The Brewers Association (BA) board of directors is making clear its opposition to spirits groups’ tax equalization efforts, as well as its stance on climate change in a pair of recently approved “position statements.”
The national trade group representing the interests of small and independent brewery owners said these statements are intended “to help inform brewery and associate members of the importance of these issues and can be used to show legislators and regulators that the industry is concerned about securing the future for small brewers.”
The position statement on the “difference between beer and liquor” was created by BA general counsel Marc Sorini and reviewed by its government affairs committee before advancing to the full board.
“The growing efforts by the liquor industry to receive the same tax rate as brewers in the states, and have beneficial rulings in terms of market access and distribution access for ready-to-drink canned cocktails threatens the competitiveness of beer against liquor,” the trade group wrote in a news update on its website.
The position statement on equalization efforts is as follows:
“The recognition that beer and liquor are fundamentally different beverages, necessitating distinct regulatory treatment, is a core tenet of alcohol regulation in the United States. Reflecting beer’s status as the beverage of moderation and its contributions to the economy, it has historically and correctly been subject to lower excise tax rates and less stringent distribution restrictions than liquor.
“While recognizing that changes in society or technology sometimes merit changes in the law, nothing has altered the important differences between beer and liquor. Liquor companies have thrived in the current tax and regulatory environment, so the BA sees no need to change long-standing and successful policies merely to enhance the profitability of those companies. We accordingly support distinct beer and liquor excise tax rates and oppose efforts to treat liquor as if it were beer.”
The move follows Boston Beer Company founder Jim Koch urging beer industry trade groups to oppose efforts to bring the tax rates between spirits-based, ready-to-drink canned cocktails in line with beer products in several states, including New Jersey. Those efforts were later pulled from consideration by state lawmakers but are expected to resume later this year.
In addition to formalizing its position on equivalency efforts, the BA board put in writing its stance on climate change. The position was created in a working group made up of members of the supply chain and sustainability subcommittees, the government affairs committee, the board, and BA staff. The statement reads:
“Climate change poses current and long-term environmental, social, and economic risks to craft brewers, our supply chains, and our communities. The BA provides resources to facilitate member initiatives to reduce greenhouse gas emissions and to support science-based policies and actions aimed at averting irreversible global temperature change and moving towards a low-carbon economy.”
Beyond position statements, the BA’s board also amended the organization’s bylaws to reduce the number of at-large board seats from six to five, while increasing the number of taproom board seats from two to three. The BA said the change will allow taproom brewery members to elect a board member each year.
The taproom membership class was created in 2018.