David Stokes, prexy of St Lou AB distrib Grey Eagle, offered levelheaded, compassionate and realistic assessment of beer biz to INSIGHTS over weekend. "I think some of the remarks about the state of the beer business are short-sighted," wrote David. "While we have seen some lift in the off-premise, I think a significant portion is pantry loading. Our on-premise business is mostly shut down and we have a lot of St. Pat's load-in that is just sitting in accounts. I expect to see a fair amount of credit delinquencies in the coming weeks.

Some new context on "consultation" vote to be held in Mexicali, Mexico this weekend over whether Constellation will be able to complete its brewery there, already 70% done, reported in The Guardian today. First, Alfonso Cortez Lara, a water expert at the College of the Northern Border, opined: "Neither of the two sides will accept the results, [which] are not binding." Then too, Guardian gives lotsa context, showing just how political this situation is. Pres Andrés Manuel López Obrador, known as AMLO, apparently believes these consultations ensure "the people have the last word." But critics believe "the process is routinely set up to induce the president's preferred outcomes." One poli-sci prof points out: "Where he wants the project to succeed, the consultation gives weight to his decision and he will mobilize his base to make it happen." During his transition to office in 2018, AMLO put 10 different projects to national votes, "ranging from a refinery to railways and ma

Jeffrey Ghazarian, a 34-yr old CA sales rep for Heineken USA died earlier this week. He had a weakened immune system, including a previous bout with cancer. He recently traveled to Orlando for a conference and visited Disney World there. There are already many articles about his coming down with coronavirus, subsequent rapid deterioration and death, but most don't mention his place of employment. Here's HUSA statement: "Unfortunately, we learned yesterday that our beloved friend and colleague passed away. No words can describe the sadness and pain that our HEINEKEN family is feeling. Our hearts, thoughts and prayers are with Jeff's family, friends and team. Out of respect for his family, we are not making any further statements at this time." Our thoughts are with Jeffrey's family after his untimely and tragic death.

With little in the way of specific federal guidance, governors and local officials mostly taking the lead in setting rules for business in coping with coronavirus. Of course, that's always been model for alc bevs. And per usual, emerging rules and attitudes vary by state. For now, most states seem to be accommodating delivery of beer and purchase/pick up at brewery and on-premise locations, but only for off-premise consumption. In craft-mecca Oregon, the Oreg Liquor Control Comm is "working to loosen regulations and help breweries struggling with drastically reduced business," reports the Oregonian. While brewers/taprooms scramble to build their delivery capabilities and sales for off-site, OLCC is turning around applications for such rights in less than 1 hour, according to Tony Roberts of Oreg Brewers Guild. State agency also allowing email applications, formerly limited to fax and mail only. OLCC "really trying to help out here," said Tony. Even so, always another challenge to changing biz models. "Insurance on delivery is ridiculously expensive," noted Von Ebert Brewing's Tom Cook.

NBWA has 3 "primary areas of concentration" related to COVID 19, ceo Craig Purser wrote state execs and also its board of directors. First, "ensuring that beer distributors remain essential under any kind of national (or state) emergency order. Our members can't sell any beer if they are prohibited from being on the road and servicing critical retailers that are open." So far so good on that front, as far as INSIGHTS knows. Second, "securing guidance from TTB on federal trade practice laws dealing with rotating product. With hundreds of thousands of cases of beer positioned for on-premise events," like St Paddy's Day, March Madness, and MLB opening day, all "now canceled, repositioning those products for off premise sale became vitally important." Finally, "providing you our members with timely information around mitigating risks and operating safely." Craig closed: "The last 10 days have been like nothing we've ever seen before. While everyone is trying to grasp how this crisis impacts their lives, their families and their business, I think hindsight will show that the work being done by their trade associations has helped to mitigate numerous problems and saved their businesses from a lot of uncertainty. Keep up the great work." NBWA so far took a less public stance on question of being "essential" than Wine and Spirits Wholesalers Assn. WSWA ceo Michelle Korsmo wrote all 50 governors a letter urging them to "keep alcohol retail locations open" to reduce risky interstate travel and to avoid encouraging black market activity. Both are real possibilities if there's even a short-term prohibition.

Tho US Sup Ct on hold, like just about everything else, jockeying for position continues. In final brief/pitch to have Sup Ct review lower ct rulings that upheld Connecticut's pricing laws (post-and hold, volume discount ban, etc), attys for mega retailer Total Wine got a bit testy, running up the rhetoric in response to state and state retailer/ distrib assns who insist Sup Ct should not take the case (see Mar 5 Express). Legal brief sharply attacks laws that put consumers at "unsupervised mercy" of "unsupervised cartels" ─ that would be CT distribs and retailers ─ as state allows them to "keep prices high and profit margins fat." Meanwhile, Total, and by implication its partner in litigation Southern Glazer's, dismiss state and distrib/retailer assn arguments as "nonsense," "deeply illogical," "anathema to sound antitrust policy," "blatant misdirection" and "irrelevant and false."

Globally, UK-based BrewDog is getting hit harder than most by Covid-19 outbreak among larger brewers. "Covid-19 has already had a colossal impact on our business and we have lost almost 70% of our revenue overnight," co-founder James Watt wrote in email to shareholders, Evening Express reported. "The reality is our business, and the vast majority of businesses, now face a fight to be able to survive and make it through this crisis." Recall, BrewDog does lots of biz on-prem/own-prem in UK and elsewhere around the globe, and BrewDog is much smaller than other global brewers, so on-prem restrictions seem to disproportionately affect its biz. "We have two main priorities at the moment," sez James. "Number one: survive. Number two: preserve as many of the 2,000 jobs we have created at BrewDog as possible."

While several states and cities are determining which stores will remain open and which will be advised to close in effort to curb spread of COVID-19, Wine and Spirits Wholesalers of America is asking all states to keep their wine and spirits retailers open in new statement released yesterday. Notably, WSWA prexy Michelle Korsmo asks for "all Governors to keep wine and spirits retailers open," with chief reason being "to not encourage bad actors to pop-up black market liquor operations." "In a crisis, unintended consequences are major concern for industries and private citizens alike," she added. Distilled Spirits Council of the US (DISCUS) released similar statement earlier this week, noting that org is working with states "to explore creative solutions for on and off-premise establishments, such as easing regulations" for curbside pickups and home delivery. This is especially relevant to beer in states where beer/alc bevs are primarily sold in liquor stores or outside of traditional grocery/convenience stores like NJ, MA, PA.