Oregon Lawmakers Weigh $70 Per Barrel Tax Hike for Breweries
Oregon lawmakers are considering a tax hike on alcoholic beverages that would increase taxes on malt beverages by $70 per barrel.
The bill (House Bill 3296), which was introduced in the Oregon state Legislature last week, proposes increased taxes on alcoholic beverages made in the state to fund behavioral health and substance use programs through the Oregon Health Authority.
Taxes on malt beverages, currently $2.61 per 31-gallon barrel, would increase to $72.60 per barrel. Wine, currently taxed at $0.65 per gallon, would be taxed at $10.65 per gallon. The bill proposes that the Oregon Liquor Control Commission set wholesale and retail prices for distilled spirits, and, beginning January 2022, add 120% of the state’s average retail markup to contribute to the fund.
“We’re fighting it, and so far, all of the legislators that we’ve spoken to on both sides of the aisle are against it, especially this year,” Oregon Brewers Guild executive director Christina LaRue told Brewbound. “This year is not the time to look at taxing anybody.”
The bill is awaiting assignment to a committee, which will open it up for public comment, LaRue said.
Oregon ranks sixth in the nation in breweries per capita, according to national not-for-profit trade group the Brewers Association (BA). The state’s 311 craft breweries produced 1,012,854 barrels of beer in 2019, according to the BA.
House Passes $1.9 Trillion Pandemic Relief Bill
The U.S. House of Representatives passed the American Rescue Plan, a $1.9 trillion pandemic relief bill in the early hours of Saturday, February 27.
The Senate will debate the bill this week.
The bill includes a $25 billion fund for grants for bars, restaurants and breweries; $15 billion in Economic Injury Disaster Loans; and $7 billion more for the Paycheck Protection Program (PPP), according to the Washington Post. That $25 billion fund would provide up to $5 million in grants for individual restaurants, bars, caterers, breweries and tasting rooms or up to $10 million for restaurant groups.
Perishable Goods Tax Credit Included in Senate Bill
Beer and food industry trade groups — including the BA, Beer Institute, National Beer Wholesalers Association, and National Restaurant Association — are working to secure a tax credit for beer and other perishable goods that expired during the on-premise closures that began in March 2020.
The tax credit is included in the Hospitality and Commerce Job Recovery Act of 2021, which U.S. Sens. Catherine Cortez Masto (D-NV) and Kevin Cramer (R-ND) and Reps. Steven Horsford (D-NV), Darin LaHood (R-IL), and Jimmy Panetta (D-CA) introduced in the Senate and House, respectively, on Saturday, February 26.
“For brewers specifically it would help offset revenue losses on beer that expired due to closures of restaurants, bars, taprooms, and concerts and sporting venues,” BA director of federal affairs Katie Marisic wrote in a post on the BA’s website.
The bill would give eligible breweries a one-time tax credit for 90% of the cost of beer that spoiled between March 13, 2020, and September 30, 2020.
BA members can read more about the organization’s federal outreach on its website.
Molson Coors Observes First Anniversary of Milwaukee Brewery Shooting
Molson Coors Beverage Company marked the first anniversary of the shooting that took the lives of five employees at its Milwaukee brewery with a moment of silence at the start of each shift on February 26, according to the Milwaukee Journal Sentinel.
The victims of the shooting included:
- Jesus “Jesse” Valle Jr., 33;
- Gennady “Gene” Levshetz, 61;
- Trevor Wetselaar, 33;
- Dana Walk, 57;
- Dale Hudson, 50.
Gunman Anthony Ferrill, a 51-year-old Molson Coors electrician, died from a self-inflicted gunshot wound.
After the shooting, employees pointed to racism in the workplace as a potential motive. Reports surfaced detailing a hostile environment in which harassment and derogatory statements went unchecked by supervisors. Molson Coors confirmed that a noose was placed on or in the locker of Ferrill, a Black man. The Milwaukee Police Department concluded that racism was “not the main motive,” according to the Milwaukee Journal Sentinel.
In the year since the shooting, Molson Coors has held employee town hall discussions on diversity and inclusion and surveys its staff each quarter. The company has pledged to hire or promote 25% more people of color in salaried roles by 2024, and plans to spend $1 billion with “diverse suppliers” in the next three years.
Former Three Floyds VP Barnaby Struve Dies
Three Floyds Brewing announced that former company VP, Barnaby Struve, had died a couple of weeks ago.
“It is difficult to quantify what he meant to us, as his influence forever changed the course of the company,” the company wrote on Instagram. “He was a social colossus. His ability to engage with people, to make them care about what we were doing, to make them want to join us was magnetic. He was a force to be reckoned with, creating alliances with the music and art world. He was a champion of the outsider and was proud to be exactly who he was and encouraged us to do the same. He was the realest of the real. More than any of this, he was our best friend, his loyalty and love was enduring and unconditional. He was loved by all and hated by none. We will miss you and love you forever. See you on the other side my friend. HAILS!”
Three Floyds linked to barnabystruve.com, where friends are leaving tributes.
Distribution News
Munster, Indiana’s Three Floyds is adding distribution this week in Virginia, Maine, Maryland, Vermont, Rhode Island, New Hampshire, and Washington, D.C., the company announced on Twitter. Three Floyds is partnering with Sheehan Family Companies wholesalers in each state.
Seattle-headquartered Reuben’s Brews is adding distribution in Colorado via Colorado Craft Distributors. Core offerings Crikey IPA, Hazealicious and Pilsner will be sold in specialty beer shops and liquor stores throughout the state, with other offerings to follow. Reuben’s beer is now sold in Washington, Oregon, Northern Idaho and parts of Hawaii.
Reuben’s is also partnering with West Berkshire Brewery to brew and distribute some of the U.S. craft brewery’s offerings in London and the U.K. market.
New Products
COOP Aleworks and fast food chain Sonic are releasing a line of hard seltzers of familiar Sonic drink flavors, according to a February 25 tweet from 405 Magazine senior writer Greg Horton. Sold in variety 12-packs, the Citrus pack features Cherry Limeade, Original Limeade, Classic Lemonade and Lemon Berry, while the Tropical pack’s flavors include Original Pineapple, Mango Guava, Ocean Water and Melon Medley. The packs are slated to hit retail on May 1.
Bell’s Brewery has released its 2021 brand calendar that includes five Flamingo Fruit Fight variants, new wheat beers, a trio of double IPAs, 6-packs of Juicy Gossip and Oberon day on March 22.
Anheuser-Busch is returning Budweiser Select — the 99-calorie, 4.3% ABV lager was introduced nationally in 2005 and only available in the St. Louis area since 2010 — to national distribution. Bud Select will be sold in 6- and 12-pack bottles and 12-, 24- and 30-pack cans. The beer is aimed at reaching middle age consumers looking for lower calorie options.
“The number of Bud drinkers expressing renewed interest in Budweiser Select on our social channels only makes us more excited to introduce Select nationally again,” the company said. “At the height of Select, we had over 2 million barrels in distribution and we envision a similar opportunity now as we bring back this fan favorite.”
A-B is also adding three new flavors of Michelob Ultra Organic Seltzer — Mixed Berry, Citrus and Mango Apricot — in a variety 12-packs sold nationwide. The Mixed Berry flavor will also be available in 16 oz. and 25 oz. single-serve cans. Michelob Ultra’s Signature Collection — Spicy Pineapple, Cucumber Lime and Peach Pear — will live on.
New Belgium will be releasing Dominga, a mimosa sour beer, according to an image shared by Good Beer Hunting.
Constellation Brands-backed Canadian cannabis firm Canopy Growth Corporation has launched a line of CBD-infused sparkling waters in the U.S. called Quatreau, according to Forbes. The drinkers come in four flavor combinations — Cucumber + Mint, Passion Fruit + Guava, Ginger + Lime, and Blueberry + Acai — with 25 calories and 20 milligrams of hemp-derived CBD in each 12 oz. can.
Quatreau in the U.S. will not include psychoactive compound THC, as it does in Canada. Quatreau retails for $3.99 per can on Canopy’s e-commerce site, with shipping to 32 states. Wider distribution is expected to be announced in the coming weeks, potentially via Constellation Brands’ network.
Constellation has invested more than $4 billion in Canopy and owns 38.6% of the company, with an option to acquire a majority stake in the business.
Shipyard Brewing has released a non-alcoholic, cannabis-infused version of its Pumpkinhead Ale infused with 5 milligrams of THC per bottle in partnership with cannabis beverage producer Novel Beverage Company and Innovative Liquid Solutions. Pumpkinhead THC Elixir will be available beginning March 4 at seven dispensaries in Maine.
A Final Final
Charlotte’s Sycamore Brewing launched a mysterious marketing campaign in its home market, erecting 10-foot metal sculpted 77s with no explanation only to reveal a giveaway for its 77-calorie Bubs hard seltzer brand. Go to WhatThe77.com for more details.