Raise A Glass - After a Decade Long Battle Massachusetts Craft Brewers Achieve Franchise Law Reform

FRAMINGHAM, Mass. | In the wee hours before the end of the 2020 legislative session, Massachusetts lawmakers voted to reform the state’s franchise laws.  

This is a momentous occasion for Massachusetts craft brewers who since 2011 have been working to ease the historical constraints on terminating contracts with their wholesaler.  

Members of the Mass Brewers Guild and the Massachusetts Wholesalers Association worked together to craft legislation Bill S.2841 which creates a new “qualified brewer” definition. This would allow any operation that produces fewer than 250,000 barrels annually a path forward to end their contract with their wholesaler. Under existing law, breweries are held in their contracts in perpetuity until they can prove “cause,” in the court of law – a long and costly process that a craft brewer would unlikely to survive. As a part of the three-tier system, wholesalers are largely responsible for distributing brewers’ products to restaurants, bars, grocery and convenience stores.

The barrelage cap will cover every craft brewery in the state apart from Boston Beer Co., makers of Samuel Adams. For the past 10-years Jim Koch, founder and head brewer of Samuel Adams, and founding member of the Mass Brewers Guild, has led the charge to change the state’s laws to give the hundreds of craft brewers in the Commonwealth the ability to grow their businesses. Wholesalers would not support the proposed legislation without exclusion of Boston Beer. In order to clear the way for the legislation to become law, Boston Beer agreed to be excluded from the benefits of the legislation that will now be enjoyed by all other Mass Brewers Guild Members.

“There is a long list of people who helped to make this ten-year effort a reality,” says Sam Hendler, co-founder of Jack’s Abby Craft Lagers and president of the Mass Brewers Guild. “More notably Senate President Spilka and House Speaker Mariano. Equally as important, we have to recognize past and present board members and members of our community who laid the groundwork of educating legislators, the countless legislators that championed our bill on Beacon Hill session after session and moved it forward, and our incredible craft beer fans who signed our petition and voiced their support on our behalf. It’s a great day for craft beer in Massachusetts.” 

The state’s franchise laws were enacted in 1971 by state legislature to protect in-state distributors from large out-of-state and foreign brewers, at a time when small, independent craft brewers did not exist. As such, these laws provided un-waivable legal protections to beer distributors to protect the termination of their right to distribute a brand.  

Today’s beer landscape looks much different as beer distributors have continued to grow and consolidate while hundreds of new craft breweries open each year. To date, there are  roughly 30 beer Wholesalers in Massachusetts compared to 210 craft breweries across the Commonwealth, with 20 breweries expected to open before the close of 2021, and an additional 10 breweries in planning stages. 

“With the unbelievable financial pressures that have come down on our industry due to the impacts of the coronavirus pandemic, there will be breweries whose existence is saved by gaining this flexibility to control their destiny,” says Hendler. “Combined with the increasing importance of  wholesale distribution with the obvious challenges running tap rooms, we need strong relationships with our most valuable partner. This will help us get there. There’s a lot that we can accomplish together.”  

The new measure now advances to Gov. Charlie Baker to sign or veto the bill, or allow it to become law without his signature. 

Massachusetts will join New York, Maine, Washington and Vermont, states that have successfully reformed their franchise laws, with only an additional five states nationwide that have created an easier path to termination through legislation.  

From the bottom of our beer glasses Massachusetts brewers thank the many people who helped us achieve this new state law. This herculean effort would not have been possible without the long-fought work of so many people. 

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ABOUT THE MASS BREWERS GUILD: 

Founded in 2007 by a group of committed and passionate brewers, the Mass Brewers Guild, is organized for the purposes of promoting craft brewing and protecting the interests of craft brewers across the Commonwealth. The association is membership based and open to all Massachusetts breweries licensed by the federal Tax and Trade Bureau and the Commonwealth’s Alcoholic Beverages Control Commission. The nonprofit creates a community of brewers while shining light on the broad range of breweries and styles offered throughout the state. Through industry and educational events, its mobile application beer trail map, and by providing resources and marketing support to brewers, the nonprofit works to highlight Massachusetts as a top travel destination for craft beer in the U.S. The board also continues its work at the legislative level, serving as the voice of craft brewers on Beacon Hill. The Massachusetts Brewers Guild is a 501(c)6 not-for-profit organization. For more information, visit MassBrewersGuild.org.

COVID-19’s Impact on the Workplace

What’s the Difference between a Layoff and a Furlough? 

BY: Brian Casaceli
Associate
Mirick, O'Connell, DeMallie & Lougee, LLP

As breweries in the Commonwealth contend with employment related issues resulting from the COVID-19 pandemic, one question that consistently comes up is what is the difference between a layoff and a furlough?  The below questions and answers provide an overview of that difference as well as several related considerations brewers should be aware of when considering a layoff or furlough.  

What is a Layoff?

When a business does not have sufficient work to keep its employees busy, it may decide to conduct a layoff.  When a layoff occurs, the employment relationship between the company and the employee is terminated.  Generally, when an individual’s employment ends, neither the laid off employee nor the company expect the laid off employee to later return to his/her employment with the company. 

What is a Furlough? 

A furlough is similar to a layoff in that it is implemented when a business does not have sufficient work for its employees.  However, unlike a layoff, when an employee is furloughed, his/her employment with the company is notterminated.  Rather, when furloughed, the company places the employee on a temporary leave of absence with the expectation that it will recall the employee at a date in the foreseeable future to resume his/her duties.

            It is also important to recognize that the term furlough is sometimes used for two different types of situations.  The first is a full-time, temporary leave of absence as discussed above.  The second is when employees are relieved of their duties for, for example, a day a week or a week a month.  This blog focuses on the first type of situation.

            Are Employees Entitled to Receive their Wages/Salaries While on a Furlough?

Under both Massachusetts and federal law, non-exempt employees are entitled to be compensated for all hours worked, and exempt employees are entitled to their full salary for any week in which they perform work (subject to certain exceptions).  If an employee is not performing any work during a furlough covering a full pay period, the employee is not entitled to be paid his/her wages/salary.  An employer can, of course, decide to voluntarily compensate its employees during a furlough but it is not required.

Are Furloughed Employees Eligible for Unemployment Benefits? 

            Yes.  The Massachusetts Department of Unemployment Assistance (DUA) has issued guidance stating that “workers who are temporarily unemployed due to a lack of work because of COVID-19 will be eligible for unemployment benefits.”  The DUA considers employees to be unemployed due to a lack of work regardless of whether an employee is laid off or furloughed.  Thus, when an employer lays off or furloughs employees, it should encourage employees to apply for unemployment assistance and provide them with the required brochure on how to file for benefits.

In addition, breweries should be on the lookout for further guidance from the DUA regarding the recently enacted federal CARES Act, which extends the number of available weeks of benefits for all claimants, and supplements all claimants’ weekly benefit amount by $600.  

            What happens to an Employee’s Accrued, Unused Vacation Time if the Employee is Furloughed?

            As many employers are aware, under Massachusetts law, vacation is considered a “wage.”  Thus, because an employee whose employment is terminated is entitled to receive all wages earned but not yet paid, the employee must, too, be paid for all accrued, unused vacation.  

            The Massachusetts Attorney General’s Office recently released guidance making clear that the above rule regarding the payment of vacation time applies when an employer chooses to conduct a furlough.  Therefore, employees who are furloughed must receive all wages earned but not yet paid, including all accrued, unused vacation, on the date they are furloughed.

            The Attorney General’s Office has, however, advised employers that it will not take enforcement action for not paying out vacation if an employee voluntarily agrees to save his/her accrued vacation for use when the employee later returns to work.  In the event an employee agrees not to be paid out for accrued, unused vacation when furloughed, employers are well-advised to memorialize this agreement in writing.

            What Happens to an Employee’s Health Benefits When Laid Off or Furloughed? 

When an employee is laid off, he/she is no longer eligible to participate in his/her employer sponsored health plan.  The layoff constitutes a qualifying event under COBRA (employers with twenty or more employees) or Mini-COBRA (employers fewer than twenty employees) and the employee can elect to continue his/her health insurance coverage under the employer’s group health plan by paying the full amount of the premiums.  (As an aside, employers should notify their health insurance brokers in the event of layoff so the broker can issue COBRA or Mini-COBRA notices to the affected employees.)

            Unlike a layoff, when an employee is furloughed, the employee may be able to continue his/her coverage under the employer sponsored health plan.  To the extent that the brewery wants to continue furloughed employees on its health plan and pay the employer portion of the premium, the brewery should check with its insurance broker to determine whether continuing coverage in that respect is permitted by the plan documents.  If the plan documents do not permit an employee’s continued coverage while furloughed, COBRA or Mini-COBRA notices should be sent to affected employees.    

This is not an exhaustive list of possible considerations and each particular circumstance may differ depending on the facts involved.  For these reasons, it is recommended that breweries consult with counsel if they are unsure about a particular course of action.  

As an associate member of the Mass Brewers Guild, Mirick O’Connell is committed to helping brewers in the Commonwealth navigate any legal issues they may be facing during the COVID-19 pandemic.  We extend our best wishes to all of you, your families and your breweries during this crisis and look forward to visiting your tap rooms later this summer.  Until then, we’ll be enjoying our favorite brews remotely.  Stay well.  

**UPDATE (April 15, 2020):

 The Attorney General’s Office has released updated guidance regarding an employer’s wage payment obligations when an employee is furloughed.  Specifically, the Attorney General has stated that if an employee is furloughed and the employee’s health benefits are continued, the employer is not required to payout accrued, unused vacation.  When an employee’s health benefits cease, the employee is entitled to be paid his/her accrued, unused vacation unless the employee voluntarily agrees to keep it in his/her “bank” for future use. 

 However, as noted previously in the article, when an employee is laid off, the employee must be paid final wages, including accrued and unused vacation.  The Attorney General’s Guidance can be found here.   

Buy This Shirt & Support Local Breweries

Hello Incredible Craft Beer Family: 

As the world stops to aid in the battle against COVID-19, local breweries that depend on bustling taprooms and open restaurants are being especially hard hit right now.  

Proceeds from the sale of this shirt will directly benefit the Mass Brewers Guild, the state’s trade association that exists to support the brewing community and assist them through this difficult time.

T-Shirts are available in men’s and women’s sizes XS to 4XL and are $25-$28 ea. + shipping. 
Presale orders are being accepted now through April 24. Click HERE to order yours today.

 What does the Mass Brewers Guild do?

• We serve as the unified voice on Beacon Hill, advocating for our breweries at the legislative level. As social distancing protocols change the way our businesses can operate, we work to keep them open and seek other avenues within the law for them to generate revenue. 

• We provide resources regarding the state and federal relief packages so they can access the critical aid they need to navigate these next few months. 

• We serve as central command for questions and advice, and help to keep our brewing family connected and informed in this ever changing landscape. 

 Please help us to continue to help our brewers. 

Stay home and stay safe, and have fresh #MABeer delivered to right your doorstep or take advantage of contactless-curbside pickup.

 Thank you for all you do for us. 

With gratitude,
Katie Stinchon 
Executive Director 
Mass Brewers Guild  

Alcohol Producers Join Forces to Lift Spirits of First Responders

Creating and Distributing Free Hand Sanitizer to Community

PLYMOUTH, Mass. | If you’ve tried to get your hands on hand sanitizer or Clorox wipes lately you might have noticed quite a shortage. The barren shelves and low inventories across the country amid the coronavirus outbreak is a serious and dangerous problem, especially for our first responders, who don’t have access to a sink and soap while helping citizens on the road. 

During this ever growing health epidemic, local alcohol producers are joining forces to help lift the spirits of police officers, firefighters, home health aides, senior center employees and more  – by creating much needed hand sanitizer and delivering it to their locations and places of business, for free. 

When news that COVID-19 was rapidly spreading across the U.S. causing a hand sanitizer shortage, Dirty Water Distillery owner Patras “Pepi”  Avizonis, and Head Distiller Brenton MacKechnie, quickly jumped into action and found a recipe on the World Health Organization’s website.

“We had the alcohol, the peroxide, and a jug of Propylene Glycol or Glycerine, a thickener that stays on your hands long enough to get good coverage,” said Avizonis. “We also put a call out to the community to get our hands on additional raw materials to increase our volumes and the response has been incredible.” 

Several South Shore breweries have joined the effort donating further dissyllables – beer that is past the brewery’s freshness standards. Barrel House Z, Burke’s Ale Werks, Indie Ferm, Mayflower Brewing Co., Stellwagen Beer Co., and Untold Brewing Co., have all contributed to the effort by donating beer. It’s then distilled down to create a high concentrated alcohol, the main ingredient in the hand cleanser.  

“This was a no brainer for us to be a part of,” said Dan O’Donnell, president & general manager at Barrel House Z. “We want to have as much community outreach as we can right now - supporting restaurants, small businesses and helping our first responders. We all want to help in as many ways as we can even while dealing with our own issues during this health crisis.” 

To date, Dirty Water Distilling has produced and donated 175 gallons of free hand sanitizer and they are hard at work to produce more. The solution is 80% alcohol and can be used to sanitize high-touch areas and surfaces quickly and effectively. 

While Massachusetts currently has a ban for on-premise consumption until May 4, the distillery and breweries are open for to go sales through their retail counters. Those looking to support these small businesses can visit their locations at:  

** Please check the businesses websites & social media channels for updated retail hours of operation** 

Dirty Water Distilling & LlamaNama Beer Labs
10 Water St, Plymouth, MA 02360

Barrel House Z
95 Woodrock Rd, Weymouth, MA 02189

Burke’s Alewerks
200 Webster St, Hanover, MA 02339

Indie Ferm
127-3 Camelot Dr, Plymouth, MA 02360

Mayflower Brewing Co.
12 Resnik Rd # 3, Plymouth, MA 02360

Stellwagen Beer Co. 
100 Enterprise Dr., Marshfield, MA 02050

Untold Brewing
6 Old Country Way, Scituate, MA 02066

Bring some local pride to the table this Thanksgiving #MABeer

Anything wine can do, beer can do better - so clear the wine glasses and make room for Mass. made craft beer as you set the table this Thanksgiving.

From the buttery stuffing and mashed potatoes, tangy cranberry sauce, flavorful turkey and creamy pies, there’s a local offering that can hold up to any side or dessert you can dish up. 

We unfortunately can’t help you navigate political conversations around the dinner table, or make your in-laws more bearable, but we can help you navigate the craft beer aisle with a list of beers brewed right here in Massachusetts. 

And when all else fails, just change the subject and talk about how great the beer is …

First Thanksgiving on a Sour Planet!, Aeronaut 
A tart wheat ale, brewed with 180 lbs. of Massachusetts grown apples and exotic cinnamon. A pleasantly refreshing sour with prominent apple pie notes along with warming autumnal spices.

“Gose Well With Cranberries” and “Gose Well With Pumpkin Pie,” Second Wind Brewing Co.
Second Wind Brewing Co., released two beers just in time for Thanksgiving. A split a batch of “Gose Well...” with the first made with pureed pumpkin and holiday spices and the second made with pureed cranberries. Both 4.7 ABV and mildly tart. Available for sale in the taproom only.  

Kill Your Idles: Crantastic, Idle Hands 
A sour ale brewed with cranberry and blood orange puree then back sweetened with Lactose to balance the acidity. Full of cranberry flavor with just the right amount of citrus notes to keep the beer interesting. The addition of lactose allows for the flavors of the fruit to stand out among the acidic character of the base beer.

Cranberry Wheat Ale, Stone Cow
An American wheat ale bursting with fresh cranberry flavor and aroma. This trusty Thanksgiving sidekick can hang throughout the entire meal, from first bite to last sip. Especially great for cranberry sauce lovers. 

Goody Two Shoes Kölsch-Style Ale, Exhibit ‘A’ Brewing Co. 
This well-carbonated traditional Kölsch is a great partner to Thanksgiving dinner. Higher carbonation helps cut the richness of the turkey, gravy and stuffing and the light body and low ABV won't fill you up, leaving more room for pie. 

Rising Wind, Moby Dick Brewing Co.
A medium bodied, well balanced German-style, Dortmund/Export lager. What’s a Dortmund/Export lager you ask? As far as German golden lagers go, it breaks down like this: Pilsners are hoppy, Munich lagers are malty, and Dortmund/Export lagers are well balanced. This beer goes well with chicken, turkey and pasta as well as fatty flavorful fish like salmon, swordfish or tuna. 

Sweet Brown, Castle Island
Castle Island’s limited fall release, Sweet Brown, is a brown ale brewed with sweet potatoes. By including this ingredient, the sweet potatoes are able to provide a rich complexity to the mouthfeel that helps distinctly characterize the beer. Toasted malts also provide deep roasted chocolate and caramel notes that round out the beer and allows it to stand up to any Thanksgiving feast.

Slumpkin Pumpkin, Somerville Brewing Co.
It’s still Pumpkin beer season. Somerville Brewing recommends Slumkin Pumpkin to pair with dinner and pie. Awarded a Top 10 in the US by Rate My Pumpkins, this beer delights with fresh sugar pumpkin and a tiny hint of spice.

Storm Door Porter, RiverWalk
When the days get shorter and the shadows longer, the storm door goes on signaling the end of summer. So we meet the season head on with a beer sturdy enough for the harsher weather. Vanilla beans and cinnamon sticks enhance our rich dark malt to create a warming finish to sustain us all until the warmer weather returns.  

With the weather set to bring us the coldest Thanksgiving on record, Storm Door Porter pairs well with roaring fires, full bellies and hearts filled with thanks. Rated the #10 Porter in the country in 2018 by Paste magazine, this beer is the perfect choice for hiding from the weather and relatives alike.

Skwäshbuckle Imperial Porter, Turtle Swamp Brewing Co. 
This beer is named after the linguistic and phonetic spelling of squash, because umlauts are fun. It also shares a surname with Jim Buckle, the New England farmer who grew the 100 pounds of various baking squash that went into this beer. This rich and hearty limited offering is brewed with squash and spices, and pours dark brown with ruby red highlights, foaming up with a frothy, mocha colored head. Brewed with cinnamon, nutmeg, allspice, ginger, and clove, the initial sip of this porter is surprisingly light with notes of brown sugar and only a hint of the heat from its 10.7% ABV. The finish releases more complex notes of dried fruit, banana, clove, and hints of pine from the Cascade hops. 

Trappist Holiday Ale, Spencer Brewing Co.
Mahogany in color, wholesome in body, lightly spiced, a heart-warming feast day ale from our table to yours.

Your Guide to #MABeer is Here!

Mass Brewers Guild Launches New Mobile Application & Beer Trail Map Available for download on iPhone and Android

Attention craft beer lovers - your next #MABeer is closer than you think. The Mass Brewers Guild, the state’s nonprofit organization that works to protect and promote the interests of craft brewers, has launched “Mass Craft Beer,” a new mobile application and beer trail map.

The free app, now available in iTunes and Google Play stores, includes every visit-able brewery across the Commonwealth in its passport program. Users can now carry their passport on their phone to tour, taste, check-in and never miss another stamp.

Features include: finding breweries near you via your geo location, check-in to breweries you visit and add them to your passport, earn rewards and merchandise by collecting stamps, get the latest event news with links to purchase tickets, create your own brewery tours with an interactive brewery map and directory, save your favorite beers to purchase later, and more. 

Mass Craft Beer launches just in time for the Mass Fermentational, the organization’s upcoming beer festival and fundraiser set to take place on Saturday, Sept. 16 on Worcester Common. The festival tab within the app holds the event map, food vendor information, parking details, the list of participating breweries and where to find them, along with what they are pouring at the event.

“Massachusetts needed a beer trail map that could evolve and change as quickly as its craft beer scene,” says Katie Stinchon, executive director of the Mass Brewers Guild. “Consumers have been asking for an updated map of breweries, and brewers wanted a guide that could help drive traffic to their doorstep. This new mobile application does both.” To date there are 120 breweries across the Commonwealth with more than 30 in-planning slated to open before the close of 2017.

Paying homage to Massachusetts’ rich colonial history, app adventurers can earn ranks (private to major general) as they travel and explore MA craft breweries. Incremental badges are earned after visiting five breweries, and regions can be conquered after checking into 15 or more breweries from that part of the state. Collect all of the regional badges to earn the Beer Trail Commander Badge and a Mass Brewers Guild Prize pack which includes a pint glass, T-shirt and your name glorified on the Mass Brewers Guild website. Collect 100 stamps or more and have your name entered to win a beer dinner with Sam Adams’ Jim Koch, Harpoon’s Dan Kenary, and Night Shift’s Rob Burns. Five entries will win. The runner up will receive a private guided beer tour from City Brew Bus with 10 friends.

“Visiting our breweries is the best way to support the craft beer community in Massachusetts,” says Stinchon. “Breweries employ locals, drive traffic and tourism to the state and pour world-class craft beer to thirsty locals and travelers. We hope this new program helps craft beer lovers find their next favorite beer.”

The mobile application was developed by Brewers Marketing, and made possible thanks to the generous support of the Mass Brew Bros who assisted with data collection, Fat Basset Design who created all of the badge artwork, and to New England Label for financial support. Funds raised through the Mass Brewers Guild’s festivals, Power Beer Fest and the Mass Fermentational will help to launch and maintain this program.

For more information about the Mass Brewers Guild, visit MassBrewersGuild.org.

About the Mass Brewers Guild:
The Mass Brewers Guild is the state’s nonprofit organization and trade association that works to protect and promote the interests of craft brewers across the Commonwealth. Founded in 2007, by a group of committed and passionate brewers, the association is membership based, and open to all Massachusetts breweries licensed by the Federal Tax and Trade Bureau and the Commonwealth’s Alcoholic Beverages Control Commission.