Distillers ask Congress to keep aid flowing during pandemic

From Staff Reports

Trade associations for 15 Montana distillers are urging Congress to provide more economic aid to distilleries facing deep financial hardship due to the impact of COVID-19. 

A letter was sent Friday to the state’s congressional delegation from Montana Distiller’s Guild President Jim Harris and Distilled Spirits Council of the United States President & CEO Chris Swonger, officials said in a news release.

Trade associations for 15 Montana distillers are urging Congress to provide more economic aid to distilleries facing deep financial hardship due to the impact of COVID-19.

“As a result of the COVID-19 crisis, many distilleries in Montana have been forced to furlough or lay off employees. Absent additional relief, some distilleries soon may be faced with the tough decision to permanently close their doors, thus also impacting their farmer suppliers and others throughout the hospitality and tourism industries,” they stated.

They noted that Montana’s distilled spirits industry had been thriving prior to COVID-19, supporting over 5,000 Montana jobs and $412 million in economic activity in 2018.

They urged Congress to act swiftly to enact more measures that will help distillers who have seen sudden and steep declines in sales with the closure of distillery tasting rooms, restaurants and bars, as well as retail outlets in certain areas and airports.

They tell lawmakers any relief package should include federal excise tax relief, suspending tariffs on distilled spirits, supporting the Restaurants Act, which creates a revitalization fund for food service businesses to keep workers employed and meet financial obligations and include another round of Paycheck Protection Program and Economic Injury Disaster Loans.

This letter was sent Friday to members of Montana's congressional delegation.

“The distilled spirits industry is uniquely positioned at the nexus of the hospitality, agriculture, retail, and tourism industries. The livelihoods of farmers, glass bottle makers, truck drivers, warehouse workers, and countless others connected to the hospitality and tourism industry are compromised by the challenges confronting the distilled spirits industry,” they said.  

According to a survey of craft distillers by DISCUS and the American Distilling Institute, two-thirds of respondents do not believe they will be able to sustain their businesses for more than six months, they said.  

The survey, which included feedback from 118 distilleries across 35 states and the District of Columbia, found that nearly 43% of distillery employees have been let go or furloughed since the start of the COVID-19 crisis.

The average distillery respondent had almost 14 employees before the COVID-19 crisis and has let go nearly 6 employees.