Blog: Craft beer's success poses taxing question
Chris Mercer | 6 January 2011
Most Americans live within ten miles of a craft brewer, according to the Brewers Association. There are more craft brewers in the US than at any point since Prohibition.
The sector is enjoying a purple patch with the sort of hip, young Americans that Budweiser and its talking frogs used to consider their own. There is no doubt that a lot of craft beer's success is down to the passion of brewers and a considerable consumer awakening, but there is also an important financial springboard in the form of tax breaks.
As the larger craft brewers reap their rewards for years of perspiration in pokey brewhouses, the tax elephant will cast a bigger and bigger shadow in the corner of the warehouse.
This week, the Brewer's Association announced that it has tripled the production cap for craft brewers to 6m barrels per year, thus keeping the likes of Boston Beer Co in the club. It is also lobbying the US Senate to approve a bill that would offer tax breaks to brewers in-line with the new production cap.
When you consider that Anheuser-Busch InBev produces around 300m barrels of beer globally, 6m barrels is hardly the big-time.
The question is, is 6m too high for a tax barrier? Have brewers who attain close to this figure achieved enough critical mass to compete without state protection? These are questions that will dog the craft brewing sector if consumers continue to slug its beers.
Bacardi's 42 Below vodka brand has found a novel way to use the lemons left over from cocktail-making: Turn them into liquid soap....
Philadelphia’s soda tax came into force on Sunday, and is reportedly causing a stir in the city's check-out aisles....
Earlier this month, I was most-kindly invited by Accolade Wines to visit the Royal Albert Hall in London. The reason? They wanted to see a tennis great in action, and then give them a guided tour thro...
Do you like whisk(e)y? And, I mean, really like whisk(e)y? Are you at a loose end in the first half of 2017? If so, then I've found just the job for you....
- Interview Berry Bros & Rudd CEO Dan Jago - Part I
- The threat of excess choice in beer is over-stated
- Key trends for the beer category in 2017 - Focus
- Key trends for the spirits sector in 2017 - Focus
- Key trends for the alcohol category in 2017
- Pernod Ricard's Method and Madness Irish whiskey
- Premium to counter mainstream in gin - research
- Bacardi lines up Canadian bottling plant closure
- Pernod unveils new St Patrick's Day Jameson bottle
- Wm Grant names Victor Jerez business director
- Global vodka insights - market forecasts, product innovation and consumer trends
- Global rum insights - market forecasts, product innovation and consumer trends
- Global Cognac insights - market forecasts, product innovation and consumer trends
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Global gin insights - market forecasts, product innovation and consumer trends