Craft Spirits Weekly
Welcome to the 51st issue of Craft Spirits Weekly , a service dedicated to bringing you the news most important to the craft spirits distiller. Check your inbox every Thursday to find a curated selection of articles and news pieces from the American Craft Spirits Association.
Congress Passes Craft Modernization and Tax Reform Act
December 20, 2017 (Washington)  –The U.S. Congress has passed the Craft Modernization and Tax Reform Act as part of the larger tax overhaul plan. The passage marks the first major legislation in modern history that will directly support and grow America’s 1,589 small craft distillers via a critical, reduced Federal Excise Tax (FET) that finally gives craft spirits parity with its counterparts in beer and wine. The legislation has been ACSA’s top legislative priority, and its passage today marks a major victory for the distilled spirits industry.

Prior to its passage, the American Craft Spirits Association, together with other major beverage industry groups, worked tirelessly to rally support for the legislation. Though the overall tax bill may not have been met with universal support, the originally-filed Federal Excise Tax reduction bills in both the House and Senate garnered tremendous bipartisan support with endorsement by more than two-thirds of the House and a majority of the Senate.

The need for legislation was clear, as the current tax policy allowed for a reduced excise tax rate for small producers of beer and wine while leaving craft distillers at the same rate as major corporate suppliers. In fact, craft spirits producers had paid 5.4 times more FET than a craft brewer, and 16.4 times more FET than a small winery, for equal quantities of beverage alcohol.

For the first time, the legislation reduces the Federal Excise Tax from $13.50 to $2.70 per gallon for the first 100,000 proof gallons removed from bond per year for a two-year period.

 “This is the largest legislative victory for our industry in modern history,” said Mark Shilling, President, American Craft Spirits Association. “For years, we have fought for excise tax fairness, and with this change our industry will see immediate benefits, including the ability to hire more Americans and increase production with new equipment. We look forward to reinvesting these critical and long overdue savings into growing our workforce, production capabilities, and tourism experiences and supporting local agriculture.”

Margie A.S. Lehrman, Executive Director, American Craft Spirits Association added, “The burdensome Federal Excise Tax has been a substantial impediment to economic growth in the craft spirits industry, and we applaud this bipartisan commitment to making change. On this historic occasion, we proudly celebrate with our friends within the beer, wine and spirits industry who have helped rally support for this critical legislation.”

The craft distilling industry is growing, with, on average, one distillery opening per day. There are craft spirits distilleries operating in the U.S. in all 50 states, employing close to 20,000 people. Investments in the industry in the last decade have now reached over $600 million, according to the Craft Spirits Data Project (2017). For further information or to connect with ACSA, contact Alexandra Clough at alexandra@gatherpr.com .
Virginia: The True Birthplace of American Whiskey?
Virginia is in many ways the true birthplace of American whiskey. As we let that sink in, note that Kentucky will always be known as America’s preeminent whiskey destination. But its eastern neighbor is giving it a run for its money. Virginia distilleries bottle some of the best American whiskeys available today, and, more surprisingly, its whiskey heritage actually predates Kentucky’s. (Vinepair)
Last Shot Eschews Rye in Favor of Triticale
When Chris Uyehara and his partners opened Last Shot Distillery in Skaneateles, N.Y. in 2015, rye whiskey was riding a phenomenal wave of success: It had grown 500 percent in sales across the country in the previous five years. (New York Upstate)
503 Distilling Launches Canned Mule
503 Cocktails is launching its first canned cocktail, The Wicked Mule, this week which is available in liquor stores around the Portland, Oregon metro area, just in time for Christmas. (The Drinkable Globe)
Copper & Kings Launches Free Bartending Course
As Louisville's service industry booms, so does its need for qualified workers. The owner of Copper & Kings said he got the idea to host a free 15-week bartending course after a conversation he had with Mayor Greg Fischer around this time last year. (WLKY-Louisville)
South Carolina's Firefly Distillery is Expanding and Moving
Firefly Distillery, LLC, a South Carolina-based beverage provider, is expanding its Charleston County operations by constructing a new distillery in North Charleston. The $7.3 million investment is expected to create 20 new jobs. (Moultrie News)
Colorado Distillery-Inn Combo Generates Zero Waste
When distiller couple Connie Baker and Carey Shanks were raising funding for their hybrid distiller-inn in Colorado, certain investors reportedly questioned the concept. Brewery hotels from the likes of Dogfish Head and Stone Brewing are ascendant, and many Old World wineries historically offered lodging. Standalone spirits labels, however, rarely invite guests behind closed doors—let alone the chance to spend the night. Now, five wildly chic guest rooms sit above stills producing six spirits (the seventh, Hoover’s Revenge Fightin’ Whiskey, is forthcoming). And the entire operation just so happens to produce zero waste. (Vinepair)
Vermont-Based Distillery Forced to Close After Name-Change Dispute
St Johnsbury Distillery, formerly known as Dunc’s Mill, was given a cease-and-desist order from a federal agency last week. Owners Dan Hughes, Brendan Hughes and Brian Garvey purchased the distillery from Duncan Holoday last month. Holoday will continue in his role as master distiller for a year. (The Spirits Business)
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