Craft Brew News # 24 - "You Can't Put Stone on that Can!" But You Can Tax It




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Summary: Craft Brew News - 3/29/19<br><br>(brought to you via Brewbound.com)<br><br>Beer Institute: Aluminum Tariffs are Hurting US Beer Industry<br><br>Around this time last year, the Beer Institute (BI), a national trade association representing the American brewing industry, warned that President Donald Trump’s aluminum and steel tariffs would cost the beer industry $347 million annually and potentially lead to the loss of 20,000 jobs.<br>Well, as it turns out, the BI’s worst fears are coming true.<br><br>The Washington, D.C., lobbying group tapped Austin, Texas-based Harbor Aluminum — a research firm that specializes in the global aluminum industry –According to the firm — the U.S. beverage industry paid about $250 million for aluminum cansheet between March and December of last year.<br><br>During that same period, however, the United States Department of the Treasury collected just $50 million, while U.S. smelters and rolling mills pocketed the rest.<br><br>Here’s the rub: The U.S. cansheet used to produce beverage cans contains 70 percent domestic scrap metal, which is exempt from tariffs. The other 30 percent comes from imported primary aluminum.<br><br>But according to the BI, domestic beverage manufacturers paid a tariff on 100 percent of the cansheet used to make beverage cans.<br><br>In other words, rolling mills and smelters are effectively stealing from beverage manufacturers by overcharging for cansheet as if it was made entirely from imported primary aluminum.<br><br>“Brewers are paying a tariff price even on domestic aluminum,” McGreevy said via a press release. “I have heard from brewers large and small from across the country who are seeing their aluminum costs drastically increase, even when they are using American aluminum.”<br><br>Approximately 60 percent of the beer produced and sold in the U.S. is packed in aluminum cans and bottles, the BI estimates.<br><br>In addition to the BI and the Brewers Association, the American Beverage Association and the CMI <br>oppose tariffs on steel and aluminum.<br><br>These Are the Fastest-Growing Breweries in America, According to the Brewers Association<br><br>An Iowa craft brewery topped the Brewers Association’s (BA) list of the 50 fastest-growing breweries of 2018, but it wasn’t Toppling Goliath.<br><br>No, the distinction of being the fastest-growing U.S. brewery in 2018 belongs to Lake Time Brewery.<br><br>The 7-year-old Lake Time — located in Clear Lake, Iowa, a vacation haunt for Midwesterners about 30 minutes from the Minnesota border — produced 1,300 barrels of beer in 2018, according to co-founder Bob Rolling. That’s up from an estimated 220 barrels in 2017, which Rolling attributed to opening a new production facility and installing a canning line.<br><br>This is the second year that the BA has released the list of fastest-growing breweries. Last year’s top honor went to Milford, Massachusetts-based Craftroots Brewing, which produced 308 barrels of beer in 2017, up from 20 barrels the year prior. Craftroots didn’t make a repeat appearance on this year’s list, however.<br><br>Although official production figures were not disclosed, it is believed that the largest brewery on the 2018 list was popular hazy IPA maker Tree House Brewery. The Massachusetts-based craft brewery produced 19,250 barrels of beer in 2017, and likely sold more than 40,000 barrels last year. Tree House did not immediately respond to an inquiry regarding 2018 production figures.<br><br>On the other end of the spectrum, a handful of companies on the list produced fewer than 100 barrels in 2017, including Long Beach, California-based Dutch’s BrewHouse, which made just five barrels of beer that year.<br><br>Stone v. MillerCoors: Court Denies Craft Brewery’s Attempt to Block Sales of Rebranded Keystone Light Packaging<br><br>Stone Brewing’s initial attempt to prevent MillerCoors from selling rebranded Keystone...