Together, the Distilled Spirits Council of the US (DSCUS), the American Craft Spirits Association, the Kentucky Distillers’ Association, and the New York State Distillers Guild have all written a letter to the US Senate, urging them to “act quickly” to help. the distilleries.
In the letter, the presidents of the association said: “Across the United States, our member distilleries are doing their part to help prevent the spread of COVID-19 and ensure the health and safety of their workers and the public. “In addition to this, you will need to know more about it.
“However, due to the necessary measures taken, including the closure of restaurants, bars and tasting rooms, many distillers will soon have to lay off employees and delay or reduce production. Many may even be forced to close their doors for good. “In addition to this, you will need to know more about it.
“As Congress acts swiftly to bring economic relief to affected businesses, we urge you to remind yourself of the important role of distilleries in your home states and across the country and their inextricable link with the hospitality sectors,” catering, tourism and retail. “In addition to this, you will need to know more about it.
A separate letter to the Senate brought together the American Craft Spirits Association, the Beer Institute, the Brewers Association, the American Cider Association, Wine America, the Wine Institute, the American Mead Makers Association, and the DSCUS. They also asked for relief for the alcohol industry at large.
“Collectively, the alcoholic beverage sector proudly supports more than 5.4 million jobs across the country and generated over $ 562 billion in economic activity in 2018” they said.
“Without relief, a large number of distilleries, breweries, wineries and cider houses could be forced to close their doors permanently due to COVID-19.”In addition to this, you will need to know more about it.
The government responds: In addition to this, you will need to know more about it.
The US Senate met to discuss financial relief for many industries and began a vote on March 22 on a more than $ 1 trillion general bailout bill. It should be finalized at the start of the week.
The bill could include $ 350 billion for small businesses, individual checks for Americans, increased aid to states and hospitals, exemptions for paid sick leave and a $ 250 billion increase in benefits. unemployment.
Loan assistance and tax relief
Many large liquor companies donate to charity proposes to produce hand sanitizersto meet demand. But it is small businesses that will be hardest hit by the economic recession caused by the novel coronavirus.
The entire alcohol industry supply chain is affected, including farmers, glass bottle manufacturers, truck drivers and warehouse workers. To get through the crisis, the spirits associations are calling for four specific elements to be part of any relief plan.
1. Provide federal excise tax relief
2. Guarantee solid assistance for interest-free, low-interest loans
3. Request the suspension of customs duties on distilled spirits
4. Create an industry stabilization fund
The beer, wine and cider associations are asking for a bit more federal economic aid, such as a $ 5 billion stabilization fund to provide cash advances so companies can pay their employees and borrow.
1. Develop unemployment insurance
2. Suspend social charges
3. Provide federal excise tax relief
4. Provide solid assistance in interest free or low interest loans
5. Create an industry stabilization fund
6. Maintain an open trade border
7. Request the suspension of prices on alcoholic beverages and their suppliers
Other letters were also sent directly to some state governors, highlighting the early action of other states. Alabama, Delaware, Maryland, New Jersey, New York and Texas allow bars and restaurants to sell distilled spirits for take-out and delivery.
New York City has also classified liquor and wine stores as an essential business, allowing them to remain open despite the state’s “safe haven” mandate. This draws criticism from workers and sparks debate over what is considered essential during a pandemic.
In Maryland, the state comptroller extends the alcohol excise tax filing deadline to June 1 for certain business returns, with due dates in March, April, and May 2020. This will help the struggling artisanal distilleries in the state.
In Texas, laws were lifted prohibiting liquor industry trucks from delivering supplies to grocery stores. The governor also works with small businesses like Texas Distillers to qualify for Economic Disaster Loans from the Small Business Administration.
And California has said the state’s Alcoholic Beverage Control Department is temporarily suspending the application of certain legal bans.
Manufacturers and Wholesalers (MW) can accept returns of alcoholic beverages from retailers; there will be an extension of credit between MW and the retailers; and alcohol can now be sold to take out at authorized retailers along with meals.