Sierra Nevada’s efforts in response to tragic fires in Northern California last yr brought both immense attention and outpouring of support from many folks across the industry. Six months later, led by Sierra Grossman (daughter of founder Ken), the brewery’s efforts have led to $2.5 mil in donations with another million earmarked for more work in co’s hometown of Chico and nearby communities. And although hundreds upon hundreds of breweries across the US brewed and sold Sierra’s Resilience Butte County Proud IPA, pledging to send everything they got from those sales, “currently we do not have even half of the overall pledges in hand,” Sierra Grossman wrote in letter to participating brewers this week, according to screenshots shared on Twitter by Worst Beer Blog, picked up by VinePair, Paste and Fortune.

Donations detailed in Sierra’s letter underscore the huge efforts supported by the co, including donating $1.5 mil directly to the town of Paradise and to Butte County “to help offset the cost of building permits for the next few years.” Hundreds of thousands of dollars have gone to case workers, housing for adults with disabilities and immediate disaster relief. But much more could be done with funds already pledged but not yet delivered. Sierra Nevada understands that “the beer was in market until April 30, so many breweries and retailers have just recently seen those funds come in,” it wrote in statement following publication of the letter. “We deeply understand the challenges of operating a brewery and are actively working with our friends to establish realistic timelines for donations. We are however hopeful that those funds will be received as soon as possible so we can continue funding this essential work.”

Who’da thunk that after years of trying at the legislature and an unsuccessful lawsuit, craft brewers in Texas would succeed in being able to sell their own beer for off-premise consumption before the end of 2019? That might just happen, as full Senate approved amendment to broader Tex Alc Bev Comm Sunset Bill on Wednesday evening, clearing production breweries to sell up to 1 case of 12oz packages per adult per day. Recall, that’s after deal struck last week between Tex Craft Brewers Guild, Beer Alliance of Tex and last holdout, Wholesale Beer Distributors of Tex (see May 17 issue). Language tracking agreement made by 3 orgs attached to Senate version of Sunset bill this wk, now heads back to TX House for concurrence (recall, House passed less restrictive amendment in surprise vote a few wks back, Apr 26 issue). If passed and signed by governor, off-premise sales at breweries could start on Sep 1.

Notably, rest of Sunset Bill also includes some very helpful provisions for brewers in TX and beyond, as TCBG explained in release following vote. Bill would eliminate clunky, confusing distinction between “beer” and “ale” in state code, meaning simpler set of licenses and even a lower excise tax, as differing regs collapsed under new “malt beverage” heading. Other provisions also overhaul state’s labeling registration requirements, frequently deemed burdensome (and slow) by both in- and out-of-state brewers looking to get new brands onto TX shelves.

Elsewhere in Southern US, neighboring Arkansas passed some beer-focused laws too, tho more modest ones, as detailed by Fayetteville Flyer. Bill passed there will allow for brewpubs to open in dry counties, but with some additional restrictions. “Arkansas remains a patchwork of wet and dry counties,” as paper wrote, including some “sizeable towns” remaining dry. New law allows small brewers to produce up to 45K bbls in dry counties, but must operate a restaurant and also operate as a private club. While brewpubs elsewhere in state can self distribute, dry county “microbrewery-restaurant private clubs” would have to work with a distributor to sell beer beyond their premises. Separately, AR legislators also freed up homebrewers a bit, allowing them to officially produce beer over 5% ABV (homebrewed beer can now be anything over 0.5% ABV) for first time, while also clearing that beer to be transported and shared (but not sold) outside of the home at special events, tastings and competitions.

Meanwhile, folks from Georgia’s Monday Night Brewing placed op-ed in handful of Alabama papers this week, including Alabama Daily News and Trussville Tribune, in support of bill that would allow the co to open up a brewpub in the state. Currently, Alabama law bars production breweries that distribute in the state (regardless of whether or not they produce beer there) to operate a brewpub there. But Monday Night has deal to be anchor retail tenant in new multi-use real estate development in Birmingham. That deal in jeopardy if bill doesn’t pass. State Senate already easily passed bill late last week, according to op-ed. But now it’s up to House. While Monday Night acknowledges some craft brewers in the state believe bill doesn’t go far enough (limiting brewpubs they can operate to 1), owners “do not disagree,” but think “this bill is a win for the state, Alabama brewers and consumers, and it is needed now.” Co is “ready to invest even more heavily in Alabama,” beyond selling beer there for last 5 yrs. “Now it’s up to the legislature to remove outdated, unfair barriers and make it a reality,” in co’s view.

Last issue, we were not explicitly clear that the $3.5 mil in donations detailed in a letter that became public last week represented less than half of what Sierra Nevada has raised as a part of the Sierra Nevada Camp Fire Relief Fund. Indeed, fund getting contributions from Resilience IPA, for example, “has raised $7.1 million for Camp Fire relief thus far,” Sierra spokesperson Robin Gregory clarified for Craft Brew News. “We expect this number to rise significantly in the coming weeks,” too, as more breweries total up sales and send in donations. As in last wk’s statement, Robin reiterated that Sierra Nevada understands the challenges of running a small brewery and fully expects other breweries that pledged their support to make good on those pledges. Notably, too, Sierra Nevada itself has contributed $2.2 mil of that $7.1 raised (not including any individual donations by employees or executives). Further, “by joining together with other organizations through the Butte Strong Fund, we’ve been able to pool resources and significantly amplify these funds for real impact on our Butte County community,” Robin explained.

A few cannabiz notes and updates, mostly CBD-related, surfaced in the last week, as our sibling non-alc bev pub, Beverage Business INSIGHTS, reported yesterday (this is an excerpt of BBI’s article).

Hemp-based CBD just moved closer to clear legal status in Calif with unanimous passage of assembly bill AB-228 late last week, advancing legislative effort to supplant health officials’ enforcement jag that’s thrown nascent biz into turmoil in Golden State. Bill passed unanimously by vote of 76-0, per several sources that have been tracking legalization efforts. Bill now heads to Senate, tho position of Gov Gavin Newsom remains unclear, with spokesman saying it “would be evaluated on its own merits” if it reaches his desk, per CBD Hemp Experts. The bill expressly allows the use of hemp-based CBD in foods, bevs and topicals, in response to statement issued by health dept last year precluding CBD use in any animal or human food, even as dietary supplement, outside of licensed dispensaries.

In coverage of bill’s advance, news sources flagged report by NBC Bay Area titled “Dazed & Confused” last month that detailed woes suffered by some CBD suppliers and retailers, including teahouse in SF’s Chinatown nabe called Steap Tea Bar that sold CBD-infused bubble tea, and marketer of RTD Vybes CBD-oil-infused line profiled in BBI last fall (Editor’s note: Vybes is one of the more developed non-alc CBD bev suppliers with distribution thruout key Calif mkts, Portland, OR, NY and Atlanta, initially anticipating over 1 mil bottles in sales last yr at SRP of $7.99 per bottle). In case of Vybes, founder Jonathan Eppers told station that Calif health inspectors raided his LA warehouse in Jan and impounded $100K worth of product. Subsequently, about 50 Calif retailers dropped Vybes and he's relocated production to Texas. Eppers estimated that lost sales, legal costs and relocation costs have run to at least $500K. “What is going on is unbelievable and asinine,” he said. “They put us in this state of limbo that’s costing us.”

Meanwhile, Sheetz c-store chain is launching CBD-based items at 140 of its 279 locations in PA, including what seem to be some human-edible items. Altoona-based chain will offer both isolate and full-spectrum items, including topical rubs & patches, tinctures, vape pens, oral pouches, capsules, pet products and other items,” per Convenience Store News and other media outlets. The items will be stored behind the counter and sold only to those 18 or older with proper ID. “We are excited to be the first convenience store to offer a broad selection of premium CBD products at this magnitude,” said Ryan Sheetz, associate VP of brands. Sheetz also operates stores in WV, VA, MD, OH and NC that apparently won’t be entering CBD category yet.

Lastly, as it seeks to learn more about cannabis/CBD, FDA is convening its first public hearing this Fri at its White Oak Campus in Silver Spring, MD, and has established public docket open thru Jul 2 under # FDA-2019-N-1482. Info on hearing can be accessed here.

Nearly 8 months after suspending its previous “Special Ruling,” NJ Division of Alc Bev Control issued new rules affecting state’s small breweries yesterday. Most rules track those issued last September, which was greeted by outcry from small breweries and their supporters, recall, and only lasted about a week before ABC suspended it (see vol 9, no 87 and no 89). In interim, prior ABC director left. New Governor elected. And this time, Acting Director of ABC James B. Graziano not only lays out more complete timeline for how he expects these rules and future adjustments will be implemented, but also promises that enforcement action against breweries violating some of most basic tenets could come “immediately.”

Since NJ legislators created the “Limited Brewery” license in 2012, state has issued over 100 of ’em. Over that time, “a growing number of craft breweries began serving alcohol well beyond what the limited licenses allowed or ever envisioned,” in view of ABC, according to agency release announcing yesterday’s ruling. But it had few explicit details in code to back up any enforcement action. So when bars and restaurants (over 6,000 licensees, capped by quotas and therefore hugely expensive in some parts of NJ) complained about brewery activities, agency had to provide guidance that also afforded it some enforcement teeth. That’s what last yr’s ruling attempted to do. Now it’s trying again.

Food Ban, Tour Requirement in Law Weigh Heavily on Regulators Two aspects of state code covering small NJ breweries hemmed in regulators as they hashed out details. They’re also the same areas where ABC has seen breweries act in ways they view as beyond the letter of the law. First, code requires a “tour” before breweries serve any of their beer to an individual for on-premise consumption. But law doesn’t define “tour,” leading to a wide array of interpretations at small NJ breweries. New ruling defines “tour” rather broadly, tho not quite as broadly as ruling issued last yr. ABC now requires a “more substantive and meaningful” interaction between brewery staff and guests. But self-guided or pre-recorded video tours explicitly ok’d alongside “material” interaction. Breweries that keep records of visitors that take tours can allow repeat visitors to skip a tour on subsequent visits for 1 year.

Second key part of code: law bars breweries from selling food or operating a restaurant on their premises. That led some NJ breweries to employ common work-arounds used by breweries elsewhere, like bringing in food trucks and offering menus from nearby restaurants. This wk’s ruling allows breweries to offer or sell “de minimis” snacks like pre-packaged single-serve chips and nuts, as in last yr’s ruling. They’re also barred from bringing food trucks on site or partnering with individual restaurants and food purveyors, again like last yr. But ABC loosened the reins just a touch by allowing breweries to keep menus around in case visitors want to order food for delivery. Notably, this pair of “statutory requirements” and related clarifications in this wk’s ruling are the only two sets of restrictions ABC will enforce immediately. Others will be viewed, barring further action, as special conditions on limited brewery licenses when renewed for 2020-21 term. That said, agency expects to initiate a formal rulemaking process, requiring a public comment period, in “near future.”

Food, Tour Restrictions Limit Event Options Too: 25 On-Premise, Plus 52 Private Parties, 12 Off-Site Aspects of ruling that got biggest pushback last yr and likely to upset small breweries most now are new restrictions on amounts and types of events they can host on and off site. It maintains same limit of 25 “special events” as last yr’s ruling. These could include just about any organized event like trivia, movies, open mics, fundraisers, yoga and more: any event “open to the general public” that is “advertised or promoted...through any media, including social media.” Furthermore, showing live championship sports events, having live amplified music or DJs count toward the 25/yr-limit, even if they’re not advertised. And all events must be reported to state ABC at least 10 days in advance. Agency threw brewers a bit of a bone, clarifying that other organizations can get permits for “social affairs” to serve alcohol (including outside beer and wine) and food to ticketed attendees at breweries (again limited to 25/brewery/yr).

Ruling also limits breweries to hosting up to 52 private parties per yr. Parties can bring in their own food and wine. But again, no spirits. No tickets, no live sports championships on the TVs, no sales for off-premise consumption and no skirting the tour requirement. Anybody drinking at an NJ brewery has to take a tour first (unless the brewery can prove they’ve taken a tour in the last yr). Finally, breweries can host up to 12 off-site events per yr, again, similar to new opportunity afforded in last yr’s ruling. Those events require separate $200 permit (another quarter of a million $$ for ABC if over 100 NJ breweries host all 12 events open to ’em) which brewery must apply for online 3 wks in advance. Since event not hosted on brewery’s premises, no tour needed. But still, breweries not allowed to offer food or partner with food purveyors for these events. Just those pre-packed snacks.

Other Odds and Ends, Early Reactions Among other new restrictions placed on NJ breweries: no coffee brewed or sold at breweries; limit of 2 65-inch TVs showing non-brewery-related content; no crowdfunding to pay for license fees; no using outside vendors to promote or organize in-house events; no delivering beer to consumers. In last day or so since ruling released, what Acting Director Graziano referred to as the “very few, very vocal” breweries who cried foul the first time have not mounted quite the same response. “The ABC came to the table with a lot of different interests and listened to the breweries,” co-owner of Human Village Brewing, board member of NJ Brewers Assn and co-founder of Independent Brewers of NJ (a separate org altogether that doesn’t bill itself as a trade assn) Megan Myers told NJ.com. Statement by NJBA views “majority” of ruling as positive, while pushing back against special event and private party limits, arguing that ruling shows “it is now vital that the Legislature clarify” laws affecting small NJ breweries. Other small brewer org in state, Brewers Guild of NJ (representing mostly older or larger, production/distribution-focused breweries) more cautious. “We’re going to let this play out a little and see how it works on the ground,” exec director of that org, Eric Orlando, told Press of Atlantic City.

More details on the proposed Kona class action settlement requirements surfaced following court papers filed last week, according to report by The Recorder. Craft Brew Alliance has agreed to list brewing location sites (Kona, HI; Portland, OR; Portsmouth, NH) for Kona on “all consumer-facing packaging for a minimum of four years,” paper wrote (as CEO Andy Thomas acknowledged on Q1 conference call). Then too, CBA has agreed to pay up to $20 to consumers seeking reimbursement “if they have proof they purchased the Kona beers during the class period and up to $10 if they have no proof of purchase.” And plaintiffs’ counsel are seeking $2.9 mil in attorney fees “to be paid by CBA separate and apart from the settlement funds.” Notably, both parties came to an estimate of ~7.8 mil “potential class members” eligible for refund, but CBA “has reserved the right to terminate the settlement if more than 1 million claims are submitted” and acknowledges “the possibility of fraudulent claims where no proof of purchase is presented.” Settlement proposal still awaiting approval from the District Judge. Recall, CBA initially estimated settlement would cost $4.7 mil.

Craft segment continues to become more reliant on growth from smaller cos, as many individual regional brewers are struggling these days, annual stats from this year’s Brewers Assn May/Jun New Brewer mag further detail. Similar to 2017, about 1/3 of ~190 regional BA craft breweries declined in 2018, including 27 of the top-50 and 44 of the top-100. And increasingly, larger regional brewers that are growing are doing so at slower rates. This all tracks our analysis of craft volume from breweries that shipped over 100K bbls last yr, published in our Feb 12 issue, and in reporting since. Yet again, despite the challenging playing field, plenty of regional brewers keepin’ up strong growth as well, the BA’s data shows.

BrewDog USA, Tree House and Georgetown Were Top-5 Gainers Among BA Craft BrewDog USA (+456% to 36K bbls), Tree House (+130% to 44K bbls) and Georgetown Brewing (+37% to 83K bbls) represented the 2nd, 3rd and 4th largest craft bbl-gains in the country among reporting BA brewers last yr. Each up between 20-30K bbls. Only Firestone Walker (+12%, 49K bbls to 454K bbls), as well as non-BA defined cos such as AB and MC’s collective craft acquisitions, Lagunitas (including exports) and Founders had larger gains, as previously reported (Cigar City individually was a larger gainer too, tho total CANarchy gain was lower). Sierra Nevada’s 2%, 19K-bbl gain made it 5th largest BA craft volume gainer last yr. Yet this is a very different list compared to previous years where larger brewers like Bell’s, Stone, Dogfish, New Glarus, and/or SweetWater typically were ahead of the pack as well. While most of those larger craft brewers were able to grow last yr too, they’re not providing the same kind of volume lifts.

Many Familiar Fast Growers Kept Up Double-Digit Pace; Toppling Goliath & Belching Beaver Leaps Several familiar fast growing cos continued to gain ground, such as Three Floyds (+25% to 85K bbls), Modern Times (+41% to 51,500 bbls), Rhinegeist (+16% to 100K bbls), Night Shift (+62% to 31K bbls) and Creature Comforts (+46% to 36K bbls) all among top volume gainers last yr. Notably, IA’s Toppling Goliath jumped to just under 40K bbls in 2018 after not reporting volume in 2017 or 2016 (co initially planned to reach just ~12K bbls in 2016). CA’s Belching Beaver jumped 68%, 12K bbls to over 30K bbls. And Santa Fe (+40%), Fort Point (+45%), Pelican (+39%), Two Roads (+14%), Fremont (+16%), and Montauk (+22%) all kept up double-digit growth paces as well, among others.

30 New Regional Brewers in 2018; Collectively Up ~40% to 532K Bbls Then too, another 30 brewers hit 15K bbls or higher for the first time in 2018, becoming “regional” craft brewers according to BA stats and estimates. This group is larger than many previous years. And collectively they grew ~40% to 532K bbls. Recall, all regional craft brewers were collectively flattish/up slightly each of the last two years, even with additional growth from brewers new to the list. Aside from bigtime growth from BrewDog, new regional brewers ranged anywhere from MN’s Castle Danger (+66% to 24,700 bbls) to group of brewers that just reached 15K bbls. MT’s Montucky Cold Snacks and MI’s Old Nation each nearly tripled volume and surpassed 20K bbls last yr. WI’s Octopi quintupled volume to 15K bbls, adding as much volume as Bell’s did last yr. Maine Beer (+60% to 19,500 bbls), MD’s Stillwater (+58% to 19K bbls), NJ’s Cape May (+75% to 16K bbls) and CA’s Lattitude33 (+50% to 16K bbls) gained between 5-7K bbls while posting some of the faster trends among regional brewers. Remaining list of new regional brewers range from all over the country, including several less developed craft mkts: AR and OK’s first regional brewers, Lost Forty and COOP Ale Works; two brewers from KY (Country Boy, Braxton), FL (Coppertail, 3 Daughters) and VA (Hardywood, O’Connor); NM’s La Cumbre, LA’s Parish and TN’s Yee-Haw. And more brewers from more established craft states keep rising to regional status too, such as CO’s Denver Beer Co, CA’s Track 7 and Mission, VT’s Zero Gravity, NC’s Hi-Wire, NY’s Bronx Brewery, MD’s Evolution, and CT’s New England Brewing.

Lotsa Tuff Regional Declines Again in 2018; Nearly 30 Cos Lost 5K Bbls or More Yet many sizable declines from regional craft brewers wiped out most of the collective regional brewer growth again last yr. Most sizable drops were from Boston Beer’s beer (-150K bbls) and New Belgium (-107K bbls), according to BA stats and estimates, as we’ve previously reported. Yuengling (-2%, -45K bbls), included in BA data, also draggin’ the collective group. And several established brewers over 100K bbls saw tuff declines last yr (again, see Feb 12 issue), including: Deschutes, Boulevard, Shiner/Gambrinus, Artisanal Brewing Ventures, Brooklyn Brewery, Alaskan, FX Matt, Great Lakes. Yet sizable drops are comin’ from smaller cos too. Green Flash (-37%) lost 27K bbls as co restructured footprint and ownership, according to BA. Flying Dog (-11%), Shipyard (-9%), Full Sail (-13%), Rogue (-9%) and Long Trail (-4%) all have fallen under 100K bbls. Bear Republic (-15%), Great Divide (-22%), Big Sky (-21%), Left Hand (-8%), Schlafly (-11%) all well off their peak volumes. And at least 6 cos declining at steep double-digit rates have fallen out of regional status, according to BA estimates, including Third Street/Cold Spring, Ipswich, Tallgrass, BridgePort (now out of biz), Natty Greene’s and Weyerbacher (filed for chapter 11, sold to new PE owners). Altogether, 28 regional BA craft brewers shed 5K bbls or more last yr, including 2 over 100K bbls, 3 that lost between 20 and 50K bbls, and 9 that lost 10-20K bbls.

Craft beer landscape north of the border may be tightening up as well, tho perhaps for different set of reasons. One of the oldest Canadian craft brewers, publicly traded Calgary-based co, Big Rock Brewery, “has undertaken significant cost-cutting measures, including reductions to the Corporation’s workforce, in response to the persisting regulatory environment for brewers of its size in Alberta,” co announced. Indeed, Alberta gov’t imposed beer tax hike that resulted in 104% increase in “net Alberta beer mark-up (provincial tax),” that “has forced” co “to take immediate cost-cutting measures as the increase in the tax on Big Rock’s beer in Alberta has eroded the profitability achieved by Big Rock in 2018,” sez co. If tax hike persists, Big Rock projects its own provincial liquor tax charge to increase from $10.7 mil (Canadian dollars) in fiscal 2018 to more than $21 mil in fiscal 2019. (In 2018, Big Rock grew revs by 5% to $48.7 mil and had net income of $360K even as volume declined 6K bbls to 171,800 bbls for full yr.)

Ultimately, cost cutting measures will help Big Rock “remain competitive, support anticipated growth and drive long term value for shareholders,” co stated. “We are creating a sustainable business model by accessing new ways to grow revenues, reduce expenses and improve margins, despite the current tax regime and regulatory environment in Alberta,” added president and CEO Wayne Arsenault. “This process can be painful” and “difficult for our employees,” but Wayne and co vowed to work with new govt “to establish a positive regulatory environment for small brewers in the province that is predictable, stable and supports growth.”

Besides big moves on franchise law, self distribution and off-premise sales at breweries, noted above, plenty of other legislative tidbits popped across the states in last mo. First, govs in a variety of states have been busy, signing approved legislation into law. Similar to law passed by Connecticut Senate this week, Iowa governor signed bill allowing state’s alc bev manufacturers to pick up licenses to produce other forms of alc bevs, previously barred, according to Radio Iowa/KMA Land. Bill-signing ceremony at state’s Toppling Goliath Brewery, which looks to branch off into distilling once law goes into effect July 1. Iowa now home to about 80 different brewery locations, 100 wineries and 10 distilleries. Meanwhile, much-discussed bills in Maryland allowing breweries to sell up to 5,000 bbls of beer per yr in tasting rooms and creating small-brewer carve out to franchise law signed by MD gov at end of last mo, the Baltimore Sun reported. And in Washington state, more nitty-gritty issue of how brewers promote events on social media clarified by new law also signed in late April, as detailed by Washington Beer Blog.

However, new governor of Illinois signed off on issues viewed as less beneficial to small brewers there. First, Gov JB Pritzker issued budget plan aiming to bring in $120 mil in revs for state from increased alc bev excise taxes. Plan would boost beer tax about 20%, from 23.1 cents/gal to 27.7 cents/gal (or $7.16/bbl to $8.59/bbl). Brewers (and others) crying foul, natch, including some skeptical they’d be able to pass the tax hike along to consumers, according to reporting in Capitol News-Gazette, NPR and local ABC affiliate. Wine and spirits taxes would jump by even bigger margin. At same time, same gov expected to sign just-passed bill to legalize adult use cannabis in Illinois. Interestingly, same two issues also appeared in New York earlier in year. Proposal to raise excise taxes never got much traction after popping up in mid-March, per Times Union. Cannabis bill fell by wayside around same time, but recently revived, awaiting action in state Senate.

Similarly, attempt to add new retail sales tax on alc bevs in Anchorage, AK voted down earlier in yr, according to Anchorage Daily News. Notably tho, anti-tax efforts, led by retailers and big brewers, spent 10X what pro-tax side spent and only won with 53% of vote. That said, Pennsylvania brewers still lookin’ at looming July 1 start of applying 6% state sales tax to all taproom sales. Brewers have been hoping for change of view by Dept of Revenue, asking if they can apply tax to wholesale prices of volume sold on site. So far, no go. Worth noting that discussions of raising taxes on alc bevs happening in more states seeking to expand revs. And tho a state like Colorado has been fairly friendly to alc bev industry, this recent story from Colorado Public Radio, sharing common public health criticisms of alc bev availability, specifically alleges that prevalence of “microbreweries” contributes to comparatively high “binge drinking” rate in Denver.

Same Tension in Louisiana Eased in NC Worth noting distinct differences in recent rhetoric coming from two states that saw two very different outcomes in legislature this yr. First, some of the classic language used to describe “archaic” alc bev laws in Louisiana, where bill that would have allowed breweries to offer wine and liquor at private events failed, according to The Advocate. Story features all the familiar trappings of tension between small brewers and distribs, but also includes suggestion that frustration among lawmakers may now also come in 2 flavors. Article cites one legislator frustrated by repeated visits from small brewers asking for new changes and another that’s more sympathetic to “David versus Goliath story.”

Finally, take a moment to read recent op-ed in the Charlotte Observer, in which owners of NoDa Brewing and Olde Mecklenburg Brewery sing the praises of the middle tier as not just biz partners but crucial legislative allies. Recall, these are same folks that sued state over self-distribution law a couple yrs back before striking compromise early this yr. Key to that bill easily passing legislature “was a partnership that in the recent past seemed unlikely.” But opposing sides “laid down their swords, sat down together and sought common ground,” per op-ed. We’ve rarely read such glowing praise for the importance of the middle tier from small brewers. May compromise “not only serve as a model for those in the craft beer business, but as an example to everyone of how sitting down and talking to those who have different views can yield real results,” letter concludes. Cheers to that.

While last week “wasn’t pleasant” for CO brewers as 3 more brewers – Fate, Ironworks and 38 State Brewing – announced closures, it’s still too early to talk about the craft “bubble” bursting, according to Westword article. “At least not yet.” Both Fate Brewing and Ironworks closures were “unique” cases, paper argues. Recall, Fate filed for bankruptcy last yr, due to inability to pay down debt after attempting to expand into Avery’s old facility (Vol 9, #100). And Ironworks Brewery & Pub, which has been in biz since 1989, owed more than $15K in taxes before its biz was abruptly seized and bolted by the city of Lakewood.

Now 9 CO breweries have closed in 2019 compared to 15 openings and another 50 breweries “under construction,” paper noted citing Stephen Adams, who tracks openings and closings in-state as “Colorado Beer Geek” on Facebook. There were 67 openings vs 20 closures in 2018; 30 openings vs 15 closures in 2017; and 42 openings vs 7 closings in 2016. And “primary reason for these closures has been rising rents, although several breweries were simply sold to new owners.” While paper uses these numbers as part of its argument for no “bubble,” gotta note that CO’s rate of closures vs openings is well above natl avg. Nationwide, 1049 breweries opened vs 219 closed in 2018, according to BA stats; 997 openings vs 165 closings in 2017. Notably, “five year leases are expiring for many of the new wave of breweries that signed or opened in 2013 and 2014,” paper added. And 2014 was “highest number” of openings, with 68 total, CO Beer Geek pointed out. So “there is a good chance that more breweries will close as those leases expire and rents go up.” Of course, CO is one of the more highly developed craft mkts, with nearly 400 breweries currently operating, including several large craft suppliers and a slew of microbreweries thruout the state. But signs point to tuffer times yet for many young breweries.

FL’s Red Cypress Ceasing Operations End of May After just a few yrs in biz, Winter Springs, FL brewer, Red Cypress, suddenly announced it will be “closing at the end of the month,” via social media last week. No additional explanation as to why at presstime, and notably Red Cypress grew from 1,100 bbls in 2016 (its first full yr) to 2,900 bbls in 2018 according to Brewers Assn stats.