Greener Pastures, 86-ing Harassment, & a New Cali Gold Rush [FREE]

The TL;DR

Here's what's happened the last couple weeks worth knowing about.

• Pernod Ricard expects RTDs to continue to gain market share, but do not anticipate a rebound for the overall US spirits market.
• The Liquor Control Board of Ontario (LCBO) reports double-digit sales growth for local Canadian products since removing American spirits from shelves during ongoing trade disputes.
• RNDC settles with unsecured creditors which moves Chapter 11 liquidation forward.
• India launches tax investigation into United Spirits, Diageo’s Indian arm, and questioned Pernod Ricard executives over whether or not their handling of bulk spirits is in accordance with tariff agreements.
• The U.S. Supreme Court agrees to hear the challenge to the federal ban on home distilling.
• MGP Ingredients rebrands as Sempreon effective November 2, trading under the new Nasdaq ticker CASK.
• A federal judge denies Fawn Weaver’s request to halt a sale of Uncle Nearest while she appeals the receivership. The receiver reports three potential buyers, her appeal goes before the Sixth Circuit on December 11.
• MB Roland Distillery in western Kentucky heads to online auction December 7–14 as founders Merry Beth Roland and Paul Tomaszewski retire. The sale includes aging inventory, its distribution network, and nearly two dozen brands.
• A Seattle federal judge dismisses the class action over Costco’s “100% agave” Kirkland tequila labels, deferring to Mexico’s authority to regulate tequila.
• Irish whiskey is still paying a 10% U.S. tariff more than a month after President Trump pledged to remove it.
• WhistlePig CEO Alex Roberts appointed to the board of directors of the American Whiskey Association

M&A News

• Columbia Distributing completes its purchase of RNDC’s Alaska assets, adding a fourth state to its Pacific Northwest footprint.

Watch the DISCUS Innovation Showcase — Thursday, Nov. 5

Six finalists will pitch the ideas they think will move the spirits industry forward at the Distilled Spirits Council’s Innovation Showcase, a live virtual event on Thursday, November 5, from 1–2 p.m. ET (10–11 a.m. PT). Each finalist gets six minutes to present and four minutes of Q&A from the judging panel. I’m honored to be serving as one of this year’s judges, and I’m looking forward to seeing what this group brings.

After the Showcase, voting opens to the public from November 5–12, and we’ll share that link in the next Biweekly.

Register to watch:

Cheers,

Brian Christensen
Editor & Publisher, Artisan Spirit Magazine

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An original Artisan Spirit piece
Greener Pastures: An Interview with a Former Beverage Industry Sales Rep Turned Cannabis Professional

By George B. Catallo

"I think the good jobs in the wine [and spirits] business are going away, and they're not going to come back."

The cannabis industry isn’t just stealing customers from alcohol, it’s stealing away talent in the workforce. That has been a growing trend and it would be unsurprising if that trend continues. Anna Ellis, a 30 plus year veteran of the beverage alcohol industry, has recently made that change herself. A look at her personal story may make the larger trend clearer.

An original Artisan Spirit piece
New Gold Rush: Distillery Trail Launches in the Golden State

By George B. Catallo

California’s wine country is world-renowned, and now the state’s distilleries are trying to make their mark too.

“California’s wine industry has spent decades establishing itself as a world-class tourism destination,” Alex Villicana, president of the California Distillers Association, said during a webinar announcing the launch. “We believe our distilleries have the potential to become an important part of that same experience.”

An original Artisan Spirit piece
86-ing Workplace Harassment in the Beverage Industry

By George B. Catallo

Nearly sixty percent of surveyed beverage alcohol industry workers have witnessed or experienced sexual harassment in the last year, according to a new report from RAINN in conjunction with 86 Harassment, a Women of the Vine and Spirits (WOTVS) key initiative. While this may be a sensitive and difficult topic to navigate, the only way we can make our industry a better and safer place is to look at the data head on.

RAINN and 86 Harassment conducted a survey of 154 members of the beverage alcohol and hospitality industries across 26 distinct job roles from all levels of company structure from bartenders up to CEOs. Nearly half of the respondents were from the hospitality industry and a quarter from suppliers and producers. 75% of respondents work for companies with fewer than 200 employees, 54% are companies with fewer than 50. The ratio of respondents that are employees or people in leadership positions is 2:1 and 83% of all respondents are from the United States. While this sample size may seem small, the results are very much in line with the findings of larger and more specific studies. 

The survey showed that roughly four in ten respondents do not have confidence in the fairness of the reporting process for sexual harassment at their workplace nor their safety from retaliation. One respondent is even quoted as saying, “Past experiences at multiple establishments taught me three things: how to identify harassment, how to avoid doing it to someone else by accident, and to keep my mouth shut if it happens to me.” The report detailed that 58% say that they believed that their supervisor would allow them to take a break away from work after a difficult interaction, 63.17% believe that their company would protect reporters of sexual harassment from retaliation, and that 59.69% have confidence in the fairness of the reporting process. 

While 37.33% of employee respondents had training about sexual misconduct in the last year, 32.67% reported never having this training at all. RAINN found a correlation between recency of training and higher confidence in their company’s resources for reporting sexual misconduct and ability to respond to these reports. Among leadership respondents, RAINN found the strongest correlation in their survey, the more recently a leader has received training the more confident they are in their ability to address a serious incident of sexual misconduct. Leaders that received training within the last 5 years rated their readiness at 80% up to 86% the more recently they’ve had their last training. Leaders that have received training greater than 5 years ago report only a 63% readiness, and those that have never received any training — only 40%.

The biggest takeaway from this survey is that there is a correlation showing that workplace sexual misconduct training seems to work. That is by no means the single solution to combating workplace harassment, but this data points to it being a good start. As one respondent stated, “I just want to be treated like a person, trying to do their job, and give a good experience.” Together we can make sure that everyone in our industry, and beyond, is able to be treated with respect and is given a safe environment.

Statement from Jessica St. Germaine, Executive Director of Consulting at RAINN 

“The collaboration between RAINN and 86 Harassment has been a wonderful way to offer training and support services to a community that faces unique risks every day. Through frequent, tailored training sessions and confidential crisis support, we have worked for years to address the realities many respondents reported: sexual misconduct remains a serious problem in the industry, and training has positive impacts on their workplaces. Together, we’re helping build safer workplaces and making sure support is there whenever it's needed.”

Statement from 86 Harassment

“Offering free industry-specific training, education, and a 24/7 confidential support hotline in English and Spanish, 86 Harassment is committed to creating a community where everyone feels safe and valued in their workplace. 86 Harassment is made possible thanks to the generous support of industry sponsors Brown-Forman, Distilled Spirits Council of the United States, Pernod Ricard North America, Republic National Distributing Company, and Spirits Canada.  These sponsors allow 86 Harassment to reach industry professionals for the support they need, when they need it.”

You can see the full report of RAINN and 86 Harassment’s findings here.

86 Harassment Hotline

A crisis hotline built specifically for survivors of sexual misconduct who work in the alcohol/alternative beverage and hospitality industries 

• Free and confidential to use
• Available 24/7 in English or Spanish
• U.S. and Canada only: 1-781-277-6679
• International: 1-986-786-4386 
• Online chat: 86 harassment.com/hotline

About 86 Harassment

86 Harassment is a collaborative effort within the alcohol/alternative beverage and hospitality industries to combat sexual harassment and gender-based violence, uniting industry sponsors  under a single, comprehensive initiative. 86 Harassment is a key initiative of Women of the Vine & Spirits, the leading mission-driven global membership organization comprised of women and men who are committed to empowering and advancing women in the alcohol and alternative beverage industry.

About RAINN

As the leading authority on sexual violence, RAINN’s mission is to engage in prevention programming, support victims, and ensure that perpetrators are brought to justice. RAINN founded and operates the National Sexual Assault Hotline: Telephone: 800.656.HOPE (4673) Online: hotline.rainn.org/online Spanish: rainn.org/es Text: Text “HOPE” to 64673

About the author: George is ASM's assistant editor and a consultant from Rochester, NY. He has more than 15 years experience in the wine & spirits industry which has spanned on and off premise management, distillation, brand development, and more.

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