Introduction to Spirits United 1 What is Spirits

Introduction to Spirits United 1

What is Spirits United? Spirits United is an online community of grassroots advocates united with a common goal to ensure adult consumers can enjoy distilled spirits where they want, how they want, and when they want, responsibly. • Brings together professionals in the distilled spirits industry, supply chain and industry partners, bartenders, mixologists, and customers. • United, we can secure a more modern and accessible consumer market for the distilled spirits industry. 2

What is Grassroots Advocacy? • What – The process of communicating with the general public and asking them to contact their local, state or federal officials to influence a certain issue. – Citizen based activism • Who – Anyone who is interested in participating in the democratic process! • When – When you want the general public to contact their representatives at a local, state or federal level about a certain issue (i. e. CBMTRA). • If your legislative agenda could be boosted by the support of constituents. – When you want to raise awareness about your issue and start the conversation within the general public. • Where – Local, State, and Federal lawmakers and regulators. • How – Through Spirits United! 3

The Democratic Process Legislative Idea Implementation Law is Passed Development & Introduction of Legislation Debate & Compromise 4

The Democratic Process & You Grassroots Advocacy Legislative Idea Implementation Development & Introduction of Legislation Grassroots Advocacy Law is Passed Grassroots Advocacy Debate & Compromise Grassroots Advocacy 5

We Need You! • Why would we try to mobilize the Distilled Spirits industry to contact their lawmakers on issues that impact our businesses? – Most industries have grassroots mobilization programs (API’s Energy Nation, Adva. Med’s Life Changing Innovation). • • We are all competing for lawmakers’ attention. These industries are taking advantage of a communication channel that our industry is not. We need individual engagement from everyone in the industry to ensure our messaging, needs, and concerns are at the top of Congress’ mind. – A recent study by the Congressional Management Foundation found that, “Direct constituent interactions have more influence on lawmakers’ decisions than other advocacy strategies. ” You are the best advocates for the distilled spirits industry! 6

You Are Spirits United • Spirits United was created to harness the great pride this industry has into political action — No other industry is like ours — Spirits United is a feel good brand that will bring everyone in the industry together to make a difference on issues we can all agree on — Ultimately, by showing our pride, advocating for ourselves, and educating the public on the issues we face, we can invite partners and consumers to join us 7

How to Sign Up • Signing up is SIMPLE and takes less than three minutes. 8

Current & Future Campaigns • Craft Beverage Modernization and Tax Reform Act (S. 362/H. R. 1175) – Industry-wide effort to make permanent FET reduction – Two-year tax cut for distillers, brewers and vintners ends December 2019 – So far, 165 Spirits United advocates have contacted their legislator to urge them to co-sponsor the bills • U. S. Mexico and Canada Agreement – USMCA will re-establish free, open, and tariff-free trade between the United States, Canada, and Mexico. – Will engage SU advocates once implementing bills are dropped in Congress. • Let’s get ready for 2020 State Legislative Sessions!! – Last year alone, over 2, 000 bills related beverage alcohol were introduced in the states, including proposals to increase spirits tax rates in 18 states – We will be utilizing Spirits United in support of our efforts to defend against taxes and improve market access for spirits in the states! 9

Spirits United Partners • We have partnered with the American Distilling Institute (ADI) and TIPS to broaden our reach. – The American Distilling Institute (ADI) • A beacon for the craft distilling community and an important community for grassroots. – The TIPS Program • Global leader in education and training for the responsible service, sale, and consumption of alcohol. TIPS® leads the way in online alcohol training & certification to prevent intoxication, drunk driving and underage drinking. • Complements Spirits United’s commitment to responsibility. 10

Follow Us on Social Media @Spirits. United. Org @Spirits. United 11