Big Storm Brewing Spearheads Relief Efforts in Hurricane Ian’s Wake
As residents of southwest Florida begin to grapple with the effects of Hurricane Ian, Clearwater-based Big Storm Brewing will fill water jugs and open some of its taprooms as supply drop-off points for people in need.
Ian came ashore as a Category 4 hurricane on Wednesday. Florida Gov. Ron DeSantis estimated 21 residents have died, a number that is expected to climb as recovery efforts progress. Nearly two million people are without power in the region, according to ABC News.
“We are open and the whole reason to be open is so we can be a drop-off site,” Big Storm co-owner L.J. Govoni said in a press release. “Our hearts go out to those hit the hardest by Ian, and we are rallying the Tampa Bay community as fast as we safely can to help what could be hundreds of our fellow Floridians in crisis.”
Big Storm operates taprooms in Clearwater, Odessa, Orlando and Cape Coral. The former two are open and serving as collection points for donations of non-perishable foods, personal care items and cleaning and sanitation supplies. The taproom in Cape Coral, a town hit hard by Ian, appears to have experienced extensive storm damage, according to a tweet from Govoni.
Cell service is so bad in #swflorida right now. Only 2 pix that they could get us from our #capecoralfl location. Pray for everyone that lives there. This is going to be a very long few months. pic.twitter.com/bcEAe3rh8S
— LJ Govoni (@LJGovoni) September 30, 2022
Islamorada Beer – based in Fort Pierce on Florida’s Atlantic coast, which was spared by the storm – will also serve as a collection point.
In a video posted to social media, Govoni thanked donors for their contributions and welcomed support from relief organizations.
“We’ve got a lot of neighbors and friends that are hurting right now, so thank you so much for helping us,” he said. “Any other groups, foundations, nonprofits, and charitable missions that want to piggyback off what we’re doing, we would love the help.”
A message from @LJGovoni regarding the SWFL relief effort. If you are in any position to help, please reach out. pic.twitter.com/5m1owr6g5S
— Big Storm Brewing Co (@BigStormBrewing) September 29, 2022
The National Hurricane Center has issued a warning that Hurricane Ian is strengthening over the Atlantic Ocean and could bring a “life-threatening storm surge” to the coast of South Carolina.
Death of the Fox Files Lawsuit Against New Jersey’s ‘Draconian’ Taproom Restrictions
One Garden State brewer has filed a lawsuit against the New Jersey Division of Alcoholic Beverage Control (NJABC), which announced this summer it would begin enforcement of operating restrictions on limited brewery licensees.
Clarksboro, New Jersey-based Death of the Fox Brewing has filed a lawsuit in the Superior Court of New Jersey Appellate Division over what its lawyers have called “unlawful brewery restrictions.”
The issues stem from a special ruling the NJABC issued in 2019 that limited most of the state’s 130 craft breweries to hosting 25 special events each per year (including standard weekly events hosted at breweries across the country, such as trivia nights and yoga classes), prohibits them from serving food or inviting food trucks to operate nearby, and bans them from selling any beverages that were not produced onsite.
Death of the Fox is the state’s only combined coffee roaster and craft brewery and was allowed to continue selling its own coffee, according to a Facebook post.
The NJABC has argued that the special conditions exist to “strike a fair and appropriate balance between the interests of full retail license holders, such as restaurants and bars, and the craft brewing industry,” a spokesperson told Brewbound in July.
The Pacific Legal Foundation (PLF), which is representing Death of the Fox pro bono, argues that bars and restaurants are fundamentally different from breweries because “breweries can sell only their own product.”
“These rules exist only to protect established businesses by hamstringing newcomers’ ability to thrive. But they are unlawful,” PLF wrote. “For one, capping the number of ‘on-site special events’ that may be advertised violates the First Amendment.
“State law also requires that rulemaking agencies follow proper notice-and-comment procedures when imposing new rules; they must also submit a proposed rule to the legislature,” the foundation continued. “The NJABC did neither, which means the whole laundry list of rules imposed through the ABC’s Special Ruling are invalid.”
New Jersey legislators have filed several bills that would loosen restrictions on the state’s breweries and are preparing to tweak the regulations, according to the New Jersey Monitor.
Minneapolis’ Able Brewery to Close October 1
Minneapolis-based Able Seedhouse and Brewery will shut its doors on Saturday, October 1, after seven years in business, the brewery announced.
“In [seven] years the world and our business has changed so much,” Able Brewery wrote in an Instagram post. “Many of you have grown with us, started families, moved here and away and changed a lot from the first day we poured our beer in November of 2015.”
The brewery’s output increased +15% in 2021, to 1,715 barrels, according to the Brewers Association’s (BA) May/June issue of the New Brewer magazine. The pandemic caused Able Brewery’s volume to decline -32% in 2020, to 1,490 barrels, its lowest since its first full year in business (1,054 barrels in 2015, according to the May/June 2020 New Brewer).
Able Brewery’s taproom is slated for transformation, as it will “reopen shortly under the leadership of a new entity who is buying the production and taproom assets from Able Brewery,” the company wrote.
“We’re excited that the legacy of our beautiful taproom will live on with new energy and a new team,” Able Brewery said.
Colorado’s El Rancho Brewing Files for Chapter 11 Bankruptcy Protection
A month and a half after being listed for sale, Evergreen, Colorado-based El Rancho Brewing has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Colorado.
According to court filings, El Rancho owes $3,558,010.98 to its 20 largest unsecured creditors, which includes the claims of two partially secured creditors: First Bank, which is owed $1.45 million, and the Small Business Administration’s Colorado District Office, which is owed $920,004.23.
Unsecured creditors include the Internal Revenue Service, which is owed $555,793.85 in unpaid federal withholding tax; the Jefferson County Treasurer, which is owed $449,079.57 in various local taxes; and Shamrock Foods, which is owed $42,099.33.
El Rancho estimated both its assets and liabilities are between $1,000,001 and $10 million. First Bank filed a foreclosure motion on the nearly $1.5 million loan in July, according to BusinessDen. The Vincent family, El Rancho’s owners, took out the loan when they acquired the property in 2015.
The 21,885 sq. ft. building and the 4.4 acres it sits on are still listed for sale on Hilco Real Estate’s website, despite bids being due on September 6.
Last year, El Rancho produced 420 barrels of beer, according to the BA.
67 Degrees Brewing to Helm Boston City Hall Plaza Beer Garden
Franklin, Massachusetts-based 67 Degrees Brewing has been selected to operate a seasonal beer garden on Boston City Hall Plaza, Mayor Michelle Wu announced this week.
The beer garden opened Wednesday, September 28, and will run until early November through a partnership between the city’s Office of Economic Opportunity and Inclusion (OEOI) and Property Management Department.
“City Hall Plaza is a space to bring people together and build community,” Wu said in a press release. “I’m grateful to 67 Degrees Brewing and excited to welcome residents, workers and visitors to join us at the newly reopened Beer Garden at Fischer Park on City Hall Plaza.”
67 Degrees is a Black, woman and veteran-owned company that opened in 2020.
Diageo to Depart DISCUS, Focus on Internal Initiatives
Diageo is parting ways with the trade association the Distilled Spirits Council of the United States (DISCUS), Politico reported this week.
The bev-alc giant will not renew its DISCUS membership at the end of the year and will instead focus on internal initiatives, including promoting sustainability; diversity, equity and inclusion (DEI); and safe drinking practices. The split is reportedly “amicable,” with the door open for Diageo to return in the future.
“Like most companies, we periodically review our memberships in industry organizations, and we make decisions based on what we believe is in the best interest of our company,” Diageo spokesperson Lorenzo Lopez told Politico. “At this time, we have chosen to focus our resources on key strategic priorities which we would like to pursue, but we will remain an active and committed player in the industry.”
Diageo is one of 17 DISCUS director members, according to the trade group’s website. The company has worked closely with DISCUS on its recent DEI efforts – a significant priority for DISCUS in 2022 – through its partnership with Pronghorn, a group dedicated to correcting inequity in the bev-alc industry, in which Diageo is an anchor investor. That work is expected to continue, as well as Diageo’s work with the Foundation for Advancing Alcohol Responsibility – or Responsibility.org – a DISCUS-run foundation to end drunk driving and underage drinking, and promote responsible alcohol consumption.
“We acknowledge Diageo’s decision and express thanks and appreciation for their significant contributions over the years, working alongside DISCUS and their peers to help modernize the marketplace for the distilled spirits industry,” DISCUS CEO Chris Swonger said in a statement.
The news follows DISCUS’ Annual Public Policy Conference, co-hosted with the American Craft Spirits Association (ACSA) earlier this month. A priority topic for the event was rallying support for the USPS Shipping Equity Act, which would allow the United States Postal Service to ship beverage-alcohol to consumers.
DISCUS also announced a commitment this week to provide serving facts information – including serving size, calorie count and carbohydrate, protein and fat grams – on spirits products distributed by its members by June 2024. The commitment came out of the White House Conference on Hunger, Nutrition and Health, held on September 28. Diageo was still listed as a participating member at the time of the announcement.
JuneShine Nixes Home Delivery Service
Hard kombucha maker JuneShine has ceased its direct-to-consumer (DTC) sales via online ordering and home delivery, citing sustainability concerns and rising shipping costs.
“We know this is a big change for our loyal home delivery customers, but we’re looking forward to getting deliciously cold JuneShine on more shelves at stores, restaurants, venues, and bars, than ever before,” the company wrote in a blog post. “With sustainability as a core focus of our brand and the drastic increase in inflation and shipping costs, we no longer can provide a home delivery business that meets our sustainability standards.”
Texas’ Buffalo Bayou Brewing Sued for Nonpayment of Financial Services
A financial services firm has filed a lawsuit against Houston, Texas-based Buffalo Bayou Brewing (BuffBrew), claiming the brewery has failed to pay a $94,000 transaction fee owed to the firm, according to the Houston Chronicle.
Pimuro Capital Partners began working with BuffBrew in August 2021 after the brewery enlisted its services to increase revenue and reduce costs. Court documents describe BuffBrew’s situation as one of “a failing Houston-based brewing company in dire financial straits,” according to the Chronicle.
Earlier this year, BuffBrew defaulted on $1 million in crowdfunding payments raised on NextSeed in 2017 and 2018, which were used to fund a new brewery that opened in November 2019. Crowdfunding platforms such as NextSeed and Kickstarter have been popular among craft breweries looking to raise capital; however, investors – usually consumers – are often met with mixed results.
BuffBrew raised the $1 million it defaulted on from 583 investors to whom seven payments were made, according to NextSeed. To incentivize investors, BuffBrew offered generous perks, such as one free beer daily in perpetuity to anyone who invested $1,000 or more.
Because the brewery reached its $1 million goal, it agreed to pay investors back at a 1.9x multiple over the 78-month life of the loans. Those payments were never made in full.
BuffBrew produced 13,500 barrels of beer in 2021, according to the BA.
Georgia’s Tucker Brewing Forced to Pay Back Wages
The U.S. Department of Labor (DOL) forced Tucker, Georgia-based Tucker Brewing to pay back $8,149 in back wages and damages to two former employees.
The former workers asked about their earnings and Tucker’s tip-sharing system, and brewery management terminated both as a result, despite the written inquiry being protected by the Fair Labor Standards Act.
“Two workers were well within their rights to ask about how they were being paid, especially when they believed the employer’s pay practices were unfair or incorrect,” DOL wage and hour division district director Steven Salazar said in a press release. “Employers should review their pay and other employment practices to avoid legal and financial headaches. Listening to employees’ concerns about workplace compliance can be good for the business and all the company’s workers.”
Tucker Brewing produced 1,475 barrels of beer in 2021, according to the BA.