Restaurants & Liquor Licenses: Interesting Numbers

Sometimes it's revelatory to see the larger picture, to get a sense of the actual numbers covering an entire area or region. It can help place matters into perspective, giving you a better understanding of how everything interacts and intersects. In my recent researches, I found some fascinating statistics concerning restaurants and liquor licenses in New England, and more specifically Massachusetts. I think these facts contribute to the current discussions on lifting the liquor license cap in Boston.

There are approximately 15,131 eating and drinking places in Massachusetts, almost more than the combined total of the other five New England states. The totals of the other New England states include: Connecticut 7323, Maine 3006, New Hampshire 2926, Rhode Island 2694, and Vermont 1346. The city of Boston has about 4,150 restaurants eating and drinking establishments, which is more than four of the New England States.

Comparatively, Boston has a ton of restaurants which then raises the question, does Boston need still more restaurants? Is there a sufficient market for all of those restaurants, plus more? How many more restaurants should Boston have? Is there an over saturation point, and if so, what is that point?

In Massachusetts, out of 318 communities, there are only 10 communities which currently possess over 100 on-premises liquor licenses. Boston stands at the top of the list with 1033 and second place drops significantly, down to 234 for Worcester. It is interesting to note that Worcester does not have a quota limit on the number of on-premises liquor licenses. Without a quota, the number of licenses is still only about 20% of the number in Boston.

Cambridge comes in third place with 229 licenses while New Bedford stands in fourth place with 150 licenses and Springfield comes in fifth place with 146. Quincy (116), Barnstable (112), Fall River (111), Lowell (107) and Plymouth (103) round out the bottom half of the top ten.

Some people like to point to Cambridge and state that it lacks a quota system so that restaurant owners will flock there as they can't pay the high prices for liquor licenses in Boston. However, that is not a fully accuracte depiction as Cambridge does restrict the number of licenses in certain neighborhoods, though not all. So, if you want an all-liquor license in Harvard Square you might pay $300K-$400K, similar to what you would pay in Boston. Porter Square is a bit cheaper, though an all-liquor license is still going to run you about $200K.

Kendall Square, where a cap basically doesn't exist, is where you will have much better luck getting a license for a less expensive cost. However, there is a current proposal before the License Commission that would double the annual fee for a specific type of liquor license and charge a $5,000 user fee every three years. The specific license at issue is the “no value” license, which cannot be sold or transferred. In addition, it would only affect licenses that were issued after February 28, 2008, to restaurants that have seating of 50 or more. It is unsure whether the proposal will ultimately pass or not.

Rather than removing the cap on liquor licenses in Boston, maybe a more measured approach, as I have previously stated, would be best. Like Cambridge, there are neighborhoods in Boston which would most benefit from additional liquor licenses, while other neighborhoods already have plenty. That also helps protect the economic interests of restaurants with existing liquor licenses. A more measured change would be best for all.

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How Restaurants Can Be More Sustainable

“To me, it’s about bringing community together. I look at what we do in our restaurants as being something bigger than just providing nutrition for people."
--Rick Bayless

Sustainability. It's a hot buzzword and its definition has been warped and twisted by many companies, trying to use it as a marketing tool. However, it's an important concept and a worthy goal to help some of the problems which plague our world. Restaurants need to pay attention to sustainability, but it can be a complex issue and restaurants can use all the help they can get to know what are the right things to do. There is a new, free resource which provides some basic, but valuable, information on sustainability and every restaurant owner should download and read this report.

“When a restaurateur grabs hold of the role of storyteller and starts telling about where the food is coming from and how you can connect with people in your community who have supplied some of it, suddenly the restaurateur takes on a role that is, to me, sort of the ground level of real sustainability.”
--Rick Bayless

The National Restaurant Association recently held their annual Restaurant, Hotel-Motel Show and there was a strong concentration on sustainability, including seven educational programs. Fortunately, if you didn't or couldn't attend, they have released a special report, collecting much of the information on sustainability. The report, Bright Ideas: Sustainability Tips From Industry Experts, is available as a free download and I strongly encourage all restaurant owners to read it. The report contains information from people like Chef Rick Bayless and Joe Carbonara as well as companies such as Starbucks and Chipotle Mexican Grill.

"..restaurants use five to 10 times more energy per square foot than other businesses, ..."
--Joe Carbonara

Some of the information is a bit philosophical, detailing how some people view sustainability as much bigger than merely worrying about local products and waste. For Chef Rick Bayless, sustainability is all about community. Some of the information is more practical, from the general down to detaiiled specifics. For Caitlin Leibert, of Chipotle, the general starting principle is to ask lots of questions, to gain as much knowledge, data and information as you can obtain. Joe Carbonara provides some specifics on designing a restaurant to be more sustainable while Jim Hanna, of Starbucks, give advice on recycling and composting. You'll even find a discussion on seafood sustainability.

“Don’t settle for what is out there. Research, ask questions and dig in. It’s really just about asking the right questions."
--Caitlin Leibert

At the bottom line though, a restaurant needs to be profitable. If it isn't making money, then it won't be sustainable itself and will eventually have to close. That doesn't mean a restaurant needs to compromise on its principles and convictions. You can be both profitable and sustainable, though there can be friction between these two goals. That sometimes means you must better educate your customers about food costs and sustainability.

“The most successful franchisees believe that being socially involved helps their sales.”
--Don Fox

Customers have a growing interest in the corporate and business practices of restaurants, from how they treat their employees to how they handle complaints. They want restaurants to be more socially responsible, concerned about issues from fair trade to environmental issues. Sustainability falls within that purview and a failure to address such issues can lead to a strong blacklash, especially in social media. It is not enough to just serve food anymore. People expect far more from restaurants.

“We first and foremost have to stay in business. But we aren’t going to give up on our convictions. We will find the balance in the middle.”
--Rick Bayless

Besides eight articles, the report also contains eight sidebars, with more practical advice, including lists of actions to take. You'll find sidebars on topics like Energy Efficient Best Practices, Convert Trash Into Cash, Four Keys To Food Sustainability and How To Be Socially Responsible. Overall, this report is a great starting place for restaurants to think more about sustainability, and will hopefully give you some new suggestions that you might not have considered before. Sustainability is only going to become more and more vital, so the time to work at it is now.

What are you waiting for?

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Rant: Andelman, Liquor License Quotas & Food Trucks

""Liquor licenses are a lot like food trucks, chefs and owners won't say that they bitterly resent that these trucks are pulling up right in front of them after they built up a restaurant and pay rent.""
--Dave Andelman

It seems that Dave Andelman, of the Phantom Gourmet and also President of the Restaurant & Business Alliance (RABA), has a seeming obsession with attacking food trucks, no matter what the topic of conversation. Andelman recently appeared with Boston Councilor Ayanna Pressley on Greater Boston, hosted by Emily Rooney. The topic of discussion was Pressley's home rule petition that would essentially remove the cap on liquor licenses in Boston. Despite that being the topic at hand, Andelman made sure to interject his disgust for food trucks into the conversation.

I previously ranted at length about the topic of Pressley's petition in Eliminating the Liquor License Cap. In brief, I am opposed to the petition as I believe it will unnecessarily hurt over 1000 existing business by drastically reducing the existing value of their liquor licenses, creating an economic hardship through the reduction of a valuable asset. I also offered a solution, which would help to protect that asset while also making liquor licenses more accessible and affordable to businesses in places like urban renewal areas and empowerment zones. And that is the primary concern of Pressley, helping out such urban renewal areas and empowerment zones which currently have few liquor licenses.

During the Greater Boston segment, Pressley restated most of the talking points she has repeated before, adding really nothing new to the discussion. She failed to indicate if Mayor Menino supports the petition, or what members of the legislature support the position. The only support she has offered is now Andelman and RABA. She also failed to address the economic problems her petition would cause to existing restaurants with liquor licenses. Though she states her petition would allow them to still sell their licenses, those licenses would be nearly worthless if there is no longer a cap on licenses in Boston. Pressley remained silent on that point.

Andelman has now stepped forward, speaking on behalf of RABA, and apparently supporting this petition. Though if you review the RABA website, there is nothing on it about the petition. Andelman believes the petition is a good idea for "depressed" areas like Dorchester and Mattapan. He believes, and I agree, that restaurants are often helped out if they possess a liquor license. Andelman indicated that the petition should be sensitive to restaurants that already possess a liquor license, and he seems content with Pressley's petition as currently written.

However, that petition is a slap in the face to the RABA restaurants that Andelman represents. By supporting that petition, Andelman is doing a major disservice to those restaurants. Maybe he fails to understand the effect of the petition. It certainly is not sensitive to the restaurants that have already paid large amounts of money for their liquor licenses.

We all know that the only reason the existing liquor licenses are so valuable is because there is a limit on the amount of licenses in Boston. If you suddenly remove that cap, as this petition wants to do, then obviously the value of existing liquor loses drops drastically. The only bone the petition throws to these restaurants is that they retain the ability to sell their liquor licenses. But who cares? As the licenses will be worth so little, selling them won't amount to anything. The restaurants certainly won't recoup what they paid for their licenses. Why buy a license from an existing restaurant when you can simply apply for a new one instead?

Hurting over 1000 restaurants with existing liquor licenses is wrong! And Andelman, as a restaurant advocate, should be ashamed for supporting this petition which will hurt RABA members and other restaurant owners. The solution I offered previously will accomplish Pressley's primary goal, helping places like urban renewal areas and empowerment zones, but also will help protect existing licenses.

If you are concerned about this petition, the Boston City Council's Committee on Government Operations will hold a public hearing on this matter on Wednesday, August 14 at 2pm. If you cannot attend in person, the hearing will also be broadcast live on Comcast Channel 8, RCN Channel 82 and online in City Council TV. You can even send in written comments to the Council via email, christine.o'donnell@cityofboston.gov

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Rant: Eliminating The Liquor License Cap?

Let us hurt 1000 existing businesses so we can help new businesses get established.

Is that a fair trade-off? Is there an alternative which can help promote new businesses without hurting existing ones? Though several news articles have praised this potential new law, they have largely ignored the negative impact it will have on existing businesses. The proponent of this new law also seems to be avoiding discussing this negative effect.

Recently, Boston Councilor Ayanna Pressley, after working on the issue for a year or so, filed a home rule petition which will basically remove the numeric cap on liquor licenses in Boston, allowing the licensing board to determine who can get a new liquor license. Though the petition is not posted on the Councilor's website, her office sent me a copy. In short, the petition seeks to amend Massachusetts General Laws, Chapter 138, Section 17 by striking out the sixth and seventh paragraphs in their entirety, and replacing them with some different language.

Curiously, Councilor Pressley's website says very little about the petition beyond an initial press release and a few links to news articles about the petition. I would expect to find much more supporting information about the petition on her site, such as the results of studies or a list of everyone who supports the petition. Why fail to post supporting information on your website? How can anyone make an informed decision about the petition if they can't find sufficient information on the website of the person proposing this petition?

There are approximately 1,030 liquor licenses (675 full licenses and 355 beer/wine) in Boston. Because it is nearly impossible to obtain a new liquor license, new businesses must usually purchase a liquor license from another business, and the cost for a full license can reach over $400,000. Essentially, an existing liquor license has become a financial asset of the business and it has significant value. If you possessed such a significant asset, would you support a law which drastically devalued that asset? Seems doubtful.

Councilor Pressley is concerned because many liquor licenses have been sold to downtown restaurants, in neighborhoods like the Seaport and North End. That means that some of the more outlying neighborhoods have fewer liquor licenses. Good restaurants can help elevate a community so the inability to obtain liquor licenses, which greatly help profitability, can hurt neighborhoods. The lack of licenses can also mean that some businesses will choose to locate in places like Cambridge and Somerville, where it may be easier, and less expensive, to get a liquor license. I agree that this is a valid problem which needs to be addressed. However, I don't think Pressley's petition is the best way to fix this matter.

People must also understand that Pressley's petition still has a long way to go before it might even become law. First, it must be signed by Mayor Tom Menino, who has not yet taken a public position on this matter. Second, if the mayor signs off, then the petition must be approved by the state legislature. I have not yet seen any public positions that anyone in the legislature will support this petition. What is the chance that this petition will overcome those hurdles?

Councilor Pressley's website does not provide a list of any people and organizations which support the petition. I have contacted her office to gather such a list but I have not yet received any response. I have also tried to determine the position of any of the local restaurant associations on this petition, but none have responded either. Does this petition have any significant support?

I have heard from a few individual restaurants about the potential effect of this petition, and how it would devalue their existing liquor licenses. With such licenses being able to be sold for $200-$400K, that forms a significant asset for their businesses. If there is no longer a cap on liquor licenses, then the value of those existing licenses drastically drops. They might be worth maybe 10% of their current value. The petition does nothing to address that problem, or compensate existing liquor license holders for that financial loss.

Under the new law, these businesses would still be able to sell their liquor licenses, but who would buy them when new licenses were now available? And if someone would buy them, they would be willing to pay only a tiny fraction of their prior value. With over 1000 existing liquor licenses, that is a lot of businesses that would lose a significant asset due to this law. They are very unlikely to support Pressley's petition and I am sure many of those businesses would actively oppose the petition.

Most of the recent news articles about this petition have been very supportive of the petition, and I see how allowing more liquor licenses could help small business owners start new restaurants, which could help to revitalize certain neighborhoods. However, helping those businesses should not come at the cost of significantly hurting other existing businesses. Businesses with existing liquor licenses don't want to stifle competition, but they also don't want to lose their financial assets. That is a very reasonable position.

Though I approve of the basic concept, of helping certain neighborhoods obtain liquor licenses, I think it could be accomplished another way beside simply lifting the cap on all liquor licenses in Boston. Instead, you could simply raise the limits on some liquor licenses, especially those set forth in the current paragraph 7, like "main street districts, urban renewal areas, empowerment zones or municipal harbor plan areas."

The current law already sets aside a small number of liquor licenses for such areas. If that limit was raised, there would not be a need to eliminate the main cap of liquor licenses. It would make liquor licenses available in the areas of concern. In addition, it would largely protect the value of liquor licenses belonging to existing businesses. I think that small change would be far more likely to gain general support than Pressley's petition.

What do you think?

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Vacationing In Provincetown: Culture, Entertainment & Community (Part 5)

As further immersement into the culture of Provincetown, we visited the Provincetown Art Association & Museum (PAAM), meeting with Executive Director Christine McCarthy, President Jim Bakker (of James R. Bakker Antiques) and PAAM Development Director Sheila McGuinness. Art is an integral part of Provincetown, which is home to the oldest, continuous art colony in the country. Back in 1899, Charles Webster Hawthorne, a famous artist, came to Provincetown and founded the Cape Cod School of Art (CCSA) at Land's End.

Though a number of artists came to Provincetown before 1899, Hawthorne was probably the first to offer instruction and his school attracted much interest. Other artists followed suit and by 1916, there were six art schools and about 600 artists and students spending summers there. During the last one hundred years, plenty of other art schools, artists and students came to Provincetown, and now there are over 60 art galleries in the town.

"The objects and purposes of this association shall be to promote and cultivate the practice and appreciation of all branches of the fine arts, to assemble and maintain in the town of Provincetown and environs a collection of works of art of merit, to hold exhibitions, and by forums, concerts and similar activities to promote education of the public in the arts and social intercourse between artists and laymen."
--Constitution and By-laws Provincetown Art Association & Museum

PAAM is a small art museum, with an eclectic assortment of art, including paintings, sculptures and other less categorizable pieces. They also have a few rooms where they conduct various art classes, continuing the tradition of Hawthorne. In addition, they hold a couple of art auctions each year.

I thought this tentacle sculpture outside of PAAM was fascinating, reminding me of Cthulhu or some other tentacled sea monster.

We also attended a cocktail reception at one of the art galleries, the Berta Walker Gallery.  This was an interesting visit as Berta was quite a character, as well as very knowledgeable about the history of artists in Provincetown. The artists she displays essentially all come from Provincetown and there is a wide diversity in styles and mediums. The fascinating piece above was done by Elspeth Halvorsen, who creates "box constructions." This one is called "The Whole World Is Watching" and deals with 9/11.

Another compelling sculpture.

"Perhaps it is the fantastic structure of the dunes, carved in intricate mouldings: some with smoothly rounded tops, others combed by unseen fingers, others running into spectral peaks, and still others with long, flat summits — weird sentinels, linked together by the most unstable and most resistless chains."
--Agnes Edwards, Cape Cod: New and Old

My last visit to Provincetown was many years ago, when I was a teenager, and I still recall touring the dunes. I got to do so once again, with Art's Dune Tours, which has been family owned and operated since 1946. You have several different options, such as a one hour Daily Tour ($27) or two hour Sunset Tour ($43). Each vehicle holds 6-8 passengers, and the driver gives you an ongoing history and nature lesson as you drive through the dunes.

The dunes are not just miles of flat sand. There is plenty of varied vegetation as well as numerous hills and valleys. Who would have thought that you would even find cranberry patches in the dunes? Such beautiful scenery and I took many pictures.

One of the most fascinating aspects of the dunes are the dune shacks, primitive buildings, usually without electricity or running water. These shacks once were temporary residences for mariners, artists, writers, playwrights and others who wanted isolation and privacy. There are now around 19 dune shacks, though there once were many others. The government took control of them and destroyed many before they were convinced to maintain them for historical purposes.

A non-profit group now controls some of the shacks and rents them out, through a lottery system, and many artists vie for a spot though anyone can enter the lottery. They still generally lack electricity or running water.    

One afternoon we were supposed to check out the Tea Dance. Historically, a tea dance has its roots in France and England, and often was an early evening dance, often accompanied by tea and pastries. In the U.S., tea dances have become more casual, and in Provincetown, during the summer, they hold a daily Tea Dance at the Boatslip Resort. This is primarily an outside dance party and on the night we were supposed to go, it rained so very few people showed up for the party. On a normal night, this place would have been packed with people.

For the final scheduled event of the trip, we adjourned to the Crown & Anchor, a hotel, restaurant and entertainment complex. The restaurant, Central House at the Crown, provided us a good meal and then we went to a drag show at the Crown Cabaret and saw Dina Martina. I certainly didn't know what to expect, except that it would be a comedy. And it is somewhat hard to describe the show, a combination of jokes, songs, video and more. It was twisted, bizarre and extremely funny. The humor is going to appeal to most audiences and I would recommend that you check out another Dina show. You are sure to laugh plenty. Afterwards, we sat at the Piano Bar, sipping cocktails and enjoying our final evening in Provincetown.

It was a fun, enlightening and interesting time in Provincetown and I would like to return again in the near future to check out what I missed this trip. Put aside your preconceptions about Provincetown and check it out as a cool vacation destination, a place that caters to people of all types. Go for the food, the art, the history, the shopping, the beaches and more. Special thanks go to Anthony Fuccilllo and the rest of the staff at Provincetown Tourism Office for showing us the wonders of Provincetown.

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Vacationing In Provincetown: Culture, Entertainment & Community (Part 4)

What is the essence of Provincetown?

This year, Fodor's placed Provincetown on its list of the 10 Best Small Towns in America while
the Smithsonian listed it as #10 of their Best Small Towns To Visit. Provincetown is garnering much deserved praise. I have previously discussed some of the reasons why I find Provincetown compelling and am back to provide even more reasons.

On our media trip, one of our first meetings was at the Provincetown Town Hall, where we learned a bit about the history of Provincetown, as well as about some of its sights, attractions, cultural aspects, and more. The town hall, which has the largest auditorium in the town, used to be located near the Pilgrim Monument, however, in 1877, the building was hit by lightning and burnt to the ground. In 1886, the new town hall, at its current location, was dedicated and has underwent some recent renovations.

Val Marmillion, a resident of Provincetown and the President of Marmillion + Co., a public relations firm, provided an intriguing overview of Provincetown. Obviously, as he works in public relations, you have to carefully consider his words, to separate the truth from the hype. After dealing with many PR people over the years, I have attained a good level of discernment as to what they tell me. With Val, I spent some time outside of this meeting talking with him, and it was clear that his passion for Provincetown is true. He seemed very honest and forthright, so I felt that much of what he said was authentic.

Val stated that Provincetown is a place where diversity is celebrated and promoted, that it is a town where it is not about how much you own, but it is about what you enjoy. It is a "created village" that is not hamstrung by "can't do." It is a progressive, liberal town that values freedom of expression and offers no apologies for its positions. Curiosity is important and each day is unpredictable. The showing of emotion is accepted and not suppressed. It is quaint, a town of pets and bicycles, of art and theater, of eco-tourism and a strong GLBT community.

Brian Carlson, manager at the department of Health & Environmental Affairs, discussed eco-tourism and poetically stated that Provincetown was "a floating sandbar in the middle of the ocean." The town sits on a sand bar, which is about 5000 years old, and has 21 miles of coastal shore line to explore. In the dune region, there are twenty dunes which are at least 100 feet in height. There are also 9 state recognized freshwater ponds, though Provincetown gets its fresh water from Truro. There is plenty of wildlife in the Provincetown region, a great place for birdwatchers. Go swimming, sit on the beach, hike through the dines, go bird watching, rent a kayak. If you want a more active, outdoor vacation, then you can consider Provincetown. Brian also mentioned that the largest environmental problem facing the town is handling waste water, trying to prevent it from flowing into the ocean, but that they are doing a very good job of handling this issue.

In addition, we met Doug Johnstone, the Town Clerk, who discussed the issue of same sex marriage. As Doug teared up while discussing this issue, it was clear how important it was to him, how proud he was of Massachusetts for leading the way on this matter of equality. With the recent Supreme Court decision on DOMA, this can be expected to become even more important. Back in 2003, there were only about 20 weddings held in Provincetown. In 2004, after Massachusetts legalized same sex marriage, there were 900 weddings held in Provincetown, more than any other Massachusetts community. Currently, about 350-400 marriages are conducted there each year, a significant economic boom to the town. People come from all over the country to come here to be married.

Afterwards, we explored some history by a visit to the Pilgrim Monument and Museum where our tour was conducted by John McDonagh, the Pilgrim Monument Executive Director. Construction of the monument, to honor the Pilgrims’ landing in Provincetown, began in 1907 and President Theodore Roosevelt laid the cornerstone. It was completed in 1910, and was dedicated by President William Howard Taft. The monument is 252 feet and 7.5 inches tall and is one of the first sights you see as you approach Provincetown by the ferry. Through 116 steps and 60 ramps, you can walk to the top of the monument for a great view.

The museum, located a short distance from the monument, is medium-sized and fascinating, with exhibits on the Pilgrims, Provincetown history, the fishing industry, theater, Arctic animals, Inuit items, Native American artifacts, and much more.

This is the town’s first fire engine, built in the 1830s by an apprentice of Paul Revere. There is also a small gift store at the museum where you can purchase souvenirs or books about Provincetown. I picked up a cool history of Provincetown, as well as an intriguing book about the origins of Cape Cod names.

We had an opportunity to take to the seas, as part of a Whale Watch excursion on one of the Dolphin Fleet boats. This company originated whale watching on East Coast and they run excursions, three to four hours in length, from April through October, from three to twelve trips per day. The basic cost for an Adult ticket is $44 and Children's tickets, aged 5-12, cost $29. Aboard, there is a galley where you can get food and drink.

A naturalist accompanies each trip and gives a lesson on whales and other sea creatures while the ship tours around seeking whales.

I enjoyed being on the boat, traveling the sea, though we saw few whales, probably only two. It is always an unknown when you board the boat whether you will see many whales or not. They are wild animals, not tame creatures in a pen. However, it is such a fascinating moment when you first see a plume of spray, noting the presence of a whale, and then see its fins or tail break the surface of the sea. Such majestic creatures, sure to instill wonder.

For a more low-key experience, you can check out the Provincetown Theater to see a play, maybe something modern and avant garde, or something more of an American classic, like a play by Eugene O'Neill. Provincetown is one of the originators of the Modern American Theater, and the Provincetown Players, which started in 1915, was one of the "little theaters" that sprouted up during this time period. They performed Eugene O'Neill's first play, Bound East For Cardiff, and would give fame to others too, such as Tennessee Williams. You can even attend the Tennessee Williams Theater Festival or the Provincetown International Film Festival. 

Provincetown has long been a favorite spot for artists or all types. For example, a number of writers have lived or worked in Provincetown, including Norman Mailer, John Dos Passos, Harry Kemp, Stanley Kunitz, Michael Cunningham, Wendy Kesselman, Paula Vogel and John Guare. Some of them spent their time in the isolated dune shacks, gaining privacy and quiet so that they could work. During some of my free time, I was even able to do some writing on the next Tipsy Sensei novel.

To Be Continued...

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Legal Status of Sake in the U.S.

When I describe Sake to people, I tell them that Sake is not a beer, wine or spirit. I consider it to be its own unique liquor, and my position is supported by numerous Sake advocates. It may bear some similarities to beer, wine and spirits, but it also possesses key differences as well. It may be brewed in some ways like a beer, but drinks more like a wine.

Legally, what is its status? Under U.S. law, is Sake treated as a wine, beer or distilled spirit? Curiously, it is treated as all three! The actual determination for any specific Sake depends upon the surrounding circumstances, such as whether it is produced in the U.S., is imported or contains added distilled alcohol. The Alcohol & Tobacco Tax and Trade Bureau details this strange decision making process.

First, in matters relating to production and tax, Sake is treated as beer under the Internal Revenue Code. The definition for "Beer" states "...and other similar fermented beverages (including sake or similar products).." The sake breweries in the U.S. are considered more as beer breweries for production purposes and must follow the rules for such beer breweries.

However, the law does not address definitions of the various types of Sake, such as Junmai and Ginjo. U.S. Sake breweries can technically use such Japanese terms at will, with no restriction. For example, a U.S. Sake brewery could label any of their products Junmai, even if that product would not qualify as a Junmai under Japanese law. This is similar in some respects to when U.S. wineries labeled their Sparkling Wines as Champagne, though such wines did not fit the French definition of Champagne.

Currently, there are about 10 Sake breweries in the U.S., either already in existence or in the process of being constructed. With such a tiny number of breweries, this labeling issue is not significant and I am unaware of any domestic Sake which does not follow Japanese labeling laws. It is something though which deserves consideration, especially as more sake breweries continue to sprout up all across the country. It would be better to handle the matter now, before it ever becomes a problem.

Second, in matters relating to importation, labeling and advertising, Sake is treated as wine under the Federal Alcohol Administration Act. The definition for "Wine" states "...other alcoholic beverages not so defined, but made in the manner of wine, including ...vermouth, cider, perry and sake;..."  So if you want to import Japanese Sake, you must have an importer permit for wine. In addition, Sake labels and advertising must abide by the same laws as does wine.

Third, Sake may sometimes even get treated as a distilled spirit. Some Sake has alcohol added to it and it is generally known as aru-ten, short for arukoru tenka. Honjozo is premium Sake which has some distilled alcohol added to it, as a means of emphasizing certain aromas and flavors which are soluble in alcohol. This distilled alcohol is diluted with water so the alcohol level of the Sake does not rise. It remains around 15%-17% ABV, the same as Junmai which lacks the addition of distilled alcohol.

However, under U.S. law, if any distilled alcohol is used during any stage of the production process, then the Sake will be taxed at the higher distilled spirit tax rate. That means that Honjozo will tend to be more expensive than Junmai because of the increased tax rate.

Alcohol law in the U.S. is a twisted and convoluted system. Poor Sake has an identity crisis, unsure of what it is supposed to be.

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Shipping Wine To Massachusetts: A Critique Of Andelman's Plan

Like many wine lovers in Massachusetts, I would like the ability to receive shipments of wine directly from out of state wineries. There are plenty of wineries which do not sell their wines in Massachusetts but which I would like to be able to purchase. However, I still cannot do so because the legislature can't seem to get their act together and pass a constitutional law which would allow it.

In 2006, a law was passed that barred many such shipments into Massachusetts but it was later ruled unconstitutional, a decision affirmed by the U.S. 1st Circuit Court of Appeals. Since that decision on January 2010, several efforts have been instituted to create a legal framework allowing out of state winery shipments. To date, despite the passionate advocacy of groups such as Free The Grapes, all such efforts have failed but I continue to have hope that will change one day.

Currently, House Bill 294, authored by Representative Theodore Speliotis, is in the committee on Consumer Protection & Professional Licensure and it is hoped that it will receive a hearing. Dave Andelman, of The Phantom Gourmet and Restaurant & Business Alliance, seems to feel that House Bill 294 is wrong and has offered his own plan in a column, A Better Way To Buy Out Of State Wine, in the Metrowest Daily News. I believe Andelman's three-point plan is unduly burdensome, overly protective and based on inaccurate information.

Andelman first point states that out of state wineries should pay a $1000 licensing fee rather than the proposed $100. He states this fee would be comparable to New Jersey but that is incorrect. The New Jersey licensing fee actually is a spectrum, dependent on the production level of the winery, and ranges from $63-$938. So Andelman has provided inaccurate information concerning New Jersey's license fees.

Andelman also sees this fee as a potential means of revenue for the state, yet there is no rationale for why that should be the case. He offers no evidence that a $100 licensing fee would be inadequate to administer the cost of the program. A $1000 fee would be burdensome on small, boutique wineries which already have limited resources. That is the rationale behind basing licensing fees on the size of a winery, to not overburden the small producers.

In his next point, Andelman wants to restrict wineries to shipping one case per month to a household. The current bill allows each household adult to order 2 cases per month. He tries to make the current plan seem scary by alleging a household could order over a million bottles of wine. While technically it is possible, the chance is so remote as to be silly. The average person in the U.S. purchases only about 14 bottles per year. The vast majority of the more dedicated wine lovers still probably own less than 1000 bottles. So Andelman's worries are essentially baseless.

Andelman's suggestion prevents consumers from ordering multiple cases of wine from a single winery at a single time. Consumers generally do not order a case each month of a wine they desire. They usually want to buy it at a single time, to ensure they get the wine before it sells out. They might buy two to three cases of a wine, and then may not buy from that same winery for six months or more. There is no valid reason to restrict sales to a single case per month. That would be an undue burden, based on the usual purchasing practices of wine lovers.

Finally, Andelman alleges that shipped wine should have to be sent to a liquor store, to protect against underage drinking. He mentions that a 20-20 story and a North Carolina University study proved that minors could easily buy alcohol on the Internet. Yet he does not provide a link to either the story or study, or provide any of the actual facts from these two sources. How reliable is this information? Where was the study conducted? Does the study envision a similar system as proposed by House Bill 294? These allegations seem more like fear mongering.

The fact is that wine stores have had plenty of problems in selling alcohol to minors. As one example, the city of Haverhill conducted a series of stings on bars, restaurants and liquor stores and 25% of those places were caught selling to a minor. You can find plenty of other examples of liquor stores which have sold to minors. Yes, we need to ensure minors cannot purchase alcohol but Andelman's plan would not guarantee that.

Andelman's plan also includes that a consumer would have to pay a "nominal" processing fee to the liquor store. Could a liquor store refuse to accept shipments? Who would regulate the amount of the processing fee? Would liquor stores want the added paperwork of processing these shipments? We should not place this added burden on liquor stores. Andelman though seems to believe this would help liquor stores who "..may be forced to terminate employees if their sales fall much further after the increased amount of liquor licenses which have been issued, including large liquor sections at supermarkets."  How is that so?

He fails to explain how it would help liquor stores. They would receive only a "nominal" fee so that shouldn't be enough to make up for any alleged lost sales. He provides no evidence or statistics on whether local liquor stores have seen decreased sales or not. He fails to provide any evidence that out of state shipments would significantly affect small liquor stores.

Dave Andelman needs to provide far more details, evidence and support for his plan as currently it is lacking in many aspects. He has yet to offer valid arguments or a valid alternative against House Bill 294. And his initial inaccurate information about New Jersey licensing fees casts doubt on his own research and credibility.

I will continue to side with Free The Grapes in supporting House Bill 294.

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Joining The Drink Local Wine Board

I have recently reviewed wines from several Massachusetts wineries, including Westport Rivers. Last year, several of my posts discussed wines from diverse regions such as Mexico, Nova Scotia, and Vermont. Thus, my latest endeavor fits well within my interests, to explore and promote wines from all over North America.

I am pleased and proud to announce that I have been appointed to the board of directors of Drink Local Wine LLC, a nonprofit organization whose mission is to raise attention of regional wines from all across North America.

 "Richard is a welcome addition to the Drink Local Wine board," said Michael Wangbickler, President of the Drink Local Wine Board of Directors. "He is committed and passionate about regional wine, brings us the perspective of a New Englander, and has extensive experience working with organizations such as ours."

I will be joining the current board members which include: Dave McIntyre of the Washington Post; Michael Wangbickler of Balzac Communications; Richard Leahy, an east coast wine writer and consultant; Gil Kulers of the Atlanta Journal-Constitution; Rhonni Moffitt, publisher of Arizona Wines & Vines magazine; Dezel Quillen, Virginia wine blogger who writes My Vine Spot; and Lenn Thompson, founder and executive editor of the New York Cork Report.

Drink Local Wine is the brainchild of Dave McIntyre and Jeff Siegel, who writes the Wine Curmudgeon blog. The organization holds two major events each year: a Conference spotlighting regional wine and Regional Wine Week, when bloggers and writers from across the continent write special pieces about their favorite regional wines. The 2013 DLW Conference, the fifth annual, will be held in Baltimore, Maryland on April 13 and will focus on the wines of Maryland. I will be attending the conference and as I have not tasted Maryland wines before, this will definitely be an interesting conference.

All fifty states now have wineries yet most states receive very little publicity about their wines. California, Washington and Oregon dominate the wine press and short shrift is given to the rest of the country. However, you can find well crafted and delicious wines all across the country and those examples need to be promoted and praised. I have done my part to write about some of these wines but more can always be done. Being a part of Drink Local Wine will give me the opportunity to do more.

That will include not only promoting U.S. wines, but also the wines of Canada and Mexico. In May, I will be attending TasteCamp, which will explore the wines of Quebec.

I encourage all wine lovers to expand their horizons and explore wines from all across North America. Don't confine your drinking to just a few states, but be willing to take a chance on wines from all over. You will likely find some new favorites, if only you are open to taste something new.

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Thursday Sips & Nibbles

I am back again with a new edition of Thursday Sips & Nibbles, my regular column where I briefly highlight some interesting wine and food items that I have encountered recently. **********************************************************
1) Shake off your funk and revel in the blues with The Beehive’s Blues On Sunday series. The Beehive is bringing you top notch blues complemented by tasty meals and libations compliments of Knob Creek every Sunday night from 8pm-12am. The all-star house blues band is led by 25-year-old musical veteran keyboardist and producer, Bruce Bears and features a core band of legendary players with a revolving door of guests singing, sitting in and getting down.

The Beehive invites guests to share a relaxing Sunday night of great performance with libations from Knob Creek including their Rye Whiskey and Single Barrel Reserve, and dishes from Executive Chef Rebecca Newell such as the Lowcountry Shrimp & Grits ($12), Stuffed Rack of Pork, Bacon, Apple & Brioche Stuffing, Brussels Sprouts, Cider Jus ($24), ‘Fall-Off-The-Bone’ Baby Back Ribs ($13) and the Beehive Prime Burger with Frites, and Slaw ($16).

2) Passion for good food mixed with fun and a dash of education is the inspiration for this spring’s event lineup at Farmstead, Inc. Cheese, wine, whiskey and brunch get the year started off right.

Upcoming events include:

Brunch at Farmstead, Inc.
First Sunday of every month beginning March 3, 10am-2pm
Every month, Farmstead whips up a morning-after spread that’ll knock your bacon-craving socks off. Think boudin noir sausage with biscuits and gravy, fried oysters and poutine, whiskey-brined Rhode Island ham, house-made candied nut granola and corned beef hash, washed down with French-press and Bloody Marys, of course. Reservations are accepted but not required.

Celtic Cheese and Whiskey Class
Sunday, March 10, 4pm-5:30pm
$65 per person
Celebrate St. Patrick’s Day with a blend of the Celtic lands’ best whiskeys and scotches and the cheeses that love them. The Farmstead, Inc. crew talks you through whiskey and cheese pairing basics while you sample Ireland’s finest brown spirits and curds. To reserve a spot, call 401-274-7177 or purchase tickets online at http://www.farmsteadinc.com/shop/classes/31013-whiskey-cheese-class.

Wine + Cheese = Love: A 101 Class
Sunday, April 14, 4pm-5:30pm
$50 per person
To honor the never-fail combination of wine and cheese, Farmstead, Inc. Barman David Magiantine and Cheese Monger Thomas Perry invite friends and fans to sample the pairings that made them fall in love with the worlds of vino and fromage in the first place. Guests are invited to learn the basics of pairings and polish their own palates and preferences. To reserve a spot, call 401-274-7177 or purchase tickets online at http://www.farmsteadinc.com/shop/classes/41413-wine-cheese-love-class.

Can I Eat The Rind? A Cheese 101 Class for the Whole Family
Sunday, May 19, 2pm-3pm
$45.00 per person; $35.00 for those under 21
The world of queso sparks lots of cheesy questions: Why does it stink up the fridge? How long will the cheddar last? Why is this kind orange? Farmstead has the answers to all these and more at their popular Cheese 101 class. The whole family is invited to nibble on a selection of cheeses and sip on some wine (sparkling cider for underage guests), as the mysteries of cheese are demystified. To reserve a spot, call 401-274-7177 or purchase tickets online at http://www.farmsteadinc.com/shop/classes/51913-can-i-eat-rind-cheese-class-whole-family.

3) Cinquecento, a new Roman trattoria, will start serving weekend brunch. Beginning Saturday, February 16, Cinquecento will be open for brunch from 10am-3pm on weekends. Reservations are accepted. Cinquecento is located at 500 Harrison Avenue in Boston's South End. Parking is free.

Cinquecento's inaugural brunch menu will include savory Italian dishes like Uova In Camicia, truffled polenta with poached eggs and Fontina cheese, Bistecca e Uova, grilled steak and eggs with Pecorino biscuits and piquillo pepper marmellata, and Cinquecento's already famous Tagliatelle Bolognese pasta with meat sauce. Indulge your sweet tooth with specialties like Ricotta Crespella, crepes with whipped lemon ricotta and native honey, Ricotta Fritters, Sugar Donuts, and Mela e Taleggio, an apple and Taleggio cheese panino with walnut honey pesto.

Accompany brunch with a selection of craft cocktails such as the Arancia Frizzante, a refreshing blend of blood orange juice, vodka, lime, soda water and mint simple syrup, The Bellini, a classic mix of white peach puree and prosecco and an Italian-inspired Bloody Mary, spiced up with peperoncini chilies.

4) Animal Welfare Approved, Chef’s Collaborative and Let’s Talk About Food will be supporting the Harvard Law School Food Law Society in its second annual food law and policy conference in Cambridge, Mass. on March 8-9. The conference will explore the legal and policy aspects of food labeling and will feature a series of lecturers and panelists who are experts in the field. This is the first law school hosted conference dedicated to examining the issue of food labeling from a legal perspective. Bringing together prominent experts to explore the issue is crucial to students, academics, politicians and thought leaders.

There is a great deal of confusion surrounding the misleading food labels commonly found on meat, eggs and dairy. By exploring the issue with industry experts, both students, consumers and professionals will gain an increased understanding of what is really at stake when it comes to the words we put on foods—whether the words are used for informing the public or for marketing the product. “Labeling is about communicating and the words we use matter. This first-ever conference at Harvard Law School is a terrific opportunity help all of the stakeholders come together and think critically and creatively about how to move food system move forward,” says Louisa Kasdon, founder of Let’s Talk About Food.

Melissa Kogut from Chef’s Collaborative adds, “It’s not enough to take labels at face value. This conference will put a much needed spotlight on a confusing topic and show us which labels to trust (and why) and what questions to ask.” AWA Program Director Andrew Gunther says, “When we heard about the opportunity, we immediately knew this was something we wanted to be involved in. Harvard is seen as a leader and is known for hosting dynamic debates and the best way to seek change is through active dialogue and consensus.”

Event co-sponsors include Animal Welfare Approved, the Harvard Food Law and Policy Clinic, Let's Talk About Food, and the Petrie Flom Center for Health Law Policy, Biotechnology, and Bioethics. Register at http://hlsforumonfoodlabeling.eventbrite.com/#. Admission is free for students with ID, and open to the public for $5 per day of attendance. Visit http://www.hlsforumonfoodlabeling.com/ for more information.

5) Lucia Ristorante Owner Donato Frattaroli introduces exciting additions to Lucia Winchester’s lineup. Together with Executive Chef Pino Maffeo, the two are making Winchester Center a foodie destination this winter. Beginning this February, Lucia Winchester is launching two events: Traditional Lucia Family Dinners and Cooking Classes with Chef Pino and Donato.

With its first installment on Sunday, February 24, the Traditional Lucia Family Dinners are designed to transport guests to Abruzzo, Italy as if they were at the Frattaroli dinner table. For just $20 per person ($15 for children under 12 years old), guests can feast on an authentic Italian dinner composed of century old Frattaroli family recipes. The dinner spread includes: soup or salad, pasta (an option of linguine or penne) with marinara sauce, and a choice of two sides—sausage, meatballs, beef braciolettine, or ribs. The Traditional Lucia Family Dinner menu will be available every Sunday and Monday evening during dinner service throughout the winter.

On Wednesday, February 27, from 6pm-9pm, Lucia is launching its Cooking Classes with Chef Pino and Donato. The first installment of this monthly series is titled, “Mouth-Watering Soups and Stocks: The Building Blocks of World-Class Italian Cooking.” Chef Pino and Donato will give guests hands-on training in the art of mouthwatering soup and stock making. Attendees are encouraged to bring a notebook – during the three-hour cooking course, they will learn the basics of how to make simple stocks (chicken stock and prosciutto broth) and how to incorporate them into world-class tasting soups (pasta fagiole and minestrone soup). They will also discuss bread pairings with Piantedosi breads, including how to choose which breads go best with a variety of meals. The cost of the class is $55 per person.

For more information about these events, please call (781) 729-0515.

6) On March 11, at 7pm, Legal Harborside will team up with Cakebread Cellars’ Director of Sales, Dennis Cakebread, to host a wine dinner at Legal Harborside. This four-plus-course culinary adventure will highlight the best tastes from sea and vine. Cakebread Cellars has vineyard properties located throughout Napa Valley surrounding the production facility in Rutherford where it all began in 1972. Today, the winery owns 13 sites totaling 982 acres.

The menu will be presented as follows:

HORS D’OEUVRES
vol-au-vent, lobster, tarragon, mascarpone
geoduck clam, yuzu marinated melon, virginia ham
pickled sardines, dill crème fraîche, caraway and rye toast
merguez sausage, fennel vinaigrette and apple hash
Cakebread Cellars Chardonnay, Napa Valley, 2010
FIRST COURSE
tuna carpaccio* (bosc pear, wakame, serrano chiles, wasabi aioli and cucumber)
Cakebread Cellars Sauvignon Blanc, Napa Valley, 2011
SECOND DOURSE
grilled shrimp (rosemary, smoked and braised chickpeas, chorizo and roast garlic dust) Cakebread Cellars “Reserve” Chardonnay, Carneros, 2010
THIRD COURSE
cast iron skillet-seared duck breast (red rice, golden rutabaga, preserved walnuts and junipers)
Cakebread Cellars “Benchland Select” Cabernet Sauvignon, Napa Valley, 2009
CHEESE
mountain cheese and dried fruit
Cakebread Cellars Zinfandel, Lake County, 2010

COST: $125 per person (excludes tax & gratuity)
 Reservations can be made by contacting 617-530-9470

7) Maritime Gloucester, a working waterfront museum and marine science education center, will present a series of public lectures in March on the future of fishing and seafood, sustainability, and seafood fraud. Each free lecture takes place at 7pm at Maritime Gloucester, 23 Harbor Loop off Rte. 127 in Gloucester.

Meet the region’s experts on these hot-button topics, and learn how the latest industry changes are affecting both fishermen and consumers. "The public is hungry to better understand these topics, and we are thrilled to bring the conversation to Maritime Gloucester,”" says Executive Director Tom Balf.

Turner’s Seafood is the 2013 sponsor of this unique public information program. Turner’s, a family-owned business, is a partner with Cape Ann Fresh Catch, operates a retail fish market and wholesale fish processing facility in Gloucester, and a restaurant/oyster bar/fish market in Melrose called Turner’s Seafood Grill. Turner’s also sells fish and lobster with overnight delivery.

Schedule of Events:

Thursday, March 7
Fish, Fraud and Forensics
Sheila Jarnes, NOAA (National Oceanic and Atmospheric Administration) and Beth Daley, The Boston Globe
The lead reporter on the Globe’s seafood fraud investigative team, and a NOAA inspection/enforcement official, will describe this emerging concern, and what measures are being taken to address it.
Thursday, March 14
Trawl to Table: Understanding Today’s Groundfisheries
Jen Levin, GMRI (Gulf of Maine Research Institute), and a spokesperson TBA from the Northeast Seafood Coalition
An eye-opening discussion of commercial ground fishing methods, gear technologies, seafood transport, and the seafood needs of discerning markets.
Thursday, March 21
Sustainable Seafood Choices
Allison McHale, NOAA Fish Watch, and Heather Tausig, New England Aquarium’s Ocean-Friendly Seafood Program
Sustainable seafood purchases are a lot easier to make, thanks to these two consumer-oriented programs. A must for anyone who cares about our oceans’ renewable resources.
Thursday, March 28
Seafood Restaurant Crawl
various eateries throughout greater Gloucester. See http://www.maritimegloucester.org OR http://www.turners-seafood.com for further information

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Boston Cocktail Summit: How The Spirits Industry Works

"In sales, you need a story."
--Sam Rubenstein

That is a truism, something I have also stated on multiple occasions before. Stories can fascinate and intrigue consumers, creating an emotional connection which would be missing otherwise. And if you consult the studies and science, it is that emotional connection which plays a very significant role in consumer behavior. Storytelling has been a part of our history and culture from the very beginnings of time and it still resonates deep within our souls.

At the Boston Cocktail Summit, the first seminar I attended was "How The Spirits Industry Works," which was led by Brandy Rand, a writer and consultant with 12 years in the beverage alcohol industry in marketing and PR, and Sam Rubenstein, one of the owners of Horizon Beverage, a New England distributor of wine, beer and spirits. This was a more educational seminar, full of history, laws and statistics yet Brandy and Sam kept it lively and interesting.

The discussion began with an explanation of the Three Tier system, the manner in which alcohol gets from the supplier/manufacturer to the retailer, via the middlemen of wholesalers/distributors. That topic could have easily been the focus of its own seminar. It was stated that a significant reason for this system is to more easily collect taxes. It is amazing that approximately 55% of the price of a bottle of spirits is a tax of some type. Spirits get taxed more than wine and beer and that can be seen in the federal excise tax. For distilled spirits, the tax is about $14.50 per proof gallon while it is only $6.18 for beer and $4.86 for wine.

It was noted as well that the Three Tier system can limit consumer choice, that some small brands can have difficulty gaining access to the market. In addition, in some states, a supplier/manufacturer must stay with their original distributor and cannot leave even if that distributor does a poor job of selling their products. We didn't get into an involved debate over the advantages and disadvantages of the Three Tier system, but the presenters did acknowledge some of the pluses and minuses.

We moved on to some specific laws dealing with Massachusetts, though also setting a foundation with the standard industry drink sizes. That includes 12 oz. beer, 8 oz, malt, 4.5 oz. wine, 3.5 oz. fortified wine, 2.5 oz. cordial/liqueur, and 1.5 oz. shot of 80 proof spirits. Since 1994 in Massachusetts, you can now get a Cordial & Liqueur license, which allows you to sell some spirits but the determination of which spirits are permissible is based on sugar content and not alcohol content. The Cordial/Liqueur must contain at least 2.5% sugar, and the proof level is irrelevant. That license allows restaurants and bars to create unique cocktails form cordials and liqueurs.
 
With the potential advent of casinos in Massachusetts, the issue of Happy Hours has risen once again. Currently, establishments cannot provide discount pricing for liquor for a Happy Hour, though discount pricing is permitted if it lasts for an entire week. Casinos often provide free cocktails and they will likely seek to provide such in Massachusetts as well. So there have been some calling for Massachusetts Happy Hour laws to change. Yet Sam claimed that the vast majority of Boston restaurants and bars are actually against lifting the Happy Hour restrictions.

For many bars and restaurants, they usually make the greatest margin from alcohol and not food. So, if they have to discount their alcohol, they often will cut deeper into their margin than if they offered a discount on their food. So there is a clear business reason why they might oppose lifting Happy Hour laws. In addition, as Happy Hours tend to make people drink more, that can heighten the potential liability of restaurants and bars for drunk patrons.

Now on to some statistical information, mainly concerning spirits, figures which certainly intrigued me. We begin with the fact that about 110 million Americans legally drink alcohol. Spirits production, sales and consumption have been rising in the U.S. In 2011, the value of spirits increased by 2.7% while spirit exports reached a high of $1.34 billion. Of that export figure, about 69% consisted of American whiskey and the European Union purchased about 47% of that whiskey.

In the U.S. market, the share of spirits has risen 4.2% since 2000. Currently, the market is divided into 52.2% beer, 31.8% spirits and 15% wine. Since 1995, shares of wine and spirits have both increased while shares of beer have actually decreased. In 1995, beer occupied a 61% share, but we can see that has dropped nearly 9%. I think spirits have gained market share because of the boom in more artisan and high end spirits that are now entering the market. Twenty years ago, spirit selections were much more limited but now the selections almost seem endless. The added choice is certainly welcome.

Yet, despite all these added choices, it is difficult for a small brand. Currently, about 25 brands occupy 45% of the spirits volume in the U.S. The top 5 brands are Smirnoff, Bacardi, Captain Morgan, Jack Daniels and Absolut. It takes at least 5 years for a brand to reach big name recognition. Since 2009, there have been about 1800 new spirit products although most of those were merely line extensions, different flavors of a known brand, many which will come and go. It is interested that growth in the "super premium" category has grown +8.9%.

As for individual spirit categories, it is also interesting to see what has been popular, the changes that have occurred from 2010 to 2011. Vodka continues to reign supreme, growing 6%, and selling about 65.8 million cases. Considering other spirits, rum has risen 1.3% (25.8 million), tequila has risen 3.8% (12 million), American whiskey has risen 5% (20.85 million) and Irish whiskey had a huge jump, up 23.9% (1.76 million). Brandy & cognac remained at the same level (10.37 million) though a few other spirits saw a decline. Gin decreased 2% (10.8 million), cordials decreased 1.2% (19.4 million) and even Scotch decreased 1.4% (8.5 million).

Another reason for the increased market share of spirits may also be due to the growth of microdistillers across the country. If we look back in history, to around 1800, we know that there were over 14,000 distilleries in the U.S. Fast forward to 1993, and there were only about 60 microdistillers around, a microdistiller being one which produces less than 40,000 cases annually. Now, there are over 250 microdistillers across the country, with new ones sprouting up all the time.

Overall this seminar was quite fascinating, with plenty of valuable information, and it would have been even better if it had been longer as there was much more they could have discussed. As the first seminar I attended, it set an excellent and positive foundation for the others to come. Fortunately, all of the seminars I attended were worthwhile, both educational and entertaining.

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Chianti Classico: The Times They Are A-Changing

During my time touring the Chianti Classico region, the Consorzio del Vino Chianti Classico (the Chianti Classico Wine Consortium) met on Monday, May 28, for a historic vote, the results which are supposed to  lead to some significant changes in this DOCG (Denominazione di Origine Controllata e Garantita). The results were a major topic of discussion, which I am sure will continue for some time to come.

Over two years of study, analysis, expert consultations and various meetings went into forming these proposals. At the general assembly on May 28, they had their largest participation in the past thirty years and the measures passed by a wide majority. Marco Pallanti, the outgoing president, stated this was "An overhaul aimed at re-launching this prestigious denomination, definitely veered towards great quality.”

So what were some of the changes? Here are some of the major revisions, though note that there are others as well.

First, they will create a new "Qualitative Pyramid," establishing a new category at the summit of their wine pyramid. This new category, which has yet to be named, will include only wines made from grapes that were grown by the winery so the wines cannot use wines purchased from other wineries. The wine also cannot be marketed until at least 30 months after harvest. This new category could then place some Super Tuscans at the top of the pyramid, above basic Chianti Classico and Chianti Classico Riserva.

Second, the “Riserva” category is being revised. Though the aging regulations remain the same, the change is that the winery will have to declare which category their wine will fall into when applying for certification, during the production stage. Thus, the producer must make an important decision on which wine category his grapes will fall into before any maturation.

Third, in a more aesthetic change, the "Black Rooster" trademark, which has represented the DOCG since 2005 will be redone. Currently, the image of the black rooster has been placed on the state neckband for all Chianti Classico wines, whether in the consortium or not, but now it will be placed on the neck of the bottle instead and the graphic will be restyled.

Marco Pallanti stated, “I’ve been working with the board for a long time to find the biggest consensus from members about these changes. Endeavors aimed at having the consumer perceive the higher quality that our wines have achieved in recent years, enabling us to face future challenges with a set of regulations able to make Chianti Classico stronger with regard to growing international competition. Even the assembly’s ruling on bulk wine, which now has to be certified before being marketed, should be interpreted from this standpoint."

The votes still must be presented to the Ministry of Agriculture, Food and Forestry Policies but that is thought to be more pro forma but it will take about a year before anything is finalized. So it is possible that the changes could be fully approved in time for the release of the 2013 vintage.

Not all consortium members were happy with the resolutions, believing that the changes would not really lead to better overall quality, though they are in the minority. It is still early in the process so it is difficult to know whether it will lead to better quality or not. More work is still needed to be done, but it is a positive aspect that so many of the consortium members were able to agree on the need for change, and see the necessity of increasing quality. The future will tell whether their decision will work or not.

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