If government shutdown sacrifices seasonal craft beer, then what happens to our ...
Laura Baverman, Upstart Business JournalContributing Writer Email |Twitter |LinkedInThe UpTake: A little-known federal agency is closed for business along with much of the U.S. government, but it's the engine behind the craft beer industry in the U.S. That means no new breweries and no new beers until Congress makes amends. And startup craft breweries have the most at stake until that happens.
Ever heard of the Alcohol and Tobacco Tax and Trade Bureau?
Likely not, but your local craft brewer has. And in fact, all of your favorite seasonal beers from that brewer depend on this one government agency's approval.
And like the national parks, monuments and zoos, the Food & Drug Administration inspectors and most NASA operations, this small agency in the Department of Treasury is shut down until further notice.
An Associated Press story today details the turmoil the shutdown is causing all kinds of brewers around the nation. A new craft brewer in Milwaukee can't open his tasting room, or file paperwork for four new labels he'd planned for the winter.
Mike Brenner's total cost for each month not opened: $8,000.
He told the AP:
My dream, this is six years in the making, is to open this brewery,' Brenner said. 'I've been working so hard, and I find all these great investors. And now I can't get started because people are fighting over this or that in Washington. ... This is something people don't mess around with. Even in a bad economy, people drink beer.'
The agency, nicknamed the TTB, handles all permits for new breweries and wineries and approves the recipes and labels for both new and existing establishments. According to its website (though admittedly, now out of date), the agency typically requires a 95-day screening and processing period for those new permits.
The shutdown promises to have the most impact on craft breweries, which thrive because they're constantly introducing new flavors and brews. At Christmas, beer lovers have come to expect beers spiced with cinnamon, vanilla or ginger, or mixed with chocolate, figs or honey.
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