• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Advertise
  • About Craft Brewing Business

Craft Brewing Business

Professional Insight, Unfiltered

Craft Brewing Business Craft Brewing Business
  • News
  • Business & Marketing
  • Packaging & Distribution
  • Equipment & Systems
  • Ingredients & Supplies
  • Webinars & White Papers
  • News
  • Business & Marketing
  • Ingredients & Supplies
  • Packaging & Distribution
  • Equipment
  • Webinars & White Papers
  • COVID-19

How the government shutdown is affecting the craft beer industry

October 7, 2013Keith Gribbins

beer american flag
Without new brewery permits or new labels moving through the approval process, many craft brands won’t be able to start operations or release new beers, which is terrible news for brewers and beer drinkers alike.

In an embarrassing display of political bickering, the U.S. government was obliged to close many of its operations last week as Congress failed to pass a spending bill on Oct. 1, which is the start of the new fiscal year. House Republicans held their ground till last Friday (which is when this article was written) in a standoff with President Barack Obama over bipartisan issues like the debt ceiling, sequester and Affordable Care Act, often called ObamaCare. Facing public anger over the government shutdown, the House has adopted a strategy of piecemeal funding for some federal agencies in some capacities — throwing money at the likes of the Veterans Administration and the National Institutes of Health. Of course, most branches of government are not being funded. Where it concerns craft brewers, much of the Alcohol and Tobacco Tax and Trade Bureau (TTB) has been sidelined.

Read all the strict parameters of the TBB shutdown right here, but for craft breweries, new permits for breweries are on hold and so are label approvals and new recipe approvals. We refer you to this excellent article by the ABC affiliate out of Cincinnati.

That means no new breweries can open, and existing breweries can’t bring new beers to market. This is especially harmful to the craft beer industry as any new beer formula that requires adjuncts (additives to the beer such as spices or fruit), also require oversight from the TTB to make sure the product is safe.

In an ironic twist of fate, while the office of the TTB that oversees labels and formulas is shut down, the office that handles excise taxes is still open.

We don’t think that’s ironic, if you presuppose irony to be the opposite of what the government would normally do. Of course, the taxman is always open, but no new beers and new breweries means the high velocity growth of the craft beer market is about to slow down — thanks to the big brains in the U.S. government. According to a report we posted last Thursday, craft beer had one of the largest percent gains of any beer category in 2012 — 14.4 percent — and now accounts for 6.3 percent of total beer volume. Its upward trajectory looked to continue in 2013. The number of U.S. breweries was rapidly climbing. Brewers Association Membership Coordinator Erin Glass reported the May 31 U.S. brewery count as 2,514. This count is up 422 from the May 31, 2012, count of 2,092, but now those growth numbers are on hold.

How is the shutdown affecting specific craft breweries? Well, here are some stories and quotes plucked from around the industry and Internet. If you have a story, please tell us below.

From the Cincy ABC affiliate mentioned above:

That pain is being felt quite acutely at some of the breweries in Cincinnati. Many of the brewers said they have formula and label applications that are now on indefinite hold and that means dire consequences for their budgets if they can’t move the product. At Fifty West [Brewing Co.] on the east side of the city, the owners said while they don’t have any applications to the TTB, the shutdown is affecting state agencies they have to deal with. The brewery is getting ready to expand, and some of the applications and approvals they need to get from state agencies are being held up because the shutdown at the federal level. At Blank Slate [Brewing Co.], owner Scott LaFollette said he has one beer that he has to hold in his fermentation tanks while waiting for approval and two more that he can’t even start work on because of the holdup.

From the Examiner.com:

The federal government requires all beer labels to include certain information, and if you’re sadistic enough you can read all label requirements here. Jacob McKean, CEO and Founder of Point Loma’s Modern Times Beer, spells out how a government shutdown can stifle the innovation process in the beer industry. “For better or worse, the TTB regulates a lot of what smaller breweries do, including approving labels for new beers. Without labels moving through the approval process, many breweries won’t be able to release new beers, which is terrible news for brewers and beer drinkers alike.”

From ARLnow.com:

Closer to home, Alexandria’s Port City Brewing Company has felt the effects of the shutdown. I asked Port City’s founder Bill Butcher about difficulties they were facing after he mentioned to me on Twitter that they were trying to deal with an SBA loan ahead of the shutdown. Butcher told me that Port City “…had to scramble ahead of the shutdown in order to expedite all of our paper work to get everything in before Monday.” Fortunately, Port City got the paper work in and had their loan approved over the weekend, but even with that they’re not yet in the clear: Butcher noted that “if something comes up that we need to change during this period,” — meaning the duration of the shutdown — “it will not be possible.”

From The Courant:

Connecticut’s breweries and brew pubs are reaching out to members of the Connecticut Army and Connecticut National Guard, along with other federal employees, who have been furloughed during the recent government shutdown. Several businesses will offer discounts and deals to affected employees. Among the participants: Back East Brewing in Bloomfield, Broad Brook Brewing in East Windsor, Cambridge House Brew,  PubCity Steam Brewery Cafe in Granby, in Hartford, Shebeen Brewing in Wolcott, Two Roads Brewing Co. in Stratford, Tullycross Tavern in Manchester and Willimantic Brewing Co. in Willimantic. Promotions vary; see ctbeertrail.net for details.

From the Growler:

Most of the established breweries we talked to didn’t seem too concerned with the TTB shutdown (as long as it doesn’t go on too long, many noted). “We should not be affected by the TTB shutdown,” said Jim Diley, co-owner of Fulton Brewing Co. “Generally, the TTB will continue to accept tax returns and tax payments.”

San Diego selected as site for 2023 Homebrew Con
The Brewers Association announces CBC travel grants to its 2023 Nashville conference
Maui Brewing and Modern Times unite under Craft ‘Ohana umbrella, make big personnel moves
Here are the 2022 World Beer Cup winners

Reader Interactions

Comments

  1. TheDaddyBadger says

    October 13, 2013 at 11:48 pm

    the government shut-down is affecting the #craftbeer industry http://t.co/zmyc4vAIHU via @craftbrewingbiz /// VIVA LA REVOLUTION!!!!!

    Log in to Reply
  2. EternityBrewing says

    October 12, 2013 at 10:02 am

    Our recent blog post and craft beer news: The Government Shutdown. http://t.co/1gM9HYd8EJ http://t.co/jIiYl1V0g0

    Log in to Reply
  3. Grovetoberfest says

    October 11, 2013 at 3:46 pm

    Did you know the government shut-down is affecting the #craftbeer industry? http://t.co/8JHzDPsUn2 via @craftbrewingbiz

    Log in to Reply
  4. DenverBeerGuy says

    October 10, 2013 at 9:48 am

    RT @GravityBrewlab: How the government shutdown is affecting the craft beer industry http://t.co/aqwuIJ9ODf via @craftbrewingbiz #craftbeer

    Log in to Reply
  5. GravityBrewlab says

    October 10, 2013 at 9:46 am

    How the government shutdown is affecting the craft beer industry http://t.co/aqwuIJ9ODf via @craftbrewingbiz #craftbeer

    Log in to Reply
  6. DrinkItWriteIt says

    October 10, 2013 at 9:11 am

    Now this has gone too far! How the government shutdown is affecting the craft beer industry http://t.co/IhLKGdVQlR #beer #shutdown

    Log in to Reply
  7. meaghanannallen says

    October 10, 2013 at 4:26 am

    NO. Too much, #GOP. How the government shutdown is affecting the craft beer industry http://t.co/KTqnbsrL3W via @craftbrewingbiz

    Log in to Reply
  8. DenverBeerGuy says

    October 9, 2013 at 5:45 pm

    RT @PourMeABeer: How the Craft Beer Industry is affected by the government shutdown http://t.co/NTxIn3KNk3 #beer

    Log in to Reply
  9. PourMeABeer says

    October 9, 2013 at 5:41 pm

    How the Craft Beer Industry is affected by the government shutdown http://t.co/NTxIn3KNk3 #beer

    Log in to Reply
  10. Brian_Martucci says

    October 9, 2013 at 4:58 pm

    Nice! Minnesota’s own @growlermag gets a mention from @CraftBrewingBiz re #shutdown #craftbeer #Minnesota http://t.co/x4JLbnSdKm

    Log in to Reply
  11. TroyVandenBosch says

    October 9, 2013 at 3:47 pm

    How the government shutdown is affecting the craft beer industry http://t.co/hFucDFEM5A

    Log in to Reply
  12. GovernmentClosd says

    October 9, 2013 at 3:33 pm

    RT @Wojocinco: Nooooo!!! RT “@Mike_Bares: @Wojocinco #CraftBeer #governmentshutdown http://t.co/VDCF6MUJLI”

    Log in to Reply
  13. Wojocinco says

    October 9, 2013 at 3:26 pm

    Nooooo!!! RT “@Mike_Bares: @Wojocinco #CraftBeer #governmentshutdown http://t.co/VDCF6MUJLI”

    Log in to Reply
  14. ShannonBrewery says

    October 9, 2013 at 3:01 pm

    How the government shutdown is affecting the craft beer industry http://t.co/MymSpxWmTD via @craftbrewingbiz

    Log in to Reply
  15. Mike_Bares says

    October 9, 2013 at 8:11 am

    @Wojocinco #CraftBeer #governmentshutdown http://t.co/THjmYZzFn8

    Log in to Reply
  16. Mike_Bares says

    October 9, 2013 at 8:02 am

    @T_MoneyG #CraftBeer #governmentshutdown http://t.co/THjmYZzFn8

    Log in to Reply
  17. DenverBeerGuy says

    October 8, 2013 at 9:46 pm

    RT @BeerzHerez: #craftbeer … How the government shutdown is affecting the craft beer industry http://t.co/9vLJSXBBTS

    Log in to Reply
  18. BeerzHerez says

    October 8, 2013 at 9:42 pm

    #craftbeer … How the government shutdown is affecting the craft beer industry http://t.co/9vLJSXBBTS

    Log in to Reply
  19. eric_b_wood says

    October 8, 2013 at 6:16 pm

    @Bmsouthern http://t.co/6oE9sx3KXG

    Log in to Reply
  20. CraftBeerDrunk says

    October 8, 2013 at 2:13 pm

    RT @Dukester: How the government shutdown (or slimdown if you watch Fox) is affecting the craft beer industry. http://t.co/Yw6agUgmEl #craf…

    Log in to Reply
  21. Dukester says

    October 8, 2013 at 1:43 pm

    How the government shutdown (or slimdown if you watch Fox) is affecting the craft beer industry. http://t.co/Yw6agUgmEl #craftbeer

    Log in to Reply
  22. trubman says

    October 7, 2013 at 11:35 pm

    How the government shutdown is affecting the craft beer industry http://t.co/WKEbiNpqwQ

    Log in to Reply
  23. MyBeerGuy says

    October 7, 2013 at 10:52 pm

    How the government shutdown is affecting the craft beer industry http://t.co/Q7GoNf3pKr

    Log in to Reply
  24. BrewandCovered says

    October 7, 2013 at 10:30 pm

    RT @brewmanity: Have they no sense of decency?! How the government shutdown is affecting the craft beer industry (http://t.co/U5NkiOEF88)

    Log in to Reply
  25. DenverBeerGuy says

    October 7, 2013 at 8:29 pm

    RT @brewmanity: Have they no sense of decency?! How the government shutdown is affecting the craft beer industry (http://t.co/U5NkiOEF88)

    Log in to Reply
  26. brewmanity says

    October 7, 2013 at 8:23 pm

    Have they no sense of decency?! How the government shutdown is affecting the craft beer industry (http://t.co/U5NkiOEF88)

    Log in to Reply
  27. TheBottleWrench says

    October 7, 2013 at 7:54 pm

    RT @TheBeerAce: How the government shutdown is affecting the craft beer industry http://t.co/ofVEDmGdrR via @craftbrewingbiz

    Log in to Reply
  28. CeppWepp says

    October 7, 2013 at 6:32 pm

    http://t.co/jO9zr7sa0Y

    Log in to Reply
  29. InnBeerEmporium says

    October 7, 2013 at 2:54 pm

    RT @TheBeerAce: How the government shutdown is affecting the craft beer industry http://t.co/ofVEDmGdrR via @craftbrewingbiz

    Log in to Reply
  30. 177IT says

    October 7, 2013 at 1:57 pm

    RT @TheBeerAce: How the government shutdown is affecting the craft beer industry http://t.co/ofVEDmGdrR via @craftbrewingbiz

    Log in to Reply
  31. coloradobrewers says

    October 7, 2013 at 1:57 pm

    RT @TheBeerAce: How the government shutdown is affecting the craft beer industry http://t.co/ofVEDmGdrR via @craftbrewingbiz

    Log in to Reply
  32. DenverBeerGuy says

    October 7, 2013 at 1:53 pm

    RT @TheBeerAce: How the government shutdown is affecting the craft beer industry… http://t.co/ipdHjGAgI0

    Log in to Reply
  33. DenverBeerGuy says

    October 7, 2013 at 1:53 pm

    RT @TheBeerAce: How the government shutdown is affecting the craft beer industry http://t.co/ofVEDmGdrR via @craftbrewingbiz

    Log in to Reply
  34. TheBeerAce says

    October 7, 2013 at 1:46 pm

    How the government shutdown is affecting the craft beer industry… http://t.co/ipdHjGAgI0

    Log in to Reply
  35. TheBeerAce says

    October 7, 2013 at 1:46 pm

    How the government shutdown is affecting the craft beer industry http://t.co/ofVEDmGdrR via @craftbrewingbiz

    Log in to Reply

Leave a Reply Cancel reply

You must be logged in to post a comment.

Primary Sidebar

Latest News

  • Cadaverine: When your beer smells like dead human
  • Unfiltered: There are weevils in my grain – what do I do?
  • Festo takes new approach with VZXA angle seat valves
  • People news: Industry icon John Mallett steps down from Bell’s + moves from Craft ‘Ohana, BrewDog USA and more

Sign up for our newsletter

unsubscribe from list

Most Popular Today

Recent Features

  • Cadaverine: When your beer smells like dead human
    January 26, 2023
  • beer taps brain distribution cbb cropUnfiltered: There are weevils in my grain – what do I do?
    January 26, 2023
  • People news: Industry icon John Mallett steps down from Bell’s + moves from Craft ‘Ohana, BrewDog USA and more
    January 25, 2023
  • Premium beer products were one of the top growth markets of 2022, says IWSR 
    January 23, 2023
  • Fair State Brewing Cooperative launches Minnesota’s first cannabis beverage fulfillment, copacking and distribution center
    January 23, 2023
  • Fat-Tire-cansFat Tire and other craft beer legacy brand updates to know in 2023
    January 17, 2023

Footer

  • Email Newsletter Sign Up
  • About Craft Brewing Business
  • Contact Us
  • Advertise on Craft Brewing Business
  • Media Kit Download
  • Privacy and Terms

© 2023 · CBB Media LLC