The Craft Beer Battle

With 6,400 attendees, last month's Craft Brewers Conference and Beer Expo, hosted in the nations capital Washington D.C., highlighted some positive and negative notes about the craft beer industry. Representatives from The Brewers Association, a Boulder, Colorado based trade group that represents more than 2,300 small breweries, spoke at large about the craft industries accomplishments and concerns. The Brewers Association director Paul Gartza and chief operating officer Bob Pease listed a few of the highlights:

• U.S. craft brewing saw a 15 percent increase in volume in 2012.
• Craft Beer exports rose 72 percent over 2011.
• Craft brewing's market share rose from 5.7 percent (2011) to 6.5 percent (2012)
• There are 1,254 small breweries planned.
• Colorado saw 29 small breweries opened in 2012, second only to California with 56.

Gatza went on to say "The large brewers and imports were level, so it looks like we are going to have another good year. Brewers are running the numbers, we're seeing more brewers starting to look at what they can do for building a second brewery. We may see more second and third breweries." For example, two Colorado breweries, Oskar Blues and New Belgium, are expanding to North Carolina. San Diego's own Stone Brewery is opening up a small batch brewery at Liberty Station. 

Craft brewers produced 13.23 million barrels last year, a huge increase and a ton of great beer, but dwarfed by the industry giant ABInbev (Budweiser and other brands), which produced 98.5 million barrels just in the United States.

Rising taxes on brewing is the newest battle craft brewers are fighting. Small brewers, who make less than 2 million barrels a year, pay a 7$ tax on their first 60,000 barrels. While in D.C., representatives of small breweries lobbied for the small brew act, which would cut their tax to 3.50$ on the first 60,000 barrels. However, big breweries are fighting the bill and proposing their own bill that would raise the tax to 18$ for every barrel brewed, which would have a devastating effect on the American craft brew industry. This is yet another example of how the big beer companies, ABInbev (Budweiser and other brands), are trying to end the craft brew industry. 

KEEP CALM & CHIVE ON

Florida Breweries vs. Anheuser-Busch Distributors

Big beer companies are watching craft breweries grow exponentially and are trying their best to halt the expansion. In this instance, they are fighting a bill to legalize 64 ounce beer containers, known to many of us as growlers, to be sold at breweries in Florida. There are three states where filling up a growler is illegal, Utah and Mississippi being the other two. The odd thing in Florida is that it is LEGAL to get a 32 or 128 ounce (gallon) growlers but not the usual 64 ounce ones. David Wescott, a craft beer enthusiast like many of you, said "It makes no sense to me. It's just not logical — 128s are probably too much, 32 is too small. I'd love to get a 64."

Can you  imagine going to Ballast point and not being able to get a growler of Sculpin? 

Two law makers have supported the effort to legalize 64 ounce growlers and have filed bills to be to be heard but a group of beer distributors are fighting both measures and might have effectively killed the bills.  Rep. Katie Edwards, D-Plantation doesn't even drink beer but her support of the bills is based on economic growth. The half-gallon size growlers are an industry standard and are sold at breweries around the country, helping to expand the small businesses. However the Florida Beer Wholesalers Association, which represents all the state's Anheuser-Busch distributors, are opposing the bill. Their lobbyist, Mitch Rubin, was able to convince Rep. Debbie Mayfield, R-Vero Beach, not to give it a hearing at the House Business and Professional Regulation Subcommittee, which she chairs. Without a House hearing, the bill is essentially dead. 

32oz & 64oz Stone Growlers

Rubin's argument is to support the three-tier system of alcohol distribution the federal government set up after Prohibition, which is that alcoholic products are passed through a distributor to get to retailers. Exceptions have been made for purchases where products are produced, such as buying bottles of wine at a winery and Florida law does allow take-home sales at breweries. But Rubin argues that the language was meant only to allow sales at Busch Gardens in Tampa when Anheuser-Busch brewed beer at what is now a major theme park. He said it was never intended to allow breweries to sell directly to consumers. So basically he is saying that it is ok for big beer companies to sell directly to the customers but not for the smaller craft breweries to do it. 

Lost Abbey/Port Brewing's tasting room

Most Brewers say growlers and tasting rooms are an important part of growing business, especially when certain beers aren't readily available in stores. The larger profit margins on beer sold at Florida breweries helps them reinvest the money to produce more beer, which creates more jobs. Unlike beer giants such as Anheuser-Busch and MillerCoors, which have automated systems that allow a few people to brew massive amounts of beer, craft brewing is labor intensive. In order to brew more, small breweries have to hire more people. It is believed that the wholesalers association is opposing the growler bill to protect its profits, as growlers and brewery tasting rooms help craft brewers expand their market presence.

Green Flash Tasting Room

It is also widely believed that if the big beer companies can shut the tasting rooms down, they can get rid of some the competition. However, the Beer Industry of Florida, which counts MillerCoors distributors among its members, supports legalizing the 64-ounce growlers because the industry group doesn't see the jugs as a threat to the three-tier system. This fight continues in Florida, lets help out however we can and continue to drink craft beer and support out local breweries. Cheers!

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