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Old 06-23-2010, 06:06 PM   #1
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Default Sam Adams to lose craft beer status

So I read this a couple of weeks ago, but I found it interesting. The godfather of craft brewing is in jeopardy of losing it's craft brewing status.

Boston Beer Company, which owns and operates Sam Adams beer, is trying to hold on to their official designation as a "craft beer," as the New York Times reported.

The company is eager to keep the designation not only for its cache (craft beers tend to focus on flavor rather than, say, 'drinkability'), but also for its tax benefits -- brewers who produce fewer than two million barrels per year are subject to lower excise taxes than the larger brewers. Boston Beer president Jim Koch remarked to the Times, "If we're not a craft brewer, what else are we? We're certainly not Budweiser."

Hoping to maintain that status and keep their low excise tax, Koch went to Washington where Massachusetts Senator John Kerry and Idaho Senator Micahel D. Crapo are fighting for a bill they introduced six months ago that increases the yearly production limit on "craft" breweries from two million to six million barrels. As Bloomberg reported:

[T]he law "would reduce the excise tax for small breweries from $7 to $3.50 per barrel for the first 60,000 barrels of beer produced each year. For every additional barrel up to 2 million, the bill would lower the excise tax from $18 to $16.

-Huffington Post 6-14-10

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Old 06-23-2010, 06:12 PM   #2
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A tax on success? Yes it is.......

However, Sam Adams will be the next BMC if it's allowed to be, and they will have to fight with the big boys.

I'm still in favour of supporting the smaller breweries, and a tax exemption is a good thing IMO. Small breweries need all the help they can get, and SA is just not a small brewery any more.

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Old 06-23-2010, 06:14 PM   #3
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A tax on success? Yes it is.......

However, Sam Adams will be the next BMC if it's allowed to be, and they will have to fight with the big boys.

I'm still in favour of supporting the smaller breweries, and a tax exemption is a good thing IMO. Small breweries need all the help they can get, and SA is just not a small brewery any more.
Agreed, and I have a hard time considering SA 'Craft Beer'. It's mass marketed and mass produced.

If you have to advertise on national television to sell your beer, you are out of the Craft Brewery crowd. I am all for lessening the tax burden on small breweries, but Sam Adams isn't in that group and I have no sympathy for them.
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Old 06-23-2010, 06:15 PM   #4
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I kind of agree. It's more nostalgia than anything that makes people want to look at SA as a craft brewery. I mean 2 million barrels a year is a lot of beer. Jim Koch is huge in the history of craft brewing, but he isn't brewing 1,000 barrels a year and selling door to door anymore.

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Old 06-23-2010, 06:15 PM   #5
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They'll call themselves whatever they want (craft), this is 100% about $.

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Old 06-23-2010, 06:17 PM   #6
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The excise tax thing is cool though.

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Old 06-23-2010, 06:19 PM   #7
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The excise tax thing is cool though.
It is, but now that I am thinking about it, what other Brewery would this increase effect? If it is just a tax dodge by SA, I don't think I could support it.
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Old 06-23-2010, 06:20 PM   #8
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It is, but now that I am thinking about it, what other Brewery would this increase effect? If it is just a tax dodge by SA, I don't think I could support it.
sierra nevada maybe??? I wonder what their annual production is.

EDIT: never mind, they're still well under a million.

EDIT #2: it would put Yeungling into the craft beer status!!!
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Old 06-23-2010, 06:22 PM   #9
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Why wonder when you can google.

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Production output 680,000 barrels
Not even close.
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Old 06-23-2010, 06:26 PM   #10
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Why wonder when you can google.



Not even close.
see edit #1.
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