Government Shutdown ‘Could Have Significant Impacts’ on California’s Breweries

Government Shutdown ‘Could Have Significant Impacts’ on California’s Breweries

Like many government agencies, the Alcohol and Tobacco Tax and Trade Bureau or TTB is closed, making it impossible for breweries, wineries and distilleries to get approval on certain products.

Craft beer drinkers in the US may see fewer new bottled beers coming out in the next few months. That breaks down to over 3,000 applications coming in every week. We're going to take the next couple of minutes to talk about one of them - the craft beer industry.

But since the government shut down, labels aren't getting approved right now. Craig Purser heads the National Beer Wholesalers Association and says large beer makers in the USA are also anxious about the bureau being furloughed. "We're all hoping they figure out what they need to figure out and open the government back up".

KIRWAN: So hard that it could easily start to affect the bottom line as breweries across the country worry about what to do with all of their craft beer if they can't bottle and sell it.

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The springtime brew, which was originally planned for February 1 release, is "sitting in our tank now with nowhere to go because our label is in limbo with the TTB", says Atlas Brew Works CEO Justin Cox. Curt Cameron, the owner of the Thomas Hooker Brewery in Bloomfield and the former president of the Connecticut Brewers Guild said, "If I have beer ready to go to market and I'm ready to print labels I can't do that right now because I can't get that label approved". But after almost three weeks of being shut down, the bureau is likely to have a huge backlog of applications waiting when the government reopens.

"It's that first step and if they don't have that they can't move forward", Bailey said.

Industry leaders say this backlog of applications is also a concern for large beermakers in the U.S.

Breweries in our area could soon start to feel the effects of the government shutdown.

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