On July 14, the Senate joined the House of Representatives in passing legislation to repeal the estate tax. The vote was 59 – 39, with nine Democrats joining 50 Republicans in passing the bill. The impressive Senate vote followed a vote of 279 – 136 in the House of Representatives. The bill, HR 8, now goes to the president, who has indicated he will veto the legislation. However, with the political momentum of this issue, it is possible that Republican and Democratic lawmakers will work to craft compromise legislation, or some version of estate tax repeal or reduction could be placed in an omnibus tax package late in the 106th Congress.

The “Death Tax Elimination Act” gradually repeals the estate, gift and generation-skipping transfer taxes over a 10-year period. Beginning in 2001, the bill converts the unified credit to a true exemption, repeals the five percent “bubble” and repeals rates in excess of 53 percent. Between 2002 and 2009, it scales down estate tax rates by one to two percent each year, and in 2010, it implements a “carryover basis.” This means if and when someone who inherited a business or some other property decides to sell that asset, a tax on the capital gain would be owed at the same rate that would have applied if the decedent would have disposed of the property prior to death. However, if the next generation heir continues to run the business, there would be no death tax or capital gains tax.

During the Senate debate on HR 8, Democrats offered their own estate tax rate reduction legislation that would have immediately raised the current estate tax exemption amount from $675,000 to $1 million. The Democratic alternative, however, did not include total repeal and was defeated. HR 8 passed without amendments, meaning a conference for the bill will not be necessary, and it can be sent directly to the president.

The estate tax was first imposed in 1906 as a means of generating revenue from the nation’s wealthiest families, but today it affects one out of 50 estates. For over a decade, NBWA and other business groups have been pushing for elimination of the tax, and this session’s progress reveals the success of our efforts. With lobbying efforts, grassroots activities and media efforts, support for estate tax elimination is growing. Polls consistently show that 70 to 80 percent of the American people favor outright repeal because it is unfair. Repeal of the death tax is now being supported by such diverse groups as the National Association of Women Business Owners, the National Black Chamber of Commerce, the National Indian Business Association and the U.S. Hispanic Chamber of Commerce.

Thanks to all beer wholesalers who contacted their senators and representatives on this important issue. Your calls added to the growing chorus and made a difference. For more information on eliminating the death tax, check out the Web site of the Americans Against Unfair Family Taxation (AAUFT) at http://www.noestatetax.org/.

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NBWA’s 63rd Annual Convention Speakers to Discuss Current Industry Information

NBWA’s 63rd Annual Convention, being held September 17-20, 2000, in New Orleans, Louisiana, is considered by many to be the “beer event of the year.” This year’s Convention general session will include speakers who will discuss the state of the beer industry and where it is going in the future. You won’t want to miss these up-to-date and informative presentations that will hit home for everyone in this business.

Both Benj Steinman, president of Beer Marketers INSIGHTS Inc., and Rick Berman, general counsel for the American Beverage Institute (ABI), will discuss the current trends in the beer industry.

Benj Steinman has spoken to beer wholesalers many times in the past and because of popular demand NBWA has brought him back again. Steinman is the publisher of Beer Marketers INSIGHTS, which has been a leading source of information for the beer industry for the past 30 years. He will give an up-to-the-minute overview of issues important to the beer industry, including total industry trends, the competitive scene, distributor issues and the current environment for alcohol policy.

The American Beverage Institute represents 5,000 chain and single-unit restaurants, bars and taverns nationwide. Rick Berman specializes in the issues of drunk driving and responsible alcohol consumption. He has testified on numerous occasions before committees of the U.S. House of Representative and Senate and many legislatures across the country. Berman has also appeared on all the major television networks to discuss issues important to the beer industry. Berman will give a presentation titled “The Dinosaurs Never Saw It Coming,” focusing on the positioning and status of the alcohol industry and what the industry must do to survive.

The Convention is being held at the New Orleans Marriott, minutes from New Orleans’ most popular attractions. There will be seminars to fit every business, keynote speakers that will entertain and inform attendees and social events that will allow you to network with others in the beer industry. Register today for the most exciting beer event of the year.

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Study Shows Moderate Alcohol Consumption Reduces Alzheimer’s Risk

A new study presented at the World Alzheimer’s Congress 2000 meeting in Washington, D.C., shows that those who consume one to two licensed beverages per day have a 30 percent lower risk for Alzheimer’s disease.

According to Dr. Lindsay A. Farrer of Boston University in Massachusetts, “Men and women who drink one to two drinks a day had a significantly lower risk of Alzheimer’s disease compared to nondrinkers.”

Farrer also mentioned that the USDA guidelines recommend one or two drinks per day as well and said, “This is a modest level of consumption and in terms of heart disease, this consumption has been associated with a beneficial effect.” Farrer noted that additional research needs to be done in order to define the minimal levels of alcohol consumption and duration of exposure necessary to realize a benefit.

The Chicago Tribune reported that one of the study’s authors attributed the positive effects of alcohol to an increased circulation to the brain. Alcohol might act as an anti-oxidant to “mop up free standing radicals,” or might promote cell repair.

Studies consistently demonstrate that moderate beer consumption can be part of a healthy lifestyle.

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Three Wholesalers Appointed to Serve on BIECC

Members of the Beer Industry Electronic Commerce Coalition (BIECC) met with newly appointed wholesalers on June 28-29, 2000. Ronald (Ron) P. Fory, controller of Coors Distributing Company of Fort Worth in Fort Worth, Texas, Randall (Randy) R. Krug, controller of Dale Lee Distributing Company Inc., in Cedar Rapids, Iowa, and Jan Self, communications manger of Northern Neck Distributing Co. Inc., in Fredericksburg, Virginia, joined other coalition members for the first time in Irving, Texas.

Fory, Krug and Self come highly recommended to the BIECC as a result of their interests and familiarity with Electronic Commerce (EC) technologies, including Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT). Their combined backgrounds, experiences and perspectives on EC issues are expected to help advance the goals set forth by the BIECC and benefit the entire industry.

At the meeting, BIECC members discussed several projects, including EFT guidelines tailored for beer wholesalers and a BIECC-sponsored seminar to be held at NBWA’s 63rd Annual Convention. They also addressed issues relating to online ordering and price synchronization. The BIECC is continuing to take steps to meet their goals outlined for 2000. Members are currently developing education materials to assist wholesalers on decisions relating to EFT and Internet solution providers.

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American Teenagers Give Adults Poor Grades on Preventing Underage Drinking

Teenagers recently scored adults with a grade of D+ for their efforts to prevent underage drinking. The Uhlich Report Card, created and sponsored by the Uhlich Children’s Home of Chicago, Illinois, reflects a total of 10 grades, the five lowest and the five highest grades from the 19 report card subjects. Presented by teenagers in Chicago on June 7, the study, in its second year, is an annual measure of adult progress on issues affecting teens, as graded by teens.

The survey was conducted in January and February by the nation’s premier research organization on teenage attitudes and trends, Teenage Research Unlimited (TRU), located in Northbrook, Illinois. The representative sampling consisted of 1,024 teenagers, ages 12 –19, who received the questions in the form of a mail survey.

Parents have been a target of the beer industry’s efforts because most youths believe that their parents are the best source of information. This study gives beer wholesalers a target audience and an opportunity to take responsible drinking messages directly to parents, and shows that even more educational efforts should be directed toward parents.

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Heineken USA President Accepts Job at Aer Lingus

Michael Foley has been appointed the new chief executive of Aer Lingus Plc. Foley accepts command of the airline as it prepares to go public in the coming months.

Foley was president and chief executive officer of Heineken USA. During his tenure, he instituted a number of progressive changes in the structure of the company and has repeatedly been named to the Irish Top Business 100 by Irish Voice magazine.

According to Aer Lingus Chairman Bernie Cahill, “[Foley has] the perfect blend of international business and public company experience to lead an already strong management team through the challenges that lie ahead.”

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Designated Drivers Reduce Drunk Driving Accidents
Designated Skippers Hope to Reduce Drunk Boating Accidents

Designated drivers are making a difference in curbing drunk driving across America’s highways, but what about America’s waterways? According to a recent Anheuser-Busch survey, 89 percent of Americans believe that use of a designated skipper, a person who agrees to operate a boat when out on the water with others who choose to drink alcohol beverages, is an excellent or good way to encourage boating safety.

The poll, conducted by the Data Development Corporation, shows that Americans are serious when it comes to safe boating, as evidenced by the nearly 46 million people who have either been named as a designated skipper or have been driven by one. “Whether on the road or on the waters, everyone can make a difference in the fight against drunk driving,” says Francine Katz, vice president of consumer affairs at Anheuser-Busch. “By acting responsibly and choosing a designated driver/skipper, everyone will have a fun and safe summer.”

On a lighter note, the survey also asked Americans whom – from a list of popular television”captains” – they would select as their ideal Designated Skipper. “Captain Stubing” from the Love Boat was their top choice, with 38 percent of the vote, followed by “Captain Kirk” (26 percent) from Star Trek, the Skipper (22 percent) from Gilligan’s Island and “Captain Kangaroo” (9 percent). America’s favorite movie involving a boat was Titanic, winning by a tidal wave. And, when asked whom they would most like to be stranded with on a deserted island, Americans selected the cast of Baywatch (34 percent), followed by the cast of Gilligan’s Island (18 percent), the Love Boat (14 percent), and Fantasy Island (10 percent). Only 7 percent would want to be with the cast of Survivor! Now, back to reality. If wrecked on a deserted island with their family, 36 percent of Americans would vote their in-laws off the island. Eighteen percent would vote off a parent and 9 percent would vote off their spouse or significant other.

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Golden Eagle Distributors Awards Safe Drivers

Golden Eagle Distributors in Tuscon, Arizona, awarded 15 high school students with its 2000 Golden Eagle Driver’s Education Safety Award. One student from each Tucson-area school was presented with this award.

This program, now in its 17th year, is open to students in public and private high schools in the area. To be eligible, students must complete and pass their school’s driver’s education course, have no alcohol-related violations and write an essay on the problems of teenage drinking and drunk driving and their vision of the solution to these problems. Winners are given a one-year car insurance policy worth up to $500.

Mike Jacob, executive director of corporate affairs at Golden Eagle, said, “This gives us a great opportunity to go into schools and make a difference. In the fall I’m in a school at least once a week discussing drunk driving and underage drinking with high school students. When this program first started, we used to get about five essays per school. Now that we are in our 17th year, we get hundreds.” Mike also said that this program has allowed Golden Eagle to develop excellent relationships with all of the area schools and their administrators. “We know that we are helping these kids learn about responsible drinking, because we see what they know and what they have learned in their essays.”

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