Diageo and Distilled Spirits Council part ways

From: POLITICO Influence - Monday Sep 26,2022 09:45 pm

Sep 26, 2022

Presented by

With Daniel Lippman

DISCUS LOSES A TOP MEMBER: Diageo, the parent company behind some of the world’s top alcohol brands, is not renewing its membership with the Distilled Spirits Council of the United States and will exit one of the industry’s top U.S. trade associations at the end of the year, a company spokesperson told PI.

— The company, whose brand portfolio includes Johnnie Walker, Guinness, Tanqueray, Baileys, Smirnoff, Captain Morgan, Crown Royal and Ketel One , and which is listed as one of 17 members of the trade group’s board of directors, is instead turning its focus to its internal initiative promoting sustainability; diversity, equity and inclusion; and safe drinking and moderation practices, Diageo spokesperson Lorenzo Lopez said.

— “Like most companies, we periodically review our memberships in industry organizations, and we make decisions based on what we believe is in the best interest of our company. At this time, we have chosen to focus our resources on key strategic priorities which we would like to pursue, but we will remain an active and committed player in the industry,” Lopez said.

— The split was amicable, with Lopez noting that Diageo will continue to work with the trade group on areas of mutual interest, including the DISCUS-run and industry-funded Foundation for Advancing Alcohol Responsibility, or Responsibility.org, as well as an industry initiative Diageo helped fund aimed at bringing more people of color into the alcohol industry. Lopez also didn’t rule out Diageo’s return to the trade group in the future.

— But DISCUS has a broad membership that includes both large and small producers as well as members who represent different portions of the distilled spirits supply chain. In a statement that thanked Diageo “for their significant contributions over the years,” DISCUS President and CEO Chris Swonger noted that the trade group had “significantly expanded its membership” in recent years along with adding a partner program and a grassroots program to “extend our advocacy efforts. Broadening our organization has enabled our advocacy successes and made DISCUS stronger.”

— DISCUS, which dropped $4.6 million on federal lobbying last year, notched a major win this spring when the U.S. and U.K. reached a trade agreement that lifted the final layer of retaliatory tariffs on American whiskeys — a top priority for the group for years. The industry also successfully lobbied in 2020 to make permanent certain tax cuts for alcohol producers.

— And during the group’s virtual fly-in last week with the American Craft Spirits Association , one of the top issues DISCUS said it planned to discuss with lawmakers was legislation that would lift a Prohibition-era restriction on the Postal Service’s ability to ship alcohol directly to consumers — a growing industry that boomed during the pandemic. DISCUS is also heavily involved at the state level in pushing for permanent cocktails-to-go laws and tax rates on so-called ready-to-drink products.

— “We remain steadfast in our ambition to continue to drive historic growth for all three tiers of our industry and continue our proven track record of collaboration and alignment,” Swonger said. “We are firmly focused on the future and will continue to promote consumer convenience, support our effective three-tier system, and seek to eliminate unfair tax discrimination.”

Good afternoon and welcome to PI. Send K Street tips: coprysko@politico.com. And be sure to follow me on Twitter: @caitlinoprysko.

A message from the National Confectioners Association:

America’s chocolate and candy companies are providing more choice and portion guidance options for consumers seeking to manage their sugar intake – whether that’s buying candy for family celebrations, picking up a treat to share with friends or enjoying a treat on the way out of the store. From beloved classics to new offerings like low/zero sugar and organic, the confectionery industry is meeting consumers where they want to be met. Learn more at AlwaysATreat.com.

FIRST IN PI — WATCHDOG SQUEEZES CORPORATIONS OVER DEMOCRACY SCORES: Liberal corporate watchdog Accountable.US is launching a six-figure ad blitz in half a dozen metro areas to ramp up pressure on corporate leaders the group argues are falling short in their support for issues like voting rights and the preservation of democracy more broadly.

— The initial three-month campaign will tout the organization’s new democracy scorecard released earlier this month, which ranked the top 100 companies from the Fortune 500 based on a range of metrics that includes tracking companies’ political spending — including their donations to election objectors or opponents of voting rights bills at the federal or state levels — as well as companies’ transparency about political activities and actions taken on democracy or voting rights issues.

— The group’s analysis found that 66 percent of companies received failing grades, while not a single major corporation received an A.

— “In America, democracy has enabled corporations to achieve unprecedented success,” says one of the group’s ads. “But now, democracy is under attack. And some of America’s biggest companies are hoping you won’t notice they’re the ones funding the assault,” the ad continues. “The American Democracy Scorecard from Accountable.US won’t let them.”

— The spot, which adds that the scorecard is intended to help viewers “decide who to work for, buy from, and support,” will air on TV in the D.C., New York City, Chicago, Atlanta, San Francisco and Houston markets along with on YouTube, Hulu, ESPN+ and on New York Times podcasts.

— Meanwhile digital ads declaring that “corporations are failing our democracy” will appear on Google, business news sites, Facebook and Instagram. In New York in particular, the ads will also specifically target business-heavy neighborhoods like the Financial District, Murray Hill, Midtown East and the Upper East Side.

TIKTOK ON THE CLOCK: “The Biden administration and TikTok have drafted a preliminary agreement to resolve national security concerns posed by the Chinese-owned video app but face hurdles over the terms, as the platform negotiates to keep operating in the United States without major changes to its ownership structure,” four people with knowledge of the discussions told The New York Times’ Lauren Hirsch, David McCabe, Katie Benner and Glenn Thrush.

— “The two sides have hammered out the foundations of a deal in which TikTok would make changes to its data security and governance without requiring its owner, the Chinese internet giant ByteDance, to sell it, said three of the people, who spoke on the condition of anonymity because the negotiations are confidential.”

— “The Justice Department is leading the negotiations with TikTok, and its No. 2 official, Lisa Monaco, has concerns that the terms are not tough enough on China, two people with knowledge of the matter said. The Treasury Department, which plays a key role in approving deals involving national security risks, is also skeptical that the potential agreement with TikTok can sufficiently resolve national security issues, two people with knowledge of the matter said. That could force changes to the terms and drag out a final resolution for months.”

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RETAILERS LOBBY FOR TELEHEALTH EXTENSION IN BID TO BREAK INTO HEALTH CARE: “Retail giants like Amazon, CVS, Walmart and Best Buy are vying for a bigger slice of the health care market and spending billions to do so, but they might need the government’s help to succeed,” POLITICO’s Ben Leonard reports.

— Now, the retailers are lobbying for “legislation extending access to telehealth that opened up during the pandemic and, in some cases, antitrust approval for their deals. Telehealth is fundamental to their business strategies given the low costs of virtual visits online compared with in-person.”

— “But it’s not without risk, given heightened antitrust scrutiny from the Biden administration and gridlock on Capitol Hill. Concerns from lawmakers about fraud and overutilization of telemedicine could derail legislative efforts. And consumer advocacy groups are pushing antitrust agencies such as the Federal Trade Commission and Justice Department to take a tough line for fear the deals bode ill for competition, privacy, and workers.

— “All the firms are major spenders on lobbying generally,” and their efforts “are paying off. In July, the House passed legislation to continue through 2024 the eased telehealth rules slated to end five months after the public health emergency is lifted. The Senate has yet to act, but the firms hope it will include an extension in a year-end spending bill.”

FLYING IN: Flood resilience and adaptation experts from Resilient Enterprise Solutions are in town today to meet with Sens. Marco Rubio (R-Fla.) and Tim Kaine (D-Va.), as well as Reps. Troy Carter (D-La.), David Rouzer (R-N.C.), Garret Graves (R-La.), and Earl Blumenauer (D-Ore.), where the company will pitch the lawmakers on a bipartisan coastal and inland resilience caucus.

— The International Fresh Produce Association is in town this week where it will discuss its new economic impact study of the produce industry and its priorities for the farm bill, nutrition, workforce and food safety policies. The trade group will hear from Senate Agriculture ranking member John Boozman (R-Ark.), Center for Food Safety and Applied Nutrition Director Susan Mayne, FDA’s Frank Yiannas, the White House supply chain adviser Elaine Trevino, USDA’s Jenny Lester Moffitt and Rep. Dan Newhouse (R-Wash.).

SPOTTED during the Las Vegas Chamber of Commerce and Las Vegas Global Economic Alliance’s annual fly-in last week, per a tipster: SBA Administrator Isabel Guzman, Sens. Catherine Cortez Masto (D-Nev.) and Jacky Rosen (D-Nev.), Reps. Liz Cheney (R-Wyo.), Mark Amodei (R-Nev.), Dina Titus (D-Nev.), Steven Horsford (D-Nev.), Susie Lee (D-Nev.), Jon Porter, Steph Walker and Ben Rosenbaum of the Porter Group, Mary Beth Sewald of the Vegas Chamber, Tina Quigley of LVGEA, Nevada Secretary of State Barbara Cegavske, Bill Hornbuckle and Adelle Cruz Jackson of MGM, Alex Costello of the American Gaming Association, Kate Marshall of the White House, Eric Dell of the National Automatic Merchandising Association, R.J. Layher and Shelby Hagenauer of the American Farm Bureau Federation, Kumud Acharya of the Desert Research Institute, Betsy Fretwell of Switch, Michael Feder of Dickinson Wright PLLC, Grant Dubler of Rosen’s office, Harry Samuels of the House Energy & Commerce Committee, Nicole Porter of the U.S. Travel Association, Robby Wehagen of Rep. Buddy Carter’s (R-Ga.) office, Manny Lamarre of the Labor Department, Cheryl Cotterell of Honeywell, Craig Buerstatte of the Economic Development Administration, Holly Hough of the National Federation of Independent Business and Rick Terrazas of SourceAmerica.

A message from the National Confectioners Association:

Jobs Report

— Erik Rust has been promoted to a new role as senior vice president and deputy head of government affairs at the Bank Policy Institute. Before joining BPI in 2020, Rust was a director for the Center for Capital Markets Competitiveness at the U.S. Chamber of Commerce and is a House alum.

— Will Hupman is returning to the American Petroleum Institute as vice president of downstream policy. He most recently served as the director of federal affairs for Sherwin-Williams.

— Melissa Ortiz is joining the National Center for Public Policy Research to re-launch her Able Americans program under its umbrella.

— Anne Keys is joining Elanco Animal Health’s government affairs team as senior director. She most recently was executive director at Montclair Local Nonprofit News and is a Pfizer Animal Health, Venable, USDA and Hill alum.

— Robin Dutta will be campaign director for Local Solar for All. He most recently led federal affairs at SunPower Corporation.

— Michael O’Mara is joining the Clyde Group as president and COO. He was most recently COO at IMRE.

— Catie Hague has joined Axiom Space as vice president for strategic communications. She was previously the former top spokesperson for the Space Force.

New Joint Fundraisers

2022 Victory Committee (Devolder-Santos for Congress, GADS PAC, Max Miller for Congress, Dependable Conservative Leadership PAC, Guy for Congress, RVFPAC, Tom Barrett for Congress, B Brigade Majority Fund)
Babin Victory Fund (Dr. Brian Babin for Congress, Building Renewal In America Now PAC, NRCC)
Ciscomani Victory Fund (Ciscomani For Congress, Defending The American Dream PAC, Republican Party Of Arizona, LLC, NRCC)
Team Perry Victory Committee (Republican Federal Committee of Pennsylvania, Patriots for Perry)

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New PACs

America's Hope (Super PAC)
Fight Corporate Monopolies PAC (Super PAC)
Justice & Safety Alliance (Super PAC)
MAKE AMERICA GREAT AGAIN INC. (Super PAC)
Moderate Conservatives PAC (Super PAC)
The Moderate Michigan Voice (Super PAC)
Modjeski and Masters, Inc. Transportation Alliance PAC (PAC)
NC Values PAC (Super PAC)
New Mexicans for Prosperity (Super PAC)
PATRIOTS FOR A BRIGHTER AMERICA (Super PAC)
Save America Trust (Super PAC)
Voces Unidas Political Action Committee (PAC)
We Will Defend This Action (Super PAC)

New Lobbying Registrations

None.

New Lobbying Terminations

Cjw Quantum Consulting, LLC: Cjw Quantum Consulting, LLC
Dentons US LLP: Deoleo, S.A.

A message from the National Confectioners Association:

In 2017, America’s leading chocolate and candy companies joined forces in a landmark agreement to help consumers manage their sugar intake. In a commitment to Partnership for a Healthier America, these companies set an ambitious goal to provide more transparency, create more portion guidance options in innovative packaging and educate consumers about how unique products like chocolate and candy can be an occasional treat in a balanced lifestyle. The companies exceeded their commitment, empowering consumers to make informed choices and driving directional alignment within the broader confectionery industry. In fact, 85% of chocolate and candy sold today comes in packaging that contains 200 calories or less per pack – whether that’s individually wrapped products or multipacks that contain smaller packages inside. Learn more at AlwaysATreat.com.