Welcome back to the BevNET spirits newsletter! This week I’m sending you a dispatch from L.A. and what these devastating natural disasters mean for the places where we love to drink.

What insiders are reading: Check out what White Claw’s parent company has planned for spirits and a chat with Via Carota on landing their recent investment.

Thanks for reading.

-BevNET spirits editor, Ferron Salniker

It’s been a devastating few weeks here in Los Angeles, and among the communities struggling are restaurants and bars – places that are already operating on razor thin margins while still reeling from the pandemic and entertainment industry strikes are now in an environmental and existential crisis. 

Why write about this here and now? These places often play a leading part in the introduction of new products, and provide dependable turns and visibility to established ones. Without bars and restaurants, and their customers, the whole ecosystem shrinks. And in a high-visibility locale like L.A., well, that’s a whole lot of shrinkage.

The list of restaurants damaged or destroyed by the fires may not directly impact the bev-alc business, but they join a staggering number of recent restaurant and bar closures, over 100 last year. Lesbian bar Ruby Fruit has been the first bar to say the fires have put it over the edge: the “math isn’t mathing” anymore for hospitality businesses that survive on a day-to-day basis, the owners wrote as they announced their closure last week.

Some of LA’s busiest restaurants are down 30- 70% in business since the fires, a result of people fleeing the area, or more practical reasons like closing patio spaces due to air quality. 

The owner of one of the country’s best bars, Mirate in Los Feliz, told me that business picked up over the weekend but is back down significantly. 

Despite the unprecedented reduction in revenue, restaurants and bars have been heroes as they sprung into action donating food, hosting fundraisers, or just offering free meals. One bar owner even helped survivors determine if their houses survived, all while having to close the business indefinitely. 

My friends and I can up our ladies’ nights to patronize these places, but the question is about that long-term math of increased food costs, minimum wage, insurance costs, and other burdens on these operators. While the on-premise may not be the only place of discovery for younger drinkers, across the board consumers are still eager to go out and drink: 53% said they’ll spend the same this year as in 2024, and 23% plan on spending more, according to CGA.

So how can spirits suppliers support on-premise operators? In the short term I’ve seen several sponsor fundraisers, otherwise there are always creative ways suppliers can become value-adds to bars and restaurants, like supporting bar professionals and stepping in for generous trainings and events. Has your business been impacted by a natural disaster or climate change? I want to hear about it.

Heads up, more requirements may be coming to your labels – but now is the time to let the TTB know how you feel about that. The TTB has proposed new rules for nutrient and alcohol content labeling on wine, beer, and spirits, including a mandatory statement with details on alcohol content, calories, carbohydrates, fat, and protein per serving. Read about the possible new requirements and how to comment.

Adult non-alc sales are closing in on the $1 billion mark, while spirits, beer and wine sales continued to slow in 2024. We summed up the fresh data from NIQ’s yearly recap. 

The saga over the new Dietary Guidelines of America (DGA) continues. The new guidelines, which will serve as the federal government’s official word on alcohol consumption, could potentially lead to a shift in thinking around tax and marketing policy for the industry in the future. Read the latest.

We know it’s hard to keep track, so we put together some regulatory updates and increased enforcement that legal minds are keeping an eye on in 2025. Get the info on the top issues.

Arkansas-based Origami Sake is attempting to make the traditional rice wine more approachable to American drinkers by pairing its premium-positioned products with transparent packaging callouts and a new non-alc variety that caters to moderating consumers. Read the profile.

The rumor mill is churning again with cuts at a major distributor, while Brown-Forman let go of over 600 employees this month.

• The second largest distributor in the U.S., Republic National Distributing Company (RNDC) is laying off at least 60 of its staff in California (and likely other states). The WARN notice was posted January 7 and will be effective March 8. Last fall competitor SGWS reportedly laid off wine and craft spirit roles among others. 

President Trump punted his pledge to slap tariffs on global goods on the first day of his presidency, but warned they may arrive February 1. 

• The president signed an order for federal officials to review U.S. trade relationships for any unfair practices, and later said to reporters that he was considering pledging import duties of 25% on Canada and Mexico, as well as 10% on global imports and 60% on Chinese goods starting next month.