US Government Shutdown Affects Beer Industry

Discussion in 'Beer News' started by BrewmanCapote, Jan 4, 2019.

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  1. Todd

    Todd Founder (13,518) Aug 23, 1996 Finland
    STAFF Mod Team Society Pooh-Bah

    Here how the government shutdown impacts breweries as posted by the Brewers Association:

    https://www.brewersassociation.org/news/how-the-government-shutdown-impacts-breweries/

    Labels and Permits: The Alcohol and Tobacco Tax and Trade Bureau (TTB) is one of the agencies that is closed as a result of the government shutdown (which began on December 22, 2018). The TTB has released an Appropriations Lapse Notice. During the shutdown, the TTB will not approve labels or process permits. Breweries should be prepared for the labeling and permit process to take longer than previously estimated. Also, be aware that when the government is funded again there could be a backlog. Breweries should plan accordingly.

    Taxes and Reports of Operations: If you are scheduled to pay federal excise taxes or to file a brewer’s report of operations during the shutdown you are still required to do so. Breweries can go to pay.gov to pay their taxes and file their reports of operations.

    Loans: If your brewery is in the process of applying for a loan from a bank or credit union they are likely unable to get the information they need from the federal government to process your loan. The Small Business Administration (SBA) is also closed due to the shutdown meaning small businesses will not have access to federally assisted loans.
     
  2. gopens44

    gopens44 Grand Pooh-Bah (3,560) Aug 9, 2010 Virginia
    Pooh-Bah Trader

    Good info, and I don’t doubt at all that they were against the move; navigating the comparatively impish TTF as an alternative to the scary IRS is a no brainer. Seems beyond unfortunate that our government has an arm (IRS) that instantly creates fear in every person or business. No agency in a free society should have that kind of power.
     
    nw2571 likes this.
  3. jesskidden

    jesskidden Grand Pooh-Bah (3,145) Aug 10, 2005 New Jersey
    Society Pooh-Bah Trader

    And (as noted in a few posts above) brewers and other alcoholic beverage producers sure don't want to have to meet the FDA's labeling requirements of listing calories and ingredients, etc.
     
    LuskusDelph likes this.
  4. jvgoor3786

    jvgoor3786 Grand Pooh-Bah (4,222) May 28, 2015 Arkansas
    Society Pooh-Bah Trader

    They just told us not to pay our government credit cards until the shutdown ends. Thank goodness for some common sense this time around.
     
    TurkeysDrinkBeer likes this.
  5. IroquoisPlisken

    IroquoisPlisken Crusader (455) May 21, 2013 Ohio

    Only thing I’m getting from this article is how dumb and burdensome government regulations can manage to become.
     
    nw2571, EricRub, bigstar87 and 4 others like this.
  6. therealJAYZ

    therealJAYZ Initiate (0) Jan 13, 2015 Pennsylvania

    Last week we found out that Elizabeth Warren drinks beer like a fish, now this.
     
    5thOhio, PA-Michigander and GOBLIN like this.
  7. Billybrewer

    Billybrewer Initiate (0) Jun 21, 2018 Delaware

    I just want to say that my heart goes out to people who are working without pay. Also to those who are unexpectantly out temporarily and those contractors who lost their jobs.

    Beer makes ppl happy so I wish you good beer.
     
    jvgoor3786 and readyski like this.
  8. VitisVinifera

    VitisVinifera Pundit (879) Feb 25, 2013 California

    you can blame Prohibition on all of this
     
    mikeinportc likes this.
  9. shannabanana80

    shannabanana80 Initiate (0) Jan 3, 2019 Indiana

    I believe this only applies to new beers that are canned or bottled as they have to be submitted and approved. If they have submitted the label before(say a re-release), they would be fine, but if its brand new then they would have to keep it in house and not distribute/bottle/can. As far as I remember.....
     
  10. jjboesen

    jjboesen Pooh-Bah (2,054) Feb 1, 2002 Maryland
    Pooh-Bah

    More proof that gubmint is just too big and encompasses every single aspect of our lives.
     
  11. tobelerone

    tobelerone Grand Pooh-Bah (4,220) Dec 1, 2010 New Jersey
    Pooh-Bah Trader

    Understood. OH does a weekly can release that’s often like four new ones, although they do also mix in repeat cannings of prior recipes.
     
  12. Dil_thebeerdrinking_do

    Dil_thebeerdrinking_do Savant (1,192) Jan 21, 2014 Georgia
    Trader

    Just another good example showing government has gotten too big. Unnecessary.
     
    EricRub, Alefflicted, mnrider and 2 others like this.
  13. GregHaugen

    GregHaugen Initiate (0) Mar 5, 2018 Wisconsin

    I'm curious about the timing in this scenario. When do breweries typically go through the approval process: before they begin the brew, having all the artwork and brand for that brew determined? Or when the brew is finished, giving them additional time to finalize the design of the can, etc. as the brew actually takes place?

    As this shutdown was a possibility long before it happened, would breweries plan accordingly and get approval for extra beers earlier or would they not begin a beer, knowing the shutdown could prevent them from being legal to sell it?
     
    5thOhio and mikeinportc like this.
  14. NYFC

    NYFC Initiate (0) Jan 17, 2018 New York

  15. unlikelyspiderperson

    unlikelyspiderperson Grand Pooh-Bah (3,966) Mar 12, 2013 California
    Pooh-Bah Trader

    Seems more to be proof that our current politics has gotten dangerously petty and disfunctional. To me, ensuring accurate labeling of commercial products is exactly the type of thing I want government to do. The fact that literally stopping government from functioning is considered an acceptable negotiating tool is a sign of just how shitty our employees in washington are. Fire em all
     
  16. cerp66

    cerp66 Initiate (0) Sep 20, 2007 South Carolina

    I still have plenty of beers to toast "build the wall"
     
  17. thebeers

    thebeers Grand Pooh-Bah (5,837) Sep 10, 2014 Pennsylvania
    BA4LYFE Society Pooh-Bah Trader

    Someone please correct me if I’m wrong, but I believe (as may have been discussed earlier in the thread) that federal labeling requirements apply to beers sold across state lines. If a brewery is selling on-site only, the federal regulations don’t apply — although some states may have state laws or regulations requiring all beers sold in state to meet the federal labeling requirements.
     
  18. Jaycase

    Jaycase Grand Pooh-Bah (3,858) Jan 13, 2007 Illinois
    BA4LYFE Society Pooh-Bah Trader

    Correct, jesskidden mentioned it above as well.
     
    5thOhio, mikeinportc and thebeers like this.
  19. VitisVinifera

    VitisVinifera Pundit (879) Feb 25, 2013 California

    I don't think hardly anyone in either the beer and wine industries predicted they'd not be able to get label approvals at the outset. You can blame the stable genius Individual #1 for that. I doubt anyone pre-approved labels unless they were already planning to do so. As for beer, especially these days where getting freshly brewed cans to market ASAP is the business model, they'll start the design process as soon as they know they are going to schedule a brew, then submit for COLA and hopefully it gets approved, and only then get the labels printed. So label production is a 3 step process. It has to be started as soon as they can because of the time these 3 steps take, then they need to get the cans out to market asap.
     
    bmugan and mikeinportc like this.
  20. Gajo74

    Gajo74 Pooh-Bah (2,795) Sep 14, 2014 New York
    Pooh-Bah Trader

    My tax dollars pay you to look at BA while you’re at work??? The horror!! :wink:

    P.S. I’m a city employee. I check out BA on my break all the time.
     
    TurkeysDrinkBeer likes this.
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