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Government Shutdown May Have Great Impact On Beer Industry

on 03/10/13 at 9:49 am


imagesWith the government shutdown and no deal in sight, the beer industry will see the impact of spending cuts, which took effect on Tuesday.

The Alcohol and Tobacco Tax and Trade Bureau (TTB) double-check that breweries act in accordance with all mandated steps by the federal government in the alcohol production and distribution course of action. The TTB will also furlough 35 out of 518 employees for each day of the shutdown. Those 35 people will stay to collect excise taxes on beer.

The government shutdown could delay permits and labels, and stop the TTB process of approval. Every beer must include mandatory label information, such as the alcoholic content, and the name and address of the bottler or packer.

Jacob McKean, CEO and Founder of Point Loma’s Modern Times Beer, explains that a government shutdown can bring the improvement of the beer industry to a screeching halt.

“For better or worse, the TTB regulates a lot of what smaller breweries do, including approving labels for new beers,” says McKean. “Without labels moving through the approval process, many breweries won’t be able to release a new beer, which is terrible news for brewers and beer drinkers alike.”