D-Day: Alcohol Hearing Today on Capitol Hill
Source: Beer Business Daily
Mar 18th
Today is D-Day: The day House subcommittee on Courts and Competition Policy conducts a hearing on "Legal Issues Concerning State Alcohol Regulation," a hearing said to be ushered along by the NBWA but that the brewers and others in the beverage alcohol industry would rather not happen, under the assumption that Congressional hearings are like a box of chocolates: you never know what you're gonna get. Regardless, it's on today at 1pm eastern.

The Brewers Association will submit written testimony, while Brooklyn Brewery founder Steve Hindy will testify (though of his own volition, not representing BA or BI). But Steve is a former board member of both the Brewers Association and the Beer Institute, and has operated as a distributor as well as a brewer. So lots of experience there. Steve is also an experienced speaker. But how will he testify? We do know that Steve is not a fan of shining a light on the socially sensitive nature of alcohol as it relates to regulation, by comparing the US regulatory system to that of the UK's, which is said to be one of the driving topics of the hearing. In fact Steve was a critic of including news stories regarding the baser nature of UK's alcohol issues into the Brewers Association Forum emails.
But the loose cannon that is testifying is Rep. George Radanavich from California, who is also a vintner and has expressed decidedly anti-distributor views in the past. In a Washington Times op-ed piece from 1999, Rep. Radanavich supports the Commerce Clause of the Constitution and writes "that the Wine and Spirits Wholesalers and the NBWA came to Congress to try and stop the market from working for consumers. The declining wholesale industry is attempting to retain its stranglehold on distribution to protect itself from the future". He goes on to write that the wholesale industry is a "powerful economic engine in every congressional district in the country" and that the "industry has therefore invested an enormous amount of money into the political process." So you can imagine what his testimony will be like.
But then you have Pam Erickson, a longtime proponent of state-based regulation (herself a regulator from Oregon), who now serves as a consultant, testifying. Pam has written and spoken extensively on why the US should not deregulate the alcohol industry a la UK, as the consequence is the "very high rates of youth intoxication; large increases in alcohol induced diseases including liver cirrhosis; and frequent public disorder and violence around pubs and nightclubs." This "epidemic", writes Pam, "follows the path of gradual deregulation to a point where society treats alcohol the same as any other product. All forms of alcohol--beer, wine and spirits--are sold almost everywhere and can be purchased 24 hours a day. Alcohol was allowed for sale in grocery stores in the 1960s; pubs' and clubs' hours were extended; and enforcement of existing laws was weak. As alcohol became more available it became cheaper. From 1980 to 2007, alcohol became at least 70% more affordable. This was particularly true in grocery stores where four large supermarket chains gained 75% of the market and became locked in a price war driving alcohol prices ever lower." So you can see where Pam's testimony will likely fall.
Here are the folks testifying on the two panels in the hearing:
Panel I - First, the politicians. Here is where the rhetoric is:
· Rep. Bobby L. Rush, 1st District, State of Illinois
· Rep. Mike Thompson, 1st District, State of California
· Rep. Steve Cohen, 9th District, State of Tennessee
· Rep. George Radanovich, 19th District, State of California -- a winemaker, so likely on the side of dereulation.
Panel II - the industry and regulators:
· Mr. James C. Ho, Solicitor General of Texas, Office of the Solicitor General, Austin, TX -- as SG, he's on the side of prosecuting and enforcing regulation.
· Ms. Nida Samona, Chairperson, Michigan Liquor Control Commission, Lansing, MI -- a Michigan regulator, likely will fall on the side of regulation.
· Mr. Stephen Hindy, Chairman and President, Brooklyn Brewery, Brooklyn, NY, brewer.
· Ms. Pamela S. Erickson, Chief Executive Officer, Public Action Management, Scottsdale, AZ -- former regulator and consultant.
· Professor Darren Bush, Associate Professor of Law, University of Houston Law Center, Houston, TX -- He went to school in Utah, and specializes in antitrust and regulation and deregulation in electricity markets. So naturally he's qualified to speak on alcohol.
So that gives you a general feel for the landscape. How will it all come out? Stay tuned....
NBWA To Distributors: Stay the Course
Meanwhile, in a communication to distributors obtained by BBD, the NBWA reminded distributors that teh organization is "dedicated to advancing a distributor-focused agenda and educating Congress on the effectiveness of the American system of state-based alcohol regulation. A state's ability to regulate alcohol is being attacked by those who put self interest ahead of the public interest." The NBWA says that it passed a resolution which sought to put distributors first a year ago. Since then, the NBWA has moved forward with a "comprehensive effort to educate policymakers at all levels of government about the issue of alcohol deregulation and the erosion of the state's core powers under the 21st Amendment."
The NBWA said that at the last convention, it said it would pursue federal legislation, and it has. "NBWA has drafted proposed federal legislation that would address dormant Commerce Clause and antitrust challenges, and it would clarify Congress' intent behind the 21st Amendment which gives the states the primary authority to regulate alcohol."
NBWA bristles at suggestions that it is somehow anathema to this Congress to get exceptions to the dormant Commerce Clause. In an explanation of its draft bill language, the NBWA writes,
"The dormant Commerce Clause theory only applies in instances where Congress has not acted. In instances where Congress has acted, the dormant Commerce Clause theory does not apply. The proposed legislation would make it clear - through Congressional action - that state alcohol regulations are not subject to challenge under the dormant Commerce Clause. There is recent precedent for this. When out-of-state interests accused one state of having hunting and fishing licenses that were discriminatory, Congress adopted language that specifically insulated those state licenses from challenge under the dormant Commerce Clause."
NBWA also explains their take on what happened with the BI: "After exhaustive discussions with the Beer Institute during 2009, we were unable to reach agreement on draft legislation. We were contacted by BI last month to discuss this issue again while NBWA was proceeding on a parallel track with Congress. We provided this draft to BI with agreement that they would respond to this proposal. Unfortunately, BI did not respond to our draft legislation as they were unable to reach consensus among their own members. We remain willing and hopeful that we can continue these discussions."

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Industry Buzzing over House Judiciary Hearing
Source: Wine & Spirits Daily
March 17th
The House of Representatives subcommittee on Courts and Competition Policy is conducting a hearing on "Legal Issues Concerning State Alcohol Regulation." The industry finds itself in an awkward position because this hearing is supported by some industry members (wholesalers), but not by others (producers). Then too, several industry participants were caught off guard by the short lead time to prepare for the hearing.
This sub-committee hearing was said to be ushered along by the National Beer Wholesalers Association, and is to focus on the state-based regulatory structure of the US alcohol beverage industry, in contrast to the more deregulated UK industry. The NBWA has reportedly supported this hearing to help the odds of passing a federal bill which would reaffirm the power of alcohol regulation to the states. However, the Beer Institute, which represents the larger brewers and importers, has pushed back on supporting such legislation because they haven't come to an agreement on some of the language in the proposal.
Regardless of the brewer-distributor battle royale over legislation, sources tell us that distillers and vintners don't appear to be thrilled about ANY hearing that has the possibility of shining a negative light on beverage alcohol because there is always the possibility of unintended consequences. One of the people testifying tomorrow is Congressman George Radanovich of California, a winemaker reportedly in favor of direct-to-consumer shipping.
Discus spokesman Frank Coleman told us: "Distilled spirits are subject to 4,000 laws and regulations at the state level. Every year there are probably about 2,000 bills introduced so there is hardly a lack of state based regulation when it come to distilled spirits. We support the three tier system....We don't see any need for any legislation as it relates to the distilled spirits industry."
With regards to deregulation in the UK, Frank said: "Any suggestion that regulation of distilled spirits in the US is analogous to the UK is completely erroneous. Distilled spirits regulation in America could not be more different from Europe and the UK." He also pointed out that over the past decade drunk driving, underage drinking and per capita consumption has decreased.
The Wine Institute said it does not have a statement at this time.
Meanwhile, the wholesale tier is behind the hearing. The Wine and Spirits Wholesalers of America's Jerry Brown, vp of communications, told WSD: "We are concerned about the deregulation of alcohol and we welcome congressional attention to alcohol deregulation."

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6 Out of 10 American Adults Drink
Highly educated white men most likely to be tipplers, study finds
Source: BusinessWeek
March 17
Close to two-thirds (61 percent) of American adults consider themselves drinkers, a new U.S. government report finds.
Men are more likely to drink alcohol than women, and people with more education are the most likely to drink, but almost one-quarter of U.S. residents say they've abstained their whole lives.
The findings from the report, "Health Behaviors of Adults: United States, 2005-2007," were released this week by the U.S. Centers for Disease Control and Prevention's National Center for Health Statistics. The results shed light on the alcohol use, smoking status, weight, physical activity and sleep habits of U.S. adults aged 18 and older.
Highlights of the findings on alcohol use include:
Among men, 68 percent say they currently drink, but just 55 percent of women do.
Nearly 25 percent of all adults surveyed said they never drink: 31 percent of women and 18 percent of men were lifetime abstainers.
White men and women were more likely to report drinking than other ethnicities, with 70 percent of white men saying they drink, compared to 57 percent of black men, 55 percent of Asian men, and 58 percent of American Indian or Alaska Native men. Among women, the numbers were 59 percent for whites, 40 percent for blacks, 32 percent for Asians, and 45 percent for American Indian or Alaska Natives.
Sixty-three percent of non-Hispanic adults said they drink compared to 51 percent of Hispanic adults.
Higher education boosts the likelihood of alcohol use, the survey suggests. Among respondents, nearly three-quarters with graduate degrees drink, compared to 44 percent of those who lack a high school diploma.
Richer people drink more: Just 45 percent of adults in families with incomes below the poverty level reported drinking, compared to 73 percent of those who have incomes four or more times the poverty level.
In addition to the findings on alcohol use, the report also noted that adults with higher levels of education are less likely to smoke, to be obese and to sleep less than six hours.

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Whisky sour as pricing accusations fly
Source: The Scotsman
By GARETH ROSE
March 18th
RELATIONS between MSPs and drinks industry representatives sank to a new low yesterday, amid fierce arguments over proposals for minimum pricing.
Whyte & Mackay's chief executive John Beard was accused of scaring his own workers by overstating the threat of job losses as a result of the price plan.
In turn, Mr Beard accused Scottish Government ministers of seizing upon support for minimum pricing in Westminster with ''a certain gleefulness'', even though it would have a negative impact on Scottish companies.
The Wine and Spirit Trade Association (WSTA) accused SNP MSP Michael Matheson of trying to score political points at the expense of Whyte & Mackay.
Drinks giant Diageo was heavily criticised for signing a Formula 1 sponsorship deal after making 900 people redundant.
At Holyrood's economy committee yesterday, Mr Matheson, who was Mr Beard's tormentor-in-chief during last week's health and sport committee hearing on the Alcohol Bill, asked four times why he had not previously admitted that the 300 job losses he talked about would be the result of UK-wide legislation, rather than in Scotland alone.
"The evidence taken last week was specifically in relation to the Alcohol (Scotland) Bill," he said. "Why did you not explain fully when you were scaring workers in places like Grangemouth?"
The Whyte & Mackay boss replied: "Our belief is that anything introduced in Scotland risks extending across the UK."
He added: "There does seem to be a certain gleefulness (among Scottish ministers] when other markets, other countries, consider it (minimum pricing].
''Should minimum pricing be introduced across the UK by Westminster, following the introduction in Scotland, would this government defend Scottish jobs?"
WSTA chief executive Jeremy Beadles said: "It is regrettable that Mr Matheson has sought to score political points using a major Scottish employer for his purposes. Whyte & Mackay have been happy to clarify any evidence around the likely consequences. They have consistently made clear that minimum pricing will have a detrimental impact on the Scottish spirits industry, with implications for Scottish jobs."
Diageo's Johnnie Walker brand is sponsoring Lewis Hamilton and Jenson Button's McLaren F1 team, while Whyte & Mackay are backing Force India.
Managing director of Diageo Scotland Bryan Donaghey defended his company's £400 million advertising and promotions budget and said: ''Formula 1 has a great global audience. Like all things, it might work for a while, then we look at other things.''
But SNP MSP Stuart McMillan said: "In terms of the restructuring, how do the both of you justify to your employees that are about to lose their positions signing deals for advertising with Formula 1 teams?"
Last November, it was revealed Whyte & Mackay was worried minimum pricing would lead to job losses, including at its main bottling plant in Grangemouth.
It currently estimates 87 jobs will be lost, rising to up to 300 should a 50p minimum price be adopted by the rest of the UK.
When asked about the impact of a 40p minimum price, Mr Beard said it would be "negligible".

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New York: Tax on soft drinks, wine in groceries unlikely to pass
Source: Ithaca Journal
By Cara Matthews
March 17
The proposals to tax sugary beverages and permit the sale of wine in groceries to help resolve the state's 2010-11 budget deficit of more than $9 billion appear to be dead, lawmakers said Wednesday.
But opinions are mixed on whether the proposed cigarette tax hike is still on the table.
"The likelihood is there will be no new revenues, even those proposed by the governor this year," Assembly Speaker Sheldon Silver, D-Manhattan, said Wednesday. "There will be significant cuts in the budget."
Silver said he didn't think there was enough support to get the wine in groceries proposal through both houses.
Senate Democratic Leader John Sampson, D-Brooklyn, told Gannett's Albany Bureau on Tuesday that he would not support any new taxes and fees to close the state's budget gap. A group of state senators -- including those who represent Westchester County, where PepsiCo Inc. is based -- came out last week against the sugary beverage tax.

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Maryland: Wine shipment plan appears shelved
Source: Baltimore Sun
By Annie Linskey
March 18, 2010
The proposal to allow direct shipment of wine in Maryland might have to age for another year, after the Senate voted Wednesday to require the state's comptroller to study how 37 other states have implemented similar measures.
"I think it will set us on a course for passage next year," said Sen. Jamie Raskin, after offering the study as an amendment to a related wine-sale bill.
The study is supposed to push forward the contentious issue of lifting a Maryland ban on shipping wine to residences via the postal service - an increasingly popular method for small vineyards across the country to market and sell their product.
Maryland's powerful liquor lobby opposes lifting the ban, arguing that wine-by-mail circumvents controls in place to protect minors from imbibing. The measure was heard by a Senate panel Wednesday but is widely thought to have little chance of passing this year.
Raskin, a Montgomery County Democrat, wants the study to address how other states have handled abuse by underage drinkers.
His measure was attached to a different piece of legislation, which would allow local vineyards to sell their wines at farmers' markets and expand their tastings and food services. That bill is widely seen as a compromise measure offered to winery owners disappointed about the lack of momentum on the issue.
Raskin had also prepared a second amendment that would have simply lifted the shipping ban, but he decided not to offer it after winery owners expressed concerned that his change would kill the underlying compromise measure.

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Vineyard market remains stable
Source: Napa Valley Register
By MIKE TRELEVEN and DAVID RYAN
Wednesday, March 17, 2010 12:00 am
A recent national news story about a surge in foreclosures of wineries and vineyards has left a sour taste in the mouths of many local industry leaders.
As many as 10 wineries and vineyards in the Napa County will change hands in distressed sales or foreclosures this year and next, up from none in 2008, Bloomberg News reported.
The story was based on a survey by Silicon Valley Bank, a substantial player in financing local vineyard transactions. But the survey is not Napa-specific, according to Silicon Valley Bank officials, and instead was industry-wide.
Further, the survey does not cover foreclosures. "We have no data on that," Rob McMillan, founder of the bank's wine division. "We have no way of knowing how many foreclosures there will be or if there will be any. The survey is not specific to Napa, but is a look at the entire West Coast including Oregon and Washington."
McMillan said the bank is predicting more transactions in the premium wine business in 2010 than took place in 2009.
"We continue to make loans. We had an excellent year last year because we focus on this," he said. "There are difficulties, but there are also opportunities for those willing to take a chance. The risks shouldn't be overlooked, but I believe the industry is on the upturn."
Napa Valley Vintner spokesman Terry Hall said concern about vineyard foreclosures was a "lot of hype" and pointed to other indicators that suggest the region is on sound footing.
"That story could have been written anywhere, anytime. Our industry is surviving in these difficult economic times," Hall said.
Grape prices held steady this year, according to preliminary figures released by the state last month, meaning income was strong for growers.
Global Wine Partners CEO Vic Motto, a financial advisor to wineries in several regions, said the number of foreclosures "doesn't seem remarkable given the times. It doesn't seem to be remarkably large, it seems to be remarkably small."
Motto estimated there are more than 500 wineries and nearly 1,000 vineyard properties, and to have a few in distress seemed a source of good news.
"I think in light of the current recession, particularly from some of the stories coming out about other industries, this is relatively positive," he said.
David Freed, chairman of UCC Vineyards Group, said the bank's survey has been taken out of context.
"I've been investing in vineyards for 25 years," he said. "I know of no better predictable investment than Napa Valley vineyards. I put my money where my mouth is."
One explanation for foreclosures in the vineyard sector now, he said, is the shakeout of investors who invested at the peak of the market three or four years ago. In that respect, it is similar to the housing market.
"What happens in an economy like this is the last folks in who are typically at a very high price level are leveraged pretty high, they tend to wash out," he said. "It's economics."
Napa County Assessor John Tuteur is asking owners of vineyard and winery properties purchased in 2002 or later to contact him if they believe the Jan. 1, 2010, market value of their property has declined. As he has in the past with residential property owners, Tuteur is offering to reassess properties, which in this market is likely to result in lower property tax payments.
So far, he said he has been contacted by very few landowners.
"We have had little informal contact. However, we do have three or four winery applications for changed assessments, which will be heard later this year. It's not a huge stampede," Tuteur said.
"I am offering this service in response to the recent distress sale of a winery and media coverage of troubles facing the wine industry," Tuteur said.
Tuteur is urging owners of these more complex properties to contact him with any evidence they have of a decline in market value.
"We'll take people's requests well into May. We're very eager to hear from people who think they have a decline in value because my job is to be fair, not to raise revenue" for the county, Tuteur said.

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Riedel wins 'breathable glass' case
Source: Decanter
Tim Teichgraeber
March 17, 2010
Austrian glassmaker Riedel has declared victory in its lawsuit against its rival Eisch over false claims for breathable glass.
Riedel, Nachtmann and Spiegelau filed suit in Munich, Germany alleging that Eisch's advertisement boasting 'breathable glass' constituted false advertising.
On 19 January the two parties agreed to settle after Eisch's claim that its 'breathable' glasses were made using a secret process that 'opens bouquet and aromas within 2 to 4 minutes' was not supported in court.
Related stories:
Riedel sues Eisch over breathable glass claims
The court ordered Eisch to cease claiming its glass is 'Breathable' or 'Opens bouquet and aromas within 2 to 4 minutes', or face penalties of up to ?250,000, or imprisonment of up to six months for senior directors.
No compensation was ordered in favor of Riedel but Eisch was ordered to pay costs.
According to Dr Jo Dresel, business advisor to Riedel managing director Georg Riedel, the court found that, 'as regards the physical characteristics of the glass composition and of the glass surface, the wine glasses with the designation "Breathable Glass" do not differ in any respect whatsoever from structurally identical wine glasses produced by the same manufacturer.'
It was also found that the wine in both types of glasses did not differ, 'neither in a food chemistry analysis nor in a gustation (tasting) test carried out by experienced wine tasters.'
The weight of court-appointed expert opinion shifted the burden of proof to Eisch, which opted to settle the case rather than submit expert opinion supporting its advertising claims.
The glasses had been endorsed by American MW and Master Sommelier Ronn Wiegand, who partnered with Eisch on a line of glasses incorporating the technology.
Georg Riedel had previously told decanter.com that he had been offered the same technology by a third party before Eisch began producing 'breathable glass,' but had 'passed' on it because he was sceptical of the scientific validity of the process.

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Bordeaux trade body to draw up plan of action
Source: Decanter
Stuart Todd
17 March 2010
Bordeaux wines trade body the Conseil Interprofessionel du Vin du Bordeaux (CIVB) has hired consulting group Solving to help it in the drawing up of "a strategic plan of action" for the sector.
Work on the plan, known as 'Bordeaux Tomorrow', began several months ago and will be presented in July, CIVB president, Alain Vironneau, confirmed yesterday (16 March).
"Our priority is to emerge from the economic crisis ready to cope with the profound upheaval that lies ahead," said Vironneau.
"The plan will encompass every aspect of the sector - piloting development, enhancing the standing and the management of the collective Bordeaux brand, strengthening the competitiveness of businesses, preserving wine-making areas and re-defining the role of the CIVB," he added.

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MillerCoors to Test a New Beer
Source: WSJ
By DAVID KESMODEL
March 18th
Brewing giant MillerCoors LLC plans to test-market a new beer called Batch 19, which is based on a pre-Prohibition recipe, as part of several initiatives aimed at rejuvenating sales in the sluggish U.S. market.
MillerCoors will start selling the new brew next month in draft in bars and restaurants in Chicago, Milwaukee, San Francisco and Washington, said Peter Swinburn, chief executive of Molson Coors Brewing Co., which co-owns MillerCoors.
Mr. Swinburn said in an interview that Batch 19-named for the year, 1919, before Prohibition began-is designed to attract consumers looking for "a true, authentic, original beer." He said Keith Villa, master brewer at MillerCoors, found a recipe in the archives of Coors Brewing Co. in Golden, Colo., that was used to make one of its beers before alcohol was banned in the U.S. for a 13-year period. "It's the beer that got beer banned," Mr. Swinburn joked.
MillerCoors, a joint venture of Molson Coors and London's SABMiller PLC that was formed in 2008, is rolling out new products and packaging styles amid one of the biggest slumps in demand the industry has faced in years.
Shipments of beer in the U.S. fell about 2% last year. Miller Lite's shipments fell 6.5% and Coors Light's rose 0.8%, according to Beer Marketer's Insights newsletter.
MillerCoors, the second-largest U.S. beer maker by sales after Anheuser-Busch InBev NV, said previously that it would expand to the whole country its $20, refrigerator-friendly draft-beer systems for Miller Lite and Coors Light. It also has said it plans this year to unveil a new type of bottle for Miller Lite that is designed with grooves inside the neck. The new bottle, when poured, will "actually increase the aroma" of the brew and "explode the flavor more," Mr. Swinburn said.
Coors Light has been a bright spot for MillerCoors, but it has struggled to find a way to revive Miller Lite, which has faced declining sales for much of the past decade. "It just takes time given where the brand was," Mr. Swinburn said. "Yes, we're committed to the brand. Yes, we think we'll get it right."
MillerCoors, based in Chicago, is trying to be innovative in a crowded market in which new products have shown a mixed track record. MillerCoors made a hit of MGD 64, a light beer with just 64 calories, and Anheuser did so with Bud Light Lime, a lime-infused version of the nation's top-selling brew. Some other beers, such as lime-and-salt-flavored Miller Chill, have done well initially but then foundered.
Molson Coors has a 42% stake in MillerCoors. Its other big markets are Canada and the U.K. In February, it said its fourth-quarter profit more than doubled to $222.1 million as net sales jumped 11% to $820.8 million. Sales volume in the U.S. and Canada has been down in recent months because of high unemployment and penny-pinching by consumers.
Mr. Swinburn said Molson Coors is seeing some encouraging signs for new products it recently rolled out in Canada, including a 67-calorie version of Molson Canadian, but "it's really, really early."
He also said the beer giant, which has dual headquarters in Montreal and Denver, would consider more acquisitions, but only if they meet stringent criteria, such as adding to Molson Coors's per-share earnings in the short-term.
Mr. Swinburn said the company was encouraged by the growth of Coors Light in China, and might look into buying a brewery in China or starting its own. Coors Light is currently brewed under contract in China by China Resources Snow Breweries, which is 49%-owned by SABMiller.
"We will look to, when the time is right, underpin that volume because it's getting to the stage now where the margin that we would enjoy from producing it ourselves would justify a certain level of capital investment," Mr. Swinburn said. "We've painstakingly built that market over eight years, city by city."
The company sells Coors Light in 42 cities in China and has about 400 employees in the country. Sales of the brand are growing about 30% each year, though off a small base.

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Carlsberg Sees Western European Sales Up in 2010
Source: Reuters
16/03/2010
Danish brewer Carlsberg's sales in western Europe will probably increase this year from 2009, despite persistently tough market conditions, the head of the division said in an interview on Tuesday.
"I need to get sales up, and I need to get costs out," said Jesper Friis, head of the division that comprises France, Britain, Switzerland, Greece and the Balkans.
"We plan that sales should go up and I'm pretty sure sales will go up (in 2010)," he told Reuters.
Western and northern Europe, which the brewer combines in its financial reporting, generate most of group sales. But the western markets are mature and saturated so the world's fourth biggest brewer's main medium-term growth market is Russia.
Carlsberg last month forecast a slight decline in the western and northern European market this year, after a 5-6 percent drop last year including a slight improvement in the fourth quarter, and said it saw scope to improve its market position in several of its key markets.
With beer markets seen under pressure for years, Carlsberg is striving to hold down costs, to invent alternative products, and to increase its market share.
Speaking of western Europe and Carlsberg's market shares there, Friis said: "The trend is the same in all markets."
He said the French market remained slightly down and the British market was still falling, and these trends would probably continue throughout 2010.
But in France Carlsberg's market share remained flat while it was gaining in Britain, he said, adding that the unit aims to increase its share in two thirds of its markets.
Suffering from recession-hit consumers buying less beer, brewers last year managed to push through price increases and squeeze out savings. Carlsberg and rivals such as Heineken have promised more cost-cutting to support margins, with little sign of market conditions getting any easier in 2010.
Friis said there would be price increases this year too. "We will probably be in line with the market," he said.
"I don't think we are in a position to increase prices more than the market. Consumers are still sensitive to the crisis."
He said cost cutting was proceeding according to plan, and the programme was working "very, very well."
He did not rule out more capacity cuts after the firm last year announced several brewery sales and closures, including the shutdown of its Leeds, England plant. "Today it's part of the industry that you open and close breweries and adjust production capacity," he said, but added that "nothing has been decided so far."
Carlsberg last month raised the target for the western and north European operating margin to 15-17 percent in three to five years' time -- a more upbeat stance than analysts had expected. Friis said on Tuesday that target, which compares with a 2009 margin of 11.6 percent, was "realistic".
Shares in Carlsberg were up 1 percent at 1521 GMT, in line with the Stoxx European food and beverage index.

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Iowa: Iowa Governor Signs Direct Shipping Legislation
Source: ShipCompliant Blog
By Annie Bones, State Relations - Wine Institute
March 17th, 2010
On March 10, 2010, Governor Culver signed Senate Bill 2088 which includes provisions to transition Iowa from a reciprocal shipping state to a permit state and allow unlimited direct-to-consumer shipments. The legislation will become effective on July 1, 2010, and brings Iowa into compliance with the Supreme Court's 2005 Granholm v. Heald ruling by allowing all in-state and out-of-state wineries to ship to consumers in Iowa.
Beginning July 1, 2010, wineries will be required to have a permit in order to ship to Iowa consumers. The permit fee is $25 and must be renewed annually. In addition, direct shippers will be required to obtain a bond, file monthly reports and pay excise taxes. The direct shipping permit application will be posted on the Wine Institute website as soon as it becomes available, along with any updates on the application process.

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Maryland: Liquor legislation is complicated, confusing and very local
Source: Maryland Reporter
By Erich Wagner
Tuesday, March 16, 2010
From beer tastings in Washington County and a wine festival in Garrett, from caterer's licenses in Somerset to micro-breweries around the state, there are 68 bills relating to minute changes in alcohol regulation making their way through the General Assembly this year.
Most only affect one jurisdiction, like a bill for a dance hall license in Prince George's County, or even parts of a jurisdiction, such as the closing hours for bars in downtown Baltimore and the percentage of food restaurants with liquor licenses can sell in Baltimore's upscale Harbor East.
"It's a very complicated area," said Sen. George Della, a Baltimore Democrat. "There are only a few people that understand the law."
Della is one of them and gets phone calls from other attorneys to ask him to explain the process. Half the city's 1600 liquor licenses are in his district, which covers some of the oldest parts of south and east Baltimore.
This year he has a bill to lower from 65 percent to 60 percent the percentage of food that eateries in certain precincts of the revitalized southeastern neighborhoods must sell to keep their licenses. The law was set up "to prevent them from turning into these mega bars," Della said. This could put the neighborhood taverns peppering scores of street corners out of business. But in the current economy, people are spending less and restaurants are hurting, so Della says the change could give eateries more flexibility.
The repeal of Prohibition in 1933 gave states the power to control alcohol sales.
Each county has its own intricate rules in state law about alcohol regulation. Counties control the price of liquor licenses, and they control which businesses can sell beer, wine and spirits and when. When a new market trend arises, each jurisdiction offers its own bill to allow businesses to take advantage of it.
This year, beer and wine tasting is a big hit, garnering a number of bills on the subject from different jurisdictions.
The state has given the power to oversee the sale of alcohol to localities through liquor boards, but any changes in often minute regulation must be done by the legislature. The state policy on alcohol regulation, first established in the 1950s, says the purpose is to "obtain respect and obedience to law and to foster and promote temperance."
Lawmakers and business leaders say the system of regulation in place works well enough, despite its confusing intricacy. More importantly, they see any attempt at a statewide system as problematic.
"The issue is that each county and locality is different," Del. May Ann Love, D-Anne Arundel, chair of the Alcoholic Beverages Subcommittee. "Consequently, you can't have one unified system for local liquor laws."
Jane Springer, executive director for the Maryland State Licensed Beverage Association, said the variety of state laws for each locality is onerous, but each jurisdiction has its own reasons for regulating alcohol in its own way. Based on her contact with similar trade associations in other states, Maryland's system is par for the course.
"There's reasons [jurisdictions] want things different in different areas," Springer said. "It's how the process has worked, and I certainly don't have a plan for a new one. It gives everybody their voice."
Del. Curt Anderson, chairman of the Baltimore City delegation, said lawmakers really do not spend too much time on alcohol-related bills, particularly compared to past years.
"Most Baltimore City bills address extending or decreasing the hours that existing alcohol-selling institutions can be open," Anderson said. "Ten years ago, we were limiting the number of sellers, and at this point we've cut out adding any new ones."
Anderson said the process of bringing the bills through the local delegation, as occurs for every jurisdiction in the legislature, allows members to weigh in on each other's bills. He cited a bill introduced by Del. Nathaniel Oaks, which would have allowed bars in downtown Baltimore to extend their hours until 3 a.m. on weekends. Oaks withdrew the bill after it hit criticism by other city delegates.
"We've given [local governments] the right to decide [alcohol-related] issues," Anderson said. "But once they decide, we have to approve them."
After county delegations discuss and vote on local alcohol bills, they go to a hearing in a standing committee, where most receive "local courtesy" and get routine approval.
"The full committee hearing is to make sure the delegation and the community is behind [the bill]," Love said.
Most of the bills are so routine that they wind up on a "consent calendar" in which a number of liquor license changes are passed on a single, usually unanimous vote, as was Della's bill covering the Harbor East restaurants.
The local liquor variations are complemented by a rigid three-tier system for alcohol distribution the state instituted after Prohibition. Alcohol manufacturers sell to wholesalers, who in turn distribute it to local liquor stores and bars.
Lou Berman, the trade practice manager for alcohol for the state comptroller, said that although there are differences between states on some aspects of alcohol regulation, the vast majority of states use a three-tier distribution system.
Berman said the current system helps the comptroller's tax collection and catching those who smuggle alcohol across state lines to duck state alcohol taxes.
The three-tier system also benefits locally owned liquor stores and "doesn't work to the advantage of the megastore," Berman said. "They would be like to be able to buy, for example, a winery's entire stock and take it all for themselves for their retailer, thus controlling the price from the vineyard to the table at the liquor store...The liquor store is still very much considered a mom-and-pop or small business."

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Virginia: Legislators OK bills targeting underage drinking
Source: Tidewater News
Published Wednesday, March 17, 2010
The General Assembly has approved several bills targeting underage drinking and has sent them to Gov. Bob McDonnell to be signed into law.
The bills would increase the penalties for teenagers who drink and drive and would restrict instances in which a parent can provide alcohol to a child under 21.
Approval of such legislation comes as recent U.S. data showed underage drinking on the rise and more Virginia teens consuming alcohol.
Last week, the U.S. Partnership for a Drug-Free America released a study showing that alcohol consumption among American high school students increased 11 percent from 2008 to 2009.
"This year's advancing underage drinking legislation in Richmond is an apt response that alcohol continues to be the most commonly used substance by Virginia teens and that nearly 11 percent of those killed in the commonwealth's drunk driving crashes are 15-19 years old," said Kurt Gregory Erickson, president of the Washington Regional Alcohol Program.
WRAP is a nonprofit public-private partnership based in McLean that works to prevent drunken driving and underage drinking.
During this year's legislative session, the House and Senate passed several measures to crack down on underage drinking. Erickson said the bills included:
House Bill 862, sponsored by Delegate Benjamin Cline, R-Amherst. Under current law, when a juvenile is convicted of an alcohol-related offense, the case is automatically dismissed once he completes his probation. Under HB 862, the dismissal would not be automatic.
HB 863, also sponsored by Cline. It would prohibit courts from issuing restricted driver's licenses, for traveling to and from school, for people under 18 who have been convicted of driving under the influence or of refusing to take a blood alcohol content test.
HB 1293, sponsored by Delegate William Cleaveland, R-Roanoke. This bill clarifies current law that allows parents to let their children drink alcohol. HB 1293 makes it clear that the drinking is permitted only in the family's own home.

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United Kingdom: Public supports tougher stance on drink- and drug-driving
More than half the public want the legal blood-alcohol limit reduced by three quarters, a survey has found.
Source: Daily Telegraph
By David Williams
Published: 7:00AM GMT 18 Mar 2010
The road safety charity Brake and insurer Direct Line say that more than nine in 10 drivers also support the introduction of a new law that would enable anyone driving on "impairing" drugs to be prosecuted, in a similar way that drink-drivers are.
Currently, a prosecution can only be brought against a "drug-driver" if the police also have evidence that he was driving badly.
Cut the cost of motoring as petrol hits record high According to a new survey, drivers also favour a lower drink-drive limit, with seven out of 10 saying that the current limit of 80mg of alcohol per 100ml of blood should be lowered.
Research by Brake shows that someone driving with the maximum permitted level of alcohol is five times more likely to crash than if they were driving without any alcohol in their system.
More than half (55 per cent) of 800 drivers polled by Brake and Direct Line back the organisations' calls for a new drink-drive limit of 20mg alcohol per 100ml of blood or lower, while a further 16 per cent favour a limit of 50mg - the maximum limit recommended by the European Commission.
Following a change in Ireland's laws from December 2009, Britain and Malta are the only remaining European countries with a drink-drive limit higher than the EU-recommended limit of 50mg alcohol per 100ml blood.
Cathy Keeler, deputy chief executive of Brake, said: "Our drink-drive limit and drug-drive laws are hopelessly out of touch with public opinion and the weight of evidence showing just how dangerous it is to mix drink or drugs - or both - with driving."
An official review of drink-driving law is widely expected to recommend cutting the legal limit to 50mg. The Government believes this would prevent 65 deaths and 230 serious injuries a year.
However Theresa Villiers, the shadow transport secretary, said this week a Conservative government would not reduce the limit. It would focus instead on improving enforcement of the current rules.