There is reason for cautious optimism for breweries amid the COVID-19 pandemic. Richard speaks with three guests about how the recent signing of the CARES Act will help breweries, how breweries and restaurants are quickly adapting to the new market, and what publishers are doing to help struggling breweries.
The Brewers’ Association Looks to Build Upon the CARES Act
Bob Pease, President and CEO of the Brewers Association (BA) gives Richard his thoughts about how the CARES Act could help craft breweries during the coronavirus pandemic. He lists several potentially beneficial provisions of the CARES Act for BA members:
- SBA Emergency Loans could be enormously helpful in keeping businesses afloat;
- Employee Retention Tax Credit and Payroll Tax Delays could help maintain brewery employment and cash flow;
- $1,200 payments to most Americans could result in an increase in consumer purchases of craft beer; and
- Excise tax waiver on alcohol to make hand sanitizer could provide financial incentive for breweries to help assist their local communities.
BA is also hosting Power Hours to educate its members on how to take advantage of these provisions, which are expected to provide much-needed support to craft breweries and brewpubs that generate most of their revenue from in-store sales
BA’s next lobbying target is to include a $900 million tax credit in the next Congressional stimulus bill to help breweries, distributors, and retailers cushion the losses from unused bottled and canned beers that will likely expire during the pandemic.
And, most importantly, YOU can still support your local breweries by ordering delivery/pick up beers and buying gift cards and merchandise.
Neighborhood Restaurant Group Consolidates Resources to Deliver Food and Alcohol
Greg Engert discusses the Neighborhood Restaurant Group’s (NRG’s) new effort to provide high-quality food and beverages to DC, Alexandria, and Arlington called “Neighborhood Provisions” (check out if you live in one of its delivery zones).
The Neighborhood Provisions online platform offers beer, wine, spirits, hot meals, grocery items, and more from many of NRG’s 20 locations. All items are locally made and distributed. And, most importantly, it is keeping many employees on the payroll.
NRG’s new platform is hosting several fun initiatives in the coming weeks. For example, local DC chefs will be preparing special family-sized meals on select evenings. NRG will also hold flash sales from some of its breweries, including Bluejacket and Churchkey. Engert believes that Neighborhood Provisions’s new offerings will continue beyond the pandemic.
Craft Beer and Brewing Magazine Is Offerings $100,000 in Advertising Grants
John Bolton of Craft Beer and Brewing Magazine is doing his part to keep craft breweries afloat. His magazine is issuing $100,000 in advertising grants across its online and print platforms for craft breweries negatively impacted by COVID-19. Craft breweries have until April 7, 2020 to submit applications for individual grants worth up to $5,000.
Bolton is also considering offering micro-grants for some small craft breweries that would benefit from smaller, more targeted advertising campaigns. He hopes that this effort can ultimately help craft breweries survive during the pandemic.