Lamont, Bysiewicz Announce Policy Initiatives Aimed at Expanding Economic Opportunities for Connecticut Craft Breweries

Press Release

Ned Lamont and Susan Bysiewicz, Democratic nominees for governor and lieutenant governor, visited Tribus Beer Co. in Milford on Thursday to announce policy proposals that will support and encourage the growth of Connecticut's craft brewery industry. Their plan would impact the more than 80 operational breweries statewide by significantly reducing uncompetitive excise taxes, eliminating burdensome regulations and defending against the Trump administration's harmful tariffs on aluminum.

The plan stands in stark contrast to the impact of Republican opponent Bob Stefanowski's tax scheme, which would eliminate 60 percent of Connecticut's revenue stream and would require jacking up liquor taxes. Stefanowski has shown an unwillingness to oppose the President on a single issue, even those that have disproportionately negative impacts on Connecticut, indicating he would take no action to mitigate the impact of Trump's tariffs.

Lamont and Bysiewicz unveiled their proposal following a tour of Tribus Beer Co., Milford's second brewery and taproom, which opened its doors to the public in August. The brewery encompasses a completely renovated 15,000-square-foot warehouse, complete with on-site manufacturing, a wrap-around taproom, and an outdoor biergarten.

"Our breweries and taprooms create good job opportunities across the state, attract tourists and residents to our towns and cities, and promote community and economic development. Once the manufacturing epicenter of New England, Connecticut has the infrastructure to become a hub of craft brewing. That starts with lowering the excise tax and removing arbitrary regulations, so craft brewers can hire workers and revitalize towns. Those policy changes will ensure these small businesses can compete with neighboring states," Lamont said.

Vacant factories are now filled with local craft breweries, as the business has become one of Connecticut's most promising growth industries. Over the past decade, Connecticut has experienced a more than 500 percent increase in craft breweries, with more than 80 up and running statewide today, and dozens more in the planning stages.

"The economic impact of Connecticut's craft beer industry is more than $700 million, almost double what it was five years ago," Bysiewicz said. "Craft breweries serve as a bright spot in our state's economy. However, the continued growth of Connecticut's craft beer industry is under siege from Trump's aluminum tariffs."

In 2016, Connecticut's beer-making industry accounted for 11,482 jobs -- 255 in brewing, 972 in wholesaling and 10,255 in retail, according to a report from the Beer Institute and National Beer Wholesalers. The report also asserts that total in-state business and personal taxes generated from the beer industry totaled more than $420 million.

"Connecticut's craft brewery industry is creating a wave of economic growth across our cities and towns, accounting for more than 11,000 jobs. We need to make sure that the laws governing every industry are prepared for a modern economy and that we have the job training and workforce development programs in place to meet the present and future needs of Connecticut's growth industries," Lamont said.

If elected, Lamont and Bysiewicz will:

Reduce Connecticut's excise tax on craft breweries by more than half, from $7.20 to $3.30 per barrel. Connecticut has the highest excise tax in the region, so this change will help to make its craft brewing industry competitive with neighboring states and will make it easier for brewers looking to affordably expand their operation. It will also reverse Gov. Dannel P. Malloy's 20 percent tax hike while lowering the rate to match that of Massachusetts and Rhode Island. These tax savings will also help alleviate the increased cost of aluminum due to the Trump tariffs.
Lift the arbitrary 9-liter limit on retail sales so consumers can responsibly enjoy local beer and cider, while also allowing breweries to profit without having to distribute their products through a middleman.
Oppose new and needless restrictions on craft breweries, wineries, and distilleries.

Promote job training and apprenticeships in the craft brewery industry.
Remediate brownfield sites in many abandoned factories and utilize the space for mixed-use, creating residential living spaces and the perfect location for future craft breweries.
The federal government temporarily reduced the federal excise tax on craft brewers by half, but their profit margins are now facing a potential decrease under the Trump tariffs on steel and aluminum. Sixty percent of the beer manufactured -- and sold -- nationwide comes in aluminum cans or bottles, according to the Beer Institute. A 10 percent aluminum tariff would cost the United States beer industry around $347 million annually.

"Trump's trade war will undoubtedly result in employers and consumers paying higher aluminum can costs," Bysiewicz said. "And, even a one-cent increase on every single aluminum can --resulting from the aluminum trade tariff -- will force craft brewers to either cut back on costs, which could include eliminating jobs, or to pass on higher prices to consumers."

The craft beer industry takes a disproportionately negative hit from Trump's aluminum tariffs, especially because brewers fill and sell about 36 billion aluminum cans and bottles annually, according to the Beer Institute. Aluminum cans make up more than 10 percent of the cost of manufacturing beer in the United States, making it the single largest cost in beer production.

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