Unintended Consequences: The Maine Law and Lager

As the Minnesota legislature contemplates a massive tax increase on brewers and distillers we may be reminded of a time in the 1920’s when state and federal governments decided to punish beer drinkers for the supposed good of everyone. The Prohibition era of the 20th century was not the first instance of this in American or Minnesota history. To find the true roots of this misguided movement we must travel back to Portland, Maine in the 1840’s. It was in this city that temperance and prohibition took their first breaths.

In 1827 Neal Dow became a founding member of the Maine Temperance Society. Most temperance advocates tried to convince people of the danger of drink but Dow believed that the only way to eliminate alcohol was by legislation. He used his influence to attempt prohibition in Maine several times before being elected mayor of Portland in April 1851. In that same year he succeeded in shepherding the first prohibition law in the nation through Maine’s legislature. With the “Maine” law in effect it would spread like a virus through the northern states. Minnesota would pass its own version of the Maine law in 1852.

Early prohibition would meet its nemesis in the German beer cultures of Milwaukee and St. Louis. German immigrants and their descendants viewed prohibition as an attack on the very lifeblood of their culture. Unlike the Northeastern Yankees, who drank heavier British style ales or rum, Germans preferred the lager beer of their homeland. Lager was considerably lighter and lower in alcohol than ale and many Germans enjoyed it in community beer gardens or other social events. As Midwesterners this should not be an altogether unfamiliar situation for most of us. In that culture beer was not viewed as an intoxicant but an everyday beverage to relax, enjoy, and be sociable.

The reaction in Milwaukee and St. Louis to prohibition should not have come as a great surprise to the temperance advocates in those states. The vehemence in the rejection of temperance came in the form of riots and mass protests at state capitols. A prohibition act did reach the Governor’s desk in Wisconsin in 1853 but was promptly vetoed. In St. Louis there was another idea entirely. There German-Americans would go to court to prove that lager beer was not an intoxicating beverage. In one story, a portly German man volunteered his time to sit in front of jurors and consume 22 beers to prove that he could not become drunk from beer.

While the Maine laws stalled in Wisconsin and Missouri they came under attack in the state where they were born. On June 2, 1855 Portland residents rioted after hearing a rumor the Neal Dow himself had sold alcohol for medicinal purposes to the state. When the rioter reached his steps he ordered the state militia to fire killing one and injuring several. This incident was repeated across other dry states. In 1856 Maine repealed Prohibition which led to repeal in several other states as crusaders focused on a different cause, abolition.

This first attempt at Prohibition taught American several lessons one being that denying people a popular product caused more problems than it solved. Minnesota would change its law because it had not counted on the reduced revenue from the lack of liquor and beer taxes. An unintended consequence of Maine laws was the popularity of lager beer. The publicity from the protests by German-Americans would lead many to try this new lager beer. Since then lager beer has become the most popular style of beer in America for more than 150 years. So go out and find a locally brewed lager or pilsner and salute our ancestors for holding off Prohibition for 80 years by teaching America how to drink beer again.

Grain Belt – Putting the American in American Lager

The August Schell Brewing Co. has launched a new Grain Belt marketing campaign featuring the phrase, “We are the American in American Lager.” The goal for the new campaign is to evoke the pride and spirit of loyal Grain Belt drinkers.
color_letterhead1Schell’s has invited Grain Belt Facebook fans to share pictures and stories of themselves enjoying the hobbies, passions and experiences that make them proud to be American. To enter the contest you need to share your distinctly American experience (with a Grain Belt beer, of course) to the contest event on the Grain Belt Facebook page.

A new topic will be highlight each month. April’s theme is American restoration. Think of of something like your head under the hood of your ’55 Chevy and a cold Grain Belt on the fender.

At the end of every month a winner will be chosen, and featured in a Grain Belt ad along with their project. A Grain Belt product, your name ,and hometown will also be used in the winning advertisement. The winner will receive a large commemorative Marti family signed printed version of the ad.
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Better Beer Society / Homebrew Chef Educational Beer Dinner

The Better Beer Society proudly presents a very special beer dinner with famed beer chef Sean Z. Paxton (aka – The Homebrew Chef).
BBS Beer DinnerChef Paxton hails from San Francisco is arguably the most famous beer chef in the world, creating beer dinners for some of the best craft breweries in the nation, as well as for Brewers Association events such as the Craft Brewers Conference and the Great American Beer Festival. In addition, he is a respected author and hosts a monthly podcast on The Brewing Network.

Better Beer Society is a Twin Cities based educational organization dedicated to the growth and awareness of craft beer in Minnesota. BBS provides education through staff training at the retail level, as well as on the consumer level with its highly attended Better Beer Society University program.

The Homebrew Chef has recently partnered with the Better Beer Society on a collaboration dinner showcasing 5 of Minnesota’s craft breweries. Together we’re bringing education to the table as we present the concept and technique of cooking with beer and beer ingredients, as well as the presenting the principles of pairing beer with food.

Join BBS on Friday April 26th at Republic in Uptown, as they present what is sure to be a beer dinner unlike any other you’ve experienced. You will also be joined by Brewmasters and owners of the following brewing companies: Surly, Schell’s, Indeed, Summit, and Steel Toe.

Tickets are $90 (not including tip + gratuity), and reservations are being taken by phone. Please contact 612.886.2309 to reserve your seat(s), as space is limited and this event will sell out fast. Social hour @ 6pm / Dinner @ 7pm.

For more information on Better Beer Society or this event, please contact Rob Shellman directly at rob@betterbeersociety.com or 612.226.7622

What: Better Beer Society / Homebrew Chef Educational Beer Dinner
When: Friday April 26th / 6pm
Where: Republic Calhoun Square
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Death and Taxes

Taxes

It has been a while since the liquor excise tax has increased in Minnesota, and there is a movement afoot at the Capitol to change that.

The House Tax Omnibus HF 677, will increase the tax on liquor, wine, and beer in Minnesota by substantial amounts, as will the Senate version.  There are a few differences between the bills.  Both have massive increases, but the senate version creates an impact fund to go toward nonprofit entities that run substance abuse programs.

The tax increase is being sold as a mere pennies-per-pint increase, a notion that is entirely false.  In actuality, the tax increase is far more than a few pennies per pint.  The proposed state excise tax has an increase from $4.60 to $27.75 per 31-gallon barrel.  This is a 6-fold increase to one of the few industries showing growth in Minnesota.

Here is the terrible part about the tax increase; it gets passed to you, the consumer.  Brewers aren’t just going to pay the extra cost to the state and be done with it.  To cover the increase, brewers will increase the price that wholesalers pay, then wholesalers will pass that increase to retailers, and retailers will pass it to you.  Say what you want about the 3-tier system, but this is the system we have and it isn’t going away soon.

Follow along for some math fun!

Under the current tax structure:
Local brewery sells keg for $200
Wholesaler sells keg for $260 (30% increase)
Bar/store sells keg for $338 (30% increase)

Under the proposed tax structure:
Local brewery sells keg for $227
Wholesaler sells keg for $295 (same 30% increase)
Bar/store sells keg for $384 (same 30% increase)

See how a $27 tax can quickly become a $46 per Bbls increase? Include the federal excise tax, state sales tax, state alcohol tax, and local taxes, it is obvious that the government likes to dip its beak into your beer and drink heartily.

I think it is a really, really bad thing.

– Jacquie Berglund, Founder and CEO of FINNEGANS Inc.

But, not all governments are created equal. Of the surrounding states, Minnesota is currently in the middle of the pack when it comes to excise tax. South Dakota has a higher state excise tax at $8.50 a Bbls, and Wisconsin only taxes $2.40 a Bbls.  It is worth noting that South Dakota is the only other state in the region that also has a special Alcohol Tax.  The South Dakota special alcohol tax is 2%, and we beat them at 2.5% on gross receipts.

Death

Proponents of the tax increase claim that the extra tax revenue will offset the cost counties pay to run addiction centers and other alcohol-related medical expenses. If the idea is to offset the county costs, why is the tax revenue going into the state general fund? If counties like Hennepin are interested in offsetting the cost alcohol has on society, they should tax it at the county level. In fact, there are already numerous special taxes in downtown Minneapolis as they tax everything from dancing to liquor.

Breweries in Minnesota are doing their best to catch up to the rest on the country.  You will read all kinds news about the craft brewery explosion in Minnesota, but there are over 2,500 breweries in the country and we have less than 50.  We are a good deal behind the rest of the nation when it comes to enjoying local craft beer.  Increasing the cost to operate a brewery will only hinder the growth we’ve begun to see.

The only silver lining in the proposed tax increase is a provision that gives a credit to brewers on the first 50,000 Bbls brewed in a year.  The tax credit is nice, but it leaves breweries like Summit, Schell’s, and Cold Spring to pay a substantial amount of the tax.  The 50,000 ceiling is puzzling.  Nationally, brewers that produce less than 6 Mil Bbls a year are considered small.  A tax credit on 50,000 Bbls a year doesn’t do much to soften the blow of the proposed tax increase.

Unlike local wine and beer producers, there is no protection for local craft distillers in the proposed tax increase. Local distilling is an even smaller industry than brewing and wineries. Small distilleries are only beginning to have a presence here in Minnesota. Is the idea to collect more taxes from distillers, or make sure there are none here to pay the tax?

Minnesota is the home of prohibition and Andrew Volstead, but that doesn’t have to be our legacy. Prohibition is dead. Volstead is dead. This tax increase needs to die, too.

Our Tweets Have Been Heard – #EnjoyBy 05.17.13 hits #MN

By Tucker Pearce

EnjoyByDatesThose of us in Minnesota love our IPA’s, there’s no doubt about it. It’s also true that some amazing IPA’s and IIPA’s are brewed right here in the state. With so many great IPA’s produced here in Minnesota why is there such a buzz behind Stone Brewing Co’s Enjoy By? First of all it’s FRESH. Many of us beer lovers like cellaring Stouts and other high alcohol beers, it’s cold a vast majority of the year so it makes sense. However when it comes to an IPA we realize that the fresher the beer is the better it is.
 
Freshness
With Stone EnjoyBy IPA they take the freshness very seriously in fact it is printed right on the front of the bottle. In this case it’s 05.17.13 and the idea is that it must be consumed or at least sold by that date. I don’t see this being an issue in fact I worry it will fly off of shelves before myself and others have a chance to buy any due to the “daytime beer hunters”.EnjoyBy3
 
Going back to the freshness; this beer was bottled and kegged at Stone in California on Friday 04.12.13. Unlike some beers that may sit in a warehouse for days Enjoy By was loaded onto pallets and shipped out that very same day. Per a conversation with Hans Lofgren of Original Gravity the beer arrived in Minnesota at their distribution facility on Tuesday 04.16.13 and will make it to stores beginning Wednesday 04.17.13. I’m not sure about the rest of you but I’ll take an IPA brewed six days ago in California.
 
Quantity
In regards to quantity, according to Nate Sellergren (Upper-Midwest Brewery Representative @StoneBrewNate), we will be receiving a good amount of Enjoy By here in Minnesota. There will also be a number of tapings including the kickoff at Republic 7 Corners in Minneapolis on Wednesday 04.17.13. I hope to see many of you there at 5:00pm.
 
Finding Enjoy By
Nate also mentioned that you can go to www.stonebrewing.com/enjoyby for a list of stores and bars receiving Enjoy By and I’m guessing other events will also be posted by Original Gravity on their Facebook page and Twitter account.

Keep up the Social Campaign
Last but not least make sure to add your photos of Enjoy By to Twitter, Facebook and Instagram and include the hashtags #EnjoyBy #MN. The more we talk about this beer the more likely we are to get it back again.
Tucker Pearce writes for TwinCitiesCraftBeer.com, a site devoted to beer sold or produced in and around the Twin Cities. Tucker can be found on twitter at @Pearceweb

Surly Brewing Makes Minneapolis Destination Brewery Official

Brooklyn Center based Surly Brewing has been taking all the proper steps to to make Minneapolis the home of their new $20M brewery.

Surly Brewery Site
Photo by Bryce Larson

In recent months the brewery has taken numerous steps to clear the way. They received several federal grants to aid in the environmental remediation, named an architect, and applied for a loan from local government.

With the announcement of the site purchase today it would be tough to turn back now! Minneapolis beer lovers are surely happy to be the future home to another great Minnesota brewery. Even Mayor RT Rybak tweeted his support.

 

Sources: Star Tribune, Twin Cities Business

All Pints North Summer Brew Fest Tickets Go On-Sale

The Minnesota Craft Brewer’s Guild All Pints North tickets go on-sale at noon this coming Monday, April 15.

In addition to the regular All Pints North ticket on-sale at noon, there will be an early pre-sale at 10am Monday for ticket 2-packs to All Pints North and Autumn Brew Review. This means you’ll get early access to ABR tickets that generally sell out in seconds, and don’t go on sale until July.

This a nice surprise for those might have missed out on the MNCBG FESTIVAL 6-PACK, or balked at the financial and time commitment when the full pack originally went on sale.

all pints pano

The All Pints North Festival rivals every other guild fest.  The music stage and view alone make this festival worth the price of admission.  It is worth noting that if buy tickets you should book your hotel room at the same time.  Hotel rooms, and even campsites, will fill up quickly.  With all the great places brewing beer in Duluth you should definitely make a weekend out of it.

Minnesota Craft Brewers Guild All Pints North Summer Brew Fest
Saturday, July 13, 2013
3-7 p.m.
Bayfront Festival Park | Duluth, MN

Approx. 2,500 attendees
$30 in Advance (Limit 6) | $40 at the door (if available) | $10 Sober Driver Ticket
APN tickets on sale Monday, April 15 @ Noon
For tickets visit tempotickets.com/apn

APN/ABR ticket packs on sale Monday, April 15 @10am
For tickets visit

Beer Consumers in Minnesota

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