Craft distillers celebrate new opportunities for growth
Florida Governor Rick Scott this summer signed into law two bills that redefine business for state alcohol manufacturers. HB 347/SB 642 set a precedent for the alcohol industry that has not been seen in the state since the days of prohibition. GrayRobinson alcohol industry attorney Richard Blau and government relations attorney Jason Unger represented the Florida Craft Distillers Guild in amending outdated legislation.
"There are several sets of interests that have to be taken into account when drafting alcohol legislation, which makes it one of the trickiest industries to represent from a legal perspective," said Blau, the chair of GrayRobinson's national alcohol beverage and food law practice. "You have stakeholders with concerns in the public safety and health and wellness sectors, while also having to consider implications at a political and economic level. The fact that this bill was able to pass in its first session, with little to no opposition on the voting floor, is truly extraordinary."
"From a legislative standpoint, we were able to work with key legislators and leaders in the alcohol industry to pass a bill that everyone could support," said Unger, the lead lobbyist on the effort out of GrayRobinson's Tallahassee office.
In recent years the state has seen a growing number of craft distilleries that invite the public to tour their facilities and sample their product. However, unlike wineries and breweries, Florida law prohibited these distilleries from selling manufactured products on site. The product would have to be shipped off to a wholesaler or distributor for purchase. With the passage of HB 347/SB 642, championed by Representative Ronald Renuart and Senator Alan Hays, these distilleries can now sell products as part of this offering.
Philip McDaniel, chair of the Florida Craft Distillers Guild and owner of the St. Augustine Distillery currently under construction in St. Augustine, Fla., predicts that the number of distilleries across the state could grow from 15 to anywhere between 35 and 50 over the next decade as a direct result of this new legislation.
"For us, the most exciting part of this is that we can now complete the customer experience," said McDaniel. "When customers tour our distilleries they build up anticipation to try the product and want to take home a memory of the experience. When we'd have to say 'I'm sorry, we can't sell you a bottle' at the very moment they're eager to purchase, well, it's just creates a negative customer experience."
McDaniel has plans for the future of St. Augustine Distillery now that the law will take effect July 1. In addition to a gift shop that sells bottles of the artisan crafted bourbon, gin, vodka and rum, there will be a small screening room that shows a documentary about the distiller's relationship with local farms. The distillery is located just off of the trolley route located in the heart of St. Augustine's historical tourist district and McDaniel is hopeful that a vast majority of these patrons will enter his doors.
"Florida has some of the best agriculture in the world, especially when used as a value added component for alcohol manufacturing. We have one of the largest sugar cane crops in the nation and a variety of fresh fruits to flavor our liquors, wines and beers," said McDaniel. "This legislation will allow Florida distillers to capitalize on our unique location and build a global reputation bringing new visitors to the state because, quite simply, they can't find this experience anywhere else."
JoAnn Elardo, owner of Cape Spirits in Cape Coral, Fla., can finally hire the help she needs to offer tours due to the added revenue the distillery will bring in from alcohol sales. Cape Spirits manufactures Wicked Dolphin Rum.
"Before we were just a name on a shelf," said Elardo. "Now we have marketing capability. We can make our distillery a destination and put our stamp on our product."
This article is published in the September 2013 issue of Fintech Focus. For more information, click here.
About GrayRobinson's Alcohol Industry Team
GrayRobinson's Alcohol Industry Team is a collection of attorneys, former government regulators, legislative lobbyists and other professionals who work on a national and international basis for clients engaged in the manufacture, importation, distribution, retail sale and consumption of licensed beverages. In addition to their work for Fintech, the firm's professionals have experience representing clients from all tiers and all segments of the U.S. "three-tier system," as well foreign producers and importers.