Topic Archives: Brewers Association

Boulder, CO – May 10, 2013–Three months after the Small Brewer Reinvestment and Expanding Workforce Act (Small BREW Act) was reintroduced in the House of Representatives as H.R. 494, the Brewers Association (BA)–the not-for-profit trade group dedicated to promoting and protecting America’s small and independent craft brewers–announced the Senate version of the Small BREW Act, S. 917, was reintroduced by Senator Ben Cardin (D-Md.) and Senator Susan Collins (R-Me.).

The Small BREW Act seeks to recalibrate the federal beer excise tax that small brewers pay on every barrel of beer they produce, reflecting the evolution of the overall brewing industry. An earlier iteration of the bill, S. 534, was introduced in 2011 during the 112^th Congress and enjoyed bi-partisan support.

Under current federal law, brewers making less than 2 million barrels annually pay $7 per barrel on the first 60,000 barrels they produce, and $18 per barrel on every barrel thereafter.  The Small BREW Act seeks to recalibrate that rate so that the smallest brewers and brewpubs would pay $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 have been anchors of local communities and America’s economy since the start of our history. In addition to making high-quality beers, craft brewers, including those in Maryland, create jobs and reinvest their profits back into their local economies,” said Senator Cardin, a member of the Senate Finance and Small Business committees. “The federal government needs to be investing in industries that invest in America and create real jobs here at home. With more than 2,400 small and independent breweries currently operating in the US, now is the time to take meaningful action to help them and our economy grow.”

“Maine is home to dozens of unique craft breweries and brewpubs that invigorate our economy by providing more than 1,000 jobs and drawing countless tourists into our state,” Senator Collins said. “In meeting with brewers across Maine, they always make clear to me how federal tax policy affects their businesses.  This bill, which I support, would help reduce the tax burden placed on many small brewers across our country, allowing them to thrive, create jobs, and further grow our economy.”

Nationally, small and independent brewers employ over 108,000 full- and part-time employees, generate more than $3 billion in wages and benefits, and pay more than $2.3 billion in business, personal and consumption taxes. Adjusting the tax rate would provide small brewers with an additional $60 million per year. This money would be used to support significant long-term investment, job creation, and economic expansion by growing their businesses regionally or nationally.

“Small brewers nationwide appreciate the leadership from Senator Cardin and Senator Collins on this issue and their unwavering support of the craft brewing community,” added Bob Pease, chief operating officer, Brewers Association. “We look forward to working with them and their Senate colleagues on the passage of this legislation, which will undoubtedly benefit our economy in the near and long term.”###

About the Brewers Association

The Brewers Association is the not-for-profit trade association dedicated to small and independent American brewers, their craft beers and the community of brewing enthusiasts. The Brewers Association (BA) represents more than 70 percent of the brewing industry, and its members make more than 99 percent of the beer brewed in the U.S. The BA organizes events including the World Beer Cup^®, Great American Beer Festival^®, Craft Brewers Conference & BrewExpo America^®, SAVORâ„ : An American Craft Beer & Food Experience and American Craft Beer Week^®. The BA publishes The New Brewer magazine and its Brewers Publications division is the largest publisher of contemporary and relevant brewing literature for today’s craft brewers and homebrewers.

Beer lovers are invited to learn more about the dynamic world of craft beer at CraftBeer.com and about homebrewing via the BA’s American Homebrewers Association. Follow us on Twitter.

The Brewers Association is an equal opportunity employer and does not discriminate on the basis of race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, or marital/familial status. The BA complies with provisions of Executive Order 11246 and the rules, regulations, and relevant orders of the Secretary of Labor.

Volume and Sales Significantly Outpaced the Overall Market in 2012

Boulder, CO – March 18, 2013– The Brewers Association (BA), the trade association representing small and independent American brewers, today released 2012 data on U.S. craft brewing¹growth. In a year when the total U.S. beer market grew by one percent, craft brewers saw a 15 percent rise in volume² and a 17 percent increase in dollar growth, representing a total barrel increase of almost 1.8 million.

With production at 13,235,917 barrels in 2012, craft brewers reached 6.5 percent volume of the total U.S. beer market, up from 5.7 percent the previous year. Additionally, craft dollar share of the total U.S. beer market reached 10.2 percent in 2012, as retail dollar value from craft brewers was estimated at $10.2 billion, up from $8.7 billion in 2011.

“Beer is a $99 billion industry to which craft brewers are making a significant contribution, with retail sales share hitting double digits for the first time in 2012,” said Paul Gatza, director, Brewers Association. “Small and independent brewers are consistently innovating and producing high quality, flavor-forward craft brewed beer. Americans are not only responding to greater access to these products, but also to the stories and people behind them.”

¹ The definition of a craft brewer as stated by the Brewers Association: An American craft brewer is small, independent, and traditional. Small: Annual production of beer less than 6 million barrels. Beer production is attributed to a brewer according to the rules of alternating proprietorships. Flavored malt beverages are not considered beer for purposes of this definition. Independent: Less than 25 percent of the craft brewery is owned or controlled (or equivalent economic interest) by an alcoholic beverage industry member who is not themselves a craft brewer. Traditional: A brewer who has either an all malt flagship (the beer which represents the greatest volume among that brewers brands) or has at least 50 percent of its volume in either all malt beers or in beers which use adjuncts to enhance rather than lighten flavor.

² Volume by craft brewers represent total taxable production.

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About the Brewers Association

The Brewers Association is the not-for-profit trade association dedicated to small and independent American brewers, their craft beers and the community of brewing enthusiasts. The Brewers Association (BA) represents more than 70 percent of the brewing industry, and its members make more than 99 percent of the beer brewed in the U.S. The BA organizes events including the World Beer Cup^®, Great American Beer Festival^®, Craft Brewers Conference & BrewExpo America^®, SAVORâ„ : An American Craft Beer & Food Experience and American Craft Beer Week^®. The BA publishes The New Brewer magazine and its Brewers Publications division is the largest publisher of contemporary and relevant brewing literature for today’s craft brewers and homebrewers.

Beer lovers are invited to learn more about the dynamic world of craft beer at CraftBeer.com and about homebrewing via the BA’s American Homebrewers Association. Follow us on Twitter.