In its second quarterly town hall meeting for members earlier this week, Brewers Association (BA) leadership detailed the organization’s upcoming legislative priorities, among other plans.
The BA, which represents the nation’s small and independent brewers, is advocating for several measures at the federal level that would support craft breweries, whose businesses have been upended by the COVID-19 pandemic.
These measures include:
- An extension of pandemic relief funding, including the Paycheck Protection Program (PPP) and the ability for recipients to write off the forgivable portion of their PPP loans;
- Tax relief, including making permanent or extending current federal excise tax rates and a tax credit for perishable goods lost during pandemic-related closures in the spring;
- And assistance for holders of 7(a) or 504 loans through the Small Business Administration.
After Congressional negotiations over an additional pandemic-related stimulus package stalled, a bipartisan group of senators proposed a $908 billion plan that includes $288 billion in aid to small businesses in the form of PPP loans and Economic Injury Disaster Loans (EIDL).
“In the next legislative package, the Brewers Association is advocating for multiple priorities, starting with additional funding for the Payroll Protection Program, as well as reopening that program to allow small businesses who can show 25% reduction in revenue over three quarters the ability to get a second round of funding,” director of federal affairs Katie Marisic said. “We’re also advocating for allowing deductibility of the PPP loan money that is forgiven, the one that people were using on business expenses. So people are not hit with an additional tax liability.”
Although several relief packages have been discussed — such as the Health and Economic Recovery Omnibus Emergency Solutions Act (HEROES Act), which the House passed in May — the $908 billion Senate bill “is getting the most traction,” Marisic said.
The bill does not include the Restaurants Act, which would provide $120 billion in grants to on-premise establishments and was introduced in both houses of Congress in June. Although it has not progressed, the BA is “continuing to advocate for it,” Marisic said.
“This is something that the Brewers Association has worked hard to lobby on,” she said. “The initial language was very broad, and we were able to get language added specifically saying that breweries, brewpubs, taprooms, tasting rooms and on-premise locations would be able to have access to the grants in the Restaurants Act.”
The House of Representatives approved Wednesday afternoon a one-week spending bill ahead of its December 11 deadline to fund the government so stimulus bill talks can continue.
A tentpole of the BA’s federal government outreach has been advocating for the Craft Beverage Modernization and Tax Reform Act (CBMTRA), which would make permanent the current reduced federal excise tax rates for craft alcohol producers. BA president and CEO Bob Pease, with other leaders of beverage trade associations, sent a letter to Congressional leadership on Tuesday imploring them to act on CBMTRA.
“It is vital to our industries that this important legislation be included in the next appropriate legislative package and swiftly acted upon before the end of the year,” they wrote. “Our members have struggled as fewer Americans dine outside of their homes, travel or gather for events to prevent the further spread of COVID-19.
“In 2018, our industries supported more than 5.4 million jobs across the country and generated more than $562 billion in economic activity,” the letter continued. “By contrast, this year, producers across the country have seen dramatic declines in revenue, suspended production, furloughed or laid off employees and closed their doors to visitors. These changes have impacted not only the livelihoods of their employees — but also the livelihoods of farmers, distributors, truck drivers, warehouse workers and countless others connected to the industries.”
CBMTRA has “extreme support” in Congress, Marisic added.
“There are 350 co-sponsors in the House and 76 co-sponsors in the Senate — by far one of the most bipartisan, bicameral packages that is out there,” she added.
State-Level Outreach and Guild Support
At the federal level, the BA is lobbying for pandemic relief for 501(c)6 organizations — non-for-profit groups that promote business, such as chambers of commerce and trade associations such as the BA and state-level guilds. They were ineligible for PPP loans and many, like the BA, had to lay off staff, including former BA guilds manager Acacia Coast.
To bolster its relationships with state guilds, the BA has created a state guilds subcommittee that falls under the organization’s government affairs committee.
Subcommittee members include:
- Josh Aubuchon, Florida Brewers Guild;
- Michelle Forster, Wyoming Craft Brewers Guild;
- Paul Leone, New York State Brewers Association;
- Mary MacDonald, Ohio Craft Brewers Association;
- Tom McCormick, California Craft Brewers Association;
- Lauren Bennett McGinty, Minnesota Craft Brewers Guild;
- Annie McGrath, Washington Brewers Guild;
- Sharon Michie, Tennessee Craft Brewers Guild.
McGinty, the subcommittee’s chairwoman, also sits on the Government Affairs Committee, as do Aubuchon and McCormick, who will be replaced by his successor, incoming CCBA executive director Lori Ajax, after his December 31 retirement.
“The top guild leaders approached us looking for a more formal communication channel for guilds to get their issues in front of the BA at the highest levels,” state and regulatory affairs manager Pete Johnson said.
In an additional move to support state guilds, the BA this week launched a mentorship program to pair newer guild leaders with more experienced peers.
On state-level government affairs, the BA takes direction from guilds and offers support when requested. Of late, guilds are looking to make permanent privileges states extended during the pandemic, such as home delivery, direct-to-consumer shipping and expanded options for to-go sales.
“We’ve taken a look at executive orders that have been issued by governors and states across the country, as well as any legislation that’s been introduced and acted on in state legislatures concerning those loosened restrictions,” Johnson said.
The BA has created a database of recent expanded privileges in states as a way of “trying to get that all in one place to provide a resource for guilds to help them better seek either extension or permanency of those rights,” he added.
Small Brewery Sunday and More Marketing Efforts
The BA’s marketing push for its second annual Small Brewery Sunday on November 29 was the organization’s “largest beer holiday to date,” marketing director Ann Obenchain shared.
Starting last year, the BA’s consumer-facing marketing efforts have centered on three beer-centric holidays intended to raise awareness and drive traffic to the nation’s craft breweries: American Craft Beer Week in May, Independent Beer Run Day in July, and Small Brewery Sunday following Thanksgiving.
This year, Small Brewery Sunday generated 7 billion media impressions through earned media in publications including USA Today and Food & Wine and “many” local broadcast news stories throughout the country, Obenchain said.
“Our partner at Untappd said it was the largest two-week promotion that they’ve ever seen, with more than 4 million social shares and nearly half a million badges that were unlocked, so thank you for participating,” she said.
The BA plans to continue encouraging on-premise sales at breweries and taprooms on social media.
“We know how important it is right now to keep driving business to you through colder months, whether it’s for takeout, delivery, online or dine in, where possible,” Obenchain said. “So, we’re going to be keeping that drumbeat going on social media throughout the month of December and into early January, with the Support Your Local Brewery campaign, being paid on social media.”
In 2021, the BA will bring back its three beer-centric holidays and plans to introduce a new nationwide on-premise campaign in the spring.