A Historic Event, but An Opportunity Lost

Posted On February 11, 2013

Join Our Cause

On February 5th, there was a meeting held among members of the alcoholic beverage industry in Montana that I am told has never happened before. The tavern guys, the brewery guys, and the distributor guys (well one gal), sat at a table for the first time ever. Wow! Everyone thought it was a great start to something new, felt that the dialogue was real and respectful, and that everyone’s participation was genuine. There was no fist pounding, no accusations, but a great deal of dialogue and sensibility to each party’s positions.

There were three representatives from each of the Montana Brewers Association, Montana Tavern Association, and the Montana Beer & Wine Wholesalers Association. A good, diverse group representing the majority of adult beverage related industries in Montana.

At the end of the meeting, the majority of the parties were counseling an approach that would entail continuation of these meetings on a monthly basis. All parties agreed on an approach that would develop the details of an agreement on how the brewing industry, tavern industry, and distributors should proceed, with the goal of defining legislation for the 2015 Legislature. Most felt that there has not been the proper dialogue as of yet, and trying anything in the 2013 Legislature would create more issues, not fewer.

Nonetheless, the Montana Tavern Association still intends to sponsor legislation during this session to attack Montana’s small breweries. They are apparently so bent on the position that our businesses are running amok, not paying for licenses, and skirting the system, that they feel that they must carry a bill to limit our abilities, in return for allowing a brewer to purchase a retail license. The entire room was counseling caution and the continuation of these meetings, but two of the three representatives of the MTA indicated that their board already made up its mind to further restrict small breweries. So much for detente, I guess.

So what we are told is that a bill would be coming, in spite of our efforts, that would place some further restrictions on brewers. We heard about 40% of sales can only be on premise, but we don’t know for sure; haven’t seen any language. We do know, we must resist any changes that bring further restrictions to brewers.

The Facts

• Montana brewers already have some of the most severe restrictions in the nation (only 48 ounces per person per day, and only till 8pm).
• Montana brewers represent over 450 jobs in 22 towns across Montana, from Whitefish to Wibaux, and have an economic impact of over $50 million.
• Montana brewers follow the laws and have helped create one of the fastest growing industries in the state.
• Montana brewers brew most of their beer from barley and wheat grown right here in Montana, and malted right here at the malting plant in Great Falls.
• Montana brewers heavily utilize other trade companies in the manufacturing of their beer such as plumbers, electricians, glass companies and many more.
• Montana brewers send their products to taverns, restaurants, hotels and grocers through the state, and some distribute out of state.
• Montanans and tourists love Montana made beer and the choices made by the breweries.
• Further restrictions on Montana brewers will harm this good and responsible industry, and Montana’s economy.

Let Your Voice Be Heard

Representative Roger Hagan (Great Falls) is apparently introducing this bill. Tell Rep. Hagen that this bill will stop entry into this growing market, affect the majority of brewers in the state of Montana today, shut down several breweries, and stop ANY new businesses for starting. This in an anti-jobs, anti-economic development bill, and they should tell the MTA to come to their senses and get back to the table.

Representative Rodger Hagan: [email protected]

Please also contact the members of the House Business and Labor Committee, below. Tell them you are against any bills that place further restrictions on brewers than they already have!

Love Beer? So do we – and Montana breweries need your help!

Posted On February 4, 2013

Join Our Cause

I know most of us enjoy cold session beers over legislative sessions, but the Montana craft beer industry is in trouble!

A bill was recently introduced to limit the amount of beer sold in taprooms to just 10% of yearly production. The bill’s sponsor, Rep. Jeff Welborn, dropped the legislation, but our growing Montana beer industry is still in danger. More bad legislation may be on the way and we need you to speak out!

We hear talk about a bill coming that might limit the amount of beer sold in tap rooms to just 40% of yearly production. Existing brewers would be clipped under these severe limitations, and no new brewers would ever build in Montana again. The Montana Tavern Association and some legislators say “let em buy a license, but restrict brewery success with regulation in the meantime.” Nice; the legislature prescribing entrepreneurialism.

There are too many moving parts to be assembled for any of this legislation to benefit the public, the economy, tourism, agriculture, brewers, retailers, distributors, and you. We need industry players to work together on these issues, and give microbrewery-targeting legislation a rest this session. We are committed to doing just that! Tell your legislators to stop this kind of rash and destructive legislation!

The Facts

Despite the most restrictive laws in the nation, Montana brewers have continued to follow every rule including the 10,000 barrel production limit, 8 PM last call, and a 48 ounce limit per person per day.

Owners take on serious risk to open a brewery. They must make significant investments in brewing equipment, good people, and many local materials. They have to prove their brewing abilities by incubating their beer with a discerning public, distribute their beer to taverns and restaurants, and continually expand the reach of their products.

These risks and investments have been made with the knowledge that the current limiting rules of the market are in place. Changes that affect entry to the market, or to current retail and distribution abilities will cripple this growing industry.

Montana Craft Breweries are part of a $50 million industry with 22 Montana communities participating in the growing economic trend. Our recent report, The Economic Contributions of Craft Brewing in Montana, contains the research that supports these claims!

Montana brewers support the use of Montana grown agricultural products, provide jobs, give back to their communities, and create a fantastic place for community members to gather.

We need to help this amazing industry grow in Montana!

Contact Your Legislators

Tell your local legislator that you support craft brewers in Montana and they should too!

Tell them you do not support any legislation that hinders the growth of Montana’s growing craft beer industry!

Please be clear, concise, and polite. We ask you be respectful but urgent in your message to legislators!

Letting your voice be heard has never been so fast, easy, and effective!

Visit the Send a Message to a MT Legislator portal.

1. Fill out your name and contact information.
2. Select the House Business and Labor Committee and the Senate Business, Labor, and Economic Affairs Committee, or your local legislator to receive your message.
3. Sound off in 1250 characters (cannot include * ^ ; & > < / ) .

-or-

Call 444-4800 and dictate your message to a legislator or committee of your choice.

Study Taps Growing Impact of Craft Brewing on Montana’s Economy

Posted On February 1, 2013

Oct. 30, 2012

 STUDY: CRAFT BREWING HAS GROWING IMPACT ON MONTANA’S ECONOMY

 MISSOULA –

Montana’s 33 craft brewers represent a growing sector of manufacturing activity in the state, according to a new survey and economic impact study by researchers Colin Sorenson and Todd Morgan of The University of Montana Bureau of Business and Economic Research.

According to the report commissioned by the Montana Brewers Association and titled “The Economic Contribution of Craft Brewing in Montana,” the impact of the industry represents more than 430 jobs, nearly $50 million in private-sector sales, $9.8 million in private nonfarm compensation, $1.8 million in government compensation and $1.5 million in state government revenues.

Survey data collected by BBER show the brewing industry in Montana grew rapidly from 2010 to 2011. Production rose 18 percent, sales were up 20 percent, employment was up 39 percent, compensation increased 23 percent and expenditures were up 21 percent. Nearly 97 percent of Montana’s brewers participated in the survey and many reported offering a variety of employee benefits such as health insurance, retirement and paid vacations.

BBER’s study found that while the activity of craft breweries is concentrated in the more populous regions of the state, economic impacts of craft brewing extend into all regions. As of the end of calendar year 2011, there were 12 breweries in northwest Montana, seven in southwest Montana, four in north central Montana, eight in south central Montana and two in eastern Montana.

“These numbers show the tremendous potential for Montana’s breweries to continue to create jobs and wealth in Montana,” said Tony Herbert, executive director of the Montana Brewers Association. “The economic impact of the brewing industry in Montana is large and growing, and the potential for breweries to generate more jobs, more statewide tax revenues and more happy customers should not be underestimated.”

The Bureau of Business and Economic Research at UM is a research center producing economic and industry data for Montana. For more information visit http://www.bber.umt.edu/ or https://montanabrewers.org.

For further information contact Colin Sorenson, research economist, UM Bureau of Business and Economic Research, 406-243-5113, [email protected].

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To view a .pdf of the Report and the Slide Presentation click below:

MT Brewing Economic Impact (Report)

MT Brewing Economic Impact (Presentation)

Craft versus Craft? Think about what you are drinking.

Posted On January 23, 2013

Beer has had roots in this country for centuries. Virtually every Founding Father either made or enjoyed it. To-day, thanks to the ingenuity of small and independent brewers, the U.S. has moved beyond offering only light American lager and now has more beer styles and brands to choose from than any other market in the world.

Montana’s brewers are helping lead the way. Now with over 35 breweries making fine hand craft beer, in 2011 the Montana craft beer Industry represented almost $50 million in economic output, had an employment impact of over 430 Montanans, represented almost $12 million in compensation, and $1.5 million in state tax revenues. Montana has more breweries per capita than all states but Vermont, producing over 100,000 barrels of beer per year.

This is a movement — and one that is growing quite rapidly. In 2011, craft beer grew nationally 13 percent by volume and 15 percent by dollars, with retail dollar value estimated at $8.7 billion. Montana’s craft beer industry grew 18 percent by volume, 39 percent in employment (full and part time), 23 percent in compensation paid, and 20 percent in sales. By mid-2012, the growth has continued and dollar sales for craft brewers nationally were up 14 percent, while volume of craft brewed beer sold hopped 12 percent. Overall, beer sales are responsible for 1.6 percent of the nation’s gross domestic product.

Yet even as craft grows, those who dominate the market are large international conglomerates. A-B InBev, headquartered in Belgium, and SABMiller, headquartered in London, now control 75 percent of the U.S. beer market between them. Heineken and Modelo (Corona) and other imports are 14 percent, and A-B InBev has a deal in place which, if approved by the Department of Justice, would allow them to buy the half of Modelo it doesn’t currently own.

While America’s small and independent craft brewers have reached a record 6 percent market share, they lack the economies of scale and the huge marketing resources of the big brewers. They’ve relied on grassroots efforts, an appreciation for local, and authentic and delicious products to attract their consumer base.

Beer enthusiasts have responded by embracing these breweries and their unique, innovative and flavorful beers, brewed locally by neighbors and friends who are very visibly involved in their communities. They have chosen to support small-business entrepreneurs, who are the embodiment of the American dream. These entre-preneurs are the underdogs bent on reviving a sense of independent craftsmanship.

Noting the expansion of the craft brewers’ niche and also that many beer drinkers are turning away from the mass-produced light lagers that they are historically known for, the large brewers started producing their own craftlike beers. However, they don’t label these faux-craft beers as products of A-B InBev and MillerCoors. So if you are drinking a Blue Moon Belgian Wheat Beer, you are not told it is a SABMiller product. If you crack open a Shock Top, you are not told this brand is 100 percent owned by A-B InBev.

The large brewers also have bought or own 100 percent of smaller breweries like Goose Island, Leinenkugel and Henry Weinhard. They own significant equity stakes in Red Hook, Widmer and Kona breweries. They sell these beers through their strong distribution channels, but market these faux-craft beers as if they were from inde-pendent, locally owned craft breweries.

Today, there are craft breweries in just about every city in the country, lifting the local economies and giving those communities unique products that reflect their native character. Most Americans now live within 10 miles of an independent, locally owned craft brewery. In Montana there now are breweries located in 22 communities, including small towns such as Wibaux (Beaver Creek Brewing), Wolf Point (Missouri Breaks Brewing), and Phil-lipsburg (Phillipsburg Brewing).

This country thrives on innovation, and small-business and craft brewers alike are the epitome of this. The large brewers employ 25,000 people in their stateside brewing facilities and, undoubtedly, in cities like Milwau-kee, Denver and St. Louis, these jobs are important to the local economies. But across the entire U.S., small and independent craft brewers employ more than 103,500 Americans in local, Main Street jobs!

Montanans are known to enjoy their beer, and if you think craft breweries are a good force in America, take the time to familiarize yourself with who is brewing the beer you are drinking.

Is it truly from a brewer that is small (producing less than 6 million barrels of beer a year) and independent (less than 25 percent of the craft brewery is owned or controlled by an alcoholic beverage industry member who is not themselves craft)?

Or is it a product of a large international brewer, capitalizing on the unprecedented growth of the sector to produce a faux-craft beer?

It makes a difference. By supporting small and independent craft brewers across Montana, and the country, we are giving them a chance to thrive in business, create more jobs, boost the economy and compete against the massive corporations that have controlled the market for so long.

Charlie Papazian is the President and Bob Pease is the Chief Operating Officer of the Brewers Association, the trade association representing America’s small, independent brewers. Tony Herbert is the Executive Director of the Montana Brewers Association.