Indianapolis Times, Indianapolis, Marion County, 13 December 1943 — Page 10

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Is there really a shortage?

How much whiskey is available?

‘How long will the present supply last?

T IS APPARENT that there is great confusion on the subject of the present whiskey supply. Surely the public is entitled to the facts no matter how discouraging they may be. Following are frank answers to some of the most pertinent questions: |

1. Isthere really a whiskey shortage in this country?

Yes—a serious shortage . . . because not a drop of whiskey has been distilled since October 8, 1942. The disulling facilities of the entire industry are engaged night and day in producing nothing but alcohol for war purposes.

How much whiskey is there actually in storage? Approximately 303,000,000 gallons.

While the Alcohol Tax Unit of the Treasury Department, as of October 31, 1943, reported an inventory of 399,023,881 gallons, ORIGINALLY put in barrels, 96,000,000 gallons have actually Sasppesiad through soakage and evaporation which leaves a net of about 303,000,000 gallons. This evaporation is fesoftized by the Government approved table of allowances. There is no mystery about the amount of whiskey withdrawn from or in storage in Government bonded warehouses. The Alcohol Tax Unit publishes these figures monthly,

Is a comparison between whiskey stocks and whiskey withdrawals a true indication of how long the available supply will last?

No. It is an accepted practice to blend grain neutral spirits with straight whiskey. Normally, as a result of this blending,’ the _ total-amount of whiskies available to the public is increased. - Today, however, the supply of grain neutral spirits is only a small fraction of that of straight whiskies and soon the supply

will be exhausted, making it necessary to withdraw more straight =

whiskey to replace the grain neutral spirits formerly used.

Can all of this 303 million gallons be sold now?

No. Prior to the war, the distilling industry carried a normal inventory in bonded warehouses of over Foo million gallons which was necessary to maintain reasonable standards of quality.

To avoid repetition of conditions which existed in 1934, fol-

lowing repeal of prohibition, when young and immature whiskey was offered to the public, it is essential to the public interest that soms reserve be maintained for post-war requirements. Otherwise, there will be a bone-dry period following the war, or the public will be compelled to drink green, unpalatable

whiskey. Since the entire whiskey stocks now available are al- , ready dangerously lower than normal inventory needs, the re-.

. serving of not less then 100 million gallons is imperative, even though entirely inadequate. : -

How much, therefore, is really available until production is resumed?

About 203,000,000 proof gallons.

~+... And it must be made clear that the only reason there is ay legal whiskey at all, is because whiskey must be aged before it is suitable for consumption. It cannot be made today and sold tomorrow like most other products. If it could, the country wotild have been bone-dry months ago because there would have been no reason Jor a stock. Never was the old adage more applicable -*‘‘you can’t have your cake and eat it, too".

How long would this supply last ‘at the present un-’

precedented rate of demand aggravated by public

hoarding, speculation and black market operations?

Certainly less than a year. : "All present statements to the effect that there is i of Whiskey for five years’ are completely false. ere’'s what would happen if, tomorrow morning each individual distiller abandoned his self-imposed ration-

Distilled Spirits Institute, Inc. wg Conference of Alcoholic Beverage In

WASHINGTON, D. C.

ing plan and simply accepted all orders. Provided they could get ——y bottles, corks, cartons and sufficient labor, the entire supply » move out about as fast as it could be “es in LESS THAN A . And » no one could regard this as a service to the public, the Government or the industry.

What has been done to make the available supply last? .

For almost a year each diatiller has been folowing | a selfimposed rationing program. Even so, it is estima are now bottling and releasing at the annual rate of from 90 to 100 million gallons of kw. compared with an output of yhiskey of 134,508,954 in the Government fiscal year ending June 30, 1943, and'133,277,074 in the preceding fiscal year. Though some localities felt the shortage before others, the shortage is now universal. The majonty of. distillers are distributing their products fairly and equitably to the various markets on the basis of previous purchase records, with due allowances for shifts in population.

8. Isit true that some of the lower priced brands have disappeared from the market?

Yes. Many rectifiers and small distillers who supplied a large art of the low priced brands have exhausted their limited stocks: n many cases, among the larger distillers, critical inventory itions made it necessary to curtail or eliminate some brands. Duite naturally, distillers sought to protect the continuity of their most im brand Shesé wets generally in the higher quality brackets. In whiskey,-as in many other com‘modities, consumer demand for higher quality products has -

What have distillers done to help maintain O.P.A. - ceiling prices? , ;

They have published ceiling prices in their advertisements and . have admonished the public not to pay more. They have urged the trade to cooperate with the ent by maintaining ceiling prices. They have retailers to display signs reading: © “O.P.A. ceiling prices...do not pay more!” They have prepared a series of newspaper advertisements wa he. pu lic not to buy at black market prices. Ther have urged the O.P.A. to call a conference in Washington of the State liquor. admini~strators for the purpose of urging them to lend their support in the enforcement of the O.P.A. price regulations.

10. Have distillers raised their prices on whiskey?

O.P.A. regulations provide that: distillers’ prices shall not exceed those in effect during March 1942. However, the regulations do permit. the ‘addition of Federal Excise Taxes and the elimination ‘of promotional discounts. Just as there are no one cent sales of scarce drug items today, nor special sales of : 3, cigarettes and other commodities greatly in ‘demand, there are, of course, no cut-rate sales of whiskey. Wholesaler and retailer ceiling prices are also governed by O.P.A. regulations which provide fixed profit ceilings. =

Have the distillers requested permission to resume the making of whiskey during the war? The position of the industry has been that as th Hate Haku tor x pe duction of war-alcohol, these facilities should be devoted 100% to that When the total facilities are no longer need * by the ge the distillers feel that at least a partial.

resumption of the making of whi should be | in order to alleviate the critical. shortage and its be Janet dn

Is the shortage of whiskey and higher taxes bringing i the bootlegger back? rw Yes. The greater the incentive—the greater the temptation.

» MEMBERS OF THE DISTILLED SPIRITS INSTITUTE, INC. <

13. Is there a black market in whiskey?

There is undoubtedly a black market in whiskey as there is in r commodities where a shortage exists and where the consumer demand is great, such as nylon hose, butter, beef, gasoline, tires, etc. Only public cooperation, tighter ation, more rigorous enforcement... or the resumption of whiskey production...can correct it. :

Is it true that large distillers are trying to buy addi. * tional whiskey, when available?

Yes. Any large distiller who has his brands and trademarks to protect naturally will try to buy any acceptable whiskey which may be offered for sale. However, the purchase of whiskies by one company. from another does not increase or decrease, by a single quart, the supply available to the consumer.

Are consumers hoarding whiskey?

Unquestionably, many consumers have bought beyond their immediate needs as they have done with other scarce products.

Has the trade been hoarding whiskey?

# Wholesale stocks are lower than at any time in the last nine years. Retail stocks are much lower than normal. Some package stores do reserve favorite brands for their regular customers thereby avoiding sales to those who might be hoarders, speculators or black market operators.

Are the profits of the distilling industry larger than those of other American industries? :

According to a report printed in the New York Journal of Commerce of January 15, 1943, the distilling industry ranked in 13th position among 16 major industries from the standpoint of percentage of profit to sales and likewise in the percentage of profit to invested capital.

Why is rum and gin more plentiful than whiskey?

Today rums and gins are imported, largely from the West Indies, Mexico and South Aria The ei base for these beverages is distilled from blackstrap molasses and the labels indicate that they are products made from cans and not from grain.

Why do distillers continue to advertise their products when retailers have such meager supplies?

The trademarks and trade names of a producer are among his most valuable assets. The distiller, like other produ is trying to keep his brand names before the public so that they will not be forgotten.

CONCLUSIONS

1. There is an acute shortage of whiskey. If the present abnormal rate of demand were fully satisfied, the supply would be exhausted in less than a year. : : 2. Even under the present rationing programs of the individual distillers, conditions will become progressively more acute and agers vated because not a single drop of whiskey sold since October 8, 1942 is being replaced. The public must realize that its consum; of whiskey must be curtailed, as has its consumption of all other scarce , commodities. or . 3. There can be no solution of the present shortage until beverage production is resumed. ~~ - 4. Black markets and other violations resulting from the shortage of | liquor are condemned by the le members of the industry just as severely as they are by enforcement officials. \ 5 We know of no other industry in America which is devating facilities 100% to war work...is accoun State taxes annually

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