Late last year, the President signed the Taxpayer Certainty and Disaster Tax Act of 2020, which made most of the Craft Beverage Modernization and Tax Reform Act (“CBMTRA”) provisions permanent starting January 1, 2021. The CBMTRA makes extensive changes to the federal excise taxes on wine, distilled spirits, and beer.
Continue Reading Significant Tax Credits for the Alcoholic Beverage Industry
California Expands Overtime for Farmworkers
The following is an adaptation by my colleague Tony DeCristoforo of a post by Bryan Hawkins, Kirk Maag and Adam Belzberg that originally appeared on Stoel Rives World of Employment blog.
California Governor Jerry Brown recently signed AB 1066, which will require grape growers and other agricultural employers in California to pay overtime under the same conditions as non-agricultural businesses. The bill is the first of its kind in the nation.
California law defines employees “employed in an agricultural occupation” broadly to include any employment relating to the cultivation or harvesting of agricultural commodities, or the maintenance and improvement of a farm and/or farm equipment. Prior to the signing of AB 1066, such employees were entitled to time-and-a-half pay after working 10 hours in a day or 60 hours in a week. This is substantially different from the overtime laws for California employees in most other industries and occupations, where overtime pay typically kicks in after eight hours in a day or 40 hours in a week.
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Issues that private equity firms should consider before acquiring alcohol beverage producers
By Chris Hermann and Bernie Kipp:
Type of Transaction – Asset Purchase versus Stock Purchase. Very important if the acquiring entity wants an immediate continuing operations privilege. Specifically If a PE firm purchases the assets of the target company (including the operating name, equipment, IP, inventory and the current brewery building) and intends to
Licensed beer/wine Distributors also selling non-alcohol beverages in Washington state
Due to the explosive growth of craft beer sales in many states, including Washington, many distributors are combining non-alcoholic and alcoholic beverage sales into their distribution business. A key point for Washington distributors is to be aware that the Washington Liquor Control Board (WLCB) contends that the so-called “Tied-House” rules governing the sale of alcoholic
Fox Business Network Profiles Winery Owner Pascal Brooks in “Strange Inheritance” Episode
Congratulations to Pascal Brooks and Janie Heuck for their tremendous success growing Brooks Winery and keeping alive the memory of Pascal’s father and Janie’s brother Jimi. We join them in looking forward to viewing Strange Inheritance With Jamie Colby that tells the amazing story of their journey to preserve the winery for Pascal, which was
Rebuilding: Dealing with or Without Earthquake Insurance
The following post was written by my colleagues Tom Woods, Parissa Ebrahimzadeh & Bao Vu
As part of the Northern California business community and as an advisor to business, we support the Napa and the surrounding Bay Area in getting homes and businesses back on their feet following the August 24, 2014 Napa Valley earthquake.
The earthquake that rocked Napa Valley and nearby regions left an estimated $1 billion in damages, according to a county news release. The McClatchy News Service recently observed the quake “upended more than wine barrels and mobile homes. It also was an unsettling reminder of how few Californians – homeowners and businesses alike – carry earthquake insurance.”
Sure, insurance agents will discuss earthquake insurance policies with business owners, but Napa Valley region had not experienced a quake of such magnitude since 1989. Thus, this rare but catastrophic risk was one for which the cost-benefit analysis dictated to many Californians that they should forgo the expensive form of insurance. Statistically, the shocking drop in homeowner earthquake insurance policies purchased over the last decade was dwarfed by the 29% drop in the number of California businesses that purchased policies over the same period. Reports are that only 10% of California businesses and residents carrying property insurance also carry earthquake insurance.
Where the wine and agriculture industry suffered $48 million worth of damage, and with over 120 businesses affected, the questions running through so many confused and disrupted lives include: “What do I do now? Did I need earthquake insurance, specifically? Am I covered? How do I perfect a claim if I am covered and where can I go for help?”
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Reclamation Will Not Approve the Use of Federal Irrigation Water for Marijuana Cultivation
This post is authored by Environment, Land Use and Natural Resources lawyer Kirk Maag of Stoel Rives.
The U.S. Bureau of Reclamation issued a temporary policy regarding the use of water from Reclamation reservoirs for activities prohibited by the Controlled Substances Act of 1970 (CSA)—for example, growing marijuana. The temporary policy is effective for one
Distribution Agreements: Cover Your Bases!
Before entering into a distribution agreement, alcohol beverage producers should do their homework. Here is a list of questions to ask a potential distributor:
- Where are you doing business as a distributor?
- How long have you been in business?
- How did you get started?
- Is your state a franchise state?
- Are you affiliated with a
Top 5 Takeaways From This Year’s Wine Law Seminar
Stoel Rives’ 7th Annual Oregon Wine Law Seminar attracted nearly 100 wine industry professionals and covered several hot topics ranging from employment law, allergen and organic labeling regulations, growler enforcement and other legislative updates, and distribution agreements. We also caught up with Mark Freund, Managing Director, Silicon Valley Bank, Kevin O’Brien, Director –
Conditions For Using Multi-state AVAs On Wine Labels
By Chris Hermann and Bernie Kipp:
The recent notice of the proposed new AVA “The Rocks” in northeast Oregon has kicked off a round of questions about what Northwest wineries may use as an appellation of origin on their labels when grapes are grown in multi-state AVAs such as the Columbia Valley, Walla Walla Valley, Columbia Gorge, Snake River Valley, or the newly proposed “The Rocks” AVA. What all of these viticultural areas, except The Rocks, have in common is boundaries that cross state lines.
The use of AVA references on wine labels trigger specific requirements per federal regulations that sometimes can be confusing. First, it is important to remember that American Viticultural Areas are delimited grape-growing regions having distinguishing features which have been accepted and approved by TTB by name and a delineated boundary as established and published in federal regulations. In other words, there are unique features about the AVA that transcend political boundaries.
So…what are the three requirements for use of an AVA as an appellation of origin on a wine label?
First, the named appellation must have been approved by TTB and published in 27 CFR Part 9.
Next, not less than 85 percent of the wine is derived from grapes grown within the boundaries of the named viticultural area. Finally, in the case of American wine, it has been fully finished within the State, or one of the States, within which the labeled viticultural area is located (except for cellar treatment pursuant to §4.22(c), and blending which does not result in an alteration of class and type under §4.22(b)).
This last condition can get a little tricky so here is some clarification:
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New California General Industrial Storm Water Permit Slated For Adoption on April 1, 2014 May Hold Surprises for California’s Wineries, Breweries and Distilleries
Today, the State Water Resources Control Board (State Board) released for public comment its Draft Industrial Storm Water Permit and supporting documents. This is the fourth (and likely final) version of the Draft Industrial Storm Water Permit, which is designed to replace the existing Industrial Storm Water Permit issued in 1997.
The Draft Industrial