Craft Brew News – 12/28/18

TTB Suspends Operations Amid Government Shutdown

As the partial shutdown of the U.S. government stretches into its fifth day, the Alcohol and Tobacco Tax and Trade Bureau (TTB) has officially closed.

A temporary landing page on the agency’s website states that alcohol companies will still be able to access the TTB website to make electronic payments, submit labels or formulas, and to file other operational reports, but TTB employees will “not be able to respond to questions or comments submitted via the website until appropriations are enacted.”

At the time, the TTB expected 51 of its 478 employees to continue working during the shutdown.
The shutdown, which White House officials have said could last into 2019, comes after Trump and House Republicans refused to accept a short-term spending bill that would have funded the government until February 8, 2019.

When the federal government shutdown for 16 days in 2013, applications and label submissions were backlogged and some breweries expressed concerns that the release of new beers and seasonal offerings could be delayed as a result.

Canopy Growth Eyes US Market Following Farm Bill Signing

Canadian cannabis company Canopy Growth Corporation announced plans to enter the U.S. market shortly after President Donald Trump signed the 2018 Farm Bill into law on Thursday.
“Canopy Growth will participate in the American market now that there is a clear federally permissible path to the market,” Canopy CEO and chairman Bruce Linton said via a press release. “Consistent with the spirit of the Farm Bill, Canopy Growth will participate in ways that support American farmers.”

Canopy offered no further details. However, the company stated that it is “well-positioned to enter the U.S. market” as a result of a $4 billion investment from Constellation Brands, as well as its “deep hemp-specific portfolio of intellectual property acquired from Colorado-based ebbu Inc.”

The 2018 Farm Bill decriminalizes industrial hemp and allows for the cultivation and more widespread commercialization of the variety of the Cannabis sativa plant that, according to the bill, contains less than 0.3 percent THC.

News of Canopy’s plans to enter the U.S. market comes just two days after the world’s largest beer manufacturer, Anheuser-Busch InBev, announced a research partnership with Canadian cannabis company Tilray to explore the creation of non-alcoholic beverages infused with THC (tetrahydrocannabinol) and CBD (cannabidiol).

Arcadia Foreclosure Auction Postponed

A December 20 foreclosure auction for Michigan’s Arcadia Brewing Company has been delayed, according to MLive.com.

Karen Hencken, a certified court officer who handles mortgage foreclosures in Kalamazoo County, told MLive.com that the auction was postponed for the next seven days, but due to the holidays, would likely be adjourned until January 10.

The Kalamazoo-based craft brewery had fallen behind $1.4 million behind on its mortgage. However, brewery founder Tim Suprise told Brewbound earlier this month that he was in discussions with potential “strategic partners” that would help the company avert foreclosure.

Advertising Watchdog: Miller Lite Can Claim ‘More Taste’ Than Bud Light, Michelob Ultra

In response to a challenge by Anheuser-Busch, the National Advertising Division (NAD) has found that MillerCoors has proven a “reasonable basis” to claim that Miller Lite has “more taste” than A-B brands Bud Light and Michelob Ultra, according to a press release from the Better Business Bureau program, which monitors national advertising campaigns for truth and accuracy.

However, the NAD recommended that MillerCoors stop using its “Know Your Beer” commercials that appear to show the conclusion is based upon a taste test.

Both beer companies viewed the decision favorably. A-B told the Associated Press that it was encouraged by the finding that MillerCoors had “misrepresented Itself” and its taste preference claims were “unsupported by fact.”

Meanwhile, MillerCoors CEO Gavin Hattersley told his company’s “Behind the Beer” blog that the beer maker was “pleased with the ruling” and would adjust the campaign to comply with the NAD’s recommendations.

“We know it’s helping distinguish Miller Lite, and obviously garnering the attention of our competitors as well,” he told the blog.

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Michael Potorti is the Host of Craft Beer Storm and Founder/Brewer at Beara Brewing Co. in Portsmouth, NH

Michael Potorti
Founder/Brewer
Host of "Craft Beer Storm" Podcast
michael@craftbeerstorm.com
michael@bearairishbrew.com

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