NJ Lawmaker to Attempt Roll Back of Taproom Event Limitations
Following the New Jersey Division of Alcoholic Beverage Control’s (NJABC) move to enforce special conditions that restrict craft breweries’ ability to host events and offer food, state Sen. Michael Testa has announced he will introduce a bill to counter the restrictions.
The conditions – which Testa called “disastrous and destructive” in a press release – were introduced in 2019, but went unenforced during the COVID-19 pandemic. The NJABC said they would begin enforcing the conditions during the 2022-2023 license cycle, which began on July 1.
“In my opinion, the ABC fell far short treating our local breweries fairly, which we must address with new legislation to aid these small businesses,” Testa said in the release. “These breweries, like most small businesses, suffered under Governor Murphy’s pandemic shutdowns and restrictions. To increase their burden with these new rules only adds insult to injury.”
Under the conditions, limited brewery licensees cannot coordinate with any food truck or pop-up food vendor to offer meals on brewery premises and are restricted to 25 public and 52 private on-site events per year, among other limitations. The 25 public events include activities such as trivia, paint nights, live music and yoga classes – all of which are regular occurrences at breweries nationwide. Breweries must notify NJABC 10 days prior to an event
Testa said he plans to introduce the legislation in several weeks during the next Senate quorum.
CEOs Call on President to Repeal Section 232 Aluminum Tariffs
Leaders of the four largest U.S. beer manufacturers sent President Joe Biden a letter on July 1 calling for the repeal of the Section 232 tariffs imposed on aluminum by former President Donald Trump, saying “tariff relief results in inflation relief.”
The letter was signed by Gavin Hattersley, president and CEO of Molson Coors Beverage Company and chairman and acting president of the Beer Institute; Brendan Whitworth, CEO of Anheuser-Busch InBev’s North America zone; Jim Sabia, EVP and president of Constellation Brands’ beer division; and Maggie Timoney, CEO of Heineken USA.
They wrote that the tariffs continue to “burden breweries of all sizes.”
“Eliminating the tariffs will alleviate pressure and allow us to continue our vital role as strong contributors to this nation’s economy,” they wrote.
The CEOs added that the beer industry uses more than 41 billion aluminum cans a year, and since the implementation of the tariffs in 2018, the U.S. beverage industry has paid more than $1.4 billion in Section 232 tariffs. The tariffs have led to increased production costs for aluminum end-users and higher prices for consumers.
“Just as concerning is that of the $1.4 billion ostensibly paid in tariffs, 92% did not go to the U.S. Treasury,” they wrote. “We applaud your administration’s efforts to negotiate lifting tariffs off individual countries. However, those efforts to provide economic relief to American consumers have no effect if end-users – such as U.S. brewers – are charged a tariff-burdened price regardless of whether the metal should be tariffed based on its content or origin.”
The CEOs called on the Biden Administration to investigate “aluminum market manipulation and benchmarking” and “bring much needed transparency to the marketplace and relief to end-users and American families.”
North Carolina Nixes Bill to Expand RTD Market Access
A bill that would have expanded market access for spirits-based, ready-to-drink (RTD) canned cocktails in North Carolina failed to advance in the state Legislature before it adjourned on July 1.
House Bill 904 would have created a new legal definition for RTDs between 0.5%-9.5% ABV as “low alcohol beverage coolers” that categorized them as fortified wine, paving the way for the spirits-based drinks to be sold outside of state-run liquor stores. North Carolina is a control state in which boards run by the county or municipal governments oversee the sale of spirits.
The Beer Institute (BI), the trade group that represents the nation’s larger brewers, called it “the latest in a string of similar moves that stand up for America’s beer businesses.”
“Lawmakers in North Carolina are sending a message to hard liquor: beer and liquor are not the same,” BI director of public affairs Alex Davidson said in a press release. “Large liquor companies don’t need special tax hand-outs, especially after recording more than $3.8 billion in profits last year. North Carolina lawmakers are right to focus their efforts on domestic job creators and working families who need help as they recover from the pandemic and face rising inflation.”
The spirits industry is advocating for lower excise taxes and expanded market access for RTDs, which have similar ABV levels to beer and products categorized as beer such as hard seltzers. Bills that would have achieved these goals stalled or failed during the legislative sessions in several states this year, including Alabama, Arizona, Hawaii, Kentucky, Maryland, Washington and West Virginia, according to the BI.
Last month, Vermont enacted a law that created a separate class for RTDs up to 12% ABV, allowing them to be sold at licensed beer and wine retailers. In addition to expanding market access, Vermont also lowered excise tax from $7.68 per gallon to $1.10 per gallon, twice the rate for wine and quadruple the rate for beer.
In Michigan and Nebraska, which lowered RTD excise tax rates, retail prices for the products increased 2.3% and 2.1%, respectively, the BI said.
Activists Deem Kirin’s Exit from Myanmar ‘Irresponsible’
Kirin Holdings transferred all shares it owned of Myanmar Brewery Limited (MBL) back to Myanma Economic Holdings Limited (MEHL) as part of a share buyback transaction on June 29.
Plans to divest were first announced in 2021 after military generals with ownership in MEHL overthrew Myanmar’s democratically elected government. At the time, Kirin owned 51% of MBL, according to Inside Beer. Kirin also divested of its share of the smaller Mandalay Brewery in the same transaction.
Human rights group Justice for Myanmar said in a press release Kirin’s divorce from MEHL “will ensure a continued stream of revenue to finance atrocity crimes.”
“Kirin appears to be excusing this irresponsible exit by claiming it is in the best interests of workers,” Justice for Myanmar spokesperson Yadanar Maung said in the release. “The responsible move is to deny funds to the terrorist Myanmar military and remedy negative impacts to workers through compensation.
“Instead, Kirin has chosen to prioritise their bottom line over their human rights responsibilities and the lives of the people of Myanmar, who are subjected to daily arrest, murder, torture, the burning of homes and villages, indiscriminate airstrikes and shelling by the Myanmar military.”
Maung called on Kirin to reverse the sale.
Heineken to Build $90M Can Facility in Mexico
Heineken will invest $90 million in a new can manufacturing plant near its brewery in Mequoi in the Mexican state of Chihuahua, the company announced last week.
The project is expected to generate 150 jobs during construction and 120 jobs after the facility opens. In Mexico, bottles (60%) still account for the majority of beer packaging, while cans account for nearly 40%.
After almost 10 years, We're closing our doors this Sunday Night.
Thank you DMV for all of your support! Over the years you gave us the opportunity to Experiment, Help Build a Community of Beer Lovers, & Celebrate with you, and we will always have love for you! pic.twitter.com/pqOdjuafDe
— 3 Stars Brewing Co. (@3starsbrewing) July 8, 2022
3 Stars Brewing to Close
Washington, D.C.-based 3 Stars Brewing Co. announced today that it will permanently close on Sunday night (July 10) after 10 years.
“Thank you DMV for all of your support!,” the company wrote on its Twitter profile. “Over the years you gave us the opportunity to experiment, help build a community of beer lovers, & celebrate with you, and we will always have love for you!”
Nigel, 3 Stars’ brewery cat, will be going to live with the company’s event planner, according to the Twitter thread.
In 2021, 3 Stars produced 3,500 barrels of beer, according to the Brewers Association.
Extreme Beer Fest: Bay Area Event Canceled
Next Glass-owned BeerAdvocate has canceled the Extreme Beer Fest event that was slated to take place August 26-27 in Richmond, California.
“Based on industry feedback and logistical issues that are beyond our control, it’s become clear that we won’t be able to successfully host Extreme Beer Fest: Bay Area,” Beer Advocate founder Todd Alström wrote in a forum post on June 15. “Personally, I’m gutted as BeerAdvocate is known for our in-person fests, they have deep roots within our community, and we haven’t hosted one since early 2020.”
Alström wrote that all ticket holders would receive a full refund. In the meantime, he added that BeerAdvocated would “be taking a step back, working on another virtual beer fest, and exploring bringing some old-school, in-person, BeerAdvocate Fests back in 2023.”
Until then, Alström urged beer drinkers to support Ales for ALS or attend one of their events over the next two months.
Craft Beverage Warehouse Rolls Out Digital Can Printing
Milwaukee-based Craft Beverage Warehouse launched its direct-to-beverage can digital print operations on June 27.
“Our direct-to-can digital print process is a replacement for the plastic shrink sleeve, removing plastic from the aluminum can recycling process and ultimately making it more sustainable,” president and co-founder Kyle Stephens said in a press release.
As part of the project, the company is launching a new website and ordering platform that will help guide customers through the artwork submission and ordering process “from start to finish,” which will cut down on email and phone interactions “that can often slow down the process.”
“With this new digital print process, we are charged with bringing those designs to life — and we don’t take that lightly,” Stephens added. “We’re able to provide some new and seriously cool print techniques to make our customers’ packaging pop on the shelf.”
In November, Stephens told Brewbound that the company’s goal is to provide a minimum order option of half a pallet, or 3,500 cans per SKU. He expects the average order volume to be around 10,000 cans per SKU.