MicroBrew: A freedom success story

Don · Jun 2, 2010

From 44 breweries in 1979, to 1463 today.

From a beer industry that was routinely condemned for it's blandness to more awards in international competition than any other country than Germany.

Today, more styles are brewed in the United States than in any other country of the world.

Today, micro-brews are growing, while Bud Light, Coors Light, and Miller light are all seeing declining sales.

Thank deregulation.

Then Jimmy Carter took pity on our wretched souls. In 1978 he signed Senate Amendment 3534, a portion of which gave each household permission to produce up to 200 gallons of tax-exempt beer each year.

Three decades later, the U.S. boasts 1,463 breweries, including 975 brewpubs. Bud Light and its analogs still dominate the market, but even your corner market may have at least a few selections to tempt the palate of Joe Microbrew: summer ales, double bocks, black lagers, maybe even a honey orange wheat ale.

If you’re looking for a textbook example of how government can stifle innovation and discourage productive activity, even when operating in Regulatory Lite mode, the story of home brewing in America should hit the spot.

Reason.tv has a great 6:53 video overview here.

Coverage of the decline of the Anheuser-Busch/MillerCoors duopoly here.

A more general story of the industry explosion here.

Like microbrew? Thank a libertarian.

Michael Wolfe · Jun 2, 2010

Thanks Don.

Deleted member 42 · Jun 2, 2010

At the same time, on the local Washington brew scene, we've got a new tax on beer. It's a tax that targets the producers of beer, based on the volume they produce, and that affects all producers of "strong beer," which in Washington means barley wine.

This particular tax isn't the problem so much, but I am worried that it sets a precedent, and that it taxes the producer of goods rather than the consumer.

Xelebes · Jun 2, 2010

Canada's beer industry is also fracturing. In the 80's, Molson and Labatt had something like 80-90% of the market. Nowadays, they only have something like 40-50% of the market and breweries like Big Rock, Columbia, Alexander Keiths and Moosehead have a sizeable portion of the market and microbreweries like Yellowhead and Maverick have been having a go in the Edmonton market.

A large part of what has allowed this to happen was Alberta dismantling their Alberta Liquor Control Board and allowing other beers to be featured and take a foothold in a market and created demand in the other provinces to stock it in their stores.

Don · Jun 2, 2010

Freedom works. Whoda thunkit?

blacbird · Jun 2, 2010

You are congratulating something Jimmy Carter did?

Where's my digitalis?

caw

blacbird · Jun 2, 2010

Medievalist said:
This particular tax isn't the problem so much, but I am worried that it sets a precedent, and that it taxes the producer of goods rather than the consumer.

I agree with this entirely. WTF is the reason for taxing the producer? Leaving aside the issue of whether or not to tax, period, if you tax the consumer at the point of sale, don't you accomplish the same thing?

caw

Deleted member 42 · Jun 2, 2010

When I first started writing about beer, I was horrified to discover that the macro beers, the beer brands that the average beer drinker thinks of as American beer are actually owned and produced by either the South African conglomerate SABMiller, or the international conglomerate, InBev.

It was odd to discover, for instance, that Henry Weinhard's is now owned by SABMiller, and Full Sail Brewing Company brews some of Weinhard's beers (like the Hefe) under contract. It was odder still to see the macro brews deliberately copy the branding and brewing styles of the craft and micro brews.

Deleted member 42 · Jun 2, 2010

blacbird said:
I agree with this entirely. WTF is the reason for taxing the producer? Leaving aside the issue of whether or not to tax, period, if you tax the consumer at the point of sale, don't you accomplish the same thing?

caw

It just seems foolish to me, frankly. I'm aware that the state is in dire need of money, and taxes are where monies come from--but I'd rather they taxed me directly. The tax on the brewers can hurt them twice--up front costs, and loss of sales if they pass the tax on to their buyers, whether it's a distributor, a bar or direct sales.

The state has a proposal on taxing winery sales too, in addition to the other taxes all wine retailers pay, which has me puzzled.

Haggis · Jun 2, 2010

blacbird said:
You are congratulating something Jimmy Carter did?
caw

I expect Billy was involved in that decision.

Don · Jun 2, 2010

blacbird said:
You are congratulating something Jimmy Carter did?

Where's my digitalis?

caw

I'm not one for partisanship, blacbird. I guess you've missed the three or four times I've applauded something Obama did. I don't remember exactly what those were, but I know they had to do with civil liberties.

I've even called Reagan out for being a big spender, and I thoroughly detest the first Republican president.

There's very little to congratulate Jimmy Carter for, that's true, but in this particular case, good on him.

Overall, if I had to like one wing of the Republicrat party's politicians, I'd probably go with the blue ones. At least they're relatively honest about their desire to pick my pocket.

Gregg · Jun 3, 2010

Interesting, too, that some of the "Old School" beers - Schlitz (The Beer that made Milwaukee famous), Pabst, and Blatz (2 more Milwaukee beers) are making a comeback.

I thought Coors lost some of their mystique when they went national.
But those of you who live in the east and parts of the south are lucky to have Yuengling (Owner of the oldest brewery in America). Can't get it here in Wisconsin.

Gregg · Jun 3, 2010

As for Carter? Remember he was a peanut farmer. Beer and peanuts go together so maybe he had an ulterior motive?

MicroBrew: A freedom success story

Don

All Living is Local

Michael Wolfe

Jambo Bwana

Deleted member 42

Xelebes

Delerium ex Ennui

Don

All Living is Local

blacbird

blacbird

Deleted member 42

Deleted member 42

Haggis

Evil, undead Chihuahua

Don

All Living is Local

Gregg

Life is good

Gregg

Life is good