MobCraft Beer co's recent crowdfunding campaign was highlighted in NYTimes Small Business article last week on state-based crowdfunding in US. While federal regulators still need to "finish drafting" rules for natl "equity crowdfunding" (to allow average person to buy stakes in businesses), now "twenty-two states and the District of Columbia have enacted" such laws, noted Times. That includes 9 in the last 6 mos, three more - Florida, Illinois, New Mexico - that "have rules or legislation awaiting the governor's signature," and eleven more "considering" creating crowdfunding laws. So MobCraft, a 3 yr-old brewery outta Madison, Wisc, recently raised $67,000 "from 52 Wisconsin residents, nearly all of them first-time business investors," using state-based platform called CraftFund. It made "2 percent of the company's equity available" at "a minimum investment of $525." At first co looked into "donation-based" crowdfunding sites, Kickstarter and/or Indiegogo, but decided against them since "those sites do not allow alcohol to be given away as a reward," according to co-founder Henry Schwartz.

Yet successful state-based crowdfunding campaigns aren't so common. There're several state-based crowdfunding platforms/websites all over the map yet "entrepreneurs and investors have been slower to join in"; "around 95 companies nationwide have filed applications to raise money using the state laws," according to NY Times data compiled from state regulators. Bizzes "with existing networks of eager supporters" launched most successful campaigns to date, paper noted.  

BrewDog isn't only Scottish brewery that's utilized crowdfunding. Innis & Gunn is nearing its crowdfunding goal of raising 3 mil pounds ($4.6 mil) in order to help co build new 73K bbl/yr brewery in Scotland, reported The Scotsman. As of June 7 Innis & Gunn was about to reach 2 mil pounds according to paper, and campaign ends Jun 16. With a minimum investment of 500 pounds ($765) investors can receive one of two "BeerBonds"; one is a standard bond with 7.25% interest a year for 4 yrs; the other is a "Beerbucks" bond with 9% interest per yr and can only be used to buy beer via its online shop. All investors receive 12.5% discount on "all purchases from our online shop," according to company website. Last yr Innis & Gunn sold over 60K bbls, noted paper.  

Series of 3 bills hit NJ statehouse recently, all aimed at encouraging small brewer growth. Among measures considered will be ability for brewers to pick up yr-long permits to sell beer at farmers markets, for visitors to bring in food while touring and sampling at brewery and for brewpubs to distribute up to 1000 bbls to retailers, according to the Courier News.  

DC's Hill wasn't only one being climbed by brewers recently as NY State Brewers Assn led group of 30 members to Capitol in Albany, the org announced. NYSBA celebrated creation of Statewide Pale Ale, a collaboration pale brewed with portions of state-grown malt and hops. Proceeds from draft sales, expected to approach $20K, will help fund NYSBA.  

State legislators failed to take up issues pressed by small brewers but opposed by wholesalers in Alabama this month, but will spend the summer studying laws governing alcohol in the state, the Huntsville Times reports. Brewers hoped to achieve some form of retail sales in the state. Legislators scaled-back a broader bill last month. The last version would have opened up on-site growler fills at production breweries and brewpubs, but it never went up for a full Senate vote before the session ended last week. Instead, the joint house commission established last month will hold hearings in 3 Ala cities and travel to 2 states "deemed by the commission to have the most responsible and progressive alcoholic beverage laws in the United States." No word yet on where they'll go, but travel likely to involve more than a quick roadtrip. Already, "a bill is being worked on and supported by all parties involved and will be ready next session," a state rep told the paper. Meanwhile, Straight to Ale Brewing could delay plans to expand into much larger facility without ability to sell anything on-site.  

Some new legal developments in some big beer markets recently. Promises made, promises kept in Illinois. Bill passed thru state legislature this week that raises production cap for breweries with retail licenses to 120K bbls (see May 28 issue for details). It passed with broad support in both houses. That's exactly what sponsor Rep Feigenholtz told press would happen when bill didn't make an initial deadline. Bill heads to governor's desk.

A new regulation handed down by Pennsylvania Liquor Control Bd opens up possibility for breweries to open tasting rooms, including at up to 2 "storage facilities" where no beer actually produced, without applying for retail or brewpub licenses, according to post by Brewers of PA gen'l counsel Ted Zeller. Ruling is direct result of BOP work, Ted reports. While some of larger state breweries operate brewpubs or retail outlets at their breweries (or elsewhere), new regulation opens up possibility for smaller breweries with more limited funds to start selling pints on-site, as Crystal Ball Brewing owners told the Harrisburg Patriot News. New reading of law also paves a much smoother (or at least cheaper) road toward opening retail outlets where breweries can sell for on- and off-premise consumption in a much wider array of locations. That opens up some big possibilities.

In pair of other sizeable beer markets, legislators consider some smaller tweaks to beer laws. An amendment's been added to state budget measure in Massachusetts to loosen up growler laws. It would allow breweries to fill growlers branded by and bought at another brewery, so beer drinkers won't need to buy a new one every time, according to the Boston Globe. And Ohio's Rep Dan Ramos once again works to raise the allowable alcohol by volume in beer from 12% to 21%. Similar bills have been intro'd and gone nowhere before in the state. So Rep Ramos will see if insistence that "this is really about jobs" works out this time around, particularly with announcement that BrewDog, famous for making specialty beers with outsized ABVs, will build in state.  

BrewDog has "provisionally agreed" on deal to acquire 42 acres in Columbus, OH area to construct 100,000 sq-ft "sister" brewery, co announced on its blog yesterday. There's still "a few final details left to agree" upon including "yet-to-be-approved incentives and finalizing site details, but we are completely committed to making BrewDog Columbus a reality very, very soon." BrewDog will look to brew "full line up of beers" as well as small "special batches unique to that brewery" on custom 100-bbl brewhouse with a main canning line and small bottling line for bombers of its specialty brews. Brewery will also "house our US offices, a visitor center, a craft beer restaurant" and a tap room, all accessible by bike path as well as road. Co plans to hire "well over 100 people," including several senior positions like ceo, brewmaster, vp of sales, and cfo, as well as "pretty much every other role that exists in a brewery." And separately BrewDog will look to open "five flagship US BrewDog bars" across the US; "from the West Coast to Florida to the Northeast."

Another Crowdfunding Campaign to Help Fund Columbus Project: "Rock Stars" at Investors Mtg BrewDog will launch a new crowdfunding campaign called Equity for Punks USA to "help fund our Columbus project," co also announced. Recall, just two mos ago it launched separate UK-based Equity for Punks IV crowdfunding campaign to raise approx $37.5 mil and has raised approx $10.7 mil in three previous campaigns (see Apr 23 issue). It plans to allot about $4.7 mil from current campaign towards building a US operation if it reaches its goal. Then too, co recently held annual investor meeting at Aberdeen Exhibition and Conference Center where it revealed expansion plans to 6,000 investors, reported thisismoney.co.uk. This was no ordinary meeting; it's regarded as "Annual General Mayhem" or AGM, and was referred to as "festival-like" by paper. Co-founders James Watt and Martin Dickie's presentation was reportedly "whooped and cheered by investors who see them as rock stars of the brewing world." Only thing that was voted on at mtg was for "sub-division of shares" that'll quintuple the amount of total shares, but "shares they hold will go from being worth from 5p a share to 1p," ultimately to "make the shares more liquid and easier to trade in the future." Typically this topic "would be subject of fierce debate," sez paper, however after speaking with several investors, "it was clear that monetary returns rank low on their list of priorities." Rather, "most said they felt part of a club and especially enjoyed being invited to the yearly event." After most recent crowdfunding campaign launched, UK-based All Street analyst said "it is difficult to see how investors will make a financial return on this deal given the high valuation" of approx $467 mil, via Crowdfund Insider. Yet BrewDog continues to solidly grow its biz; total revs were up 63% to approx $46.2 mil in 2014 (see May 20 issue).  

This week Oskar Blues will begin expansion project at its Brevard, NC facility that'll boost capacity there to 200K bbls/yr, co announced. It'll add 17K sq-ft to its current warehouse for extra fermentation tanks, a 9K sq-ft expanded waste water treatment system building, a second 50-bbl mash tun, and new silo to hold spent grain to help raise capacity. Oskar Blues' NC brewery has produced 110,000 bbls in its "first two years of production"; 46K bbls out of 119K total in 2013 and 64K bbls out of 149K total in 2014. This year NC facility is "on track to produce 85,000" bbls, co noted. Also, Oskar will add "more administrative offices and a commissary kitchen for the CHUBwagon food truck." There's currently 45 employees in Brevard and "as growth continues, more job opportunities will open up." Co hopes to complete construction in "six months" and it'll likely take "a couple of years" to be able to produce 200K bbls/yr, spokeswoman Anne Fitten Glenn explained separately to Asheville Citizen Times.

Oskar Blues has had an active 2015 thus far. Aside from brewery expansion, co will expand into two new states this week, WVa and Ark, reported Asheville Citizen Times. Oskar getting closer and closer to natl distribution, after it expanded to several new states/territories earlier this year in midwest (IA, Southern IL, NE), northeast (VT, ME) and south (LA), to total of 46 states plus DC (as well as parts of Canada, Sweden, Norway and the UK). Also recall, in early Mar Oskar sold majority stake to Fireman Capital and then purchased Mich brewer, Perrin, later that mo. And gotta note, its flagship Dale's Pale Ale 6pk is now #45 top-selling craft package tracked in IRI MULC yr-to-date thru May 17; $$ up 56% even as avg pricing is down 2% to $37.85 per case. Dale's 6pk is the only other canned pkg in the top-50 aside from Sierra Pale canned 12pks at #23.  

A rare example of a top 20 craft brewer switching under NY's franchise law reform, which allows a brewer (up to 300K bbls) that is less than 3% of a distributor's volume to move for fair market value. Founders switched from DeCrescente to Saratoga Eagle effective June 1st. While the volume involved is under 20,000 cases, this switch is significant for several reasons, besides utilizing the franchise law reform. The brands changed hands between 2 of the top 5 distributors in the state. Seeds of change could simply be this: DeCrescente has much deeper craft book than Saratoga Eagle. Saratoga Eagle has greater need to bulk up its craft book than DeCrescente. Then too, Saratoga's sister co Try-It sells Founders in Western NY.

Yet this move also unusual because DeCrescente was reportedly doubling its Founders biz and hitting its sales targets. Then too, DeCrescente won joint BA/NBWA wholesaler of the yr in 2013. So what gives? No one's talking for the record, but DeCrescente focused heavily on Founders All Day, and not enough on the entire portfolio, some say. But is that really a reason for a change? Perhaps Founders felt lost amidst DeCrescente's deep book or Saratoga Eagle promised more or Founders wanted to simplify its NY network. Any or all of these have been speculated. Founders did not return our phone call at presstime.  

Big news coming out of DC, first reported yesterday in our INSIGHTS Express. Just a couple of days after Brewers Assn put out news that 155 small brewers and guild members visited 150 Congressional member and many more staffers last week on Capitol Hill to push Small BREW, it turns out that Small BREW will be going away. The longrunning controversy between big and small brewers over excise tax relief will finally end. Beer Institute and BA will stand united behind one bill. While not all i's dotted or t's crossed yet, Senator Wyden of Oreg (former chair and now ranking Dem on key Senate Finance Committee) will reportedly intro today a comprehensive bev alc excise tax relief bill for beer, spirits, wine and cider. Senator Wyden's office did the heavy lifting of putting this together, CBN understands.

While small brewers insisted they could move Brewers Assn's Small BREW bill even in face of Beer Inst's competing Fair BEER legislation and subsequent distilled spirits tax cut bills, legislators sought one bill. Small brewers reportedly heard that message from a number of legislators in their many, many visits to the Hill last week in advance of SAVOR. And for all the Hill visits, craft brewers didn't really add that many co-sponsors. About a dozen in the House. Midway thru the yr, Beer Inst's Fair BEER has 101 House cosponsors compared to Small BREW's 88. (Fair BEER intro'd one month later too.) Small BREW has far more cosponsors in the Senate. But pretty clear that separate bills not going anywhere.

Enter Senator Wyden, who has key craft brewer, vintner and distiller constituencies in his state. Wyden's bill includes several elements big brewers said need to be part of tax relief, while keeping an additional tax cut for small brewers. New bill will reportedly include tax relief for all brewers including AB and MillerCoors. And it will include importers. All brewers will get taxed at $16 per bbl, up to 6 mil bbls. That's $2 per bbl lower than currently. Bill also preserves current structure of the additional tax break provided to small brewers and cuts that rate in half. So all brewers under 2 mil bbls will now pay $3.50 per bbl on their first 60,000 bbls. That's down from $7 per bbl. Tax reform may not happen until 2017, leading legislators told key business sectors. But whether this new bill passes or not, getting brewers back on the same page is likely a big step in the right direction for all.