Is Illinois losing in national craft beer increase?

Unlike Wisconsin, Missouri, Michigan and Ohio, Illinois has not one craft brewery in the top 50 in the nation by sales volume, reports the Medill News Service, identified as breweries that produce less than 2 million barrels per year. (Goose Island doesn’t count as a “craft brew” under the articles standards.)

Apparently, the issue is one of distribution and regulation. Smaller brewers in Illinois have a hard time paying the large fees for an alcohol license and space on distributors trucks.

The article explains:

“Let’s say you want to be a small little brewery, it’s hard to get in with the big name distributors,” said Travis Biggs, a beer specialist and salesman at Sam’s Wine and Spirits in Downers Grove. Biggs said the smaller craft breweries can’t produce the bulk amounts required to sign on with larger distributors.

In addition, taxes and union regulations make it difficult to raise the capital needed to open a brewery.

Illinois, especially Chicago, should do more to support it’s brewing industry. With Milwaukee and St. Louis are obviously the giants of the Midwest production brewing, there’s no reason a Midwest beer Renaissance can’t take root here. And with craft beer sales growing and interest booming, now is a perfect time to launch new breweries here in Chicago.

Knoxville, Tennesse = the huge disappointment

I’m in Knoxville, Tenn. at the moment, volunteering for what looks like it will be a very fun event.

The T is for Tom. The hat is because it's a bajillion degrees out.

Unfortunately, there is not a brewery to be seen in the vicinity. The closest thing is a small collection of brewpubs called Smokey Mountain Restaurant and Brewery, and while I don’t want to seem ungrateful, would it kill a city of almost 200,000 people to branch out and get more creative with it’s drinking?

I’ll be heading to Smokey Mountain sometime this week. I’ll also be on the lookout for some Tennesse brews from the few local breweries around. Reviews and previews to come.

Illinois Beer Tax Hike – The Saga Continues

Gov. Quinn may be going to bat for beer lovers throughout Illinois.

In an interview on WGN, he said, ““I’m not sure I’m for the alcohol tax. I’m going to take a look at that.” That’s an interesting position, but a welcome one, from a guy who’s proposing to raise the income tax by 50% to pay for the $12,000,000,000 state budget deficit.

The Trib’s political blog, Clout Street, went on to elaborate that “[p]reviously, Quinn said he would consider higher taxes on wine and spirits but was lukewarm to an increase in the levy on beer, which is pegged at 2.6 cents per six pack.”

I still think a tax on sodas would be a much more productive solution to the government’s problem. I’m waiting to see where this goes, because without the beer tax, it may be harder to raise taxes on other liquors, so everyone wins.

Beer earns Illinois $792 million in taxes

A recent report by the Beer Institute shows that Illinois earned approximately $792 million  in state and local business, personal, sales and excise taxes in 2008.

The same study said that the American economy saw a $200 billion injection of beer money from the industry as a whole, which includes brewers, distributors and retailers.

Now, this triumvirate of the beer industry is a throw back to Prohibition era politics, when a newly beer-tolerant nation still wanted to maintain the illusion of control over alcohol. So, the government created a three-tier system of producers, distributors and retailers as a means to regulate the production of alcohol through distribution.

Beer Wars (the movie), argues that this system prevents smaller brewers from getting a real start. It’s hard to earn space on distributors trucks when Budweiser, Miller and Coors have 70% of the space (and the buying power).

At the same time, the National Beer Wholesalers Association says the system helps keep beer safe for consumption and salmonella free. Though, that’s exactly what the middle-men would say.

However you look at it, the beer business is big money in Illinois, and with craft beer sales on the rise, Chicago brewers are poised to add to that total in 2009.