March 25, 2025 7:41 am
The Distilled Spirits of the United States (DISCUS) today issued a call to action in partnership with the Toasts Not Tariffs Coalition as uncertainty about tariffs continues. A DISCUS petition campaign urging the administration not to impose tariffs on spirits generated nearly 13,000 signatures earlier this year.
Now, Spirits United is expanding its campaign efforts with the Toasts Not Tariffs Coalition, a group of 54 associations representing the entire three-tier chain of the U.S. alcohol industry and related industries. The new campaign urges the administration to secure fair and reciprocal tariff-free trade with our key trading partners. Consumers, distillers, vintners, the hospitality and retail sectors, and other industry stakeholders can take action here.
“The coalition is urging everyone connected to the spirits and wine industries, from bartenders, consumers, manufacturers, farmers, importers and exporters, to tell the administration that tariffs on distilled spirits and wines put American jobs at risk and must be eliminated,” said Chris Swonger, DISCUS President and CEO. “Securing fair and reciprocal tariff-free trade with our key trading partners will lead to an increase in U.S. wine and spirits exports and investments, and U.S. job growth. We need toasts, not tariffs!”


BACKGROUND

• Nearly 86% of U.S. spirits exports go to countries that have eliminated tariffs on all U.S. spirits, and approximately 98% of spirits imports originate from countries that have eliminated tariffs on U.S. spirits.
• U.S. spirits have achieved duty-free (zero-for-zero) access with 51 trading partners.
• Most U.S. wine exports go to countries with low or zero import duties.
• Now: Canada is imposing a 25% tariff on American spirits and wines and has pulled these products off store shelves in most provinces.
• April 2: The U.S. could impose 25% tariffs on tequila, mezcal and Canadian whisky, when the current suspension expires.
• April 2: The U.S. could impose tariffs on wines and spirits from a range of countries, including a 200% tariff on European Union (EU) alcohol products.
• April 13: The EU’s previously imposed 25% tariff on American whiskeys is currently suspended. However, if there is no agreement on steel and aluminum, tariffs are scheduled to be reinstated at 50%. The EU could also impose tariffs on additional categories of U.S. spirits and wines.

We urge President Trump to lift the tariffs on Mexican and Canadian distilled spirits and wine due to the special nature of our products. We commend the administration’s objectives to protect the American people and support jobs in the United States, however, we are concerned these tariffs will not contribute to that effort.
Many wine and spirits categories, such as Tequila and Bourbon, are designated as distinctive products that can only be produced in certain geographical regions around the world. As a result, the production of these products cannot simply be moved to another country or region.
American wines and spirits have benefitted from fair and reciprocal trade with Canada and Mexico. These U.S. tariffs on Mexico and Canada will result in great harm to U.S. companies and employees throughout the wine and spirits supply chain, from restaurants, bars and retail outlets, to shippers and importers/exporters of spirits and wine products. We are also greatly troubled that U.S. alcohol products are being removed from Canadian stores as a result of this trade dispute and will now also face retaliatory tariffs in Canada.
U.S. wines and spirits are made with agricultural products sourced from farmers across the United States. Our products are key pillars of the U.S. hospitality industry supporting restaurants and bars across the country. Sales of wine and spirits in the U.S. have slowed in recent years, and restaurants in cities across the country continue to try to stabilize post Covid. Hitting wine and spirits with tariffs will further stall their recovery and hurt U.S. consumers.
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The Toasts Not Tariffs Coalition is a group of 52 associations representing the entire three-tier chain of the U.S. alcohol industry and related industries.

Distilled Spirits Council Annual Economic Briefing:

The Distilled Spirits Council (DISCUS) reported today that U.S. spirits maintained its market share while revenues slipped in 2024 and warned that tariffs on spirits would further curtail industry growth, during its annual economic briefing for media and analysts.
“While the spirits industry has proven to be resilient during tough times, it is certainly not immune to disruptive economic forces and marketplace challenges, and that was definitely the case in 2024,” said DISCUS President and CEO Chris Swonger. 
Swonger reported that spirits supplier sales in the United States were down -1.1% in 2024 totaling $37.2 billion, while volumes rose 1.1% to 312.2 million 9-liter cases.
For the third year in a row, the spirits sector maintained its market share lead in 2024. Spirits market share totaled 42.2%, with gains for more than two decades. The spirits sector has gained more than 13 points of market share since 2000. Each point represents $880 million in supplier revenue.
Swonger noted that spirit sales were still continuing to normalize following the robust sales spikes during the pandemic, and economic headwinds including high prices and inflation rates created additional challenges for the industry.
“Consumers were contending with some of the highest prices and interest rates in decades, which put a strain on their wallets and forced many to reduce spending on little luxuries like distilled spirits,” said Swonger.  “Our sales dipped slightly but consumers continued to choose spirits and enjoy a cocktail with family and friends.”
Swonger noted that higher interest rates also impacted the three-tier supply chain with wholesalers and retailers continuing to deplete inventory build ups and cautiously restock products.
CONSUMER DEMAND REMAINS STRONG FOR SPIRITS RTDs AND HIGH-END TEQUILA/MEZCAL 
Presenting an overview of the spirits sales trends in 2024, Christine LoCascio, DISCUS chief, policy, strategy & membership, reported that despite the overall slowdown, spirits ready-to-drink (RTD) products and Tequila/Mezcal continued to grow in popularity in 2024, with sales up 16.5% and 2.9%, respectively.
TOP 5 SPIRITS CATEGORIES BY REVENUE IN 2024: 

• Vodka sales flat totaling $7.2 billion
• Tequila/Mezcal sales up 2.9% totaling $6.7 billion
• American Whiskey sales down -1.8% totaling $5.2 billion
• Cordials sales down -3.6% totaling $2.8 billion
• Premixed cocktails including spirits RTDs up 16.5% to $3.3 billion

2024 POLICY WINS & 2025 POLICY PRIORITIES
In the public policy arena, Swonger highlighted a number of important victories in 2024 at the federal and state levels including:

• The suspension of the EU’s retaliatory tariff on American Whiskeys until March 31, 2025
• Wins on spirits RTDs in three states​
• Defeated tax threats in 11 states​
• Third party delivery enacted in Delaware & Maryland
• Tastings laws expanded in Ohio & West Virginia
• Cocktails to-go permanency in five new states, plus a 5-year extension in New York

Swonger also outlined DISCUS’ priorities for 2025 including:

• Advocating for the permanent suspension of retaliatory tariffs on spirits products
• Ensuring the Dietary Guidelines for Americans are based on the preponderance of scientific evidence
• Fairer tax treatment and increased retail access for RTD products in the states
• Defending against hospitality tax threats
• Expanding marketplace modernizations including cocktails to-go and direct-to-consumer shipping

DISCUS WARNS TARIFFS ARE A KEY THREAT TO THE VITALITY OF THE SPIRITS SECTOR
During the briefing, DISCUS discussed the recent tariff threats impacting spirits imports and exports, and sounded the alarm over the scheduled reimposition and doubling of the EU’s tariff on American Whiskey to 50% on April 1 related to the steel and aluminum trade dispute.
“One of the most critical issues facing U.S. distillers in 2025 is the threat of tariffs,” said Swonger. “Since the suspension of the EU’s tariffs on American Whiskey, our exports have rebounded to record highs. The reimposition of these tariffs at a 50% rate would gut this growth and do irreparable harm to distillers large and small. It would be a catastrophic blow that will force many distillers out of our largest export market.”
Special guest speaker, Sonat Birnecker Hart, president and founder of KOVAL Distillery in Chicago, underscored the devastating impact tariffs have had on small craft distillers.
“These tariffs have wreaked havoc on our craft distilling community,” said Birnecker Hart. “Many craft distillers have expended great time, effort and resources to expand into international markets only to see their dreams shattered by tariffs that have absolutely nothing to do with our industry.  The return of tariffs will not only hurt my distillery but my local farmer too, and this pain will be felt in towns and cities across the country where 3,000 small craft distilleries are boosting jobs, tourism and agriculture.”
Swonger said the global spirits industry is united in urging their respective governments to continue to negotiate to ensure that spirits products do not get caught up in trade disputes.
“The global spirits associations are working side-by-side to urge our governments to exclude distilled spirits from these trade disputes,” said Swonger. “Tariffs on spirits not only harm distillers, they also severely impact farmers and hospitality businesses including restaurants and bars, which are continuing their fragile recovery after the pandemic. We are making our case to the Trump administration that our industry has thrived with zero-for-zero tariffs and that distilled spirits’ ‘distinctive products’ status, which is recognized by the U.S. and our trading partners, means that these special spirits can only be made in their designated countries.”
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SUPPORTING MATERIALS:
DISCUS Annual Economic Briefing Presentation – 2024
Economic Briefing Support Tables – 2024 

ARLNOW
By Katie Taranto and Scott McCaffrey
Published February 6, 2025 at 2:45PM

​A state bill that would loosen restrictions on liquor sales is picking up support from members of Arlington’s restaurant scene.
Restaurants with mixed beverage licenses in Virginia are mandated to make at least 45% of sales from food and no more than 55% of sales from liquor-based mixed beverages. Senate Bill 1163 would lower the food sale requirement to 30%, allowing higher revenue percentages from liquor — something multiple restaurant owners told ARLnow they would welcome.
The current regulation, referred to as the “food-to-beverage ratio,” is the reason why no bars technically exist in Virginia.
Greg DeFlorio, a general manager at Ballston Local, told ARLnow that he supports a policy change on behalf of his peers.
“It would actually help some of the surrounding businesses that don’t sell as much food,” DeFlorio said. “I think food should always still be available to somebody that is drinking, but I think it would help businesses to lower that ratio a little bit.”
The legislation, DeFlorio noted, would not significantly affect Ballston Local, which typically sells about 60% food and 40% mixed beverages.
“We’re able to maintain a pretty good mix,” he added.
The legislation, patroned by Virginia Sen. Ryan McDougle, R-Mechanicsville, would apply to restaurants and caterers with monthly food sales of at least $4,000. The bill passed the Senate, 36-4 on Feb. 2, and moved to consideration in the House of Delegates.
The bill also mandates that restaurants have at least as many seats at tables as at counters, and prohibits licensees from serving mixed beverages once food is no longer being sold for on-premises consumption.
Courthaus Social owner Kaveh Safa supports a lowered food sale ratio, although similar to Ballston Local, his restaurant’s beer garden concept is not hindered by liquor sale limits.
“It doesn’t really affect us too much,” Safa said. “But I think at the end of the day, I mean, more flexibility for bar owners probably is not a bad thing.”
Local business groups have hesitated to weigh in on the topic, however.
The Virginia Restaurant, Lodging, and Travel Association — which has an Arlington-Alexandria chapter — aims to represent the interests of its industries statewide. It told ARLnow that it is “neutral” on the regulation, a similar response it gave WTVR after a policy briefing in December.
The Arlington Chamber of Commerce, meanwhile, lists support for “streamlined ABC laws that benefit restaurants” as part of its General Assembly policy positions — though the organization declined to comment for this story.
This is not the first time state lawmakers or business owners have attempted to change the ratio. Challenges date back about a decade, and most recently spang up last year, when a Portsmouth restaurateur sued Virginia ABC, WTKR reported.
A bill similar to SB 1163 by Virginia Sen. Bryce Reeves, R-Fredericksburg, won unanimous Senate passage in 2024, but failed to advance to a floor vote in the House of Delegates.
Critics of the food-to-beverage ratio often claim it inhibits small businesses and restaurants serving top-shelf liquors, or label it as antiquated. The original law dates back to 1968 and was more stringent. It counted beer and wine in alcohol sales and required 51% of restaurant sales to come from food.
The law as it currently stands has not been updated for 45 years.
Advocates of maintaining the ratio say it helps prevent alcohol overconsumption, and that restaurants have put resources and effort into meeting the current guidelines.
“That ratio is there for a reason,” Safa said. “I guess in Virginia, you know, they don’t want places just slinging only drinks.”
If passed by the House of Delegates and signed into law, the measure would be in effect through June 2027. It would require the Virginia ABC to collect data on compliance and report back to the General Assembly by November 2026.

WJZNews
By Janay Reece
Updated on: January 30, 2025 / 3:51 AM EST / CBS Baltimore

LOCAL NEWS
Maryland lawmakers push to allow cocktails to-go in Baltimore CountyBy Janay Reece
Updated on: January 30, 2025 / 3:51 AM EST / CBS Baltimore

BALTIMORE COUNTY — You may want to get your favorite drink order ready.
Maryland lawmakers are proposing a new bill, HB 0770, that may make it easier for adults to order cocktails to-go from their favorite restaurant.
"I think it's time to open Baltimore County up to allow this really reasonable practice," said Kathy Szeliga, Baltimore County District 7A Delegate.

Past Alcohol Beverage Laws In 2021 Gov. Larry Hogan signed a bill extending the take-out cocktails and alcohol delivery measure during the covid pandemic. 
The initiative ended in 2023. 
But Maryland Lawmakers like Del. Szeliga and Del. Carl Jackson are working together to bring the measure back to Baltimore County permanently. 
"You can currently get alcohol delivered in Baltimore County, a closed bottle of wine, a closed beer. So this really makes sense, and is part of modernizing the way we do things today," explained Szeliga.
Gelmin Portillo owner Taco Love Grill in White Marsh. The restaurant has been open since 2011. He believes for some restaurants alcohol and drink sales are changing.
"We also have to understand that after the pandemic, there's been a shift in the way that consumers behave when it comes to eating out," explained Portillo. "There's less and less people dining out, and we have to adapt to those times as well."
Current Alcohol Beverage Laws Portillo believes the new bill could help — if it is done right.
"This type of regulation has been proven that it can work in other jurisdictions, and we believe that it can work here as well with the right regulation," said Portillo.
Currently, there are some Maryland counties that let users order alcoholic beverages from local merchants for delivery by third-party platforms like DoorDash.  
Delivery drivers will have to apply for a service permit at an annual rate of $1,000, which allows them to deliver alcohol from authorized businesses.  
People who purchase or receive alcoholic beverages must be at least 21 years old and provide valid identification as proof of age upon delivery of the alcohol.
With HB0770 being introduced, it will expand what restaurants can offer to customers.
"You can currently get alcohol delivered in Baltimore County, a closed bottle of wine, a closed beer. So this really makes sense, and is part of modernizing the way we do things today" said Szeliga. 
Addressing Concerns Szeliga is aware there are safety concerns surrounding the proposed bill, but she said there are provisions within it to protect customers. 
"This bill has provisions like the cocktail to go has to have a lid, without a straw, without a hold or a straw, and it's going to be taped down which makes sense because you don't want it to spill. And you know, we'll have revisions to ensure it's not something that could be easily accessed," Szeliga explained.
"Know that it can be done, and this bill is going to have some provisions in it to ensure that people are not drinking and driving and that minors are not getting a hold of it."
The bill is still in its early stages and has a few more steps before it can go to the governor's desk.