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CARE Act 2010: A Kentucky Bourbon Challenger

http://www.thewestendtavern.com

By Rebecca Feldhaus

http://stream.publicbroadcasting.net/production/mp3/wkms/local-wkms-908298.mp3

Murray, KY – Needed: corn mash, water, new charred oak barrels, and a few years for aging. This is a commonly accepted recipe for world-class bourbon. However, it might not be for much longer.

Bourbon County, bourbon trail, bourbon balls, and mint juleps, for Kentucky, it's a no-brainer. The tawny spirit provides paychecks for thousands of Kentuckians and is something close to the heart of the bluegrass. For those providing for themselves and their families on this type of paycheck, a new US Congressional Resolution is cause for extreme concern.

President of the Kentucky Distiller's Association Eric Gregory is worried about tradition. In April, US Congress revealed the Comprehensive Alcohol Regulatory Effectiveness or CARE Act. Upon reading the official language in the act, it seems to dismiss previous regulations more than enforcing any new ones. Gregory explains how he understands the bill.

"This is a bill that's being filed in an effort to protect state-based alcohol regulation, but our concern is it goes much farther than that. And it has some serious and far-reaching consequences on our legendary and signature bourbon industry."

The visible main goal for the resolution aims to stop discrimination against imported wine, beer and spirits. The more troubling issue is the suggestion that state standards, not national, would determine what makes bourbon, bourbon. Gregory and his colleagues don't take this lightly.

"That would wipe out centuries of Kentucky craftsmanship, quality and heritage. Our members believe that allowing individual states to concoct a whiskey, any whiskey, and call it bourbon based on their own definition would destroy the industry as we know it today."

However, there are some in the industry that have a very different perspective. Four Roses master distiller Jim Rutledge thinks the challenge would actually highlight the integrity of Kentucky bourbon.

"It could have the opposite impact. Kentucky bourbon, that's why we produce more than 95 per cent in the world here in Kentucky, because our bourbon just stands out from what is produced elsewhere."

Rutledge's stats are right on target. The bourbon industry is a significant employer in the state. Information from the Kentucky Distillers Association shows bourbon-linked industries around the bluegrass employ approximately 10,000 people and bring in about $125 million in state and local taxes.

Larger distilleries like Maker's Mark and Woodford reserve often times have their own lobbyists who can attempt to sway US Congressmen and women to vote in their favor. Micro-distillers like Paul Tomaszewski, however, don't have that luxury. Should the legislation go through, Kentucky bourbon might not technically be bourbon in Oklahoma or Pennsylvania. Tomaszewski explains why this resolution would be detrimental to his less-than-one-year-old business.

"Our number one cost of business, next to taxes we pay the federal government every month is our packaging, particularly our labels. Since we don't have large printing presses and we don't have the large equipment like a larger distillery may have, so whenever we do a change it costs us money."

Currently the Alcohol and Tobacco Tax and Trade Bureau, or TTB regulates national standards for bourbon. It must be made of 51 percent or more of corn mash, must be aged in new charred oak barrels for a minimum of two years, in addition to many other specific factors. For it to be Kentucky bourbon, it must be distilled in the state and aged for at least one year and one day on Kentucky soil. Moreover, Kentucky is the only state that can appear on a bourbon label.

So what do the politicians think? First district Congressman Ed Whitfield was not available for an interview, but his staff did issue the following comment:

"The Congressman is aware of the Comprehensive Alcohol Regulatory Effectiveness Act of 2010 and has been reviewing the proposal. As a Member of the Congressional Bourbon Caucus, Congressman Whitfield would be concerned about any measures which could jeopardize this critical Kentucky industry."

Whitfield did not comment on whether he would vote for the resolution. Second district Congressman Brett Guthrie was also not available for comment and did not issue a statement.

Kentucky Distiller's Association President Eric Gregory has a simple opinion.

"We hope that they will see fit to kill it."

The CARE act, sponsored by Massachusetts Republican Congressman Bill Delahunt, now waits in the House Committee on the Judiciary. Officials from Delahunt's office project 119 bill co-sponsors.