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Editorials

Record $975K Fine For American Craft Brewery LLC Turns Attention To ERP And Compliance

by Sean Balogh
Encompass Solutions, Inc.

The New York State Liquor Authority (SLA) levied a record-setting fine last week against American Craft Brewery LLC, a subsidiary of the Boston Beer Company, based on unregistered alcoholic beverages finding their way onto retailers’ shelves. As many as 1.4 million cases of popular brands, including Angry Orchard, Twisted Tea, and Sam Adams, we among those identified by the licensing authority.

NY State Malted Beverage State Labeling Law

The SLA requires that all malted beverages sold in the state require a brand label approved by the association. The requirement comes as an effort to cut down on bootleg products and promote consumer confidence in the fact that products on retailers’ shelves are safe for consumption. In addition to ensuring alcoholic beverages are vetted and confirmed to be from genuine manufacturers, the labeling requirements ensure that batches of beverages can be easily located in the unfortunate event a recall needs to be carried out.

When asked about the regulations, SLA chairman, Vincent G. Bradley, had this to say, “Whether you are a small farm brewer in Clinton County, or a major international public company, you have to comply with the rules and the laws of New York. I am thankful for the hard work of our enforcement and licensing teams, who work tirelessly to ensure that New York remains an innovative and competitive place to manufacture and sell beer, but also is a place where the marketplace is safe for the consumer”.

American Craft Brewery LLC Places Blame On Human Error

American Craft Brewery LLC attributed the violation to a clerical error, which the company has been taking steps towards correcting. A spokesperson for American Craft Brewery LLC confirmed the company is currently working with the SLA to renew the lapsed registrations.

The substantial fine has placed governance, risk, and compliance centerstage and the fact that human error played a large part in the unfortunate situation has elevated the prominence of ERP software as a failsafe against such oversight.

How ERP Software Can Protect Your Businesses

Reducing the instances of compliance violations is the easiest way to protect your business from substantial punishment like the fine incurred by American Craft Brewery LLC last week.

ERP solutions, like Epicor ERP and NetSuite, provide governance risk and compliance modules that ensure your workforce is equipped with the necessary tools to keep your business compliant and made aware of the risks associated with non-compliance.

Corporate and financial governance, such as International Accounting Standards (IAS), International Financial Reporting Standards (IFRS), and other Generally Accepted Accounting Principles (GAAP) are just the beginning of the tools made available to organizations utilizing these powerful ERP solutions. More than 12,000 local, state, and federal requirements are built into the system to ensure oversight is kept to a minimum. Industry-specific cases can be put in place to address unique requirements just like the NY State labeling requirements mentioned above.

Additional governance, risk, and compliance management tools provided by ERP solutions include Security Management, Business Process Management, financial governance, Global trade compliance, and Environmental and Energy Management.

Contact Encompass Solutions, Inc. to learn more about what ERP solution will benefit your business the most when it comes to addressing compliance and risk at local, state, federal, and international levels.

About Encompass Solutions

Encompass Solutions, Inc. is an ERP consulting firm and Epicor Platinum Partner that offers professional services in business consulting, project management, and software implementation. Whether undertaking full-scale implementation, integration, and renovation of existing systems or addressing the emerging challenges in corporate and operational growth, Encompass provides a specialized approach to every client’s needs. As experts in identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.

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