“Unfortunately, due to the legitimate business concerns associated with the continuing franchise litigation” before the Virginia  ABC, Bell’s “reluctantly concluded that it must completely withdraw from conducting all business in the Commonwealth of Virginia,” Bell’s atty wrote ABC Feb 1.   Effective immediately.   Bell’s sold about 300,000 cases of beer in VA last yr, around 5% of its volume.  It notified 7 different distribs that it would be pulling the brands from the state, including craft-centric Hop and Wine, MC distrib Blue Ridge, AB distrib Hoffman and several more. Losing Bell’s is “devastating” and “it’s unfortunate that we are part of the collateral damage,” Blue Ridge CEO Bob Archer told Craft Brew News.  He’s “concerned” about what happens next. Bell’s founder Larry Bell told CBN: “I feel really badly about the people who paid for equity and the collateral damage.  But we have to be mindful of Virginia law.”

Still not totally clear why Bell’s pulling from state, tho its longstanding objection to doing biz with Reyes Holdings as its distrib must have had something do with Bell’s termination of Loveland, when Reyes in midst of acquiring it.  Bell’s atty wrote ABC that “Bell’s is a small brewer with modest financial resources that limit its ability to accept the degree of financial and other business risks associated with continuing to sell its product through Virginia wholesale distributors.” He added: “Bell’s is compelled to mitigate these business and financial risks and as a consequence, has made this business decision to ensure its survival as a small independent business.”  Huh?  So Bell’s is pulling from one of its top 10 states to “ensure its survival”? 

Recall, in Dec, Bell’s terminated Loveland and withdrew from Loveland’s territory, claiming Loveland had violated its franchise agreement, prior to selling to Premium Dist, owned by Reyes Holdings. That occurred just after Premium filed complaint with ABC, arguing that Bell’s had “unreasonably refused to consent” to sale, the only 1 of 40 suppliers (see Jan 7 issue). But now Bell’s has gone much further.  Recall, Bell’s has fought to avoid distribution via Reyes-owned houses in past in IL (where it ultimately pulled from state) and FL, where its brands ultimately were sold to different distribs.  When Bell’s pulled from IL, it eventually came back in with different distribs. Is that what it aims to do here as well? But at presstime, unclear whether Bell’s can pull its biz in VA and then come back, let alone with different distrib network. It could face other legal challenges.  

And fate of ABC action also still up in air. After Loveland/Premium filed a complaint with VA ABC (see Jan 7 CBN), Bell’s filed motion to dismiss that complaint. Bell’s also filed request for arbitration over question of whether Bell’s acted reasonably when it terminated Loveland.  ABC director put case on hold until Board decides on arbitration request.  Giving idea of scope of this situation, in notice to attys last week, ABC director asked them for their thinking on interplay here between 21^st Amendment, Fed Arbitration Act, Supremacy Clause and VA Beer Franchise Act.

AB’s acquired craft portfolio had another “incredible year” with “strong double-digit growth” based on IRI data, considerably outpacing the industry, new brand veep Mika Michaelis stated at SAMCOM meeting with distribs last wk. AB’s 12 partners within newly named “Brewers Collective” unit (including 10 acquired craft brewers, Virtue Cider and VEZA SUR) collectively accelerated by 5 pts in 2d half of the year, +15% vs +10% in 1^st half. AB acquired craft brewers (excluding Virtue Cider and VEZA) collectively grew ~12.8% to over 1.4 mil bbls all-channel in 2018, we estimate. Trend accelerated in second half, particularly as slew of new brands picked up pace and Goose Island improved in home mkt, Mika told Craft Brew News separately. Golden Road grew 70% and was #1 volume gainer in 2018, Mika shared on stage. It blew past 100K bbls mark to ~150K bbls, we estimate. Elysian grew 30% plus, finished over 200K bbls. Karbach crossed 100K bbls-mark. And several other craft partners grew solidly. Elysian, Karbach, Golden Road and 10 Barrel were each among top-10 share gainers nationally in scan data.  Co furthered its position as #1 IPA supplier for “another” year. And recall, AB acquired craft $$ sales collectively surpassed both Sam Adams and Sierra Nevada in IRI data (see Jan 11 issue). Sam Adams still ahead of AB craft in all-channel volume, we figure. But AB gaining ground on its longstanding goal to become #1 craft co. And there are “many reasons to believe we can achieve even more going forward,” said Mika.

Style Leadership Then too, AB craft aims to have “style leadership” in key styles such as IPA, while gaining ground in lager and wheat among others. Recall, this is a shift in message vs prior year at SAMCOM when co planned to make Goose IPA the #1 IPA and Golden Road Wolf Pup the #1 session IPA. Wolf Pup continues to grow, tho still a long, long way from All Day session IPA. And Goose IPA declined in 2018 scan data as AB’s Elysian Space Dust surpassed it in $$ sales. Yet altogether, IPA is a collective strong-suit for AB and perhaps shift to the “collective” speaks to newfound thought process in ways to best work to its strengths. Craft cos will look to gain ground in craft lager and wheat beers as well (tho notably no mention of strugglin’ Shock Top thruout SAMCOM, which is now managed outside of craft unit).

Robust Innovation Pipeline; 2/3 of Growth in 2019; Nearly 70 New Scan Brands in 2018 IRI Innovation pipeline is robust as ever thruout AB portfolio, and its craft unit is no different. Innovation expected to represent a whopping 2/3 of AB craft’s growth in 2019, Mika shared. Here’s just a taste of many things comin’ across various craft cos. Goose Island launching Next Coast hazy IPA, dry hopped 312 Urban Wheat, SPF passion fruit ale, Natural Villain “garage style lager,” and 6pk cans for all core beers, along with totally revamped “visual identity” with “sleek urban inspired packaging.” Elysian’s year is “all about cans” including new 12pk cans for Space Dust IPA, Superfuzz launching year-round in 6pk cans, and new summer seasonal conditioned with black limes, Salute the Sun ale in 6pk cans. Golden Road launching Spiked Agua Fresca nationally after piloting last year. This is notably co’s first time using one of its craft brands to nationally launch a product within another segment.

Then too, AB’s other regionally-focused cos are launching all kinds of trending styles, including: sparkling ale, hibiscus hard lemonade from Devils Backbone; a brut rosé ale called Daymaker from Karbach Daymaker and Wicked Weed Burst session sour, sold in 6pk cans for first time; brut IPAs from DBB and Four Peaks; 10 Barrel has new craft cocktails line and cider brand; Blue Point, Karbach and 10 Barrel each launched new lagers/pilsners. And the list goes on and on. Editor’s note: last year there were nearly 70 new brands (up 1000% or more) sold in IRI multi-outlet + convenience data from AB’s 10 craft acquisitions that made up 45% of total $$ growth, 33% of volume growth. Handful of ’em were launched late last year and another handful were previously existing brands added to scans for first time. But if AB plans to ramp up innovation even more, how many new brands will we see this yr?

Better Integration with Overall AB New strategy also involves more integration between craft brands and rest of AB team at the wholesaler level. Craft brands are “integrated into blueprint calendars with clear priorities by state,” Mika shared. Many brewers responded positively to the change for “increased collaboration” between their teams, the region managers, and distrib partners.

Cut the Clutter with Digital/Social Marketing Another key aspect of craft plans is to figure out how to “cut the clutter” among 7K breweries and counting thru an enhanced digital/social marketing voice. Goose Island’s sponsored Field Goal challenge highlighted as great example. Goose quickly helped organize the challenge following Chicago Bears last-second missed field goal in the playoffs, which went viral reaching half a billion impressions in one week, and tons of mass media coverage. There will be “more cutting the clutter soon,” said Mika.

Brewers Collective Runnin’ 2K Employees Strong AB shifted biz unit from High End to Brewers Collective “because we believe this is not about craft anymore,” said Mika. “We evolved a lot” since starting this initiative with High End unit, now thinking more broadly about how it can capture market share in home mkts, while leading in specific styles, and “capturing growth on emerging trends.” And co has shown ample willingness to chase trends outside of “craft” with innovation, including hard teas and coconut waters, Mezzo Spritz cider (Virtue), honey-based low-alc bev called B and even new Keurig machine for homemade cocktails called Drinkworks (tho those oppys outside of new Brewers Collective structure).

Sierra Nevada Brewing is getting into the M&A game, with its acquisition of SF-based Sufferfest.  “We’ve never done anything like this before,” CEO Jeff White told Craft Brew News, even tho “we’ve had plenty of opportunities to do so.”  Sufferfest sold approx. 4,000 bbls last yr of its post-workout beers. “We’re athletes who love beer,” its website proclaims.  Sufferfest also calls itself “beer with benefits.” (Recall mini-profile with other non-alc & “better for you” plays last Oct, see vol 9, no 96.) Sufferfest distribs so far include megadistribs such as Harbor in Southern California and Columbia in Pac NW (just started there last week) and it also self-distributes in Bay Area home turf and Colo. But it hasn’t really rolled out even in Northern CA, and so Sierra is acquiring brewer virtually 100% aligned with no wholesaler issues. Deal expected to close early April.

Why is Sierra buying Sufferfest? “Sufferfest represents an authentic and genuine platform for us to connect with more and different consumers,” Jeff told CBN, “at more and different occasions, with highly differentiated offerings. It represents another sandbox for us to play in and provides us even greater latitude for creativity and innovation,” he added.  So its offerings are “totally complementary.”  Beyond that, Sierra Nevada and Sufferfest are “deeply aligned” and they “felt like us,” said Jeff.  He met Sufferfest founder Caitlyn Landesberg at Bluebox conference held by First Bev’s Bill Anderson last Oct. They hit it off right away. Jeff noted that Caitlyn “understood what she was doing and why she was doing it.” Sufferfest was founded in early 2016, has already gone thru about 3 yrs of playing in the emerging “better for you” space. “She was already there,” Jeff said, “clearly right on trend.” Caitlyn will continue on and report directly to Jeff.

Sufferfest beers are gluten-removed, contain ingredients like bee pollen, black currant and added salt for electrolytes.  Its Kolsch is just 3.5% ABV with less than 100 calories. Sufferfest plays exclusively in this burgeoning “Better for You” space (tho recall alc bevs cannot make health claims). 

Sufferfest sought $5 mil or so in growth capital, sibling pub Beverage Business INSIGHTS reported back in Oct.  And as one could imagine, Sufferfest also attracted other potential suitors.  For instance, Boston Beer reportedly explored purchasing Sufferfest, sources say.  Instead, Boston Beer launched 26.2, a gose it already sold in Boston, tied to the Boston marathon, with similar attributes.  And so Sierra made its first deal.  For Sierra, Sufferfest represents a new direction and another point of difference in crowded craft space.

The 2019 legislative session started to heat up this week as bills came then quickly went in Connecticut after strong small brewer backlash and media turned much more attention to proposed beer-to-go bills in Texas. But first to Colorado, where new Governor Jared Polis just signed a bill that cleaned up some of messy licensing consequences of major alc bev sales overhaul, which took effect Jan 1 (see Jan 11 issue). It’s a good thing too. Because Liquor Enforcement Division had waived enforcement of prior law until today, as Colorado Sun noted last week. So legislature basically had a month to pass the bill, which prevents extensive headaches for brewers and distributors. Gov. Polis signed bill into law yesterday, just in time.

CT Brewers Wish to Lift On-Site Sales Cap Before Bills Aimed at Limiting Taprooms Intro’d (and Quickly Dropped)  Small brewers in Connecticut went berserk early this week, reacting to a proposed bill that would have forced them to choose between distributing and operating a taproom. Bills already dropped after outcry, as legislators that introduced them confirmed to Hartford Courant. But both lawmakers, one in each state house, insist that discussion must continue to “create a more equal and fair system,” Sen Doug McCrory told paper. Just as bill apparently “blindsided” brewers, as Hooker Brewing’s Curt Cameron said, claims that the bills would destroy the CT brewing industry seemed to have surprised the bill’s sponsors.

Interestingly, a couple of weeks before bills appeared, small brewer interest in lifting current 9-liter per transaction limit on sales at a brewery floated in Connecticut Magazine. That limit is just shy of a case of 16oz cans, so Conn Brewers Guild would like to see it removed. Newly elected governor also supportive of small brewer interests, magazine wrote. Yet state wholesaler org pooh-poohed the notion, saying that “every year they come back and want more and more and more.” Yup, you’ve seen this movie before in numerous states. That includes modestly inflammatory comments about wholesalers from a very small brewer in the Courant and the paper itself pointing to campaign donations from distribs and execs to bill sponsors.

Wholesalers Oppose Current Texas Proposals to Allow Beer-To-Go at Breweries & the Chronicle Craps All Over ’Em  The news out of Texas is modest: The Beer Alliance of Texas, one of two distrib orgs in the state, opposes proposed bill that would allow manufacturing breweries to sell beer for off-premise consumption out of their taprooms. That’s neither surprising, nor deterring small brewers. And bill’s sponsor not bothered either: “the beer distributors, the lobby group, is very much against it,” Rep. Eddie Rodriguez told The Daily Texan, adding kicker that “they don’t really have a legitimate reason as to why.”

But that minor dig doesn’t come anywhere close to the kind of anti-distributor language laced throughout lengthy Austin Chronicle article published today. In small brewer/wholesaler debates across the US, the press rarely comes to defense of distribs in both coverage and on editorial pages. But today’s Chronicle piece (published in food section, notably) might reach new lows in lambasting wholesaler efforts to maintain status quo. “Here in Texas, the small, plucky craft brewers and the overdetermined parade of wholesale distributors are, unsurprisingly, back at it again,” the piece begins in lightest of its critiques. But before it’s done, wholesalers compared to mobsters and the evil Empire of Star Wars, with plenty of choice language. A couple of craft brewers get their shots in too, natch. The beat goes on.

NE Brewers Fighting Massive State Excise Tax Hike; Will MD Changes Come County-by-County?  Elsewhere, a proposal in Nebraska calls for huge hike to alc bev excise taxes. Small brewers pushing back hard, natch, though could be early innings in battle that affects far more than the brewers. Proposal calls for increases across the board, but would lift beer excise tax from 31 cents per gal to $1.38, a 345% increase, per Omaha World-Herald. That’s change from $9.61/bbl to $33.17. Recall, temporary federal excise tax cut just $3.50 for smallest brewers. Finally, proposals moving forward in Maryland to raise caps on small brewer production and self distribution, but not ones that would affect entire state. Recall, MD general assembly made up of delegations from each county, which can pass bills that only impact those counties. This week, Frederick County delegation passed a bill to raise caps on small brewers, according to the News Post. And similar proposal on the table in Montgomery County outside DC. But full assembly will need to review.

Not exactly a full-on merger or acquisition, but strategic partnership struck today by Mass brewers Ipswich and Newburyport, co’s announced. Newburyport, which has expansion in the works, will start brewing at Ipswich, which has long history as contract producer as well as brewing its own brands. But Ipswich will also be able to begin producing beers on small system at Newburyport’s existing brewery, co’s point out. That provides new oppys for Ipswich “to innovate and experiment with our own product line,” prexy Rob Martin said. “Working together to bring world-class beer to the market will now be both more efficient and more fun,” for Newburyport co-founder/CEO Chris Webb.

Dogfish Head is really upping its marketing game this year, investing $400K with Google/YouTube for “the single most expensive” campaign in its history, founder/CEO Sam Calagione shared with CBN after hinting at it earlier this week (see Jan 29 issue).This is “a really unique marketing campaign with Google/YouTube that is laser focused on reaching the exact demo and exact geography of customers we want to talk with,” he explained. Without going into exact specifics of who/what/when/where Dogfish is targeting, co will run ads “before and after and during certain content on YouTube and Google.”

First part of the campaign will focus on flagship 60 Minute IPA and its innovative process of continual hopping. Ads will run in short 6-second, 15-second and longer 45-second spots on YouTube, playfully taking on inventions like fire, the lightbulb and eyeglasses that “don’t hold a candle” to “the greatest invention you’ll ever taste.” There will be 9 spots in total (3 of each). Longer-form ads take an educational tone, explaining that continual hopping resuts in “a pungently hoppy IPA that isn’t crushingly bitter.” First set of ads launched today and will last thru Apr. Then Dogfish will “take the learnings” from 60 Minute campaign and “evolve it” for SeaQuench campaign lasting May thru Jul. Of course, Dogfish will be “very respectful of TTB guidelines on how you promote beers, while still celebrating SeaQuench” as “objectively the most thirst quenching beer that Dogfish ever brewed.” All videos were created in-house thru co’s mktg department.

Co also “timing significant 5-figure spends” for both 60 Minute and SeaQuench “through all social channels” and POS on top of YouTube spend, to help “reinforce” ad campaign messages. Sam gave props to sales veep Todd Bollig and mktg veep Neal Stewart for “synchronizing” marketing spends with mos that were “most critical” for both brands. Indeed, SeaQuench sales “really rocket up in May.” And SeaQuench campaign dovetails with new variety pk, “Off-Centered Activity Box,” featuring range of “active lifestyle” brands including SeaQuench, Namaste White, new Slightly Mighty Lo-Cal IPA and Super EIGHT summer seasonal.

Dogfish Shipments Up 12% YTD; SeaQuench Up 89%, 90 Minute Up 14%, 60 Minute -3% It’s early days, but Dogfish encouraged by its fast-paced start to the year. Co finished Jan with shipments up 12%, including SeaQuench still rockin’ +89%. Notably, 90 Minute IPA grew low-double-digits, up 14%, with boost following move from 4pks to 6pks. Flagship 60 Minute IPA dipped 3% for the mo. That’s why Dogfish is steppin’ up spend, in attempt to shore up brand thru both ad campaign and new packaging debuted last mo. Recall, after Dogfish grew volume 18% in 2017, co slowed to flattish/up slightly in 2018. So Dogfish will look to build on strong start to yr thru marketing initiatives, new brands/packs and more.

In the Media: Dogfish Gettin’ the Word Out thru Mass Media Coverage Is there any craft brewer getting as much coverage in mass media these days? You’d be hard pressed to find one, as latest Dogfish coverage appeared in USA Today last week, highlighting range of newer beers that “satisfy drinkers’ healthy, lower-alcohol tastes.” That followed earlier article in Esquire on Slightly Mighty, as well as Runner’s World and RealClearLife among others. Altogether, YouTube campaign and mass media coverage speak to different times in craftland, where importance of marketing has new weight, especially among established brands.

Strong growth for the blood orange variant of its flagship IPA and variety 15-pks, plus a shift in its winter seasonal assortment pushed 21st Amendment shipments up 17% last year, prexy Dave Wilson shared with Craft Brew News. So it’s likely to be one of just a handful of craft brewers over 100K bbls that grew by double digits in 2018. But after ending its contract brewing arrangement at Cold Spring, Dave and co identified reporting oddity and now revising past year shipments totals down a bit. Co now brewing mostly out of its San Leandro facility, plus some volume out of FX Matt in NY. And 21A confident with shipments tracking going forward: it shipped almost 114K bbls last yr, up from 97K bbls in 2017. So tho smaller than previously thought, co still grew volume by double digits for second straight yr.

But 21A made a hard left out of the gate in 2019, turned away from one of the packages that contributed so much growth over last couple years: those variety 15ers. As of early this week, the company isn’t packaging any brands in 15-pks, from the variety pk to strong watermelon wheat seasonal, top IPA variants, “everything,” Dave told us. “We did it. I own it,” Dave said of selling craft 15-pks. He was “one of the first people to get on the bus,” he acknowledged. Now, he’s “proud to say that we’re going to be one of the first people to get off of it.” Why? Two clear reasons. First, Dave became concerned with “devaluing craft. I don’t want to participate in that anymore” and no longer comfortable with “making that value statement for the 2-1-A,” he told us. Also key to the decision: view that “economically,” Dave and co determined “it will be unsustainable.” The out-sized pack “provided profitability in most cases, but not all,” Dave said. Looking especially hard at the variety pk in certain geographies suggested that going forward with 15-pks “could become a big problem, real quick.”

Change happened fast. In span of just a couple weeks. And speed of change likely to be more impactful than the change itself. But most reactions so far positive. Dave’s already heard from a handful of distributors and retailers thanking co for going from 15- to 12-pks. A number of distribs even pointed out that “the 15-pack thing was messing us up.” Recall, many industry members have raised questions about 15-pks and their potential impacts on craft pricing over last couple of years. Separately, we’ve heard pushback from wholesalers about the pack-size’s impacts on their margins.

When 21A communicated change to retailers, one actually wrote a thank you note explaining that they “did not like where this value proposition was going,” Dave shared. Key retail chain just rolled with it, Dave reported. One expects that it will decrease out of stocks and shared confidence that total volume would actually grow following change. In all, 21A didn’t hear any pushback from anyone on West Coast and didn’t lose any points of distribution (PODs) there, according to Dave. Concerns were raised by some East Coast retailers about the quick and poor timing of shift, just ahead of resets. But in general, it was “probably scarier jumping into the 15-packs than jumping out of them,” Dave acknowledged. And now that 21A heading back into traditional 12ers, “we like our chances,” he said.

Here Comes SparkAle, Rosé-Inspired, Fruit Infused Refresher in 6-Pks  Of course, shift from 15- to 12-pks builds in potential volume hit for 21st Amendment in 2019. But this is the year to do it, Dave explained, as co feeling particularly confident in big new launch: SparkAle. Brewed with apple, cranberry, peach and cherry, the light pink “Sparkling Rosé Ale” comes in distinctive packaging of light blues and pinks, in 21A’s signature illustrated style, but with somehow softer touch. “It cues everybody to ‘refreshing,’” Dave said. But he wants people to “taste it,” since “that’s where the rubber meets the road.” Visitors to co’s SF pub have been “drinking the bejesus out of it,” sold under different name. The beer got a ton of “buzz” at Sacramento fest last fall, he told us, where it was “first thing that ran out.” And retailers clamored for it after test batches sent out in crowlers, according to Dave. In fact, co’s “never had so many PODs” for a new beer, “not even close.” That includes “national chains from coast-to-coast.”

Initially packaged only in 6-pks of 12oz cans, SparkAle will also join 21A summer variety pack with well-known seasonal watermelon wheat, Brew Free or Die! IPA and Blood Orange Brew Free. Those 4 brands (including total seasonal line-up) also “core four” brands 21A brings focus to across all aspects of its biz. And addition of both Blood Orange and SparkAle has Dave and co feeling confident the summer vty pk will grow again in 2019. SparkAle “leans toward the cider drinker, but it’s not cider,” Dave said. “We don’t know where this is going to go,” though. “Great reviews” and tons of placements has co feeling confident: 10K bbls “would be a huge success for us.” And co has “three in the tanks already,” Dave said “and all of that beer is spoken for,” heading out for Valentine’s Day launch.

Blood Orange Surprise, Seasonal Shift Lifted 2018 Results; CO & TX in 2019  Looking back, a few key factors led to 21st Amendment’s strong growth in 2018. First was variety 15-pk, as we noted above. That pack more than doubled last yr, Dave told CBN, a large chunk of co’s total growth. It helped push total 15-pk sales up over 50% last yr, representing about half of that gain, he shared. Second piece: Blood Orange Brew Free or Die! IPA, up about 80%, much more than making up for 9% decline for base Brew Free. Co also made switch to its seasonal line-up, replacing prior winter and spring seasonals with its Tasty IPA. That both “simplified our lives” and “took all of the pressure to nail [seasonal timing] off,” Dave said. Hell or High Watermelon still “kills it” as an “absolute work horse” for half the year. But it “runs off a cliff,” Dave quipped, “the second anyone mentions ‘pumpkin.’” But since folks love IPA year-round, replacing watermelon wheat with Tasty early doesn’t run the same risk as putting in cold-weather-aligned Fireside Chat. Tasty doing solidly better vs prior seasonal assortment, but co also still sold Fireside Chat separately.

Handful of new markets in Q2 last yr also contributed some gains for 21A, with Arizona, Connecticut and Kentucky representing about 16% of co’s total growth in 2018. But home region Northern California IRI trends up over 20% last yr too, Dave said. An can’t discount contributions of strategic partnership with Brooklyn Brewery and Funkwerks, boosting salesforce bigtime. Finally, perhaps another reason for optimism heading into 2019: 21A hit Colorado for first time in December, will enter #2 beer market in US Texas and, if it has the capacity, perhaps another East Coast market too.

The first installment of our deep-dive into the latest craft data and trends is coming right up! Register today to participate in Craft Update, 2019, a two-part webinar series and exclusive report compiled and presented by Craft Brew News senior editors David Steinman and Christopher Shepard. Part I is just 4 weeks away, coming Weds, Feb 27. Part II follows on May 1. Walk away from the lively presentations with loads of stats and facts and a deeper understanding of the complex craft beer biz. But don’t worry if you won’t be able to make the live webinars: presentation decks and in-depth supplemental reports will be available for download by all registered participants, along with recordings of the presentations. Head to beerinsights.com for all the details and register today. Sign up your whole team save: ask us about significant group discount rates.

Deal finalized last Friday temporarily re-opened US gov’t to full force after 35 days of partial shutdown. That’s a little less than 10% of a full year. Folks at TTB back to processing label approvals and re-started yesterday by setting expectation that new beer labels would take 41 days to process, according to screen-shot of agency’s website shared by Brewers Assn economist Bart Watson on Twitter. But that already jumped to 48 days by this morning, TTB Online portal shows. It’s still working on beer label approvals received over a week before the shutdown and also reminds licensees that statute allows agency 90 days to process labels. Last yr, thru day before shutdown started (Sat 12/22/18, recall), TTB received over 192K labels to approve across all alc bev types. By end of day yesterday, it already received almost 10K so far in 2019. So yes, this could take some time.

And tho gov’t back up and running (for now, temporary deal keeping gov’t open ends 2/15), media outlets still pointing to brewers singing the shutdown blues. “There’s about 8 percent of our business for this year at risk because of the government shutdown,” Deschutes CEO Michael LaLonde told Bend Bulletin. Co has 12 new beers planned for 2019 and now half of those about 3 mos behind schedule, he pointed out, rattling off list including Lil’ Squeezy, Hop Henge, Brut IPA and more. On Sunday, Washington Post reminded of suit filed by local Atlas Brew Works, pointed to delays faced for new brand launches and new location expected by Old Ox Brewery in VA and checked in with founder of Alexandria’s Port City Brewing, Bill Butcher. “Growth in our industry is driven by innovation,” Bill told paper. He also underscored the uncertainty faced by many small brewers by acknowledging impacts reach far beyond labels and permits: the Small Business Admin was also closed, meaning Port City “couldn’t lock in an interest rate” on loan for $2-mil bottling line, paper wrote.

BA Worked with House Reps to Urge TTB “Enforcement Discretion” Upon Re-Opening  Just before shutdown ended, BA helped trio of Congressmen pen letter to TTB administrator and Treasury Secretary Mnuchin, org shared. Letter urges agency to “exercise temporary enforcement discretion on certain TTB actions.” In general, BA and supportive reps hope TTB would avoid any enforcement actions against existing industry members “for the mere lack of approval of a new activity, tradename, location, etc,” letter reads. Such a temporary policy should include approvals for new labels and formulas as well as new locations, destroying “old or un-merchantable beer” or exporting. That is, under normal circumstances, industry members can’t proceed with various activities without TTB and TTB can take enforcement action simply for proceeding without approval. These reps, led by House Small Brewers Caucus chair Peter DeFazio (D-OR), ask TTB not to take that action if the industry member has applied for approval and no other obvious signs of wrongdoing exist. This way, agency can clear backlog of applications and largely focus on approving new bizzes, which can’t operate without approval. TTB should publish an Industry Circular to explain temporary enforcement policy, as it has in past, letter suggests. As of presstime, no such announcement from TTB.

Next phase of Brewers Assn’s “Independent Craft” seal, designed to promote awareness of member brewers and ownership within craft beer, now allowing consumers, retailers, fest organizers and more to display their “support.” Org launched SupportIndependentBeer.com alongside “Supporter” version of upside-down bottle seal today. Downloadable digital assets, like those available to indie brewers interested in displaying seal on packaging or in breweries, “available to any champions of independent craft breweries including retailers, distributors, homebrew shops, state brewers guilds, festivals, websites and allied trade companies,” BA announced.

Also debuting for new consumer-facing website: “Is It a Craft Brewery?” search functionality, inviting visitors to “search our database of US breweries.” Users can hop on, type in a brewery name and learn if “Yes!” it “is an independent craft brewery,” or “No,” it’s not. Website returns basic message that a non-craft parent co “owns more than 25% of this brewery,” specifying the owner but nothing else. Website also features comments from indie brewers about why they support use of the seal, images of the seal in use on packaging and websites, brief “history” of seal’s creation, videos of ads BA has used to promote it and small shop of merch for folks interested in a t-shirt, cap or sticker.  

Over 4,000 brewers have downloaded seal for use in some form or fashion, BA sez. It also took oppy to review results of Nielsen survey about seal, conducted 3 times since launch (and last updated in year-in-review post from end of 2018). Survey of craft drinkers last fall found 40% would be “more” or “much more likely” to buy a beer with the seal on the packaging, up from 39% in Spring 2018 survey and 35% in Fall 2017. Notably, far larger group of younger legal craft drinkers say so: 57% of 21-34 yr olds reported being “more” or “much more” likely to buy a beer that displays the seal, up over 10 points from the year prior.