Proposed amendments to Montana's governance of small state distillers provide some interesting parallels to discussions of not only "craft" branding and definitions, but also their impact on alcohol policy. The state's Dept of Revenue plans to hold a hearing to discuss "what qualifies as liquor produced on premise," according to the Missoula Independent. Currently, small liquor suppliers may source spirits distilled elsewhere, age or blend that liquid on-site and then sell it. Labels must use language like "produced by" rather than "distilled by," according to federal requirements. But some small Montana distillers believe "there should be transparency there. If you're pimping yourself as a Montana product, you should be a Montana product," owner of Steel Toe Distillery told the paper. Since licensed state microdistilleries, like small brewers, are allowed to sell their products on-site to visitors, next month's state hearing will consider requiring 90% of a microdistillery's on-site sales to be distilled on-site.

The practice "damages the whole brand of craft," co-founder of Montgomery Distillery told the paper, "whether it's craft brewing or craft distilling or craft cheesemaking." But a co-owner of Willie's Distillery, which sources liquor to use in its Montana Wild Chokecherry Liqueur, believes its product is "as transparent as the day is long," and that the proposed legislation indicates "a broader lack of understanding" about the process of spirits-making. Besides a "transparency" issue, the bill could be backed by the Montana Tavern Assn, another microdistillery-owner suggested. He sources cream mixed with alcohol ("to make it shelf stable") to make a cream-liqueur, but reminded that the Mont Tavern Assn has attempted to limit supplier tasting rooms in the past. Recall, early in 2013 small Mont brewers worked to stop an MTA-backed bill that would have limited small brewers' tasting room sales to just 10% of production.  

Another group of Texas beer lovers has started process of forming a brewpub co-op, according to Morris News. Yellow City Brewing seeks to open in Amarillo by June of 2015 as its 9 board members work to fundraise about $500K through investors and locals willing to pay for $150 memberships. Recall, Black Star Pub and Brewery Co-Op formed in 2006 and opened to the public in 2010 (see CBN vol #3, no 22). It now has over 3200 members, had sales closing in on $2 mil in 2012, but is "yet to reach profitability." Another co-op-run brewpub opened in Dayton, Oh this summer, raising around $600K, twice what founders expected to need. It had 300 members pre-opening last June, and now has 2300.  

Northern Calif and San Diego, Portland, Me and Boston: all big craft markets with long histories of local brewing with almost constant flow of new entrants. Sacramento's brewing scene grew by 9 hometown brewers in 2013, bringing the city's total to 31, according to a recent Sacramento Biz Journal report. Four more are already slated to open next year and "from the valley to the Sierra, 25 microbreweries have opened over the past four years." Many fall into the "nano" category, one startup claiming "it's easier to open your own brewery than it is to do your own taxes." Mike Mraz of Mraz Brewing also noted that "we want to grow organically. We don't have any outstanding loans or investors." A survey of San Diego-area breweries from SanDiego.com argued that some of these smaller breweries are "putting the big time craft beers to shame." While the brewery-count there has exploded, it doesn't seem to be slowing local stalwarts Stone, Ballast Point, Green Flash and others.

On the opposite coast, Portland, Me's near 30-yr brewing history got full treatment from the Portland Press Herald. Maine is now home to 48 breweries, according to the paper, 10 of which opened in the last year. Detailing the rise of Gritty McDuff's, which now operates 3 brewpubs in the state after opening Maine's first in 1988, the article concludes with advice from co-founder Richard Pfeffer, that staying afloat in this "so dynamic," "so crowded" environment is "about making sure we still do a good job and keep an eye out for the next opportunity." In nearby Boston, small brewer memberships and entrepreneurial beer store owners help the local market continue to evolve, according to a couple of recent Boston Globe columns. Local brewers Mystic and Night Shift have been using club memberships or subscription-sales of specialty beers to boost early sales, like other brewers we wrote about in our Sept 13 and 20 issues. On the other side of the 3-tier system, customer service-focused retailers like Boston-area's Craft Beer Cellar have seen much success in helping initially-confused beer buyers become regular craft shoppers. That success led founders Kate Baker and Suzanne Schalow to franchise the concept: CBC's are now open in 4 other Massachusetts towns with more coming in Vt, NH, Fla, St. Louis and Seattle.  

Georgia's legislative session doesn't begin until Jan 13, but beer industry members there are already talking about potential changes lawmakers may consider in 2014. Recall, a state committee tabled a bill that would have allowed in-state breweries and brewpubs to sell limited amounts of beer to consumers for off-premise consumption. A committee of lawmakers have now studied that proposal and drafted a report on whether the bill should move forward or not, to be presented by the end of the month and considered when the session begins, according to a Creative Loafing Atlanta report. The Georgia Beer Wholesalers Assn hired veteran alc bev lawyer and distrib advocate Mike Madigan to speak to the committee about historical 3-tier issues, and generally take the "why mess with a good thing?" approach.

Once chinks are put into the 3-tier system, "you have the potential of someone challenging the system" as a whole, wholesaler lobbyist Martin Smith told the paper. Smith also wondered whether the entrance of big new breweries in nearby North Carolina, by either "tax incentives or loosening the regs," would be "to the detriment of some of the smaller breweries." An anonymous source told the paper "we've got a couple hundred customers who do not want breweries or brewpubs to sell beer direct to consumers, but they don't want backlash either," later describing those customers as "restaurants and retailers" that are unwilling to publicly state approval of continuing current limitations on media-darling small brewers.

At least one retailer disagrees, publicly noting that direct sales by breweries could "theoretically" hurt his biz, but that "as long as there are limits on [the] amount of direct-package sales, I am in favor." One small brewer insisted that even with the ability to sell beer on-site, "I would still use my distributor for 99 percent of my beer sales." John Pinkerton, prexy of the Georgia Craft Brewers Guild, highlighted the trickiness of moving forward with these arguments, since "we consider the wholesalers our intimate business partners." As such, "the last thing we want to do is make our business partners mad." Another brewer insisted that "competition makes us better," believing the proposed bill would create much-needed competition for retailers and wholesalers. "Go watch the Nature Channel," he told the paper, "the slow antelope always gets eaten. The herd as a whole gets faster." While each party waits for Jan before official stances can be taken, Pinkerton said that his guild is "trying to work directly with the legislators to see if we can't quietly impress upon them that things are about to get noisy." If distributors don't "do some kind of deal," then brewers will "really pull out all the stops with a grassroots campaign." Though they "want to make sure that the message remains positive," they "believe that we are right in trying to tip the scales back a little bit in our favor. Because they've been tipped in the other direction for far too long."  

Lotsa trademark tiffs out there in craft land, given challenge of coming up with new names/themes. But here's a twist. Montana's Big Sky Brewing Co sued AB in fed ct over widely publicized new videos for Bud Light by actor John Krasinski using theme "hold my beer and watch this." Three videos have been on You Tube for weeks and garnered plenty of press and plays. Turns out Big Sky has been using same phrase since "at least as early as February 24, 2004," on packaging, promos, ads, glassware, events, you name it. What's more, Big Sky got trademark registration for phrase in 2009. After 3 videos hit YouTube Dec 1, Big Sky sent AB a cease and desist letter on Dec 9, explaining how it has used phrase and has trademark, claiming that AB's use of it is "likely to cause confusion" among consumers. Demanded AB "immediately" stop using it and remove videos from You Tube. It hoped to avoid lawsuit, atty wrote, and sought "mutually satisfactory resolution." On Dec 20, Big Sky filed lawsuit claiming trademark infringement and irreparable harm, seeking injunction and monetary damages.  

"We think all brewers should be treated the same. This is as near to a tariff issue as you can get." So said Brigid Simmonds, head of Brit Beer & Pub Assn, to Financial Times. Euro brewers grousing that they don't get small brewer fed excise tax break enjoyed by small US brewers. (Not sure they know about various state tax breaks.) They're apparently lobbying negotiators at EU-US trade talks to end this "disadvantage," as FT put it, vis a vis small US brewers. FT talked to Beer Inst and got statement: "Our first goal should be to oppose any increase in beer taxes, on any beer drinker. We are supporters of free-trade principles, because while the beer market is local, it is also global in nature. We recognize that, and we will continue to support trade talks that will foster growth of our member companies and their brands." Reporter interpreted that to mean BI "would not oppose any change in the tax break to allow European brewers to benefit." But in follow-up call, BI sez it hasn't taken specific position at this time. FT claims US craft beers are "often European style" and burgeoning craft scene should thus create mkt for smaller Euro brewers. But, as US brewers pick up on Belgian styles, that also "complicates" the mkt. "People are interested in top quality and that's good for us," said Sven Gatz, head of Federation of Belgian Brewers. (Get ready for Gatz vs Gatza down the road.) "But on the other hand," Sven sez, "people are also interested in local product." US craft exports to Europe still in early days and small volume (tho real for a few players, i.e. Brooklyn) but that will change "and the process may be accelerated if the EU and US are able to negotiate a trade deal," Sven believes.  

Holiday pricing snapshots from around US, gleaned from weekly ads mostly thru Dec 25, show most stores include at least a couple of craft offerings with sale prices for mainstream beers. There's also broad range of craft prices in these ads, from $12 twelvers to $9.50 four-packs and plenty of $7-8 craft 6-pk prices. Don't have to look too hard to find $12.99 twelvers either, tho not in 2 New York state ads we looked at, where Sam Adams going for $14.99 and $15.99. In Mass Kappy's liquor store, Ipswich available for $11.99 for 12-pk, a buck less than Goose and Long Trail, 2 bucks less than Sam, Harpoon and Sierra. Giant Eagle in Akron pushing Christmas beers from Sam, Sierra and Breckenridge.

Downtown Chicago Binny's listed no mainstream brands in on-line sale list, but plenty of choices from New Belgium, Anchor, Great Lakes and Deschutes. Dominick's chain in Chi has import/craft twelvers for $12.99.

In Dallas Kroger, locals St Arnolds and Rahr in ad for $7.49 per sixer, matching $15 twelvers from big imports, Sam Adams. Not always listed, but Angry Orchard, other ciders and Redd's in many ads. Albertsons in Los Angeles pushing 3 cider brands at $5.99 per sixer if you buy 4, down from $8.55, a 30% price cut. (Did someone say extra inventory?) Shiner same as Beers of Mexico in Houston HEB, a buck lower than Blue Moon, Sam Adams. Note craft pecking order in Denver's Argonaut Liquor with advertised twelvers for locals, regionals $12.99, $13.99, $14.99. In San Diego Vons, a coupla pricey 4-pks (Green Flash, Coronado) for $9.49 in the ad, while Sam and Firestone twelvers available for $12.99. Lagunitas available for $12.99 per twelver in San Fran, along with Sierra and several other crafts (including Lost Coast, Speakeasy), a buck lower than Corona, Heineken or Stella. Albertsons in Seattle pushin' sixers for $6.99 (CBA/Alaskan, matching top import prices) and $7.99 (Elysian, Lagunitas and Ninkasi).  

Citing differences over compensation, founder and long-time executive director of Philly Beer Week, Don Russell, has stepped down from the position. He will continue his 17-yr-old Joe Sixpack column for the Philly Daily News. "The majority of the board of directors didn't share my vision for PBW," Don told philly.com, adding that "they didn't value my time or work." The board's chairman, William Reed told the paper that the board "and Don couldn't agree on fair compensation for the coming year," and that Don's resignation is "a big loss to us at PBW."  

In Britain, craft beer is only 0.5% of the mkt, yet recent article in UK paper, Telegraph, boasts that "UK is hot on America's heels, with sales of craft beers set to skyrocket next year." In past 12 mos "187 new breweries launched across the UK," according to CAMRA. "There were just seven breweries in London two years ago and now there are 52 of us," noted founder of Fourpure brewery, Daniel Lowe.

Innis & Gunn Brewery "has been blazing a trail for UK breweries across the globe," sez Telegraph, and they're doing it through exports. The co "sold 15 million bottles of its oak-aged and rum-cask beers across the UK, Sweden, Canada, and the US this year," noted paper. "Eighty percent of our 9.1 mil euros turnover comes from export." In Canada, Innis & Gunn produces "the number one and number two craft beers in the country," even outselling Leffe and Newcastle Brown Ale, founder Dougal Sharp told paper. Total co was up 23% in 2012, "case sales have doubled in the US," and UK sales up 10%, noted paper.

Then too, online sales are picking up a head of steam with cos like Eebria. "The producers love us because they control how the beer is stored and treated right until it is sent out," founder David Jackson told paper. Currently co has 30 producers and counting. "We grew 80% in October and 92% in November," and "we're on track to double again before the big Christmas kick," Jackson continued. Eebria's services are currently only available in the UK, however "soon we hope to sell UK beers across the world." Other cos such as Ales by Mail, BeerHawk, and Beers of Europe also playing in the online arena.

Lastly, the article highlights recent success of craft distilleries, particularly gin-focused distilleries. There have been 11 craft distilleries opened in the last 4 years. "We are not only taking business from the big guys, they are actually copying distilleries like us," and "you've got dedicated gin bars springing up all over the place, too," sez co-founder of Sipsmith (first craft distillery in UK), Sam Galsworthy.