supply chain increases, Bilello says. And when spirits cross state lines, there’s a chance the producer shipping the spirit will avoid paying the appropriate local and state taxes in the destination state. On the topic of underage drinking (i.e., a delivered package falling into the hands of a minor), Bilello acknowledges this is also a possibility with wine, but he says the risk of harm is greater in the case of spirits.
Bilello says that when it comes to impairment, spirits are different from wine. “An eight-year-old comes across a case of vodka on their mom’s front doorstep; it’s clear and it’s odorless and maybe it doesn’t taste great, but they start drinking it,” he says. “This could really, really harm them. That risk isn’t worth even one child’s life.”
Others within the alcohol industry remain skeptical about the reasons given by the WSWA for its opposition.
“Common carriers like UPS and FedEx are beholden with the states and have to file detailed reports,” says Sean O’Leary, a Chicago-based beverage lawyer. The fact that these carriers require individuals receiving alcohol packages to sign and provide identification means that the “risk of abuse” is no more significant than a minor buying from a liquor store, O’Leary adds.
As for the claim that spirits are in some way more harmful than wine, Lyon Distilling’s Windon says that argument is “frustrating and borderline insulting.”
This just leaves the issue of unpaid taxes, and there already exists a tailor-made solution for this potential sticking point: Spirits360. Among the range of services the company provides, Spirits360 designs and integrates an e-commerce platform for the websites of its producer clients. When a producer receives an order through this platform, Spirits360’s “compliance engine” calculates the taxes to be paid and provides the appropriate documentation that the producer must fill out in order to ship orders. Spirits360 also generates the shipping label and tracks the package all the way to the customer via UPS, with a signature required upon receipt.
This system would appear to address the concerns raised by WSWA, and for many producers it is no doubt an attractive proposition. Whether or not a producer should be required to sign up for a service like Spirits360, especially when they can handle each matter here independently, is another topic. But as Windon pointed out, if a producer has no choice but to go through a third-party company, it’s not exactly “direct” to the consumer.
Numerous industry professionals contacted for this article believe there’s another reason wholesalers are opposed to DTC spirits sales — one that they’re not mentioning: the risk they pose to wholesale businesses and the three-tier system. (WSWA’s Bilello said he couldn’t comment on this and called it a purely “hypothetical” scenario.)
Producers say any perceived risk is inflated at best and that DTC spirits sales could actually benefit distributors. “My [New York] distributor would love for me to mail you a bottle of rum because you’re not going to pay shipping every time,” says Lyon Distilling’s Windon. “But after you’re hooked, you’ll go pick it up at the liquor store.”
There would also appear to be little threat of large distilleries pivoting to DTC en masse if, indeed, they were allowed. If a consumer wishes to buy a bottle of Jack Daniels, for example, they can pick it up from almost any liquor store. If that consumer wishes to have that bottle delivered instead, they can do so via Drizly or the already established online retailers. Given that large liquor brands already have distribution in most if not all states, there seems little incentive from a new-market perspective, either.
For now, however, the day-to-day reality for most craft distillers is probably strikingly similar to that of Maggie Campbell, president and head distiller at Massachusetts-based Privateer Rum. “Every day, I probably spend at least an hour answering emails and messages from individuals in places that want to get our rum and they can’t,” she says. “It’s hard as a business to know you’re not making that money.”
The article Why Craft Distillers Are Calling to Expand Direct-to-Consumer Shipping appeared first on VinePair.
source https://vinepair.com/articles/craft-distillers-direct-to-consumer-shipping/
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isaiahrippinus · 4 years
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Why Craft Distillers Are Calling to Expand Direct-to-Consumer Shipping
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Buying spirits online has never been more convenient for consumers. In dozens of states, drinkers can purchase their favorite liquor brands through websites such as ReserveBar, and have them shipped to their door via common carriers like UPS or FedEx. Meanwhile, third-party service Drizly delivers bottles within a matter of hours in the 15 states it currently operates in.
Such convenience is clearly a boon for consumers, especially right now as many may wish to limit their trips to liquor stores because of the coronavirus pandemic. But some spirits producers (mainly smaller-production, craft brands) say the current landscape could be vastly improved both for distillers and consumers if the laws surrounding direct-to-consumer (DTC) sales were relaxed.
While more than 40 states let retailers sell alcohol online, the number of states that allow the same privilege to producers is significantly lower. Multiple craft distillery owners, including Jaime Windon of Maryland’s Lyon Distilling, say the ability to sell DTC would provide a significant boost to their businesses. “DTC is the Holy Grail for small producers, especially [for those] who make something that’s rare and sought after but not widely available,” Windon says.
Rather than harm the wholesalers and retailers this method of sales bypasses, distillers argue that the overall outcome would prove beneficial for every level of the three-tier system. Consumers, too, would gain from the vastly increased choice of smaller spirits brands they would otherwise not be able to purchase online.
This sounds like a win-win scenario for all involved, and craft spirits brands say it is. But calls for legislative change face notable opposition from powerful trade groups, which are opposed to DTC spirits sales and are keen to uphold the current system of alcohol distribution.
DTC Versus Online Retailers
Before exploring the pros and cons of DTC spirits sales, it’s worth highlighting how this practice differs from buying liquor through online retailers. In many, but not all cases, the websites that appear to be “retailers” are actually third-party services. These companies place orders on the consumer’s behalf with a licensed retailer that is legally able to ship liquor to the buyer’s address. This generally relies on both parties (retailer and consumer) being located in the same state, though some retailers ship across state lines.
The legality of shipping spirits across state lines is another topic entirely, and one that VinePair was unable to receive a consistent answer on when we contacted three separate beverage lawyers. But because it occupies a seemingly legal gray area, cross-state shipping is something that larger, high-profile retailers typically avoid, while smaller retailers may be more willing to take the risk.
Which States Allow DTC Spirits Shipping?
The laws surrounding DTC spirits sales vary on a state-by-state basis, as they are not federally regulated. Some states allow in-state DTC spirits sales only, while others only allow their residents to purchase from producers based out of state. More than 30 states ban the practice entirely.
Eleven states currently allow consumers to buy directly from out-of-state producers. Each operates with their own complex guidelines, which are designed to ensure the state receives the appropriate duty on the inbound spirits.
By contrast, Washington and Pennsylvania allow consumers to buy only from in-state producers. Since the coronavirus pandemic began, a further eight states have granted this temporary permission to their distilleries.
Why Craft Distillers Are Calling for DTC Permissions
The loudest calls for states to relax DTC spirits regulations come from craft distillers. Their arguments focus on the difficulty of smaller brands to gain distribution in new markets through the three-tier system as it stands.
For most wholesalers, it doesn’t make sense to include craft distilleries in their portfolios because their production volumes are so small, explains Becky Harris, co-founder of Virginia’s Catoctin Creek Distilling Company. “Ninety percent of the craft distilleries out there make less than a thousand proof gallons per year,” says Harris, referencing a recent data report published by the American Craft Spirits Association (ACSA), of which she is president of the board of directors.
Even if wholesalers are willing to accept the small-scale production size of craft brands, they may also be wary of whether there is actual consumer demand in their markets, Harris says. For many producers, this is a frustrating reality: How can you prove demand in a market where you have no means of selling your products? “To me, and to a lot [craft distillers], the obvious answer here is DTC,” Harris says.
Harris’s assertion here is more than a hypothesis.
In 2017, when the ACSA polled its members on whether they would benefit from DTC shipping,  95 percent said they would. “DTC has been nothing but good for us,” says Tim Russell, founder and head distiller at Pennsylvania’s Maggie’s Farm Rum. When the state first allowed DTC spirits sales, his brand’s footprint was mostly focused around Pittsburgh, where the distillery is based. The ability to sell DTC not only allowed him to reach customers in markets like Philadelphia and Harrisburg, but when he was able to present sales figures to the state officials who run Pennsylvania’s Liquor Control Board, it resulted in greater distribution for his brand. (As a control state, Pennsylvania manages both the distribution and retail of spirits through government agencies.)
While the main arguments supporting DTC spirits sales focus on distribution, the topic has taken on heightened importance with the ongoing coronavirus pandemic. Once again, there is strong evidence to suggest that DTC sales have provided a much-needed lifeline for producers. But the situation hasn’t always played out exactly as the states or producers might have hoped where temporary permissions have been granted.
Catoctin Creek’s Harris has been able to ship to in-state consumers since Virginia relaxed its laws in April. During the first month, the distillery received “20 to 40” orders per day, Harris says, which is significantly more than it would normally sell in its tasting room. While the volume of orders has since dropped, they continue to outpace what the distillery would normally sell during a normal pre-Covid week to distillery visitors.
But in Maryland, which has also relaxed its DTC shipping laws, it’s a different story. In March, Gov. Larry Hogan signed an executive order allowing distilleries to fulfill home delivery of their products. At the end of May, that order was updated, allowing producers to also ship to consumers using common carriers. So far, most have not been able to take advantage of this provision.
What’s holding them back? Shipping companies like UPS and FedEx are worried about the liability of shipping spirits door to door, explains Lyon Distilling’s Windon. During conversations with UPS, Windon and many other craft distillers were told if they want to ship spirits they have to sign up with a third-party company called Spirits360. For its services (which we will explore in further detail later) Spirits360 takes a 10 percent cut off all sales.
“While it’s a nice option, it defeats the object of direct-to-consumer if I have to pay a percentage fee to a third party,” Windon says.
The Opposition to DTC Spirits Sales
In the states where temporary DTC permissions have been granted, distillers hope the new measures will become permanent. But standing between them and long-term change is the opposition of large-scale trade groups with significant lobbying power.
One such group is Wine and Spirits Wholesalers of America (WSWA). Headquartered in Washington, D.C., WSWA has spent more than $10 million in political donations over the past 10 years, according to OpenSecrets.org.
WSWA is directly opposed to interstate, and intrastate-only, DTC spirts sales. Instead, the group champions e-commerce solutions provided by local licensed retailers and third-party companies like Drizly. “The current system of alcohol distribution is the gold standard,” says Michael Bilello, WSWA’s senior vice president of communications and marketing.
WSWA’s opposition to DTC spirits sales arises from what it says are three potential dangers: underage drinking, unpaid taxes, and counterfeit alcohol. When alcohol is sold directly to consumers, and not through distributors and retailers, the risk of counterfeit or illicit alcohol entering the supply chain increases, Bilello says. And when spirits cross state lines, there’s a chance the producer shipping the spirit will avoid paying the appropriate local and state taxes in the destination state. On the topic of underage drinking (i.e., a delivered package falling into the hands of a minor), Bilello acknowledges this is also a possibility with wine, but he says the risk of harm is greater in the case of spirits.
Bilello says that when it comes to impairment, spirits are different from wine. “An eight-year-old comes across a case of vodka on their mom’s front doorstep; it’s clear and it’s odorless and maybe it doesn’t taste great, but they start drinking it,” he says. “This could really, really harm them. That risk isn’t worth even one child’s life.”
Others within the alcohol industry remain skeptical about the reasons given by the WSWA for its opposition.
“Common carriers like UPS and FedEx are beholden with the states and have to file detailed reports,” says Sean O’Leary, a Chicago-based beverage lawyer. The fact that these carriers require individuals receiving alcohol packages to sign and provide identification means that the “risk of abuse” is no more significant than a minor buying from a liquor store, O’Leary adds.
As for the claim that spirits are in some way more harmful than wine, Lyon Distilling’s Windon says that argument is “frustrating and borderline insulting.”
This just leaves the issue of unpaid taxes, and there already exists a tailor-made solution for this potential sticking point: Spirits360. Among the range of services the company provides, Spirits360 designs and integrates an e-commerce platform for the websites of its producer clients. When a producer receives an order through this platform, Spirits360’s “compliance engine” calculates the taxes to be paid and provides the appropriate documentation that the producer must fill out in order to ship orders. Spirits360 also generates the shipping label and tracks the package all the way to the customer via UPS, with a signature required upon receipt.
This system would appear to address the concerns raised by WSWA, and for many producers it is no doubt an attractive proposition. Whether or not a producer should be required to sign up for a service like Spirits360, especially when they can handle each matter here independently, is another topic. But as Windon pointed out, if a producer has no choice but to go through a third-party company, it’s not exactly “direct” to the consumer.
Numerous industry professionals contacted for this article believe there’s another reason wholesalers are opposed to DTC spirits sales — one that they’re not mentioning: the risk they pose to wholesale businesses and the three-tier system. (WSWA’s Bilello said he couldn’t comment on this and called it a purely “hypothetical” scenario.)
Producers say any perceived risk is inflated at best and that DTC spirits sales could actually benefit distributors. “My [New York] distributor would love for me to mail you a bottle of rum because you’re not going to pay shipping every time,” says Lyon Distilling’s Windon. “But after you’re hooked, you’ll go pick it up at the liquor store.”
There would also appear to be little threat of large distilleries pivoting to DTC en masse if, indeed, they were allowed. If a consumer wishes to buy a bottle of Jack Daniels, for example, they can pick it up from almost any liquor store. If that consumer wishes to have that bottle delivered instead, they can do so via Drizly or the already established online retailers. Given that large liquor brands already have distribution in most if not all states, there seems little incentive from a new-market perspective, either.
For now, however, the day-to-day reality for most craft distillers is probably strikingly similar to that of Maggie Campbell, president and head distiller at Massachusetts-based Privateer Rum. “Every day, I probably spend at least an hour answering emails and messages from individuals in places that want to get our rum and they can’t,” she says. “It’s hard as a business to know you’re not making that money.”
The article Why Craft Distillers Are Calling to Expand Direct-to-Consumer Shipping appeared first on VinePair.
source https://vinepair.com/articles/craft-distillers-direct-to-consumer-shipping/ source https://vinology1.tumblr.com/post/625538111354634240
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instantdeerlover · 4 years
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Catoctin Creek Distilling Company’s Scott Harris appointed to the Virginia Spirits Board by Governor Ralph Northam added to Google Docs
Catoctin Creek Distilling Company’s Scott Harris appointed to the Virginia Spirits Board by Governor Ralph Northam
Scott Harris, co-founder and general manager of Catoctin Creek Distilling Company, has been appointed to the Virginia Spirits Board by Governor Ralph Northam, overseeing the operations and marketing of the Virginia Alcoholic Beverage Control Authority (ABC). Harris currently sits on the Craft Distiller Advisory Board for the Distilled Spirits Council of the United States (DISCUS) and is a member of the Virginia Distillers Association Board of Directors.
The new board will set direction and innovate new courses for the growing Virginia ABC. Harris is joined by Jeff Bloem, founder and maltster of Murphy & Rude Malting Co.; Joshua Chandler, plant manager of Speyside Bourbon Cooperage, Inc.; David Cuttino, co-founder and CEO of Reservoir Distillery; Bill Karlson, owner of KO Distilling; Kara King, creative director of Ironclad Distillery; Gareth H. Moore, CEO of Virginia Distilling Co.; and Brian Prewitt, master distiller of A. Smith Bowman Distillery.
“I am excited to engage in this new role and honored to have been selected for this initial board,” said Harris. “I look forward to working with my peers in the industry, and the leadership of the Virginia ABC, to innovate and continue to achieve the best results for spirits consumers and citizens in the Commonwealth.”
Following his graduation from Georgia Tech, Harris spent 20 years building a software career in telecommunication systems and government IT solutions before opening Catoctin Creek Distilling Co., The Virginia Rye Whisky ℠ with his wife, Becky, in 2009. A tireless advocate for craft spirits both in the Commonwealth of Virginia and internationally, Harris was named the Entrepreneur of the Year in 2011 and awarded Small Business of the Year in 2012 by the Loudoun County Chamber of Commerce.
Click here for a high-resolution photo of Harris.
About Catoctin Creek Distilling:
Catoctin Creek Distilling Company, The Virginia Rye Whisky ℠, was founded by Scott and Becky Harris in 2009. Inspired by the history and craft of Virginia, Catoctin Creek made a name for itself as the first legal distillery since Prohibition in Purcellville, Virginia’s Loudoun County. The craft distillery is home to Virginia’s most-awarded whisky, Roundstone Rye, which has been presented gold medals across the globe and stands out through its old-world production methods. Catoctin Creek prides itself on sourcing rye whisky, gin, and seasonal brandy from local grains and fruits, with spirits available in 26 states and 3 continents. The Harris’ intricate attention to detail results in high quality internationally acclaimed products, including seasonal releases and private cask offerings, that recognize the true craft of Virginia spirits. For more information, call (540) 751-8404 or visit CatoctinCreekDistilling.com. Follow Catoctin Creek on Instagram, Twitter and Facebook.
The post Catoctin Creek Distilling Company’s Scott Harris appointed to the Virginia Spirits Board by Governor Ralph Northam appeared first on Food & Beverage Magazine.
Catoctin Creek Distilling Company’s Scott Harris appointed to the Virginia Spirits Board by Governor Ralph Northam was first posted on September 10, 2020 at 2:24 am.
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mikemortgage · 5 years
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Tariffs take toll on whiskey exports in last half of 2018
LOUISVILLE, Ky. — Retaliatory tariffs caused a sharp downturn in American whiskey exports in the last half of 2018 as distillers started feeling the pain from global trade disputes, an industry trade group said Tuesday.
Exports to some key overseas markets gyrated wildly last year for producers of bourbon, Tennessee whiskey and rye whiskey. Overall, U.S. spirits exports in 2018 stayed on another record-setting trajectory, due in part to surging whiskey sales in the months leading up to the tariffs as larger distillers stockpiled supplies, the Distilled Spirits Council said. Other categories including vodka, brandy and rum also had strong overseas sales.
But exports would have been much higher without the trade war, it said.
“For the first time, data can demonstrate the negative impact of retaliatory tariffs on what had been a booming export growth story,” said Christine LoCascio, the council’s senior vice-president for international affairs.
“The tariffs are making it more difficult to be competitive in key markets,” she added.
The export figures confirmed fears among industry leaders that tariffs would depress overseas sales. But whiskey industry officials have been muted in blaming President Donald Trump and others for the export headaches.
American whiskey exports to the European Union — the industry’s biggest export market — fell by 8.7 per cent from July through November of last year, compared to the same period in 2017, the group said in its annual report released in New York.
In the first half of 2018, American whiskey exports to the EU surged by 33 per cent, it said.
Overall global American whiskey exports grew by 28 per cent in the first half of 2018, then fell by 8.2 per cent from July to November — compared to a year ago — once tariffs took effect, according to the trade group’s export figures, based on numbers supplied by the U.S. government.
“That suggests that the tariffs are starting to have a measureable impact on American whiskey exports,” LoCascio said.
Despite the volatility, exports for all U.S. spirits recorded another record at almost $1.7 billion through November, the council said.
“It would have been a lot stronger if we hadn’t had these tariffs” said council spokesman Frank Coleman. “If not for the tariffs, we would have been popping the corks on the best bottles in our liquor cabinet.”
American whiskey makers face retaliatory tariffs in Canada, Mexico, China and Turkey as well as the EU. Those duties amount to a tax, which producers can either pass along to customers through higher prices or absorb shrinking profits.
Some large American distillers gained a short-term cushion from trade disputes by stockpiling whiskey supplies in countries ahead of the tariffs. But as the trade disputes continue, they are being hit, too. Smaller distillers didn’t have the luxury of stockpiling.
Catoctin Creek Distillery in Virginia has a couple hundred cases of its rye whiskey sitting in a European warehouse. The inventory was built up in anticipation of growing European sales in 2018. But since the tariffs took effect, Catoctin Creek’s sales in Italy and Germany have plunged and its plans of expanding to the United Kingdom are on hold, said its co-founder and general manager, Scott Harris.
About 11 per cent of its overall 2017 revenues came from Europe. The distillery hoped its European business would increase to one-fourth of total revenues in 2018, but “that part just never materialized,” Harris said in an interview.
“If we were able to get the tariffs removed, I think we’d be in good shape to really just take off,” he said.
For now, Catoctin Creek is absorbing the costs of tariffs for the scaled-back European sales it’s able to make in hopes of maintaining relationships with distributors and staying competitive, Harris said.
“For European sales, it means we’re losing money on every bottle,” he said.
Asked how long his distillery can afford to do that, he replied: “I don’t even want to think about it. We might do it for another half of year and see. Honestly, it’s hard to be optimistic at this point.”
While exports were a glaring concern, domestic sales of distilled spirits were strong in 2018.
The council reported another year of record spirits sales and volumes in the U.S., resulting in continued market share growth. Supplier sales were up over 5.1 per cent, rising $1.3 billion to a total of $27.5 billion, while volumes rose 2.2 per cent to 231 million cases, it said.
“These robust results show adult consumers are continuing to favour spirits over beer and wine, particularly among millennials,” council President and CEO Chris Swonger said.
Combined U.S. revenues for bourbon, Tennessee whiskey and rye whiskey rose 6.6 per cent, or $224 million, to $3.6 billion in 2018, council said. Domestic volumes rose 5.9 per cent to 24.5 million cases.
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