Please ensure Javascript is enabled for purposes of website accessibility

Distillers Seek Federal Bailout, Economic Reforms

By Rich Duprey - Mar 19, 2020 at 2:28PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

An industry trade group offers alternatives to benefit distillers beyond one-time cash payments.

Like many of the industries lining up to ask the federal government for a bailout, the distillers trade group says failure to provide financial assistance will cause not only alcoholic beverage makers, but farmers, bottle makers, truckers, warehouse workers, and others to suffer from the cascading effects of the coronavirus outbreak.

But unlike others asking taxpayers to support them, the group is also offering alternatives that would strengthen the industry in the future.

Well-dressed man raising a whiskey glass

Image source: Getty Images.

Alternatives to cash payments

The Distilled Spirits Council of the United States (DISCUS), which represents spirits makers such as Beam Suntory, Diageo (DEO 4.22%), the Moet Hennessy division of LVMH (LVMUY 4.44%), and Pernod Ricard (PDRDY 5.40%), sent a letter to the offices of the U.S. Senate's majority and minority leaders saying its members may have to close, some perhaps permanently, due to the forced closure of bars and restaurants. It is calling on Congress to financially help both industries.

Yet, perhaps realizing it may be further down on the list of aid recipients than some, DISCUS says if financial relief is not forthcoming, Congress should consider several economic initiatives to benefit adult beverage makers.

DISCUS has called on congress to:

  • Suspend the collection of excise taxes for one year
  • Make permanent the temporary tax cuts of the Craft Beverage Modernization and Tax Reform Act that expire at the end of this year
  • Make available "robust" no- and low interest small business loans
  • End the trade war with Europe that resulted in retaliatory taxes being imposed on distilled spirits
  • Create a government small business grant program for alcoholic beverages

According to DISCUS, the U.S. distilled spirits industry supports over 1.6 million jobs across the country and in 2018 generated over $190 billion in economic activity. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Diageo plc Stock Quote
Diageo plc
DEO
$182.80 (4.22%) $7.40
LVMH Moët Hennessy - Louis Vuitton, Société Européenne Stock Quote
LVMH Moët Hennessy - Louis Vuitton, Société Européenne
LVMUY
$125.02 (4.44%) $5.32
Pernod Ricard SA Stock Quote
Pernod Ricard SA
PDRDY
$38.13 (5.40%) $1.95

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
336%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.