Beer Unites (Except in the Maryland State House)

To borrow from my friends at Union Craft Brewing, beer unites us all. Take for example the United States Congress. It could not be more divisive, or partisan. It is akin to warring factions from distant galaxies fighting for control of the Universe at all costs. Despite these disparate agendas, they have still found a way to come together over beer. The Craft Beverage Modernization and Tax Reform Act, better known as CBMTRA has united both factions of our bicameral congress. This legislation, well covered by Tom Cizauskas at Yours For Good Fermentables, is a once in a generation legislative reform act for the United States craft brewing industry that also provides benefit to wineries and distilleries.
Here are the nuts of bolts of what it does for breweries:

  • Reduces excise taxes from $7 per barrel to $3.50 per barrel for domestic breweries producing less than 60,000 BBLs per annum.
  • Reduces excise taxes from $18 per barrel to $16 per barrel for domestic breweries producing 60,000 to 2 million BBLs per annum.
  • It simplifies beer formulation and label approval by expanding the list of ‘common beer ingredients’ (like fruit).
  • It encourages collaborations by removing regulatory hurdles like enabling tax free transfers, removing restrictions on both inventory and expansion for packaging and storage.
  • It levels the playing field between domestic and international producers.
  • It expands TTB program integrity to crack down on those circumventing the rules.

With 54 Senate co-sponsors, and 299 House co-sponsors this Bill had incredible bipartisan support, and was heavily promoted by both the Brewer’s Association of America, the National Beer Wholesalers Association, and the Beer Institute, among several other industry associations. Since the wording of the Bill was exactly the same in both houses of Congress when approved, there is little doubt it will make it through the conference committee and be signed into law in coming weeks. This will be a grand and much needed victory for craft beer manufacturers across the country. Apparently beer was the only thing capable of uniting this most combative 115th Congress.

Perhaps the political factions within the Annapolis State House should take note. If the federal government is willing to sit down and listen to the concerns of craft brewers, and their need for the modernization of existing, incredibly antiquated laws, why shouldn’t the elected representatives serving in Annapolis? Say what you will about swampy, pay to play Washington politics, but nothing holds a candle to Maryland particularly if the Reform on Tap Act of 2018 does not get a FAIR and IMPARTIAL hearing before the legislature this session. Politicians must pay at the polls in 2018 if they do not heed the demands of their constituents (as a whole); not just the select group lining their campaign coffers.

Make your voices heard! Call your representatives and tell them (as a voter) what you require of them. If you have questions ask your local craft brewer, the Brewer’s Association of Maryland, or the Comptroller. Sign the petition HERE to make the Reform on Tap Act of 2018 a crucial component of the 2018 legislative session in Annapolis. Always remember they serve at OUR pleasure.

#SaveMDBeer
#BreweriesSaveMainStreet

Breweries and Neighborhood Revitalization

There is much excitement surrounding craft beer in Maryland. Over the course of the past two decades the number of craft breweries in the state has risen dramatically, along with a growing foundation of not just local, but regional and national fans of the Free State’s malt beverages. Coming off of the most recent Great American Beer Fest (GABF), many turn their thoughts towards medals and the ability to place ‘GABF award winner’ next to their beers in the taproom. That is all well and good, and Maryland has many GABF champions among her ranks; but is it the most important thing?  It would be easy to digress and discuss quality beer, and the varying palates as I have in the past, but that is not where this post leads. Instead, it is time to discuss what the breweries are doing on the ground, in your local community, and what benefit the average citizen (beer drinker or not) derives.

 

The phrase ‘economic impact’ sounds exciting, full of promise, and pleasing, particularly if you throw in a figure over $800 million. Often those numbers are viewed (and ogled or challenged as the case may be) from a somewhat esoteric and detached frame of reference. It all sounds good (or bad) but what does it really mean for the people living there? The easy answer is that breweries are building and rejuvenating communities. When Union Craft Brewing announced the Union Collective opening in 2018, the anticipation was great. Why? Primarily because of the impact they were already having upon their community since opening. Union Collective will extend its economic tentacles well beyond the initial brewery. Yes a larger space equates to more craft beer produced, more equipment to buy, more sales, more jobs that need to be filled, and more people visiting the taproom.  The oft misunderstood part of this is what it does for the neighborhood at large. Union is taking a vacant, deteriorating structure in a forgotten part of town and revitalizing it. Many partners have signed on to operate within the collective including Baltimore Whiskey Company, Earth Treks, and Charm City Creamery. This will not only draw a diverse market of consumers, it will also continue the critical process of revitalizing the community. Money coming in via jobs and tourism feeds the regeneration of the neighborhood. This includes buildings undergoing repairs, remodeling, and repurposing to attract businesses and new residents. It forces improvement in vital infrastructure like roads, schools, and utilities. Often property values rise once the first dominos (like the building of a new brewery) have fallen. Additionally, the purposeful community outreach and philanthropic work breweries across Maryland engage in must also be factored.

 

Recently NPR covered the opening of a small craft brewery in a remote town in Nebraska where they detailed a dying town looking for a way to breathe life back into it. The answer was a brewery.

 

“If your town isn’t growing, it’s dying.”[1]

 

No truer words have been spoken. It must also be said that the demographic that breweries tap into (pun intended) includes a younger crowd that is often the impetus for change. This was witnessed with the yuppies of the 1980’s that purchased and renovated older homes in moribund neighborhoods, improving entire community (and property values) right along with it. On any drive through Maryland and her cornucopia of towns and cities, detritus can be spotted in each and every one. It might be the old abandoned grocery store in Easton, or the long dormant Sellers Mansion in Baltimore, or a boarded up Mom and Pop corner store in Carroll County, but they have a common element- potential. If a brewer has a vision, these buildings can provide a home, and that can start a revolution.

 

We all want our cities and towns to thrive, with a reduction in crime, and greater participation in the work force for its inhabitants. Breweries are a critical driver toward that goal. To achieve this, our voices must be raised in concert and heard through the statehouse in Annapolis to change the laws and allow our great industry to flourish. Foment the brewing industry and we are all partnering in the rejuvenation of our forgotten communities and people.

 

Sláinte!

 


[1] Kirk Siegler, “Tapping Rural America: Craft Breweries Breathe New Life Into Small Towns.” NPR, October 7, 2017.