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Help for craft brewers: Federal government report calls for beer industry changes

First Coast craft brewers are pushing for legislation in Tallahassee. Now, the U.S. Treasury Department is calling for some similar industry changes to help them.

JACKSONVILLE BEACH, Fla. — As local brewers in the craft beer industry push for legislation in Tallahassee, a department in the federal government is calling for changes to make these small business owners' lives easier.

The U.S. Treasury Department released a report Wednesday highlighting concerns about consolidation and wanting to help the "little guys" in the industry. Some of what they're calling for is being mulled over in the Florida legislature.

At least two breweries on the First Coast are going out of business already this year. The first female-owned brewery in Northeast Florida and Baker County's first microbrewery, Crooked Rooster Brewery, is getting priced out on rent. Last year, Main and Six in Springfield won one of the highest national honors in the craft beer scene; this year they're closing, citing the pandemic as part of the reason why.

First Coast News went to Ink Factory Brewing, which just opened in December in Jacksonville Beach, to discuss what it's like getting started in the industry. Jumping through hoops to open shop is fresh on Aaron Meisenheimer's mind.

"We actually brought a brewing lawyer into the process to kind of help us navigate that whole thing," he said. "Because it was mailing packets and signatures, and it was a lot of work."

A lawyer is expected to help, but how about the U.S. Treasury Department? Their report states America's two largest beer sellers make up 65% of the country's beer revenue. That doesn't jive with the White House's executive order promoting competition, and the Treasury Department wants more scrutiny on acquisitions, fewer regulations and new tax rates for those entering the industry.

"We're definitely much more regulated than the average," said Matthew Dahm, legislative committee chair with the Florida Brewers Guild. "Right now in the state of Florida to get a craft microbrewery license, a CMP, it's a $3,000 a year license." 

Dahm is pushing for a bill in Tallahassee to do things like ease licensing fees and simplify terminology. He says House Bill 1451 would make brewery owners' lives easier and gives the following example.

"Pretty much standardizing the terminology on the state and federal level for things like contract brewing and alternating proprietorship, that will certainly help," Dahm said. "So if you're a small brewery and you're looking to grow your operations and want to be able to pull on a contract brewer to help you brew off-site to increase your growth, it makes that that much easier. So again, that gets a lot of opportunity for a lot of small brands to be able to grow when they don't have the capabilities within their own store."

Meisenheimer has the storefront, but would take a helping hand.

"Dealing with all the different agencies and taxes and this that and the other is a challenge for sure," he said. "It's almost a full time job. I spend a lot of time doing it. Right now I'm getting ready to sit down and file our taxes for the excise tax and that takes me a good half a day. I think we could all use some help. Also business owners could certainly use a hand. Anything they could do to ease our lives, this is very much welcome and appreciated."

Some of the regulations for this industry are said to date back to the end of the prohibition.

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