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Wednesday, June 26, 2019 www.nabca.org NABCA CONTROL STATE RESULTS During May nine-liter control states spirits case sales grew 4.2% over same period sales last year despite an impressive 8% comp. Alabama(9.9%), Iowa(5.1%), Idaho(6.1%), Montgomery County Maryland(2.6%), Maine(3.8%), Mississippi(5.0%), North Carolina(7.3%), Ohio(6.2%), Oregon(5.6%), Pennsylvania(1.8%), Utah(3.9%), Virginia(6.6%), and West Virginia(3.9%) reported monthly growth rates for May exceeding their twelve-month trends. Michigan(0.9%), Montana(-4.1%), New Hampshire(1.7%), Vermont(1.7%), and Wyoming(0.0%) grew at rates that fell short of their twelve-month trends. Control state rolling-twelve- month volume growth, 3.0%, slipped from April’s reported 3.3%. Spirits volumes grew 4.3% year-to-date compared to 3.8% a year ago. Control state spirits shelf dollars grew at 7.1% during May while trending at 5.9% during the past twelve months. Alabama(11.2%), Iowa(8.7%), Idaho(7.9%), Montgomery County Maryland(4.1%), Mississippi(8.8%), North Carolina(10.8%), Ohio(9.7%), Oregon(7.0%), Pennsylvania(6.0%), Virginia(10.1%), and Vermont(5.3%) reported growth rates exceeding their twelve-month trends. Maine(5.2%), Michigan(3.3%), Montana(-2.4%), New Hampshire(2.8%), Utah(4.4%), West Virginia(5.5%), and Wyoming(-2.1%) grew shelf dollars at rates lagging their twelve-month trends. Shelf dollars in the control states are up 6.9% year-to-date compared to 6.5% last year-to-date. Price/Mix for May is 2.9%, an improvement upon April’s 2.2%. Irish Whiskey, with 2% share of the nine-liter case control states spirits market, was May’s fastest growing category with 10.8% reported and a twelve-month trend of 11.4%. Domestic Whiskey, with 15% share, reported 8.5% growth and a 5.4% twelve-month trend. Vodka, with 35% share, grew during the same periods at 4.4% and 2.7%, respectively. Brandy/Cognac(4.6%), Canadian Whiskey(2.8%), Cordials(3.4%), Domestic Whiskey(8.5%), Gin(0.3%), Rum(0.6%), Scotch(0.1%), and Vodka(4.4%) grew at rates exceeding their twelve- month trends, while Cocktails(-0.2), Irish Whiskey (10.8%), and Tequila(7.0%) grew at rates lagging theirs. May’s nine-liter wine case sales growth rate was -1.8%. Pennsylvania (reporting -2.7% nine-liter case growth for wines), New Hampshire (-1.6%), Utah (2.4%), Mississippi (-0.2%), Montgomery County Maryland (-0.5%), and Wyoming (-3.1%) are the control states that are the sole wholesalers of wines and spirits within their geographical boundaries. Rolling-twelve-month wine volume growth in these six control states was -1.7%, down from April’s reported -1.4%. 9L Cases CM % Chg Shelf $ CM % Chg Price/ Mix Control States Total Control States 4.2 7.1 2.9% Central Region 2.9 6.1 3.2% IA, MD, MI, OH, PA, WV NE Region 2.4 3.9 1.5% ME, NH, VT NW Region 3.7 4.9 1.2% ID, MT, OR, UT, WY Southern Region 7.3 10.4 3.1% AL, MS, NC, VA

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Page 1: NABCA CONTROL STATE RESULTS · NABCA CONTROL STATE RESULTS ... rebranding effort early this fall. In 1951, the DLC was established as a County department responsible for the control,

Wednesday, June 26, 2019 www.nabca.org

NABCA CONTROL STATE RESULTS During May nine-liter control states spirits case sales grew 4.2% over same period sales last year despite an impressive 8% comp. Alabama(9.9%), Iowa(5.1%), Idaho(6.1%), Montgomery County Maryland(2.6%), Maine(3.8%), Mississippi(5.0%), North Carolina(7.3%), Ohio(6.2%), Oregon(5.6%), Pennsylvania(1.8%), Utah(3.9%), Virginia(6.6%), and West Virginia(3.9%) reported monthly growth rates for May exceeding their twelve-month trends. Michigan(0.9%), Montana(-4.1%), New Hampshire(1.7%), Vermont(1.7%), and Wyoming(0.0%) grew at rates that fell short of their twelve-month trends. Control state rolling-twelve-month volume growth, 3.0%, slipped from April’s reported 3.3%. Spirits volumes grew 4.3% year-to-date compared to 3.8% a year ago.

Control state spirits shelf dollars grew at 7.1% during May while trending at 5.9% during the past twelve months. Alabama(11.2%), Iowa(8.7%), Idaho(7.9%), Montgomery County Maryland(4.1%), Mississippi(8.8%), North Carolina(10.8%), Ohio(9.7%), Oregon(7.0%), Pennsylvania(6.0%), Virginia(10.1%), and Vermont(5.3%) reported growth rates exceeding their twelve-month trends. Maine(5.2%), Michigan(3.3%), Montana(-2.4%), New Hampshire(2.8%), Utah(4.4%), West Virginia(5.5%), and Wyoming(-2.1%) grew shelf dollars at rates lagging their twelve-month trends. Shelf dollars in the control states are up 6.9% year-to-date compared to 6.5% last year-to-date.

Price/Mix for May is 2.9%, an improvement upon April’s 2.2%.

Irish Whiskey, with 2% share of the nine-liter case control states spirits market, was May’s fastest growing category with 10.8% reported and a twelve-month trend of 11.4%. Domestic Whiskey, with 15% share, reported 8.5% growth and a 5.4% twelve-month trend. Vodka, with 35% share, grew during the same periods at 4.4% and 2.7%, respectively. Brandy/Cognac(4.6%), Canadian Whiskey(2.8%), Cordials(3.4%), Domestic Whiskey(8.5%), Gin(0.3%), Rum(0.6%), Scotch(0.1%),

and Vodka(4.4%) grew at rates exceeding their twelve-month trends, while Cocktails(-0.2), Irish Whiskey (10.8%), and Tequila(7.0%) grew at rates lagging theirs.

May’s nine-liter wine case sales growth rate was -1.8%. Pennsylvania (reporting -2.7% nine-liter case growth for wines), New Hampshire (-1.6%), Utah (2.4%), Mississippi (-0.2%), Montgomery County Maryland (-0.5%), and Wyoming (-3.1%) are the control states that are the sole wholesalers of wines and spirits within their geographical boundaries. Rolling-twelve-month wine volume growth in these six control states was -1.7%, down from April’s reported -1.4%.

9L Cases CM % Chg

Shelf $ CM % Chg

Price/ Mix

Control States

Total Control States

4.2 7.1 2.9%

Central Region

2.9 6.1 3.2% IA, MD, MI, OH, PA, WV

NE Region 2.4 3.9 1.5% ME, NH, VT

NW Region 3.7 4.9 1.2% ID, MT, OR, UT, WY

Southern Region

7.3 10.4 3.1% AL, MS, NC, VA

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Charts can be viewed at https://www.nabca.org/news-releases

CONTROL STATE NEWS MD, Montgomery Co.: Name Change: Introducing the Montgomery County Alcohol Beverage Services The Montgomery County Department of Liquor Control (DLC) is changing its name to Alcohol Beverage Services (ABS) as of July 1.

News Release Montgomery County DLC June 24, 2019

The new name is designed to reflect recent changes at the department, including an emphasis on customer service.

“Over the past two years, we have worked tirelessly to improve operations and our reputation, and we are now running like a business,” said Department Director Bob Dorfman. “We’ve brought in new management, invested in new technology and infrastructure, streamlined and updated processes, implemented a marketing department and elevated customer service and communication efforts.”

The new name, ABS, better defines the department’s work. The use of “alcohol beverage” was chosen over “liquor” because the department sells beer and wine in addition to liquor as part of its wholesale and retail operations. The use of “services” instead of “control” is intended to emphasize the customer service-oriented relationships the County department has worked hard to cultivate.

The department’s rebranding also includes a new tagline: A Business of Montgomery County Government.

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“This tagline directly reinforces that we think of our organization as a business and are committed to earning our customers’ business each day,” said Dorfman.

The department’s new name required a change in state law. That law was approved by the Maryland General Assembly in its 2019 session and goes into effect on Monday, July 1.

The 25 retail stores operated by ABS will undergo a rebranding effort early this fall.

In 1951, the DLC was established as a County department responsible for the control, regulation and sale of alcohol in Montgomery County. Before that, in 1933, the Liquor Control Board controlled the sale and distribution of alcohol in the County.

For more information, visit the department’s website.

Media contact: Emily DeTitta, 240-777-1904

LICENSE STATE NEWS AK: How the municipality is spending its marijuana money

KTVA By Shannon Ballard June 25, 2019

Slowly but surely, more marijuana retail stores are sprouting up in Anchorage.

A map on the municipality of Anchorage's website shows nearly 30 shops open and operating across the municipality. The more cannabis sold, the more green the municipality sees from its 5% tax on marijuana retail sales.

Chris Schutte, the municipality's director of economic and community development, tracks the tax money.

“What we've seen over the past three years has been a steady increase in the revenue generated by marijuana retail sales and therefore an increase in the collection of retail sales tax," he said.

Annual revenue from the tax has grown significantly from approximately $600,000 in 2016 to a projected $4 million in revenue for 2019. As supply has grown, Schutte says prices for marijuana buds and flowers have dropped by nearly half.

“We’ve seen the average prices slowly decline for marijuana buds and flowers from close to $600 per ounce in 2017 to about $322 per ounce in 2019,” Schutte said. “Additionally, we’ve seen growth in the types of

marijuana products sold: buds and flowers made up nearly all of the marijuana product sold in 2017, but now pre-rolls, edibles, and other products are making up approximately 45% of the total quantity of marijuana sold in the municipality.”

While finding an approved space for a pot shop can be challenging in Anchorage, more stores are preparing to open.

“There's no cap on it and deliberately so. You don't want to create a secondary market for the marijuana licenses themselves like you have in the liquor industry or the taxi cab industry so that's simply a byproduct of the market itself,” Schutte said.

Marijuana sales taxes goes into the municipality's general fund to help pay for government services like the police and fire departments. The more cannabis cash that's collected, the less property tax is needed.

“All of the marijuana tax revenue is an offset on the property tax side," Schutte said. "We estimate about $4 million in marijuana retail sales tax collected this year. That will result in a $4 million decrease in property tax collection."

While Schutte anticipates retail marijuana sales to plateau at some point, he says the money will keep rolling in.

The municipality's marijuana retail sales tax is different from the state's because the state gets its money from charging growers $50 per ounce of bud and $15 for all other parts of the plant.

In the first four months of this year, that tax has brought in more than $6.5 million to the state.

OK: Oklahoma Supreme Court declines to take liquor lawsuit

KOCO News 5 By the Associated Press June 25, 2019

OKLAHOMA CITY — The Oklahoma Supreme Court says a lower court should first consider a case brought by a group of liquor wholesalers who are challenging a change in the state's alcohol laws.

The court rejected the request Monday to immediately take the lawsuit and issue an injunction blocking the law signed last month by Gov. Kevin Stitt. The court sent the case to Oklahoma County District Court.

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The law requires top brands of wine and spirits to be sold to all Oklahoma alcohol wholesalers. Currently, manufacturers can designate a single wholesaler to distribute their products.

The group contends the law unconstitutionally changes the amendment passed by voters in 2016 that also allows the sale of strong beer in grocery and convenience stores and the sale of cold, strong beer in liquor stores.

AK: In search of a better conversation about alcohol and pregnancy

SPONSORED: The advice you get when you’re expecting ranges from wise to questionable to downright bad - and the facts about drinking during pregnancy are often drowned out in the din.

Anchorage Daily News Presented by LetsTalkFASDak June 26, 2019

Part 2 of 3

SPONSORED: The tidal wave begins to crest as soon as that second blue line appears on the home pregnancy test.

It starts with books, articles and online forums. Then sisters, mothers, aunts and friends start to weigh in, followed by coworkers and colleagues. Before long, strangers on the street begin stopping you to tell you what you should and shouldn’t be doing.

From prescription medications to coffee, soft-serve ice cream to soft cheeses, lunch meat, cantaloupe, herbal teas, exercise, skincare products, sweeteners and more, pregnant parents today are drinking from a firehose when it comes to advice about what to eat or not eat, do or not do, avoid or embrace.

The constant stream of unsolicited advice can understandably put new parents on the defensive.

“Guess what?” one ScaryMommy contributor writes in a post titled “Don’t Judge Me For Having That Glass of Wine While Pregnant.” “I’m a full-grown adult with an advanced degree in motherhood. I think I can handle eating or drinking whatever I want without the public rubbernecking and making sanctimonious commentary on it.”

That sentiment probably feels relatable to anyone who’s been pregnant and encountered a person who feels entitled to criticize what they’re eating, doing or buying.

But drinking alcohol during pregnancy isn’t like ordering a milkshake or a cup of coffee. Here’s why.

Understanding and assessing risk

Some pregnancy advice is based in science. Some of it isn’t. And much of it is wildly misconstrued or misunderstood.

“We focus on ‘What kind of cheese you eat?’ or ‘Did you have one cup of coffee or two?’ and there’s no real evidence for that,” said Dr. Stephanie Eklund, an Anchorage OB/GYN. “But it’s dramatized and spread like wildfire.”

Take cantaloupe, for example. Some people have the impression that it’s dangerous in pregnancy. But dig a little deeper and you’ll learn that those concerns about cantaloupe stem from a single listeria outbreak in 2011 that sickened 147 people, killed 33, and caused one woman to miscarry. Cantaloupe itself is no more dangerous to a pregnancy than any other raw fruit or vegetable. (Listeria, which kills about 260 people in the U.S. each year, is at the root of many pregnancy warnings, including lunch meat, soft cheeses, and ice cream.)

With alcohol, on the other hand, the full picture of the risk is still developing. Fetal alcohol syndrome was identified in 1973, and it became well known following a 1981 Surgeon General’s warning advising pregnant women to stop drinking. (At the time, the founding director of the National Institute on Alcohol Abuse and Alcoholism called the warning “overkill”; today, the Institute advises total abstinence from alcohol during pregnancy.) Now it’s estimated that as many as 1 in 20 American children are affected by fetal alcohol spectrum disorders, including -- but not limited to -- FAS. ((LINK HIGHLIGHTED TO PART 1))

The wheels of public health research tend to turn slowly, said Susan Astley Hemingway, a professor of epidemiology and pediatrics at the University of Washington and director of the Washington State FAS Diagnostic and Prevention Network. It wasn’t until the 1990s that public health efforts to screen, diagnose and prevent FASD began, supported by agencies like the Centers for Disease Control.

Fetal alcohol spectrum disorders as a field of study are still relatively young, and reliable answers are hard to find in part because the controlled, double-blind study design ideally used for health research would require deliberately exposing fetuses to alcohol -- an experiment no organization would ever approve. It’s also difficult to

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disprove the potential for harm, especially when new research indicates that there are other factors at play, including genetics.

What is known today is that alcohol is a teratogen that has the potential to cause harm -- mild or severe -- at any stage of pregnancy, and doctors don’t have enough information to say whether there is a safe dose of that teratogen.

Hence the public health message that’s a simple statement of fact: There is no amount of alcohol known to be safe during pregnancy, so it’s best not to drink at all.

“I think it’s meant to be a diplomatic way of saying we don’t know what ‘moderate’ or ‘enough’ or ‘safe’ drinking is during pregnancy, and that’s probably because there’s not really any safe amount or safe time,” Eklund said. “I think it’s a little bit confusing, though, when you hear it and you’re not a medical person.”

And in a world full of confusing and conflicting pregnancy messages, where the phrase “Can I eat cream cheese while pregnant?” yields 14 million Google results, some parents are pushing back against any kind of blanket restriction in pregnancy. Drinking while pregnant is on the rise in the U.S., particularly among college-educated women in their 30s and 40s.

“How do you share with the general population -- being a mix of highly educated women, less educated women, and women who are suffering from alcoholism?” Astley Hemingway said. “Public health messages need to be succinct, accurate and resonate with the full spectrum of women.”

Finding better ways to talk to patients

That’s where providers come in, says Dr. Elizaeth Barlet. Barlet is the FASD Champion for the American College of Obstetricians and Gynecologists and chair of Women’s and Children’s Services for Mercy Joplin Obstetrics, Gynecology and Women’s Health in Joplin, Missouri.

“As OB/GYNs, we have to reach patients in a variety of ways,” Barlet said. “Some patients respond better to straightforward facts and statistics, while others prefer real-life examples of how something can affect their pregnancy.”

But even obstetricians may differ in their advice about alcohol use during pregnancy, something Eklund says is part of the problem.

“The people that should be listening are us, the providers,” she said. “If we (sent) a consistent message, that would be the first step.”

Recent research in Australia found that the use of alcohol during pregnancy is often influenced by conflicting social and emotional factors -- like not wanting to miss out on celebratory toasts or feeling anxious about what others will think -- suggesting that it’s important that health care providers equip their patients with reliable information about the chemical nature of alcohol as a teratogen.

Eklund says one of the most valuable tools at her disposal is a developmental chart that shows a fetus’s growth alongside the systems that alcohol has the potential to affect at any point in a pregnancy. It helps focus the conversation from a vague “it’s bad for the baby” to the potential for damage to specific parts of the body.

“A lot of providers don’t see it that cut and dried; it’s kind of a nebulous ‘It’s probably not good for you -- don’t do it that much,’” Eklund said. With the chart, “It’s like, ‘If you drink in your sixth week, this is what’s going to be affected.’”

Experts say health care providers should also be able to help patients sort through what they hear from friends, family, books and websites to make sure they’re getting the best information and asking the right questions.

“If you read something on the Internet or social media, be sure to run that past your OB/GYN to confirm that the information is accurate and safe for you and your baby,” Barlet said.

Overcoming fears & opening up

Before that dialog can happen, a patient has to be open with their health care provider -- and that can be intimidating when it comes to talking about alcohol.

“One of our whole challenges is how do we shift the stigma around alcohol and pregnancy?” said Marilyn Pierce-Bulger, an Anchorage nurse practitioner who specializes in diagnosing FASDs. “Because stigma is getting in the way of women disclosing and providers asking.”

Women drink more than they used to, and they’re less likely to get help if their drinking becomes a problem. But all too often, Pierce-Bulger said, there’s a reluctance among pregnant women to disclose any alcohol use. Patients don’t talk about it because they’re afraid of being judged, and doctors consequently may not realize how common it is.

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“I’ve had providers say “Well, I don’t have those women in my practice,’” Pierce-Bulger said. “I’m sorry, but yes, you do. It’s not just ‘those women.’”

One thing parents may be reluctant to discuss is exposure to alcohol early in pregnancy. About half of all pregnancies are unplanned, and messages about drinking in early pregnancy can seem conflicting -- you should quit drinking if you might be pregnant, but you shouldn’t panic if you drank before you knew. Exposure early in pregnancy can cause problems, but Astley Hemingway said it comes down to understanding the “continuum of risk.”

“When we say it’s not safe to drink even a little bit during the first part of pregnancy, we’re talking about a risk,” she said. “The flip side is, if you’ve already done that drinking and now you’re frightened, I can emphasize that the risk is only 5 percent. There’s a higher chance that nothing’s going to happen, but it’s not zero.”

It’s the kind of reassurance and support an OB or midwife can only provide if the patient is willing to open up and share honestly.

“No matter what the issue, it’s important for patients to be completely honest with their medical provider,” Barlet said. “Your physician isn’t judging you for your lifestyle but does need to know all the facts to provide the best care for you and your baby.”

Coming Friday: How an FASD diagnosis changed one young woman’s life

Read Part 1: ‘He looks so normal’: When it comes to FASDs, there’s no such thing as predictability

INTERNATIONAL NEWS Europe: "Alcohol war" escalates in northeastern EU

Xinhua Editor Mu Xuequan June 25, 2019

HELSINKI, June 25 (Xinhua) -- The northeastern most tier of the European Union (EU) is on the brink of a further escalation of an "alcohol war".

Tourists have been increasingly bringing alcohol products to Finland since last year, and the figure of import has soared by six percent, according to industry statistics.

A major increase in the traveler purchases is expected now, as both Estonia and Latvia will reduce their alcohol tax next week while Finland plans a further increase in

alcohol tax in the near future. Both Estonia and Latvia see the tax cutback to be in their national interest.

Estonia and Latvia ended up in a mutual spiral of competition about the Finnish touristic spending. Finland has higher salary levels than the two Baltic countries and Finnish visitors often spend liberally there.

In the latest twist of the "alcohol war", Estonia is to reduce its alcohol tax by 25 percent next week, and Latvia by 15 percent. Latvia targets its reduction next week to hard liquor only though.

Besides Finns, Estonians have also started going to Latvia to purchase alcohol, the local correspondents of Finnish media in the Baltics have reported.

Latvian Prime Minister Arturs Krisjanis Karins was quoted by Finnish media on Tuesday as saying that "Latvia does not want to be a country of cheap alcohol," but Latvia had no choice but to act following the announcement by Estonia about a tax cutback.

Karins said Latvia had planned to increase alcohol prices but has to do something fast now, the other way.

Two years ago, Estonia increased its alcohol tax. The move resulted in more purchase trips to Latvia and the number of Finnish tourist purchases began to decline. With the latest tax cutback, Estonia wants to restore the earlier situation.

Imre Poll, a director of the major alcohol retailer Super-Alko in Estonia, told Finnish radio that they had opened three stores on the Latvian side, in order not to lose the Estonian customers.

Commentators have used the word "domino theory" to describe the situation, and a Tallinn-based correspondent of the Finnish national broadcaster Yle used the word "alcohol war".

The underlying factors of the situation are the totally free carriage of merchandise by travelers and the difference in alcohol taxation. Since Estonia became a member of the EU after the turn of the century, Finns started bringing in large amount of cheap beer and booze on ships across the 100-kilometer-wide Gulf of Finland.

In recent years, Finnish visitors began transiting through Estonia and purchasing their alcohol in Latvia, Estonia's southern neighbor. Currently a quarter of all the drinks that travelers haul from Estonia to Finland have actually been purchased in Latvia.

The price differences are tangible. A 24-can package of strong beer costs in Finland 32 euros, but in Estonia the

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price is around 18 euros and in Latvia under 14 euros. Half a liter of vodka costs in Finland 15.7 euros while in Estonia 8.5 and in Latvia 6.5. Each traveler can bring as much as he or she can carry or haul on a trolley. If the person brings more than one person is able to, imports are treated as for someone else and will be taxed.

An upgrade of alcohol tax revenue in Finland was decided in the governmental talks in June as the political parties could not agree on an increase in corporate taxation, for example.

However, Finland is now considering reacting to the Baltic countries' new move.

Finnish Prime Minister Antti Rinne said after his talks with Estonian Prime Minister Juri Ratas two weeks ago that Finland could adjust its increase to the "impact of the Estonian reduction". National broadcaster Yle said on Tuesday that this could mean that Finland would target wines and mixed drinks more than beer and hard booze, as the former products' prices will not be reduced in the competing countries.

In Finland, the development has resulted in an outcry from the restaurant industries. Restaurants will lose dining customers as the alcohol purchased abroad will be consumed at home.

Timo Lappio, the interest representative of the national tourist and restaurant fraternity, told Yle on Tuesday the amount of touristic import has now already exceeded by one and a half times the amount consumed in restaurants in Finland.

Canada: Nova Scotia Liquor Corporation earns the right to sell cannabis topicals, extracts, and edibles The new products will be sold by the end of the year in the same dozen NSLC locations that sell cannabis flower, capsules, and oils

National Post By Emma Spears June 25, 2019

The Nova Scotia Liquor Corporation (NSLC) has announced that it will stock cannabis topicals, extracts and edibles when products become legal to sell in December.

The province’s liquor distributor has been selling cannabis flower and oils in-store and online since the drug was federally legalized in October 2018.

“The NSLC has the experience with controlled substances needed to sell additional cannabis products safely,” Nova Scotia Finance Minister Karen Casey said Monday in a news release, stating that the organization “has done a good job in preparing and implementing our new retail model as recreational cannabis was legalized across Canada.”

Casey said that the NSLC has earned the right to sell the products.

“They’ve proven they could take on cannabis and so we asked them what it might look like if they were given the expanded mandate for the edibles, extracts and topicals,” she told the The Canadian Press earlier this week.

“They came back with the same kind of parameters and the same kind of priorities that we wanted, and that was that they would do education and awareness with their staff,” Casey said. “They want, and we want, the staff handling the products to be comfortable doing that and to be knowledgeable.

The new products will be sold in the same dozen NSLC locations that sell cannabis flower, capsules, and oils.

President and CEO Greg Hughes said the NSLC would start readying itself for when the new products hit the shelves in December. “I am pleased our shareholder trusts NSLC to expand our cannabis mandate to offer edible cannabis products to our customers,” Hughes told The Chronicle-Herald. “Preparations will begin immediately to make sure our employees and stores are ready to execute on our new mandate in the same safe and responsible way we retail all our products.”

Sales are not expected to begin before December 16.

INDUSTRY NEWS Beam Suntory hires a ‘President of Brands,’ eliminates CMO title

Chicago Business By E. J. Schultz June 25, 2019

The Chicago liquor marketer is doing away with its chief marketing officer role in favor of a more powerful “president of brands” position that it will fill with Carlsberg executive Jessica Spence

Liquor marketer Beam Suntory is doing away with its chief marketing officer role in favor of a more powerful

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“president of brands” position that it will fill with Carlsberg executive Jessica Spence.

Spence is making the move to Chicago-based Beam Suntory after spending seven years at Carlsberg, most recently as the Denmark-based brewer’s executive VP and chief commercial officer.

Beam Suntory, whose brands include Jim Beam, Maker’s Mark, Hornitos tequila and Effen vodka, created the new role nearly 10 months after its global CMO, Rebecca Messina, left for the CMO job at Uber. Messina left Uber earlier this month amid a corporate reorganization.

Beam Suntory described Spence’s duties as covering "end-to-end" oversight over global brand strategy, development and performance. Notably, she will get P&L responsibility over the company’s largest global brands, working alongside region presidents. (Messina did not have P&L responsibilities as CMO.) Spence’s duties include global innovation and product R&D, as well as emerging marketing technologies, integrated marketing communications and design.

The CMO position had been structured as a “center of excellence” role focused on marketing “without the follow-through on accountability for the performance of the brands,” Beam Suntory CEO Albert Baladi said in an interview.

By contrast, the president of brands is expected to work more closely with various departments. That includes collaborating with supply chain leaders to ensure products under development appeal to modern consumer tastes. That is an especially critical function in the whiskey market, where it typically takes years to bring products to the masses, given strict rules on barrel aging. “The brand team will have a lot more [of] a seat at the table defining 10, 20 years out, where do we see the brands going, what kind of liquid do we need to lay down,” Baladi said.

Spence had a similarly broad mandate at Carlsberg, where the chief commercial role gave her oversight of global marketing, sales, insights, R&D and innovation. She came to Carlsberg in 2012 after working for SABMiller. She also has ad agency experience, holding jobs at Leo Burnett and J Walter Thompson.

Baladi called her a “true brand builder at heart.” He said he was impressed by Carlsberg's recent move of “going back to their roots” to talk about the quality of their beers. That “really worked very well with where we are taking the company, which is a greater focus on quality,” Baladi said.

Carlsberg recently reformulated its flagship lager. To support the move, it ran a campaign in which it admitted that its old version was “probably not the best beer in the world,” which was a play on its classic tagline, “probably the best beer in the world." The brewer in the ads admitted to losing its way and focusing on quantity over quality.

Beam Suntory has been bolstered by strong whiskey demand. Its flagship Jim Beam brand grew sales volume by nearly 7 percent in the three months ending in March, while Maker’s Mark was up by more than 9 percent, according to a recent report from Sanford C. Bernstein.

In January the company debuted a new campaign for Jim Beam by Adam & Eve DDB New York called “Raised Right." Ads dig into the brand’s heritage, while also plugging quality measures like barrel-ageing the bourbon "twice as long as the law requires."

INDUSTRY NEWS Eurostar confirms exemptions at duty free shops amid alcohol limit changes

TR Business By Luke Barras-Hill June 25, 2019

The cross-Channel operator has been forced to defend changes to its alcohol policy in the face of national press reports centred on a public backlash against ‘new rules’, which means passengers are restricted from carrying more than one bottle of wine and four cans/bottles of beer onboard. Spirits are also forbidden.

Eurostar says it reserves the right to confiscate any alcohol over its permitted allowances and the policy – introduced to ‘help maintain a pleasant environment for all travellers’ – has in fact been in place since Autumn last year.

A Spokesperson today confirmed to TRBusiness that retailers such as Dufry-owned World Duty Free (WDF) are unaffected by the changes and can sell alcohol [not at duty free prices; for the uninformed intra-EU duty free sales were abolished in 1999 – Ed] in sealed bags above Eurostar’s allowances to travellers across its Europe network.

TRAVELLERS SEEK CLARITY

Members of the public appear to have expressed confusion on Twitter regarding Eurostar’s stance on alcohol purchases made post-security from the shops.

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WDF states on its website that Eurostar permits up to six bottles of champagne or three bottles of spirits per traveller at its St Pancras International station store located after security, although TRBusiness has reached out to clarify the exact limits and how the retailer is communicating those limit exemptions to customers.

The Eurostar Spokesperson added: “We manage relationships directly with our retailers, and they have been selling spirits in sealed bags since any changes were introduced.”

Commenting on the changes to its alcohol limits, Eurostar said in a statement provided to this publication: “We now restrict alcohol to one bottle of wine per person or four bottles/cans of beer to maintain a pleasant environment on board for all our travellers.

“Those that wish to take more with them for consumption at home can do so using our registered luggage service, EuroDespatch.”

Eurostar says its alcohol policy is clearly communicated via its website and then monitored through its security screening process and by its teams.

A note on its website regarding alcohol rules states: “Although you can bring alcohol with you and we serve alcohol on board, safety is our top priority.

“So, please drink in moderation. If you behave in an antisocial way which ruins the journey for other passengers or break any laws or by-laws, we might ask you to leave the train at the nearest station.”

Night trains and those used to transport fans to or from sports events do not sell alcohol onboard and passengers are forbidden to bring alcohol with them.

Alcoholic drinks are confiscated at check-in and only non-alcoholic drinks in sealed bottles are allowed to pass through security at departure stations.

DAILY NEWS University of Idaho Sends Cease And Desist Over Vandal Beer Business Name

Techdirt By Timothy Geigner June 25, 2019

There is something about the beer and liquor industries that seems to attract unfortunate trademark disputes. The craft beer industry in particular has been recently plagued with these disputes, in large part due to the growth that industry has undergone coupled with once-

small craft breweries going corporate and retaining aggressive legal teams. Many of the disputes are intra-industry, with one brewery attacking another over a perceived trademark issue.

But that's not always the case. Occasionally we also see a trademark dispute needlessly erupt from a source outside the beer industry. That is most certainly the case with the University of Idaho, which has the mascot name "The Vandals", for some reason sending a cease and desist notice to an alumnus looking to open his Vandal Beer company.

The University of Idaho sent a letter this week to Vandal Beer owner R. Austin Nielsen asking him to stop using the Vandal Beer name, citing trademark infringement, according to Jodi Walker, UI director of communications.

A story on the new brew brand ran in both the Moscow-Pullman Daily News and Lewiston Tribune a few days ago.

Nielsen said last week he plans on releasing his first Vandal Beer, gold pale ale, in August in the Moscow area, as well as Lewiston and Coeur d’Alene. He said it will be produced in the Coeur d’Alene area starting in July.

Now, Nielsen graduated from UI and says the idea for his brewery business came when he was still enrolled at the school. UI, meanwhile, says that Nielson approached the school with the business idea initially in what was to be a partnership with the school. That partnership never materialized, obviously, and Nielson went on to start his Vandal Beer business anyway. The school, apparently, believes using the Vandal name alone is trademark infringement and will cause confusion.

Little in that claim makes any sense, however, as the branding for the school and brewery look nothing alike, and it's safe to say that the trademarks for which the school has registered the term "vandal", of which there are many, do not include selling alcohol. That puts Nielson's business in a market in which the University of Idaho is not playing: beer sales. Not to mention the proactive steps Nielsen has taken to avoid such confusion.

His website, which is still active at www.vandal.beer, states Vandal Beer is not affiliated with the university.

Nielsen said he will donate 10 percent of all Vandal Beer sales to UI scholarships and a fund he plans to start aimed at helping nonprofits, businesses and individuals who fall in line with Vandal Beer’s mission of making a positive impact in local communities.

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Layer on top of that the simple fact that beer-slinging and education are in wildly different marketplaces and you have to wonder what exactly UI thinks its claim for trademark infringement would be based on? The only potential issue I could see is if the school managed to produce members of the local population who were confused into thinking there was some affiliation there. If it doesn't have that evidence, it's not as though the school gets to lock up the word "Vandal" for its own use within its own geographic area.

On the other hand, a startup versus a university is an example of why trademark bullying tends to work.

Dominican Republic Resort Dispenses With Liquor Dispensers GM says decision isn't linked to recent deaths

Newser By Arden Dier, Newser Staff June 25, 2019

(NEWSER) – Liquor dispensers are being pulled from guest rooms at the Hard Rock Hotel and Casino resort in Punta Cana following the deaths of two Americans. The move will "provide more tranquility for guests," General Manager Erica Lopez tells CNN, claiming the decision did not come in response to the death of 67-year-old Robert Bell Wallace in April or 45-year-old David Harrison last July. Wallace, in the Dominican Republic for his stepson's wedding, reportedly died after consuming scotch from a minibar, per Fox News. The FBI is testing at least one minibar at another resort where three tourists died to determine if alcohol is a possible factor. The New York Times reports the dispensers held large bottles of liquor in a cabinet, while Rolling Stone digs into the theory of counterfeit alcohol. (Read more Dominican Republic stories.)

Tobacco, vape shops sell more to minors than other retailers

KDAL 610/103.9 By Lisa Rapaport June 25, 2019

U.S. regulations require retailers to check ID for everyone under age 27 who tries to buy tobacco products, but half of tobacco and vape shops don't do this, a 2018 study of California retailers suggests.

Forty-five percent of tobacco and vape shops sold e-cigarettes and vaping supplies to researchers posing as

underage shoppers, the analysis also found. Sales violations were more common with vaping products than with traditional cigarettes.

"We don't know why underage sales were more common for vape products than cigarettes, however, young people are more likely to use vape products rather than cigarettes," said lead study author April Roeseler of the California Tobacco Control Program at the California Department of Public Health in Sacramento.

Between the 2016 and 2018 school years, vaping among California high school students increased by 27%, rising from 8.6% to 10.9%, while use of all other tobacco products decreased, Roeseler said by email.

Only 2% of California high school students smoke cigarettes. Among California adults under age 30, 9.4% use vape products, compared to only 1.8% of adults over age 30.

"Flavored products seem to be fueling the rise in these products," Roeseler added.

Across the U.S., vaping surged 78% among high school students from 2017 to 2018, according to the U.S. Centers for Disease Control and Prevention, a spike driven largely by flavored vaping products. In an effort to combat this trend, the U.S. Food and Drug Administration announced its intent to limit sales of flavored tobacco products, with the exception of menthol, to age-restricted adult-only locations like tobacco and vape shops.

The study results, however, suggest that limiting sales to tobacco and vape shops won't help and might actually hurt efforts to curb underage smoking and vaping.

That's a problem because habits that start at an earlier age may be more likely to stick.

"Nicotine is very addictive and is detrimental to the developing brain, whether administered via cigarettes or vaping products," said Jessica Barrington-Trimis, an assistant professor of preventive medicine at the University of Southern California in Los Angeles.

"The earlier that kids begin using nicotine, the greater the likelihood of the development of addiction and the harder it is to quit using nicotine products," Barrington-Trimis, who wasn't involved in the study, said by email. "There is also a substantial literature showing that youth who vape are significantly more likely than those who have not vaped to subsequently begin smoking and to follow a similar trajectory into more frequent cigarette use patterns."

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California raised the legal age of tobacco sales from 18 to 21 in 2016. Researchers posing as shoppers in the study appeared to be 18 to 19 years old, below the legal age for purchasing these products in California.

They were randomly assigned to buy either traditional cigarettes or vape products at tobacco and vape shops, liquor stores, small markets, convenience stores, and pharmacies in California.

Among all the stores, pharmacies were the most likely to check for IDs and the least likely to sell tobacco and vaping products to underage shoppers.

"Violations could be even more frequent elsewhere, given notably strong local tobacco control policies and anti-vaping public messaging in California," said Benjamin Chaffee of the Center for Tobacco Control Research and Education at the University of California San Francisco.

Still, the study findings "challenge the assumption that limiting the sales of vape products to adult-only tobacco and vape shops will successfully reduce youth access to these products," Chaffee, who wasn't involved in the study, said by email. "On the contrary, these establishments were the most likely to sell to youth."

SOURCE: http://bit.ly/2XCFgEe JAMA Pediatrics, online June 24, 2019.

In a federal first, the House has passed legislation to permanently protect state-sanctioned marijuana operations

Pot Network By Rick Schettino June 25, 2019

The United States House of Representatives approved a bipartisan measure late last week which, if passed by the Senate and signed by President Trump, will protect state marijuana programs from federal interference.

Under the proposed measures, the United States Department of Justice would be prohibited from using funds to interfere in cannabis operations within any U.S. states, U.S. territories, and also Washington, D.C.

The language authorizes the use, distribution, possession, and cultivation of marijuana as long as it is allowed by the state in which it takes place. The provision was inserted as an amendment to the Commerce, Justice, Science, and Related Agencies Appropriations bill. The bill does not differentiate between medical and

recreational programs. In the past, some federal measures such as the Rohrabacher–Farr amendment only covered states with medical programs. This is the first time Congress has ever proposed legislation to protect states with recreational marijuana programs.

The latest attempt to prevent federal interference was sponsored by representatives Earl Blumenauer (D-Oregon), Tom McClintock (R-California), and Eleanor Holmes Norton. It is being called the Blumenauer-McClintock-Norton amendment. The measure was passed by a vote of 267 to 165.

“This is the most significant vote on marijuana reform policy that the House of Representatives has ever taken. Today’s action by Congress highlights the growing power of the marijuana law reform movement and the increasing awareness by political leaders that the policy of prohibition and criminalization has failed.” —Justin Strekal, NORML political director

One day earlier the House voted in favor of a similar amendment that protects Native American tribes that have legalized marijuana.

“The historic nature of this vote cannot be overstated. For the first time, a chamber of Congress has declared that the federal government should defer to state cannabis laws. The bipartisan nature of this vote is a strong signal that there would be majority support in the House for the STATES Act, which could be considered a more permanent version of this amendment. We hope the full House will be given the opportunity to vote on the STATES Act in coming months so that we can move closer to the end of federal cannabis prohibition.” — Neal Levine, CEO Cannabis Trade Federation

Washington lawmakers have launched more marijuana policy reform actions in 2019 than in any year prior. Another bill which would bolster state marijuana programs, The STATES Act, introduced in the Senate last year by Colorado Republican Senator Cory Gardner and Massachusetts Democrat Senator Elizabeth Warren, has bipartisan support in both the House and Senate. The measure seeks to treat marijuana regulation in much the same way as federal law treats alcohol.

The SAFE Banking Act, a bill proposed by Colorado Congressman Ed Perlmutter, has passed through committees in the House and might have a chance of being passed and passed on to the Senate. The act would legalize banking and financial services for marijuana businesses. However, Republican support for this bill and

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the STATES Act might be too weak to push either measure through the Republican-controlled Senate.

Now that it has passed through the House, The Blumenauer-McClintock-Norton amendment will likely be debated by the Senate Appropriations Committee.

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