The Illinois Craft Brewers Guild plans to file a bill today in the state legislature meant to help craft brewers struggling to survive amid economic hardships caused by the pandemic.
The bill would allow brewers to ship product directly to consumers; deliver beer directly to customers homes, either through a third-party delivery services or by a brewery employee; and allow brewpubs to distribute their own beer to retailers.
COVID-19 “has sped up the need for additional opportunities for our craft brewers to interact with consumers,” said Danielle D'Alessandro, executive director of the Illinois Craft Brewers Guild. “This winter has proved horrible for our small breweries.”
Illinois is home to about 290 of the nation’s roughly 8,275 craft breweries. The state ranked 16th in the nation for craft beer production in 2019, according to data from the Boulder, Colo.-based Brewers Association. Craft breweries in the state generated almost $3.4 billion in economic impact and produced 421,809 barrels of beer that year.
The pandemic has taken its toll on the industry. Indoor dining at bars and restaurants remains restricted at varying levels throughout the state. And it’s not just business in their own taprooms that has suffered.
Many craft brewers built their business models by selling kegs to bars and restaurants. That has all but dried up, forcing many breweries to rely on canned beer, which yields smaller profit margins than draft.
Though COVID has not caused the same volume of closures in the craft beer industry that it has in the restaurant world, many wonder how long craft brewers can last. The Brewers Association tracked nine Illinois brewery closures in 2020, up from eight in 2019, though a spokeswoman said it has not yet completed its final count.
D’Alessandro said the winter, always a slow time for the industry, could prove a breaking point.
“I do think we’ll see some closures,” she said. “Just because they haven’t closed doesn’t mean that they’re doing well.”
The bill the Guild plans to introduce would provide legislative relief at a time when little financial help remains, D’Alessandro said. Sen. Bill Cunningham and Rep. William Davis are sponsoring the legislation.
Some provisions in the bill might end up being more controversial than others.
The proposed delivery privileges would make permanent temporary allowances granted early in the pandemic, but the provision that would allow brewpubs to move their own products to retailers will likely ruffle feathers in the distribution world.
In Illinois, alcohol is sold through a three-tier system. State-licensed distributors receive beer from state-licensed brewers and sell it only to state-licensed retailers.
Smaller craft brewers have struggled form relationships with distributors, or get the distributors to prioritize their products. D’Alessandro said that status quo is devastating to small breweries.
The bill could also help create parity with other industries, she said. Wineries around the country have been allowed to ship directly to consumers for more than 15 years. Additionally, the pandemic has pushed online sales through the roof. Craft brewers should be able to tap into those trends, too, D’Alessandro said.
Being able to ship beer to consumers would allow Begyle Brewing to go to customers at a time when few can come to them, said owner Kevin Cary. The North Center brewery remains closed to indoor customers, and even curbside pickup dropped off after Christmas.
The last three months have been brutal, Cary said. Begyle sells several flagship beers in stores, but distribution sales were bad in December and January. They picked up a bit this month, but not enough, Cary said.
The brewery ended 2020 with a 30 percent loss overall, which equated to about $450,000 in revenue, Cary said. Since the new year, Begyle has only been doing about half the business it did during its worst week of 2020.
To pour salt in the wound, its application for a Business Interruption Grant from the state was denied, and it has been attempting to apply for the latest round of Paycheck Protection Program grants for about a month.
Survival at this point is “about will power,” Cary said.
If the bill passed, it could provide some relief, Cary said. Though a few of its beers are already sold in stores, being able to shop some of its specialty brews to neighboring states could help attract new customers or retain regulars that move away, Cary said.
“If we could mail beer to Michigan or Wisconsin or even southern Illinois … it opens up for us to reach customers in far-flung places where the logistics of getting there is going to be a little bit more tricky,” he said.
"craft" - Google News
February 19, 2021 at 07:00PM
https://ift.tt/3qBaK9c
lllinois craft brewers ask state lawmakers for help amid COVID-19 - Crain's Chicago Business
"craft" - Google News
https://ift.tt/2YrY2MS
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update
Bagikan Berita Ini
0 Response to "lllinois craft brewers ask state lawmakers for help amid COVID-19 - Crain's Chicago Business"
Post a Comment