An editorial entitled, “The Craft Beer Cops,” in the January 22nd edition of The Wall Street Journal’s highlights “the burden of federal regulation on the good folk who want to create tasty beverages.” The quote was from Jeb Bush during a recent presidential campaign trip to New Hampshire. While there, Bush had the opportunity to meet with Erik Olsen of Kelsen Brewing Company. Olsen explained the licensing process to Mr. Bush and the myriad of requirements brewers had to complete in order to receive a permit from the TTB.
Olsen explained that the process continues with each state, even detailing label approvals and expansion plans necessary for the TTB, further stating that companies must “file any expansion plans with the TTB, just like a new brewery that is opening its doors.” The agency “has to approve our plans before we can start using the new expansion space for brewing.” Olsen noted that the process could take as long as six months to receive approvals.
The article also quotes Dave Currier of New Hampshire’s Henniker Brewing who met with Ohio Gov. John Kasich. Currier highlighted the litany of labeling rules for beer bottles and cans, even covering specifics like font size. Currier’s brewery was forced to stop calling its old-fashioned porter “soothing” because regulators claimed it suggested a medical benefit. Really? The government has graciously allowed Henniker to continue calling it “robust” and “hearty.”
Currier gave New Hampshire regulators a break, noting that they are generally faster acting with state labels than the feds. Recently though, an out of state brewery was denied a label due to the fact that their oatmeal stout can featured a picture of a baby. The state’s reason was that the picture “implied underage drinking.” The article finishes with the comment that “it’s one more reason we have a 2% growth economy.”
Since prohibition, distributors have been very successful in getting legislation passed at both the state and federal levels that favor their tier. These include, but are not limited to, franchise protection, cash laws and dock sales. Distributors continue to lobby on all levels and even help in reducing federal taxes on beer.
The Wall Street Journal’s article highlighted just how much the craft industry has gotten involved in the legislative process, similar to their predecessors, the distributors. In this case, the craft industry was focusing on the national issues that inhibit the industry with unnecessary legislative burdens.
The impact of the craft segment is reaching past simply its products. Crafts have, and will continue to change and challenge the industry. The op-ed in the WSJ is a perfect example for such action.
While some in the industry might push back on the craft’s desire to change parts of the beer world, in this case, the industry should support craft’s efforts to deregulate unnecessary regulations.
It’s about time this happened. I’m not interested in preserving the status quo; I want to overthrow it.
Beer Fodder: http://consumerist.com/2016/
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