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.
For those people looking to the Red Planet as shining utopia away from all things earth, look away now....
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...
- Most Valuable Spirits Brands in 2017 - The facts
- Most Valuable Beer Brands in 2017 - The facts
- Has the politics of M&A changed? - Analysis
- IAADFS Duty Free Show of the Americas - Preview
- What the future looks like for Australian wine
- Coca-Cola Co announces senior executive shake-up
- Heineken sees Tesco pull SKUs in UK
- Baijius brand value overtakes whisk(e)y - figures
- Heineken releases colour-change bottles
- Diageo's Captain Morgan LocoNut - NPD
- Central and East Europe Report Package
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Global vodka insights - market forecasts, product innovation and consumer trends
- Global Scotch insights - market forecasts, product innovation and consumer trends
- Global liqueurs insights - market forecasts, product innovation and consumer trends research