The Spirited Advocate 9/19/25

From the Desk of the CEO…

This week, I was able to participate in a panel session at the Hillebrand Gori’s 2025 Client Appreciation Night in New York City. Hillabrand Gori is a U.S. subsidiary company of DHL. It was great to see DISCUS Board member Ryan O’Hara, CEO, MHW Ltd. at the event. The discussion was primarily focused on the challenging trade environment companies are navigating and the evolving landscape of the wine and spirits sector and the future of the beverage supply chain.

Responsibility.org Tip

Modeling responsible alcohol consumption promotes safety, trust and thoughtful decision making. Adults set the tone—teens learn by example. Clear boundaries, honest conversations and mindful behavior help prevent harm and build a culture of respect and responsibility.

Economic Insight

Although currently less than half of imported distilled spirits are subject to tariffs, the industry paid nearly $100 million in tariffs between May and July 2025. These tariffs compound the already significant tax burden on spirits that are heavily taxed at both the federal and state levels.

DISCUS Top Story

DISCUS Discusses Tariffs During NCSLA Northern/Southern Regional Conference

Robert Maron, senior vice president, international trade policy and market access, participated in a panel discussion on tariffs during the NCLSA Northern/Southern Conference. Maron provided an overview on the status of tariffs, discussed the impact of tariffs, DISCUS’s leadership to galvanize all three tiers of the wines and spirits sector in opposition to tariffs through the Toasts Not Tariffs coalition and encouraged attendees to support the Toasts Not Tariffs petition to President Trump asking him for a permanent return of fair and reciprocal trade between the U.S, EU and UK. The panel was moderated by Sarah Bradley, General Counsel, North America, Campari America, and featured additional insights from Darshak Dholakia, Partner, McDermott, Will & Shulte, Julie Cook, Senior Counsel, Compliance, Wegmans Food Markets, and William Tomaszewski, Senior Counsel, Wine.com. 

Responsibility.org Top Story

Responsibility.org Highlighted at Women’s Advocacy and Leadership Conference

Responsibility.org Executive Director Leslie Kimball and Senior Vice President, Government Relations Kelly Poulsen spoke about the organization’s missions and programs to hundreds of women attending the Women in Government Relations Leadership and Advocacy Conference this week in Washington, DC. Their remarks focused on Responsibility.org’s work and opportunities to partner with the many trade associations, non-profits and companies represented at the conference. Responsibility.org was also the host sponsor of the networking reception that featured standard drink and non-alcohol cocktails. 

Member Spotlight:

North American Shippers Association, Inc. has been serving the ocean shipping needs of its members since 1987. The association was started by alcohol producers, importers and wholesalers to take advantage of the Federal Shipping Act of 1984. The Shipping Act allowed non-profit associations of shippers to combine volumes for the purpose of ocean shipping rate negotiation. Today the association has over 900 members combining their shipment volume to obtain competitive ocean shipping rates.

To learn more visit https://www.nasashipping.com/!

Miura America is a global leader in industrial steam solutions, proudly manufacturing boilers in Rockmart, Georgia. Miura focuses on efficiency, reliability and sustainability, offering modular, once-through steam boilers that help distilleries reduce fuel costs, lower emissions and maximize up time. Their innovative design provides on-demand steam within minutes and occupies a smaller footprint, making their boilers ideal for distilling operations of all sizes.

Backed by world-class engineering, service and support, Miura partners with producers in the spirits industry to deliver safe, consistent and energy-efficient steam. Whether for craft distilleries or large-scale operations, Miura ensures that America’s spirit makers operate at peak performance.

Policy Updates

Alabama: ABC Delays Consideration of Bailment Fee Increase Proposal 

Following multiple conversations with DISCUS staff after a bailment fee increase proposal was made public on Monday, the Alabama Alcoholic Beverage Control (ABC) Board decided to table the fee increase proposal until their October 9 meeting. The original proposal would have increased the bailment fee from the current $0.72 per case to $1.50 case, to be effective Jan. 1, 2026. In response to supplier concerns, ABC Administrator Curtis Stewart amended the proposal to phase-in the increase over a two-year period:

Increase to $1.00/case as of Jan. 1, 2026

Increase to $1.25/case as of Jan. 1, 2027

Increase to $1.50/case as of Jan. 1, 2028

DISCUS will continue to monitor the situation and make sure members’ concerns are heard and considered by the ABC Board.

Illinois: Another Big Tax Threat Looms

Chicago, Illinois Mayor Brandon Johnson’s task force on closing the city’s $1 billion deficit for 2026 has released a report proposing a switch from an excise tax to a tax based on percentage of retail sales of beer, wine and spirits. The rate would be between 3 and 6%, and would raise between $60 million and $120 million per year, depending on the rate. DISCUS is already in communication with the coalition of beer, wine and spirits stakeholders in each of the three tiers in Illinois and in Chicago to defeat the threat. 

California: Bottle Bill Labeling Extension and Small Distiller DTC Bills Approved by Legislature 

Before adjourning, the Assembly and Senate approved AB 720 which includes language to extend the July 1, 2025 deadline for spirits and wine containers to have the “CA CRV” consumer notification on the label to July 1, 2026. The bill would also allow for a scannable “QR” code or an etching on the glass bottle. The legislature also approved AB 1246 which would extend by one year the current direct shipping privilege for in-state small distillers and also permit out-of-state distillers who also produce 150,000 gallons or less per year to ship into the state. The Governor has 30 days to act on bills sent to him in the last days of session.   

Maryland: Intoxicating Hemp Enforcement Injunction Lifted

The Maryland Alcohol, Tobacco and Cannabis Commission (ATCC) issued a warning that it would begin enforcing the prohibition on selling intoxicating hemp without a cannabis license issued under the state’s adult-use cannabis law. The warning follows the Sept. 9 ruling by the Appellate Court of Maryland that the state’s law prohibiting businesses from selling intoxicating hemp without a license is constitutional, reversing the Washington County Circuit Court’s decision to grant a preliminary injunction from October 2023. 

Latest Activities

DISCUS Submits RFI Comment to DOJ on State Laws Affecting the Economy

DISCUS submitted a comment in the Department of Justice request for information on State Laws Having Significant Adverse Effects on the National Economy or Significant Adverse Effects on Interstate Commerce. The DISCUS comment highlighted several state issues impacting the success of the industry, including extended producer responsibility, market access of spirits-based RTDs, taxes, adoption of federal standards of fill, trade practice modernization, ingredient/additive bans, franchise protection, unfair practices via private label arrangements and DTC parity for spirits. DISCUS will keep members informed of all developments in this matter as it progresses. 

Conducting Successful Trade Promotions in Japan 

Joel Matticks, export manager, Bri Stefek, senior event manager, and member companies traveled to Japan to participate in trade activations in Tokyo and Osaka. The initiative was supported by the U.S. Department of Agriculture and the Market Access Program (MAP). In both cities, DISCUS conducted exclusive trade activations that attracted over 125 participants. The Tokyo activation included an additional media-centric event where company representatives provided brief overviews of their products and distilleries. 

The initiative featured spirits brands from across the country, including Virginia Distillery Company, Koval, Red Eye Louie’s, Brother’s Bond, Proof and Wood, Traverse City Whiskey, Astraea Spirits, Uncle Nearest, Arizona Distilling Company, Beverly Spirits and BroVo Spirits.

Spirits Tariffs in the National Media Spotlight

The New York Times featured an article on the close ties between American and Scotch whisk(e)y and how the two industries are working together to advocate for permanent zero-for-zero tariffs. The article highlighted how Scottish producers buy $300 million in used Bourbon barrels as an example of the interconnectedness between the two categories. Check out the article here. 

Recommended Fire Protection Practices for Distilled Spirits Beverage Facilities 

REMINDER! This is a FREE resource to DISCUS members. This Manual is essential for fire marshals, insurance professionals and engineers, architects and contractors employed to design new distilled spirits plants, storage and warehouse facilities. Some key topics covered include:

distillery processes;

fire protection mechanisms;

barrel warehouses;

alcohol handling;

electrical engineering;

maintenance and inspection procedures; and

emergency planning.

Reach out to Membership@DistilledSpirits.org for your copy! If you are not a member and are interested in purchasing the Manual, go to https://www.distilledspirits.org/recommended-fire-code-protection-practices/.  

Upcoming Events 

ASK THE EXPERT WEBINAR SERIES 

Duty Drawback: The Secret Ingredient for Distilled Spirits Profitability 

Thursday, September 25, 1:00 – 2:00 PM ET / 10:00 – 11:00 AM PT 

Join Alliance CEO Anthony Nogueras, LCB, and Director of Business Development Jedd Lancaster for an insider’s look at how distilled spirits companies can recover significant dollars through duty drawback. This session will explain how federal excise taxes and import tariffs, often seen as unavoidable costs, can be refunded or reduced through utilizing the oldest trade refund program in U.S. history. The spirits industry has been one of the biggest beneficiaries of recent regulatory changes, and we will show you how to unlock these opportunities to improve margins, increase cash flow and maintain a competitive edge in the global marketplace.