Small brewer federal excise tax bill reintroduced

February 7th, 2013 | Posted by Real Beer

The Brewers Association reports that H.R. 494, the Small Brewer Reinvestment and Expanding Workforce Act (Small BREW Act) has been reintroduced in the House of Representatives. The bipartisan legislation, which was reintroduced by Representatives Jim Gerlach (R-Pa.) and Richard E. Neal (D-Mass.), seeks to recalibrate the federal beer excise tax that small brewers pay on every barrel of beer they produce.

Under current federal law, brewers making less than 2 million barrels annually pay $7 per barrel on the first 60,000 barrels they brew, and $18 per barrel on every barrel thereafter. The Small BREW Act would create a new rate structure that reflects the evolution of the craft brewing industry. The rate for the smallest brewers and brewpubs would be $3.50 on the first 60,000 barrels. For production between 60,001 and 2 million barrels the rate would be $16.00 per barrel. Any brewer that exceeds 2 million barrels (about 1 percent of the U.S. beer market) would begin paying the full $18 rate. Breweries with an annual production of 6 million barrels or less would qualify for these tax rates.

“Small brewers are small business owners and this bipartisan legislation would allow them to remain competitive, protect existing jobs and create new employment opportunities in communities throughout Pennsylvania and the country,” said Congressman Jim Gerlach, co-chairman of the House Small Brewers Caucus.

“There are few industries with more size disparity than the American beer business. There are 2,500 small breweries who together account for only six percent of the U.S. beer business,” said Rob Martin, president, Ipswich Ale Brewery and Massachusetts Brewers Guild. “Massachusetts Congressman Richard Neal understands the struggles craft brewers face because of this, and he has championed our effort to help level the playing field a little by supporting an equitable federal excise tax bill. He is keenly aware that craft brewers are looking to grow their small businesses and will create thousands of good jobs across the country if this legislation passes. As president of the Massachusetts Brewers Guild, I know I speak for all small brewers when I applaud Congressman Neal’s effort.”

The BA calculates adjusting the tax rate would provide small brewers with an additional $60 million per year that would be used to support significant long-term investments in tanks and other equipment and create jobs by growing their businesses on a regional or national scale. Congress has not recalibrated the excise tax on small brewers since 1976. At that time, there were about 30 small brewers. Today, there are over 2,000.

“America’s small brewers are part of a vibrant, growing industry, and really are Main Street manufacturers,” added Bob Pease, chief operating officer of the Brewers Association. “The Small BREW Act will help America’s small brewers invest in and grow their businesses—an important part of economic reinvigoration. We look forward to working with the new Congress on the passage of this legislation, which will have a positive impact on agricultural, manufacturing, hospitality and distribution jobs for the future.”

Share and Enjoy:
 
  • Digg
  • del.icio.us
  • Furl
  • StumbleUpon
  • YahooMyWeb

Brewers Association honors Congressmen Gerlach, Neal

February 6th, 2013 | Posted by Real Beer

The Brewers Association has presented two United States Congressmen with the organization’s Legislator of the Year Award.

Reps. Jim Gerlach (R-Pa.) and Richard E. Neal (D-Mass.) were recognized for their stewardship of the Small Brewer Reinvestment and Expanding Workforce Act (Small BREW Act). The awards were presented at a ceremony in Washington, D.C., by Bob Pease, chief operating officer of the Brewers Association; Jim Koch, co-founder and chairman of Boston Beer Company; and Bill Covaleski, founder and brewmaster of Victory Brewing Company and president of the Brewers of Pennsylvania.

“The efforts of Congressmen Gerlach and Neal reflect their appreciation for America’s small brewers and the significant economic contributions that these men and women bring to the national economy,” said Pease. “We recognize both of these leaders for their commitment to creating a level playing field for small and independent brewers in their home states and across the country.”

The Small BREW Act, introduced by Gerlach and Neal during the 112th Congress and expected to be reintroduced this month, aims to recalibrate the federal excise tax rate structure to further foster the growth of America’s craft brewing community. Currently, brewers producing less than 2 million barrels of beer per year pay $7 per barrel on the first 60,000 barrels they brew, and $18 per barrel on every barrel thereafter. If the Small BREW Act is adopted, the rate for the smallest brewers and brewpubs would be $3.50 on the first 60,000 barrels. For production between 60,001 and 2 million barrels the rate would be $16.00 per barrel. Any brewer that exceeds 2 million barrels would begin paying the full $18 rate. Breweries with an annual production of 6 million barrels or less would qualify for these tax rates.

“Small brewers provide a significant economic spark, creating tens of thousands of jobs and generating tens of billions of dollars in economic activity each year in Pennsylvania and across America,” said Congressman Gerlach, co-chairman of the House Small Brewers Caucus. “These independent and innovative small business owners often work just as hard at improving their communities as they do perfecting their world-class products. It is a tremendous honor to be recognized by the Brewers Association for my bipartisan work in Congress to help small brewers remain competitive and continue building upon the success of America’s craft-brewing revolution.”

“I am honored that the Brewers Association has chosen me as one of their Legislators of the Year,” said Congressman Neal. “As someone who represents many small brewers in Massachusetts, this award has special meaning for me. Craft breweries are locally owned, generate economic development and create good jobs. They also make distinctive products for passionate consumers. As a supporter of the industry, I have introduced bipartisan legislation that would give small brewers a substantial tax break. My plan would recalibrate the beer excise tax for America’s craft brewers, allowing them to reinvest in their businesses. With the help of Brewers Association, I believe this initiative can be approved by the House of Representatives during this session of Congress.”

Share and Enjoy:
 
  • Digg
  • del.icio.us
  • Furl
  • StumbleUpon
  • YahooMyWeb

OBF adds day, switches to glassware

February 6th, 2013 | Posted by Real Beer

The Oregon Brewers Festival has added a fifth day to its celebration and for the first time drinkers will use taste beer from glassware rather than a plastic mug. The festival is scheduled for July 24-28 at Tom McCall Waterfront Park in downtown Portland. Hours are noon to 9 p.m. Wednesday through Saturday and noon to 7 p.m. Sunday.

“The festival continues to grow in popularity every year, especially with tourists,” said festival owner and founder Art Larrance. “Due to space constraints, we can’t expand our footprint, so we decided to instead add a day to accommodate more beer lovers. Portland’s role as the ‘Cradle of Craft Beer’ had led our city to be one of the premier beer tourism destinations in the United States, and the Oregon Brewers Festival continues to support that movement.”

The festival expanded from a three-day to a four-day event in 2005. That turned out to be a huge success, and ever since, festival purists have declared Thursday to be the best day to attend due to shorter lines and a full beer selection. Festival organizers are now hoping Wednesday will become the new Thursday.

Another big change to this year’s event is the introduction of a tasting glass. In an effort to improve the tasting experience for the guest and to be more environmentally responsible, the Oregon Brewers Festival will now sell a tasting glass in lieu of the traditional plastic mug. Admission into the festival grounds is free. In order to consume beer, purchase of a 2013 souvenir 12-ounce tasting glass is required and costs $7. Beer is purchased with wooden tokens, which cost $1 apiece. Patrons pay four tokens for a full glass of beer, or one token for a taste. There are no advance tickets sold to the festival; all purchases are made on-site.

Share and Enjoy:
 
  • Digg
  • del.icio.us
  • Furl
  • StumbleUpon
  • YahooMyWeb

Super Bowl Clydesdale gets a name: Hope

February 5th, 2013 | Posted by Real Beer

The baby Clydesdale featured in a Budweiser commercial shown during Super Bowl XLVII now has a name: Hope. Anheuser-Busch InBev also announced another foal would be named in honor of St. Louis baseball icon, Stan Musial.

Last week Budweiser asked its Facebook and Twitter followers to send along naming suggestions. More than 60,000 tweets, Facebook comments, calls and direct messages followed. “Hope” was one of the more popular female names.

“We were overwhelmed with the response we got,” said Lori Shambro, brand director for Budweiser.

Other popular names submitted included Landslide (after the Fleetwood Mac song in the commercial), Buddy, Star, Raven, Spirit and Stevie.

“Thirty-six hours before Hope was born, on Jan. 14, we welcomed our first-born Clydesdale of the year, a boy,” John Soto, supervisor of Warm Springs Ranch. “We have a special name for him, too.”

Budweiser has announced that the first male Budweiser Clydesdale born in 2013 will be named after the recently deceased baseball Hall of Famer Stan Musial. Many of the suggestions for the female foal, including “Six,” had a Musial connection.

Share and Enjoy:
 
  • Digg
  • del.icio.us
  • Furl
  • StumbleUpon
  • YahooMyWeb

Government blocks AB InBev deal for Modelo

January 31st, 2013 | Posted by Real Beer

The U.S. sued to block Anheuser-Busch InBev’s proposed $20.1 billion purchase of the half of Grupo Modelo brands it doesn’t already own, stating that the deal would violate antitrust law.

Shares of both companies plunged after the Justice Department filed a complaint in federal court in Washington. The DOJ said the proposed purchased would eliminate the “substantial head-to-head competition” that currently exists between AB InBev and Modelo.

Modelo owns the Corona brand, and Budweiser and Corona are among the most dominant beer brands in the country. Bud Light is the best-selling U.S. beer, while Corona Extra is the No. 1 selling import.

“If ABI fully owned and controlled Modelo, ABI would be able to increase beer prices to American consumers,” Bill Baer, the head of department’s antitrust division, said in a statement. “This lawsuit seeks to prevent ABI from eliminating Modelo as an important competitive force in the beer industry.”

The Justice Department’s action is “inconsistent with the law, the facts and the reality of the marketplace,” according to an ABI statement. “We remain confident in our position, and we intend to vigorously contest the DOJ’s action in federal court.”

Share and Enjoy:
 
  • Digg
  • del.icio.us
  • Furl
  • StumbleUpon
  • YahooMyWeb

Kim Jordan to deliver 2013 CBC keynote

January 24th, 2013 | Posted by Real Beer

New Belgium Brewing co-founder and CEO Kim Jordan has agreed to “return to the scene of the crime.”

She will deliver the keynote address at the Brewers Association’s 2013 Craft Brewers Conference. The industry’s largest gathering — bringing together some 6,000 brewing professionals — will be held in Washington, D.C. from March 26-29.

Jordan also gave the keynote in 2003, when she called for craft brewers to aspire to reach 10% of U.S. beer sales. In the previous year, craft sales had grown only 1%. In the years that followed the gains were 5%, 8%, 13%, 12%, 6%, 7%, 12% and 13%. In 2011, the latest full year for which the BA has published data, craft brewing sales share was at 9.1% by dollars and 5.7% by volume, increasing more than half a point per year since 2003.

“The beer industry has changed significantly over the course of the last several years. Relationships among small brewers, large brewers, distributors, retailers and beer drinkers continue to evolve,” said BA director Paul Gatza. “Kim is a visionary and true leader in the beer community. Her insight, enthusiasm and vigor will be a welcomed inspiration as small and independent brewers gather together for a discussion on how to navigate the ever-evolving and thriving industry. We are pleased to have her back to the CBC stage.”

More about the conference.

Share and Enjoy:
 
  • Digg
  • del.icio.us
  • Furl
  • StumbleUpon
  • YahooMyWeb

Alaskan Brewing adds another energy saving tool

January 16th, 2013 | Posted by Real Beer

Alaskan Brewing has become the first brewery in the world to use its spent grain as the fuel source to power the steam boiler it uses in making beer, and reduced the company’s fuel oil consumption in brewhouse operations by 60 to 70 percent.

“We have the unique honor of brewing craft beer in this stunning and remote place,” Alaskan Brewing co-founder Geoff Larson said for a press release. “But in order to grow as a small business here in Alaska and continue having a positive effect on our community, we have to take special efforts to look beyond the traditional to more innovative ways of brewing. Reducing our energy use makes good business sense, and good sense for this beautiful place where we live and play.”

The brewery began the spent grain energy process in 1995 with the installation of a grain dryer. The equipment dried the wet, protein-rich spent grain in preparation for shipment to the lower 48 for use as cattle feed, due to the absence of farms or ranches in Southeast Alaska. Alaskan designed the grain dryer to use up to 50 percent of the grain as a supplemental fuel source to heat the dryer itself. This reduced the oil required in the drying process, and provided experience in burning spent grain that would later prove useful in designing the steam boiler.

In 2008, Alaskan became the first craft brewery in the nation to install an energy saving piece of brewing equipment called a mash filter press. The mash filter press, in addition to providing greater energy, water, and materials efficiencies, produces a lower-moisture-content spent grain than does the more traditional lautering process. This form of spent grain better lends itself to drying and for use as fuel for the brewery’s grain dryer and, ultimately, the new spent grain steam boiler system.

Over the latter months of 2012, Alaskan completed the final stage of the process with the installation and commissioning of the $1.8 million, custom-constructed spent grain steam boiler.

Alaskan expects that the new boiler will eliminate the brewery’s use of fuel oil in the grain drying process and displace more than half of the fuel needed to create process steam in the brewhouse. This translates to an estimated reduction in fuel oil use in brewhouse operations by more than half. With moderate growth assumptions, Alaskan expects to save nearly 1.5 million gallons of oil over the next ten years.

Share and Enjoy:
 
  • Digg
  • del.icio.us
  • Furl
  • StumbleUpon
  • YahooMyWeb