Restaurants in Crisis

A new restaurant survey shows 1 in 6 restaurants have closed during the pandemic. And 40% of restaurants say that ”it is unlikely their restaurant will still be in business six months from now if there are no additional relief packages from the federal government,” according to the survey by the National Restaurant Association. The association called the results “startling” and asked Congress for more help.

“For an industry built on service and hospitality, the last six months have challenged the core understanding of our business,” said Tom Bené, president and CEO of the NRA, in a statement. “Across the board, from independent owners to multi-unit franchise operators, restaurants are losing money every month, and they continue to struggle to serve their communities and support their employees.”

The NRA also found consumer spending in restaurants is down an average of 34%, the good service industry lost $165 billion in revenue from March to July and 60% of restaurant owners say their restaurant’s operational costs are higher prior to the COVID-19 outbreak.

Read more (Nation’s Restaurant News)

Stopping “Sourfaux” in the UK

Artisan bread bakers in the UK are banding together for Sourdough September, pushing for new government legislation to stop the rise of “sourfaux” bread. Laws in the UK allow retailers to sell unwrapped bread loaves without displaying an ingredient list.

Writes the Real Bread Campaign organizer Chris Young: “In the hands of skilled Real Bread bakers, this longer, slower fermentation, allows lactic acid bacteria in the starter to cause changes in the dough that result in bread with a glossy crust and crumb, and a greater complexity of flavour and aroma.”

The UK government promised in 2018 to protect consumers from buying products erroneously label led as “sourdough.” But no action has been made. More than 50 UK bread bakeries have launched their own labeling promise, signing The Sourdough Loaf Mark scheme last month, urging all bread makers to display a full ingredient list.

Read more (Food Navigator)

An alcohol policy expert calls for an end to antiquated alcohol excise tax laws, which are unfairly penalizing kombucha producers across the country. Though kombucha only has trace amounts of alcohol (generally below the 0.5% alcoholic beverage threshold), it is “nearly impossible for kombucha producers to control the entire supply chain,” writes Jarrett Dieterle, Director of Commercial Freedom for R Street Institute and the author of forthcoming book “Drink For Your Country.” If not properly refrigerated once it’s left the manufacturer for distribution, kombucha will continue to ferment and raise the alcohol level. Dieterle said it’s unfair to make kombucha makers pay fines of more than $10,000 when they can’t control how the drink is stored once it enters the supply chain. Protecting kombucha, he says, should be a priority for federal lawmakers.

Read more (Washington Examiner

The yogurt Los Angeles Times calls “the best yogurt in America” was forced out of California in 2011. White Moustache, which sells Greek and Persian yogurts with seasonal fruit common in Iranian cuisine added, moved to Brooklyn in 2012 after California Department of Food & Agriculture shut them down. According to California state law, making a milk-based product in a facility separate from the facility where the milk was pasteurized is illegal. Though White Moustache founder Homa Dashtaki produces her famous yogurt in New York, she now sells it in California — Manhattan’s brand of Eataly opened a Los Angeles store, and Dashtaki’s family members oversee production for the West Coast store.

Read more (The Los Angeles Times) 

Brewers may finally get a break on a costly tax levied against them since 1791. Bipartisan lawmakers in both the U.S. House and Senate are backing legislation that would permanently reform taxes on brewers, winemakers, distillers and alcohol importers.

The bill – called the Craft Beverage Modernization and Tax Reform Act (CBMTRA) – reduces the federal excise tax on alcoholic beverages. It lowers tax rates for beer, wine and other fermented spirits, like cider. Small brewers save on average $80 million a year without the extra tax.

“Taxes are the single most expensive ingredient in beer, costing more than the labor and raw materials combined,” writes the Beer Institute, a trade organization. “If all the taxes levied on the production, distribution and retailing of beer are added up, they amount to more than 40 percent of the retail price.”

Alcohol excise taxes were the first tax on a domestic product by the U.S. government, and one of the government’s first revenue sources. First collected in 1791, the taxes led to the infamous Whiskey Rebellion tax protest. The purpose of the tax was to help war debt from the Revolutionary War.

Today, though, the government still taxes goods like alcohol and tobacco as part of the “sin tax” logic. Such goods are considered harmful, as alcohol and tobacco consumption is linked to heavy healthcare costs, some paid by taxpayers. Excessive alcohol consumption causes 88,000 deaths a year, an estimated economic impact of $249 billion.

In 2017, the first version of the CBMTRA was passed, under a two-year provision that will expire at the end of 2019. That legislation amended tax law, including:

  • For smaller domestic brewers producing fewer than 2 million barrels a year: Reduce federal excise tax from $7 per barrel to $3.50 per barrel for the first 60,000 barrels.
  • For all other brewers and beer imports: Reduce federal excise tax from $18 a barrel to $16 a barrel on the first 6 million barrels
  • For large brewers with a barrelage over 6 million: Federal excise tax kept at current $18 a barrel.

Brewers, lobbyists and trade associations are pushing for the tax reduction to remain permanent. They point to the huge economic impact the alcohol industry has on the U.S. economy. The U.S. beer industry alone created more than 2.19 million jobs that paid more than $101 billion in wages and benefits in 2018. And, with the increasing popularity of craft brewing, those numbers are rising.

“The craft brewing industry can be found in nearly every Congressional District in the U.S. and contributes more than 500,000 jobs, including an additional 15,000 directly added at small breweries just last year, showcasing the positive momentum supported by temporary provisions,” said Bob Pease, president and CEO of the Brewers Association. “The industry is responsible for contributing more than $76.2 billion to the U.S. economy and is a success story for American industry.”

The wine industry, meanwhile, supported 1.73 million jobs that paid more than $75.7 billion in wages in 2017. Though the cider industry doesn’t have specific numbers on jobs, the cider market grew faster in 2018 than the beer, wine or spirits industry.

“Many of our members are small producers with direct investment in agriculture here in the United States,” said Paul Vander Heide, president of the United States Association of Cider Makers. “This will provide them additional security for their families and capital to invest in growth opportunities for their business.”

After the CBMTRA enactment in 2017, 99 percent of small brewers saw a 50 percent reduction of their federal excise tax. A survey by the Brewers Association found those savings sparked a variety of economic gains for the craft brewing industry:

  • 73% of breweries are purchasing new equipment, upgrading their tasting rooms and breweries, moving to new buildings, etc.
  • 53% of breweries are hiring new employees
  • 39% are increasing their employee benefits by raising pay, offering insurance and expanding vacation time
  • 21% are increasing their charitable contributions
  • 58% are doing two or more of the above-mentioned actions

Added Bobby Koch, president and CEO of Wine Institute:The savings will allow wineries across America – most of which are small, family-owned businesses – to hire new employees, upgrade equipment, and invest in the future growth of their wineries.”

Information and updates on the bill can be found on the Congress website. The bill was introduced by Rep. Ron Kind, D-Wisconsin, Mike Kelly, R-Pennsylvania, Sen. Ron Wyden, D-Oregon and Roy Blunt, R-Missouri.

On the cusp of an announcement from KBI on standards defining kombucha, GT Dave — founder of GT’s Kombucha — gave KBI a $1 million endowment to protect authentic kombucha. Speaking to attendees at the annual KombuchaKon, GT said: “Kombucha is now being mass produced by some newer brands that have entered the market and they are positioning them for a mainstream palate. These barely fermented products are missing the heart and soul of what the industry of kombucha should be, and it’s looking more like a new age soft drink.” GT believes kombucha brands need to be upfront about what techniques they’re using to make their kombucha, like pasteurization, hyper-filtration, artificial carbonation, concentrate use and/or spinning cone technology.

Read more (Food Navigator)

Consumers are in favor of allowing plant-based food to use traditional dairy terms on their labels — but dairy farmers are strongly opposed to it. Last year, the U.S. FDA issued a public comment period to examine if plant-based foods and beverages should use the traditional dairy names: milk, cheese and yogurt. The results are out. Of those comments, 76 percent were in favor of using dairy terms on plant-based products, 13.5 percent were against and the remaining 10.5 percent were inconclusive. Of the commenters that identified themselves as dairy farmers, nearly all were opposed. Dairy farmers are concerned consumers will believe plant-based foods are nutritionally similar to cow’s milk (94 percent) and that consumers are being misled with a dairy term on a plant-based item (91 percent).

Read more (Linkage Research)

Oregon lawmakers are attempting to end the alcoholic beverage tax placed on kombucha. One of the fastest growing fermented produce and beverages, many kombucha brands are based in Oregon, and state leadership on both sides of the political fence realize how critical kombucha is to Oregon’s economy. “I’ve met with kombucha manufacturers in Oregon who have told me how this outdated tax is holding back their industry,” said Rep. Greg Walden (R-Hood River). “This bill will help these small businesses keep more of their hard earned money to reinvest in their businesses and create jobs in our communities.” The bill – called Keeping our Manufacturers from Being Unfairly Taxed while Championing Health Act (or KOMBUCHA) – would increase alcohol-by-volume limit for kombucha from 0.5 percent to 1.25 percent. Currently, fermented beverages containing at least 0.5 percent of alcohol by volume are taxed through federal alcohol excise taxes.

Read more (Oregon Public Broadcasting) (Photo by: Humm Kombucha)

The voices of organic and natural advocates are critical to public policy, and change in the food system starts with farmers, food producers and even parents feeding their family in a healthy, sustainable way.

“Your voices matter more than ever. You are the reason we’ve seen so many changes in our food system over the past 85 years,” said Sen. Debbie Stabenow (D-Michigan), keynote speaker at Natural Products Expo West in Anaheim, Calif. Stabenow is the Ranking Member of the U.S. Senate Committee on Agriculture, Nutrition and Forestry and the co-author of the 2018 Farm Bill. “We’ve made progress, but there’s a lot more to do. That’s where all of you come in. “

Legislation is catching up with consumer desire. For the first time in U.S. history, organic food is permanently protected and protected under the current farm bill. The farm bill is the government’s primary food and agriculture policy tool, and it’s renewed every five years.

Organic food is a movement that’s been rising for decades, Stabenow said. Though it may feel like the organic industry just took off, Stabenow said “It’s moving more quickly now because of the incredible demand from the public. … Organics is the fastest growing part of our farm economy, so we made it a priority in the farm bill.”

“Now more than ever before people are paying attention to what they eat. They want to know where their food comes from and how it’s grown. … People are also becoming more interested in the hands that plant the seed, the soil in which they grow and the impact on our family’s health.”

The farm bill is the best example of how food policy has changed. The first farm bill was established in 1933, during the Great Depression. A national organics program wasn’t put in the bill until the 1990s.

The organic industry has grown from $3.6 billion in 1997 to over $50 billion today.

Stabenow is proud of the policies added to the 2018 Farm Bill, passed in a difficult political climate. Republicans control all parts of the federal government. And President Donald Trump has pushed for such tight regulations on the organics program that he’s been accused of “waging war” on the organics industry. But bipartisan support helped pass what Stabenow called “the most progressive farm bill yet.”

The major bill highlight for the organic industry was the establishment of permanent, mandatory funding for organics. Stabenow compared it to organics previously sitting at the “kid’s table” with temporary funding for organics that was depleted and reevaluated every five years.

“I’m proud to say we’re now at the adult’s table,” Stabenow said. “What does that mean? It means organic research and provisions will live on past the current farm bill. It means farmers markets and food hubs and community food provisions will continue to grow the local food movement.”

With organics finally protected, Stabenow said, it’s time to look at new ideas. What can propel the next farm bill with healthy and sustainable policies?

“As creators, as innovators as advocates you really are the engine driving our country to a more sustainable future, and I can’t think of anything more important than being able to do that,” she said.

There are beer wars over fermentation practices between two of the country’s biggest beer brands. MillersCoors is suing Anheuser-Busch over a Bud Light Super Bowl ad that shamed Miller Lite and Coors Light beers for using corn syrup during their brewing process. The controversial ad shows the Bud Light King trying to figure out what to do with a giant corn syrup barrel delivered to their castle by mistake. The Bud Light knights attempt to deliver the barrel to both the Miller Lite and Coors Lite castle, since both beers have corn syrup in their ingredients. MillersCoors says the ad is false advertising. The brand says corn syrup is used in brewing to aid the fermentation process, but their final product does not include corn syrup. MillerCoors also alleges that Anheuser-Busch is playing on consumer’s fears of corn syrup. Focus groups show consumers view no difference between corn syrup and high-fructose corn syrup. Dietitians say corn syrup is not unhealthy in brewing, but high-fructose corn syrup is an additive linked to obesity. The lawsuit also alleges Anheuser-Busch also uses corn syrup as a fermentation aid in some of the brand’s other drinks (Stella Artois Cidre and Bud Ice). MillerCoors is asking Bud Light to stop the ad immediately and pay all of MillerCoors’ legal fees.

Read more (CNBC)