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Think this is just about the National Parks being closed? Think again!
The government’s political gamesmanship is having far reaching consequences, and it’s affecting the craft beer industry directly. It all starts with the TTB who, like many regulatory bodies in government, has had most of their functions shutdown since October 1st. And while many of those who work in the brewing industry are far too familiar this agency, many of you who just enjoy drinking craft beer may not have a clue as to who the hell they are or of the significant sway they hold over the industry.
TTB is an acronym for the Alcohol and Tobacco Tax and Trade Bureau, a lesser known arm of the Treasury Department. They’re actually a relatively new agency that came into their own in 2003, when they splintered away from their mothership, the much larger Bureau of Alcohol, Tobacco, Firearms, and Explosives. The TTB is primarily responsible for collecting taxes on alcohol, tobacco, firearms, and ammunition (which of course are considered essential to our government – they wouldn’t dare shut that process down) but they also oversee and approve new breweries, recipes and beer labels. Now, with the government’s shutdown, that process has come to a complete standstill, causing all kinds of problems for our industry.
Start-up breweries are in limbo, and those who planned to open on a specific date (and didn’t have their paperwork approved before the shutdown) are now on hold – which can be costly for owners and their investors…But that’s just the beginning of the problems this agency’s shutdown has caused for craft brewers.
The TTB also approves beer labels and recipes. And the government’s shutdown is creating all kinds of production problems for artisan breweries. Unlike craft brewers, big beer giants like AB-InBev or MillerCoors, who have stuck with the same recipes and labels for decades, are being minimally affected. Craft brewers, however, who have built their brands on constantly changing innovations, now have their backs against the wall. The labels they need approved are on hold – their production schedules disrupted – causing ripple effects that could continue to plague them long after the shutdown ends. Sales programs are devised well before a beer is brewed – packaging needs to be produced – and beer that’s been brewed and awaits label approval can go stale.
Polls continue to point to the public’s growing disaffection with how our government’s been working lately – many consider it painfully broken. But no matter where you stand on the political spectrum you’ve got to admit that government shutdowns are a pain for all kinds of reasons, which just might drive you to drink to ease that pain. The good news is that, at least for now, there’s plenty of serious beer out there to take the edge off amidst this unfortunate disaster – but if this government shutdown continues much longer – its impact will be felt by many of this nation’s craft brewers as well as their fans.
