Massachusetts Craft Breweries Celebrate Landmark Achievement

Farmers Market Sales Now Legal

FRAMINGHAM, Mass. — After six years and three legislative sessions, the Massachusetts craft beer industry is celebrating a major milestone: breweries across the Commonwealth can now sell their products at farmers markets, joining cider and wine producers. This change is made possible by Governor Healey’s signing of the sweeping Economic Development bill yesterday.

The legislation provides craft breweries equal access to local markets, allowing direct sales to consumers for off-site consumption. Previously, breweries could only offer samples at agricultural events or obtain permits for beer gardens where pints were consumed on-site. The inability to sell to-go products at farmers markets limited opportunities for breweries to showcase their beers and connect with their communities.

“This is a monumental step forward for more than 230 breweries across Massachusetts,” said Adam Romanow, president of the Mass Brewers Guild and founder and CEO of Castle Island Brewing Co. “Farmers markets offer an invaluable platform to connect with customers, support local agriculture, and promote taproom visits. We’re thrilled for our craft beer community to have this new avenue for sales and visibility.”

Beyond driving brewery growth, the measure is expected to create jobs across the state and strengthen ties between breweries and local farms. Many breweries source ingredients such as malt and hops from Massachusetts farms, and this expanded access will enable them to deepen these partnerships, fostering a more interconnected, resilient economy.

“When breweries succeed, the ripple effect benefits farmers, suppliers, and everyone involved in bringing local craft beer to life,” Romanow added. “This law supports small businesses, stimulates job creation, and enhances community connections. We extend our heartfelt thanks and raise our glasses to the Healey/Driscoll administration, House Speaker Ron Mariano, Senate President Karen Spilka, House Majority Leader Michael Moran, and Senate Majority Leader Cynthia Creem. We also applaud the hard work of the Economic Development conference committee led by Chairman Aaron Michlewitz and Chairman Barry Finegold. Advancement of this measure would not be possible without our passionate original bill sponsors Senator Jaime Eldridge and Representative Adam Scanlon as well as our numerous co-sponsors and various committees who championed this legislation.”

About the Mass Brewers Guild
The Mass Brewers Guild is the state’s non-profit trade association dedicated to promoting and protecting the interests of Massachusetts craft brewers. Through advocacy, education, and community-building efforts, the Guild supports its members and ensures a thriving beer culture in the Commonwealth. For more information, visit massbrewersguild.org.

Open Call for Board Seat Candidates!

Members of the Mass Brewers Guild (MBG) board of directors are volunteers that serve to further the work of the association and its mission -- to protect and promote the interests of Massachusetts craft brewers.

Unlike many nonprofit boards that serve to advise the organization’s staff, MBG board members also have to serve as staff, and work on behalf of the organization to deliver the created objectives and goals. With the support of only one full-time staff member, board members spend an average of 10 to 25 hours a month working on the MBG’s initiatives -- depending on the project or work cycle.

The guild board of directors currently holds nine seats, five of which are up for election in December 2023.

After serving as the MBG’s President for three years, and serving on the board of directors for a total of six years, Sam Hendler, co-founder of Jack’s Abby Craft Lagers has termed out of his position with the MBG.

Sam stepped into his role as president serving on the frontlines during the pandemic. He was an incredible advocate for our association and in constant communication with the governor's office, ABCC, and Massachusetts Restaurant Association. His work ensured that our businesses were deemed essential, supporting the re-opening process for members and helping to distill the ever changing state guidelines and steps for our state’s breweries.

He has been a steady and reassuring voice for our brewing community during an extraordinarily difficult time. Always generous with his resources and knowledge, he has been an incredible leader for the association and we are so grateful for his contributions.

As many of you know, our board member, and former VP and treasurer, Kelsey Roth, has left his post as GM at Exhibit ‘A’ Brewing Co., and has taken a position outside of the industry. Per our organization’s bylaws, he has been able to remain on the board for the remainder of his term but will leave us at the end of this election season.

Kelsey has been, and remains to be, an incredible advocate for the brewing industry. He has served on nearly every committee at the Mass Brewers Guild and played an integral role in its growth and success during his four years on the board. Under his leadership, he created impactful educational and technical programming, helped to spearhead many of the MBG’s DEIB initiatives and oversaw and directed the MBG’s events and design work as well as membership recruitment. We wish him so much luck in his new position, and we are grateful for the time he has dedicated to the board of directors as he finishes out his tenure with us.

Dani Babineau, co-owner of Redemption Rock Brewing Co., JP Gallagher, co-owner/brewer of Lost Shoe Brewing & Roasting Co., and current MBG VP and Caleb Hiliadis, brewmaster at Amherst Brewing Co., will all rerun for a two-year term (the 2024 to 2025 calendar year.)

The MBG’s board is seeking brewery owners and brewery staff to consider joining the nonprofit’s leadership team to help further its work by donating their time, expertise and passion for the industry.

The Mass Brewers Guild is now accepting resumes with a letter of intent detailing the goals and or changes that the candidates would like to help implement within the organization. The deadline for submission is Nov. 1 and all candidates will be expected to speak before membership at the winter member meetup on Dec. 4 at Berkley Beer Company in Taunton.

Ideal candidates are those that are already involved in the organization – they regularly attend meetings, participate in the MBG’s festivals and fundraisers, and are visible members of the community. It will be important for the nominating committee to see a strong commitment from individuals wishing to have a seat on the board.

The board seeks to diversify its members and strengthen its geographical representation. They are looking for all areas of expertise -- from law to marketing, to fundraising, event planning and general leadership. The nominating committee will put forth candidates that demonstrate a willingness to work together on issues and help serve the craft beer community.

In December 2023, paid brewery members will have the opportunity to cast their vote to fill all five seats. If you are unsure of your membership standing with the MBG please reach out to the MBG’s executive director.

A committed and passionate board is essential to accomplishing the work of the Mass Brewers Guild. Now more than ever, it’s vital for a strong board and leadership team to help guide the Massachusetts craft beer community forward and serve as a unified voice when confronting all issues that impact the industry.

If you aren’t in a position to run for a seat this year, but are interested in joining the board in the near future, this is a good time to get involved! Many of our board members will begin “terming out,” meaning they are ineligible to rerun for a fourth consecutive term. By shadowing a board member, joining a committee, and learning more about how the MBG operates, you’ll be better poised to join our leadership team in the future. 

Those interested in joining the board can send their resume and cover letter to the MBG’s executive director, Katie Stinchon at Katie@massbrewersguild.org for review.  

In your cover letter please answer the following questions:

·      Why do you want to join the MBG’s board of directors?

·      Realistically, how much time can you dedicate to the organization a month?

·      Which committee would you like to donate your time to?

·      What major issues would you like to be involved in and how would you change them?

What’s expected of MBG Board Members? MBG Board Members Will:

·      Interpret the organization's work and values to the community, represent the organization, and act as a spokesperson

·      Listen carefully to board colleagues and members of the craft beer community

·      Respect the opinion of fellow board members

·      Respect and support majority decisions of the board

·      Recognize that all authority is vested in the full board only when it meets in legal sessions

·      Keep well-informed about developments relevant to issues that may come before the board

·      Attend bi-monthly board meetings (six a year – 1.5 hours long) and understand that they may be relieved of board duties if they miss more than two meetings

·      Actively participate in board meetings and actions

·      Become actively involved in at least one committee – driving goals and accomplishing tasks – (Marketing, Events, Government Affairs, and Membership)

·      Support MBG events and initiatives through participation

·      Bring to the attention of the board any issues that will have an adverse effect on the organization or those we serve

·      Refer complaints to the proper level on the chain of command

·      Recognize that the job of a board member is to ensure that the organization is well-managed, not to manage the nonprofit

·      Represent all of those whom this nonprofit serves, not just a particular geographic area or interest group

·      Consider yourself a “trustee” of the nonprofit and do your best to ensure that it is well-maintained, financially secure, growing and always operating in the best interests of those we serve

·      Declare conflicts of interest between your personal life and position on the board, and abstain from voting or discussion when appropriate 

MBG Board Members Will Not:

·      Criticize fellow board members or their opinions, in or out of the board room

·      Use the nonprofit organization for your personal advantage or that of your friends or relatives

·      Discuss the confidential proceedings of the board outside the board room

·      Interfere with the duties of the administrator or undermine the administrator’s authority with staff

As a board member, the organization is responsible to you in the following ways:

·      To keep its board members regularly updated on the organizational activities, programs, policies, goals and objectives as appropriate

·      It is expected that board members and the Executive Director will respond in a straightforward fashion to questions that are necessary to carry out fiscal, legal and moral responsibilities to the organization

·      If the organization does not fulfill its commitments, board members may call upon the Board President and E.D. to discuss the organization’s responsibilities

·      The organization will carry directors’ and officers’ liability insurance

Small and Independent Craft Brewers Urge Participation in National Day of Action

Passage of Craft Beverage Modernization and Tax Reform Act before year-end expiration vital to small business health

FRAMINGHAM, MA • September 9, 2020 – Leaders in the beverage alcohol sector are urging industry advocates across the U.S. to participate in a national Day of Action on September 9 by asking their members of Congress to pass the Craft Beverage Modernization and Tax Reform Act, S.362/H.R. 1175 (CBMTRA). 

On December 31, 2020, the recalibrated Federal Excise Tax (FET) rates for more than 200 small and independent breweries in Massachusetts will expire. These small businesses are asking Congress to prioritize and pass the Craft Beverage Modernization and Tax Reform Act and make the current FET rates permanent. Since its enaction at the end of 2017, the reduced FET has enabled small and independent brewers across our state to reinvest in their business, hire new employees, and grow their breweries. Without action from Congress, America’s more than 8,300 breweries along with beer importers will face a nearly $154 million annual excise tax increase beginning in January 2021.

“The nation’s craft brewers, distillers, winemakers, and cider makers have been among the hardest hit during COVID-19,” said Katie Stinchon, executive director of the Mass Brewers Guild. “Significantly increasing taxes on these small businesses even in normal circumstances would be devastating, but to do so during a pandemic would undoubtedly force many of them to close. Congress should give these businesses a fighting chance by passing the Craft Beverage Modernization and Tax Reform Act as soon as possible. Only then will breweries have the opportunity to recover from the harsh economic impacts of COVID-19 and be able to continue to support other vital industries in their communities.” 

Introduced by Senators Ron Wyden (D-Ore.) and Roy Blunt (R-Mo.) and by Representatives Ron Kind (D-Wis.) and Mike Kelly (R-Pa.), the Craft Beverage Modernization and Tax Reform Act is uniquely bipartisan legislation with support from more than half of the U.S. Congress—the bill currently has 346 cosponsors in the House and 74 in the Senate. The legislation will make permanent reforms enacted in 2017 that create a fair and equitable tax structure for brewers, winemakers, distillers, cider makers, and importers of all beverage alcohol.  

“The Craft Beverage Modernization and Tax Reform Act has been crucial to the success of small and independent brewers in Massachusetts and needs our full support,” added Stinchon.  “The craft beer industry has experienced sustained growth in Massachusetts and across the country and the current FET rate has gone a long way to empower our brewers to make significant investments into their businesses. Breweries operate in every state and nearly every congressional district in the country and if the current rate is allowed to expire, the tax increase will have a devastating effect on these businesses. The beer industry is one of the jewels of America’s manufacturing sector, supporting more than 2.1 million jobs—559,545 of which come from the craft industry.” 

Recalibrated FET rates have saved the American craft brewing industry nearly $80 million annually and helped provide certainty and stability for more than 8,300 breweries across the country, including 200 in Massachusetts. If the legislation is not acted upon, American and Massachusetts brewers alike will face a massive financial burden. More than 2,000 new brewers who have only been in operation since Jan. 1, 2018 and have never before paid the tax will see a 100 percent tax increase.  

“We need everyone’s help, from supply chain partners to loyal customers, to ensure Congress makes this legislation—which is critical to the survival of hospitality businesses across the country—permanent. It takes just a few minutes to make a difference for these businesses in our communities,” said president of the Mass Brewers Guild, Sam Hendler, co-founder of Jack’s Abby Craft Lagers.

Day of Action participants are encouraged to call, tweet, and email their members of Congress to pass this bipartisan legislation.   #PassCBMTRA

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 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, fighting for license and franchise law reform, and serving as the voice of craft brewers on Beacon Hill. The Massachusetts Brewers Guild is a 501(c)6 not-for-profit corporation.

About the Brewers Association
The Brewers Association (BA) is the not-for-profit trade association dedicated to small and independent American brewers, their beers and the community of brewing enthusiasts. The BA represents 4,800-plus U.S. breweries. The BA’s independent craft brewer seal is a widely adopted symbol that differentiates beers by small and independent craft brewers. The BA organizes events including the World Beer Cup®, Great American Beer Festival®, Craft Brewers Conference® & BrewExpo America®, SAVOR™: An American Craft Beer & Food Experience, Homebrew ConTM, National Homebrew Competition and American Craft Beer Week®. The BA publishes The New Brewer® magazine, and Brewers Publications® is the leading publisher of brewing literature in the U.S. Beer lovers are invited to learn more about the dynamic world of craft beer at CraftBeer.com® and about homebrewing via the BA’s American Homebrewers Association® and the free Brew Guru® mobile app. Follow us on Facebook, Twitterand Instagram.

The Brewers Association is an equal opportunity employer and does not discriminate on the basis of race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, or marital/familial status. The BA complies with provisions of Executive Order 11246 and the rules, regulations, and relevant orders of the Secretary of Labor.

CraftRoots Brewing Named Among Fastest Growing Craft Breweries of 2017 by the Brewers Association

CraftRoots Brewing was named one of the fastest growing small and independent craft breweries by the Brewers Association (BA)—the not-for-profit trade group representing small and independent craft brewers. The inaugural list offered insight into the diversity of growth within the craft brewing industry.

“This is really exciting for us and such a cool illustration of the vibrant creativity that is originating and taking off in craft breweries nationwide. Our grassroots approach to brewing genuinely local beer from New England agriculture meant we had humble beginnings, but our community loves what we’re about and the beer we brew. For us, this isn’t about chasing big growth and the big guys. It’s about being genuine, local and fresh. Thanks to everyone who supports our brewery and taproom, Milford and the Commonwealth of Massachusetts are #1 on this list.” said Maureen Fabry, brewer + co-founder, CraftRoots Brewing and Mass Brewers Guild board member. 

CraftRoots Brewing was ranked #1 among 50 small and independent breweries from across 25 states. Median growth from 2016 to 2017 for these breweries was 216 percent; the median size of breweries on the list went from 284 barrels in 2016 to 963 barrels in 2017. These brewing companies represent 5.5 percent of craft’s growth by volume for 2017 and include eight brewpubs, 40 microbreweries and two regional craft breweries.

“With 5 percent growth overall for small and independent brewers in 2017—and microbreweries and brewpubs delivering the majority of that—we wanted to spotlight some of the breweries driving that growth,” said Bart Watson, chief economist, Brewers Association. “As the growth base for craft becomes more diffuse, these fast growing brewing companies illustrate that a diverse set of success stories still exist.”

Methodology: The list presented includes only small and independent breweries with all of their production at their own facilities. Breweries had to have opened 12/31/2015 or earlier to be considered. It only includes breweries that reported to the Brewers Association’s annual Beer Industry Production Survey; breweries with staff estimates or data from state excise tax reports were not considered. Finally, breweries must have had data from at least three years to be considered.

About CraftRoots Brewing
Founded in 2014, CraftRoots Brewing is grounded in a grassroots approach to beer. We brew fresh and flavorful beers that highlight New England-grown grain and hops, connecting you to local farmers and craft maltsters.

Learn more by checking us out at: www.craftrootsbrewing.com

Facebook: @CraftRootsBrewing

Instagram: craftroots_brewing

Twitter: @CraftRootsBrew

Unique Tax Breaks for Breweries

Is your business familiar with the unique tax breaks available in the brewery industry?  AAFCPAs has provided for your convenience the top five tax insights that could have a major impact on reducing your tax burden:

Section 179 Depreciation

Breweries are capital intensive businesses, and equipment investments can be significant. Section 179 allows breweries to deduct the property placed in service in the year of acquisition as opposed to depreciating it over its useful life. There are dollar limitations on how much you may deduct in a single year, as well as business income limits, so we encourage you to consult your AAFCPAs tax partner.

Bonus Depreciation

Breweries may also take an additional 50% bonus depreciation deduction for qualifying property in the year the property is placed in service. There is no business income limitation for bonus depreciation, so in the early stages of business that often result in net operating losses, these can be carried forward to offset future taxable income.

Cost Segregation Studies

The shorter life span attributable to capital purchases, the quicker your company may realize the tax benefit. For build outs of your brewery, AAFCPAs recommends that you evaluate the benefits of a cost segregation study. In a cost segregation study, certain commercial building costs may be reclassified to shorten the depreciation time for taxation purposes, which reduces current income tax obligations.  This may add up to substantial savings

Domestic Production Activities Deduction (DPAD)

The DPAD is a 9% deduction on qualified production activities, which could equate to a 3% reduction in your tax rate depending on the tax bracket the company falls in.

Research & Development Tax Credit

A credit is always better than a deduction, but AAFCPAs recommends a cost benefit analysis be performed to ensure it makes sense to take the credit. Breweries can qualify for R&D tax credits for certain activities such as improving brewing processes or creating a new beer.

When applying the above tax benefits, note that they are specific to brewing operations.  The existence of ancillary businesses, such as restaurants, retail, etc. may impact your ability to utilize them. In addition, certain states make tax benefits available to brewers who locate within their borders.

If you have any questions or need additional information, please contact Dan Stanhope, CPA, MSA at (774) 512-4134, dstanhope@aafcpa.com.

Dan Stanhope, CPA, is a partner at AAFCPAs based in Westboro, Boston and Wellesley. He has over 12 years of experience providing tax, assurance and business advisory solutions to closely owned, privately-held businesses. Dan can be reached at 774-512-4134 and at dstanhope@aafcpa.com

What's on Tap for St. Paddy's Day?

Here are six ways to get your shamrock on this weekend that do not involve green beer:

ONE:
Poured on nitro and released for a special St. Patrick's Day event, "For The Love of Ireland", is a partnership between Aeronaut Brewing and the Irish International Immigrant center. These incredible friends are playing a tremendous role in assisting families from all over the world, fighting hard for Muslim immigrants affected by US policy changes. Available on Friday, March 17 at Aeronaut Brewing.

TWO:
Join Dorchester Brewing Company for a full day of St. Patrick's Day fun on Saturday, March 18 from 11:30 a.m. to 11 p.m. The day kicks-off with a “Savin Stout” beer release -- an Irish dry stout served on Nitro, bittered with Chinook hops, and fermented in a British yeast strain. This stout contains roasted barley, creating its deep brown color, and smoky, cocoa notes. Live Irish music will play from 2 to 5 p.m. alongside a food truck serving up bites from 4 to 9 p.m. For more details, click here.

THREE: 
Wormtown is celebrating its 7th anniversary on Friday, March 17 from noon to 10 p.m. The full day celebration will open up “Fermentation Alley,” and include live music, sweet treats, giveaways and a special birthday release, "Brew #7." Cellared beers including Tennessee Tats, an Imperial Oatmeal Stout aged in Jack Daniel barrels, will be in the line-up along with many others. For more information, click here.

FOUR:
Navigation Brewing Co’s St. Paddy’s Day celebration will kick-off Friday, March 17 from 5 to 9 p.m., with Phoenix Rising Pizza paired with three Irish offerings – an Irish Stout, Irish Porter, and an Old Irish Ale. Other suds on tap include a Milk Stout, Double Porter, Chocolate Oatmeal Stout, Lowell Common and Citra dry hopped Pale Ale. The party keeps ShamRocking on Saturday, March 18 from 2 to 8 p.m. with HomeKitchen serving up bites.

FIVE:
On Friday, March 17, Element Brewing Co. will host Dan and the Dirty Catechism from 6:30 to 9:30 p.m. The Western Mass group sings and shouts songs about life, love, and sin. They weave their way through a variety of musical styles while performing the musical sermon about the virtues of sin and dirty living. Step right up and be saved...but it’s more fun if you get involved. For more information, For more details, click here.

SIX: 
Cape Cod Beer will launch their "Top Notch Stout" and raise a pint or two in honor of Saint Patrick’s Day. They've taken their velvety smooth Oatmeal Stout to the next level and aged it in Notch whiskey barrels (from Triple Eight Distillery). This dark brew with a hint of whiskey will be available only at the brewery in 750 ml. champagne bottles. 
OG: 16.7°P   ABV: 5.5%   IBUs: 42

Freshman Brewers Raised $2,500 for the Mass Brewers Guild

The Mass Brewers Guild packed Castle Island Brewing Co. in Norwood, Mass.,  on Saturday, March 4 during its sold out, “Meet the Brewers: Freshman Class” event, where seventy patrons participated in an afternoon of speed-dating for beer.

Groups of ten were given ten-minutes with each brewery to hear their story, taste their beer, and ask questions before rotating to the next brewer.

The roundtable style event was the first of its kind hosted by the Mass Brewers Guild, with the goal to foster learning and education of the brewing process, and inspire deeper connections between brewers and craft beer lovers.

The line-up of freshman brewers included; Barrel House Z, Bone Up Brewing Co., Castle Island Brewing Co., Craft Roots Brewing Co., Exhibit ‘A’ Brewing, Lamplighter Brewing and Start Line Brewing.

“The afternoon was a huge success, and just as much fun for the brewers as it was for the guests,” says Rob Burns, co-founder of Night Shift and President of the Mass Brewers Guild. “We hope to launch several "Meet the Brewer" style events in the future and turn it into a series that our friends and fans can follow and attend.”

Thanks to the generosity of the brewers donating their time and beer, and the craft beer loving community for purchasing tickets, the event raised $2,500 for the Mass Brewers Guild.

The Mass Brewers Guild is a nonprofit organization that works to protect and promote the interests of craft brewers across the Commonwealth. From lobbying on Beacon Hill to creating marketing and educational programs for brewers, the Mass Brewers Guild works to ensure that breweries across the state remain successful and independent businesses.

Four Facts About Mass Craft Beer