Posts Tagged ‘Advocacy’
BREAKING! TTB Publishes Ruling Approving New Volumes for Cider, Wine & Mead
Rule Making is Giant Victory for ACA in Fight More Parity for Cider Category
Portland, OR — The ACA is excited to share that the TTB announced today the addition of 13 new standards of fill for wine (including cider and mead), among them 473 ml (16 oz) and 569 ml (19.2 oz). The rule is set to be published in the Federal Register on January 10 and will be effective at that time. The American Cider Association is claiming the new standards as a major victory for the cider category and the Association, as pushing for more parity with beer and wine have been priorities in the Association’s strategic efforts to lift the cider category.
The newly approved standards now available to cider, wine & mead are:
- 473 ml (16 oz)
- 569 ml (19.2 oz)
- 180 ml
- 300 ml
- 330 ml
- 360 ml
- 550 ml
- 600 ml
- 620 ml
- 700 ml
- 720 ml
- 1.8 liter
- 2.25 liter
What This Means for Cider
The TTB regulates approved packaging volumes for wine, cider, mead and spirits. This authority was granted in the Federal Alcohol Administration (FAA) Act in 1935 at the time prohibition was repealed. As cider and mead are both subclasses of wine, the standards of fill for cider are contained in the TTB regulations covering labeling and advertising for wine (27 CFR part 4).
Previously, 16 oz and 19.2 oz can sizes were only an option for cider, wine, and mead under 7% ABV. Higher ABV cider (and wine and mead) could be labeled and distributed for in-state sales only if combined with a TTB-approved certificate of label (COLA) exemption. That was a challenging and limited solution for the cider industry.
“The COLA-exemption route was a band-aid. It proved that there is demand for higher ABV cider in these packaging volumes, but it wasn’t opening the market in a meaningful way. These new packaging volumes will be a game changer for regional cider in 2025,” said Jeff Parrish, Co-owner of Portland Cider Company and Committee Chair of ACA’s Government Affairs Committee.
An Opportunity for the US Cider Industry
Large format cans in convenience channels have been a critical source of growth for craft beverages since the COVID pandemic. Likewise, “imperial” ciders (cider over 6.9% ABV) have been a source of growth for cider in chain retailers, but imperial ciders in 16 oz and 19.2 oz cans were illegal.
“Now we will see single-serve regional cider succeeding in more convenience-oriented craft beverage spaces. That’s a big win for cider,” said ACA’s former longtime CEO Michelle McGrath who led the industry-wide efforts to lobby for the additional standards of fill until the end of December.
ACA board member Shannon Edgar of Stormalong Cider is excited about what the changes mean for a cidery like his. “We take a ‘hands off’ approach letting the cider ferment with less intervention. Some of these apples naturally ferment to ABV’s over 7% due to the higher sugar content. It’s great to be able to package these ciders in their natural state, in our container of choice that our customers are accustomed to,” Edgar said.
“Packaging is no panacea, but I’ve seen switching formats be a winning move for both larger regional cideries and smaller local cideries. Partnerships can help ease the cost of transition,” said McGrath.
A Track Record of Success for the ACA
The ACA first successfully lobbied for the addition of 355 ml (12 oz) cans for cider, wine, and mead in 2020. The change allowed regional cider to take advantage of ABV and packaging trends, and it made it easier for orchard-based cideries to incorporate cans, too. The adoption of 12 oz. packaging increased sales for the cider category. In 2024, regional cider was one of the only beverage alcohol categories to grow in both sales and volume. The ACA began pushing for 473 ml (16 oz) and 569 ml (19.2 oz) volumes to be added to approved wine standards of fill in 2022. Since the ACA’s original petition, they have continued to organize grassroots outreach and to lobby the TTB to adopt the changes. The TTB’s announcement today proves that the ACA and its members can collaborate to successfully pursue parity with other beverage categories.
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To request an interview, please email ACA’s Board President, Christine Walter: christine@baumanscider.com.
The ACA is a 501(C)6 not-for-profit organization who is working to build and protect a sustainable and diverse cider industry in the United States through targeted education, advocacy, and a welcoming, thriving cider community.
Government Affairs Update: ACA Lauds the CHEERS Act to Support Bars, Restaurants and Venues with Draft Systems
On March 11, U.S. Representatives Darin LaHood (R-IL-16) and Steven Horsford (D-NV-04) introduced the Creating Hospitality Economic Enhancement for Restaurants and Servers Act (CHEERS Act), a bipartisan effort aimed at supporting local businesses, restaurants, and bars with a focus on draft beverage systems. This legislation seeks to revitalize the hospitality industry by expanding tax incentives for investments in energy-efficient systems that include keg and tap property.
The American Cider Association has joined the Beer Institute, the Brewer’s Association, National Beer Wholesalers Association, the National Restaurant Association, the Independent Restaurant Coalition and others in applauding this effort. By offering support for the use of draft lines and keg equipment in establishments, the CHEERS Act recognizes the importance of draft beverages and their connection to a thriving hospitality sector.
Michelle McGrath, CEO of the American Cider Association, highlighted the significance of draft cider sales in the Beer Institute’s press release about the bill on March 11, stating that draft cider accounts for 60% of hard cider consumption at establishments.
“On-premise consumption plays a crucial role in introducing consumers to cider, making restaurants, pubs, taprooms, sports arenas, bars, and movie theaters vital components of the commercial cider ecosystem,” McGrath stated.
The CHEERS Act’s focus on supporting investments in new, energy-efficient draft equipment is welcomed by the cider industry as it provides much-needed relief for the hospitality sector. This legislation acknowledges the importance of draft sales in sustaining local small businesses and aims to contribute to their recovery during these challenging times.
The ACA applauds Representatives LaHood and Horsford for their introduction of the CHEERS Act.
To read more about the CHEERS Act visit the Beer Institute website.
Urge Congress to Support the Bubble Bill
Earlier this year Representatives Earl Blumenauer (OR-D) & Mike Kelly (PA-R) introduced the Bubble Tax Modernization Act of 2024 (HR 7029) to the 118th Congress. Since then Representatives Suzanne Bonamici (OR-D), Andrea Salinas (OR-D), Lori Chavez-Deremer (OR-R), and Val Hoyle (OR-D) have signed on as co-sponors of the legislation. The “Bubble Bill” will amend a minor carbonation tax disparity for lower alcohol wine, cider and mead made with fruit. Read the complete bill here.
Despite the popularity of bubbly beverages, the carbonation tax–colloquially called the ‘bubble tax’ on fruit wine, fruit cider, and fruit mead makes carbonating these agricultural products at sparkling levels cost prohibitive. Most craft beverage entrepreneurs can’t afford to carbonate these products at the level the market wants. The result is that an important American agricultural sector is falling flat.
Current tax rates for low-ABV carbonated fruit wine, cider, and mead are $3.30 or $3.40 per gallon. Meanwhile low-ABV carbonated grape wines have a current tax rate of $1.07 per gallon. In addition, fruited beers, seltzers, hard kombucha, and ready-to-drink canned cocktails are carbonating freely to give consumers the bubbles they want.
Raising the floor of the carbonation tax threshold to include ALL low-ABV wine, cider, and mead to 0.64 grams of carbon dioxide per hundred milliliters will allow producers to compete more fairly in the evolving beverage market. The Craft Beverage Modernization and Tax Reform Act of 2020 achieved this for grape-only wines, but fruit-based craft beverages were overlooked. This created an excise tax disparity of $2.00 to $3.00 a gallon depending on the product. For more information download the Understanding Bubble Taxes explanatory document.
Allowing more carbonation will foster more economic opportunities for craft beverage makers, allow for more small producer collaborations, create increased opportunities for farms to stay viable with value-added products, and allow for diversification that could help farms and businesses mitigate disasters such as fires, droughts, floods, or crop disease.
Please ask your Congressional representatives to sign onto the Bubble Bill today to support American craft beverage producers and manufacturers.
Reps. Blumenauer & Kelly Introduce Bubble Bill
Representatives Blumenauer & Kelly Introduce the Bubble Tax Modernization Act
‘Bubble Bill’ Will Spur Innovation for Sparkling Co-fermented and Fruited Cider, Wine, and Mead
Washington, DC—Earlier today Representatives Earl Blumenauer (OR-D) & Mike Kelly (PA-R) introduced the Bubble Tax Modernization Act of 2024 (HR 7029) to the 118th Congress. The bill will amend a minor carbonation tax disparity for lower alcohol wine, cider and mead made with fruit.
Despite the popularity of bubbly beverages, the carbonation tax–colloquially called the ‘bubble tax’ on fruit wine, fruit cider, and fruit mead makes carbonating these agricultural products at sparkling levels cost prohibitive. Most craft beverage entrepreneurs can’t afford to carbonate these products at the level the market wants. The result is that an important American agricultural sector is falling flat.
“The cider industry is a quintessential American story. Pioneers taking what the land gives them and creating something magical. We must take every opportunity to support cidermakers, especially as the craft beverage industry recovers from the ravages of the pandemic. Right now, it is not a level playing field for cider, which is taxed more heavily than other carbonated, fruit-based beverages. My common-sense proposal will ensure cidermakers can create products for their customers, not the tax collector,” Rep. Blumenauer says.
Amie Fields, partner and sales manager at Botanist & Barrel Cidery & Winery in North Carolina, says the bill will enable innovation for their business.
“We are known for creativity and producing unique pet nats and bottle conditioned cider and wine with a range of ABVs, but recently we have been working on a series of lower alcohol content beverages. However, the carbonation tax currently disincentives our creativity, which hampers our ability to fully explore more sessionable beverages and boost our revenue by appealing to new customers,” explains Fields.
Current tax rates for low-ABV carbonated fruit wine, cider, and mead are $3.30 or $3.40 per gallon. Meanwhile low-ABV carbonated grape wines have a current tax rate of $1.07 per gallon. In addition, fruited beers, seltzers, hard kombucha, and ready-to-drink canned cocktails are carbonating freely to give consumers the bubbles they want.
Raising the floor of the carbonation tax threshold to include ALL low-ABV wine, cider, and mead to 0.64 grams of carbon dioxide per hundred milliliters will allow producers to compete more fairly in the evolving beverage market. The Craft Beverage Modernization and Tax Reform Act of 2020 achieved this for grape-only wines, but fruit-based craft beverages were overlooked. This created an excise tax disparity of $2.00 to $3.00 a gallon depending on the product.
Blumenauer’s legislation will address this disparity by changing how carbonation taxes are assessed. It will reduce a barrier for more innovative cider, fruit wine, and mead. In addition, it will create more economic opportunities for craft beverage makers, allow for small producer collaborations, create more opportunities for farms to stay viable with value-added products, and allow for diversification that could help farms and businesses mitigate disasters such as fires, droughts, floods, or disease.
HR 7029 is supported by the American Cider Association, the American Mead Makers Association, and Wine America.
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The American Cider Association is an organization of cider and perry producers in the United States. Our mission is to grow a diverse and successful U.S. cider industry by providing valuable information, resources, and services to our members and by advocating on their behalf. You can learn more about them at www.ciderassociation.org.
Urge Congress to Support the USPS Shipping Equity Act
On May 23 Rep. Dan Newhouse (R-WA) once again introduced the USPS Shipping Equity Act in Congress alongside Rep. Jennifer Wexton (D-VA) and 8 other House co-sponsors. Currently, the U.S. Postal Service is not allowed to ship cider, beer, wine, or distilled spirits, because of a leftover, outdated ban put into effect during the Prohibition era. The USPS Shipping Equity Act would give parity to the US Postal Service, allowing it to ship licensed alcohol for commerce just like FedEex or UPS. Additionally, the USPS Shipping Equity Act gives rural producers access to another option for shipping alcoholic beverages. This bill is critical in leveling the playing field and increasing consumer and manufacturer choice while bringing in millions of dollars in revenue per year that will support small businesses, rural communities, agricultural enterprises and the US Postal Service.
We encourage you to email your Congressional representatives and urge them to cosponsor the USPS Shipping Equity Act. We have set up a campaign with an email template that you can use. Click the button below to be taken to the campaign. After you’ve emailed your reps, we encourage you to take a moment to share your actions on social media and via email to inspire others to reach out to their representatives as well.
Have questions? Please email ACA CEO Michelle McGrath.
ACA Joins with Organization to Support USPS Shipping Equity Act
The American Cider Association has been working with organizations across the United States to urge Congress to support the USPS Shipping Equity Act (H.R. 3287/S. 1663).
The U.S. Postal Service is not allowed to ship cider, beer, wine, or distilled spirits, because of a leftover, outdated ban put into effect during the Prohibition era. The result? Restricting options for producers and customers alike, affecting many U.S. cideries where e-commerce is essential for business. The USPS Shipping Equity Act would give parity to the Postal Service, allowing it to ship licensed alcohol for commerce just like FedEex or UPS. Additionaly, the USPS Shipping Equity Act gives rural producers access to another option for shipping alcoholic beverages.
Recently organizations across the country, including the ACA, signed on to a letter sent to members of Congress encouraging them to support the USPS Shipping Equity Act.
ACA Advocates for Ice Cider Standards
The board of the American Cider Association recently send a letter to the L’Association des Industries des Cidres et Vins de fruits de l’UE (AICV), or the European Cider and Fruit Wine Association urging them to recognize the precedent for the definition of Ice Cider (Cidre de Glace) set by the government of Quebec, Canada.
The AICV is currently in the process of developing marketing standards for Ice Cider/Apple Ice Wine in Europe and the ACA board felt it was timely to urge that the organization adopt the definition set by the government of Quebec, where the style of cider originated in the 1990s as the standard definition.
The definition is as follows: “Ice Cider” – cider obtained by the fermentation of juice of apples that has a pre-fermentation sugar content of not less than 30° Brix achieved solely by natural cold, producing a finished product with a residual sugar content of not less than 130 g per litre and an actual alcoholic strength of more than 7% by volume but not more than 13% by volume.”
This definition has been accepted by the ACA and by GLINTCAP and the required use of natural cold weather for cryo-extraction or cryo-concentration is enforced by our U.S. Federal Alcohol & Tobacco Tax & Trade Bureau (TTB) with respect to labeling.
You can read the full letter from the ACA board here.
Advocacy Update: In Support of Harvest Dates
The American Cider Association (ACA) recently sent a letter to the TTB voicing the ACA’s support of a specific proposed labeling rule included in Notice 176, published in late 2018.
NOTICE 176
The notice contained proposed rules for modernizing wine (including cider), spirits and malt beverages labeling and advertising regulations. The ACA, many regional cider guilds and dozens of our members submitted comments on the notice during the official comment period. The comments included support for many but not all of the proposed rules.
Some positive change has resulted from those comments. We are hopeful our letter will usher further TTB announcements in favor of our official comments first made in 2019. This letter is our third mention of our support of harvest dates since our official comments posted.
OUR LETTER
The ACA’s recent letter to the TTB reiterated our support for the Notice 176 proposal to allow the use of harvest dates on qualifying wines and ciders. Harvest dates would create an important opportunity to distinguish a maker’s cider from season to season. Read our letter for further details of the proposal and our reasons for supporting it.
THE VOICE OF THE INDUSTRY
Our members’ support allows the ACA to amplify the voice of cider and to develop relationships with the TTB and others for the benefit of our industry. Through the collective power of our members, we have a stronger voice for cider when it matters. Our recent letter in support of harvest dates is one example of our commitment to advancing the needs of all cider producers, big or small.
We are grateful for the TTB for seeking the input of industry members regarding the proposed rules in Notice 176, and we eagerly await further announcements regarding the creation of harvest dates.