• 🍻 Bill Introduced to Give Tax Deduction for Draft
• 💀 Liquid Death Closes $67M Funding Round
• 🥃 Spirits Gear Up Against Anti-Alc Messaging
• 🍋 Hoplark Reveals 2 New Flavors at Expo West

A bipartisan bill is reigniting the fight to give tax deductions to bars and restaurants with draft beer systems.

U.S. Reps. Darin LaHood (R-IL) and Steven Horsford (D-NV) introduced the Creating Hospitality Economic Enhancement for Restaurants and Servers (CHEERS) Act Thursday. 

The proposed legislation (H.R. 7577) would expand Section 179D deductions to apply to “all new keg and tap properties” in an attempt to “help revitalize hospitality establishments still struggling years after the pandemic,” according to a press release. 

The existing tax code offers deductions for qualifying investments in “energy-efficient systems on commercial premises.” The CHEERS Act would also give additional benefit to companies “for the remodeling of draft property and for lost or stolen kegs.” 

LaHood said in the release: "Many of our bars, restaurants, and the hospitality sector at large are still feeling the negative effects of the pandemic and subsequent lockdown policies. This bipartisan bill will support these local establishments by incentivizing the expansion of tap lines and keg equipment on commercial premises.”

Horsford added: “Las Vegas is our nation's hospitality and entertainment capital, if not the world. The CHEERS Act would boost not only our smaller bars, clubs and entertainment venues but also many of our casinos, hotels and arenas. This will allow many small business owners in my district to grow their business and invest more in their employees. And we will reduce waste created by using smaller, disposable containers at many restaurants, bars and other venues.”

Draft beer sales were already in decline prior to the COVID-19 pandemic, but have failed to return to pre-pandemic levels. Brewers Association (BA) chief economist Bart Watson warned at the end of 2023 that draft beer sales could reach “their lowest level since World War II,” and that there is “zero reason to expect growth in 2024.” 

Several industry organizations are applauding the bill, including the BA, Beer Institute (BI), National Beer Wholesalers Association (NBWA), American Beverage Licensees (ABL), Steel Keg Association, National Restaurant Association, International Franchise Association, American Cider Association, Independent Restaurant Coalition, and BeerBoard.

Insiders can read statements from industry members backing the bill.

Liquid Death has closed a $67 million funding round at a valuation of $1.4 billion.

The financing adds to the more than $200.6 million the better-for-you beverage maker has raised since 2019, while the new valuation is double the $700 million valuation it touted following its Series D round closed in 2022.

This latest round features investments from several distributors, including the “No. 1 distributors in North Carolina, Oregon, Utah, and Washington,” among others.

According to Liquid Death founder and CEO Mike Cessario, having the distributors invested in the brand was an important step towards strengthening the brands relationship with its top DSD partners. While he declined to name any specific companies involved in the financing, he said that eight of the brand’s top 10 distributors are among the investors.

Cessario noted that having a “shared alignment” with its distributors was important for the business, particularly in an industry where DSD houses frequently invest heavily into building beverages from the ground up only to be left with a large vacancy when a brand exits to a strategic.

Cessario said: “We're really making them feel like they truly are an extension of our company. We want to bring them in and have them more involved in every way because it's so critical to have a shared alignment with them.”

Insiders can read more here.

Members of the spirits industry gathered last week for the Distilled Spirits Council of the U.S. (DISCUS) conference in San Diego, and BevNET spirits editor Ferron Salniker has the highlights for Brewbound Insiders.

The organization is not holding back as it fights for RTD access and lower taxes state-by-state. With the message “don’t buy big beer’s blather” (a bit of a tongue-twister) the beer industry’s opposition is being labeled as not focused on the consumer, according to DISCUS president and CEO Chris Swonger. 

But the bigger public information campaign heating up is contrasting anti-alcohol sentiment DISCUS leadership says could influence the Human Services (HHS) and U.S. Department of Agriculture (USDA) when dietary guidelines are announced in 2025. 

Salniker previously tried to separate fact from fiction in that chatter, but we expect to see a more vocal campaign against studies or media reports that indicate there is no safe level of alcohol consumption. 

TTB label regulations may soon require nutritional, allergen and ingredient information, which causes concern about creating any “undue burdens” on the industry, particularly small craft distillers, according to the organization. That process will be slow moving. 

Panelists also discussed how moderation trends and inventory build-ups have shaken up the shelves, mostly good news for non-alc, bad news for new entrants. 

Insiders can read the full story.

Landlord issues have been a frequent reason cited among recent brewery closures. What do you need to look out for in a lease? When should you start renewal discussions? How do you navigate improvements? BPE Law Group associate attorney Melanie De Marco gives a leasing 101 course.

Plus, Brewbound editor Justin Kendall and reporter Zoe Licata break down the latest headlines, including Sapporo-Stone’s focus on beer and discontinuation of its hard seltzer and canned cocktail brands, and Constellation Brands’ Mexican import performance. The duo also plays Another Round or Tabbing Out on Constellation’s new product slate of Corona Sunbrew and new-to-world flavored malt beverages The Drop and Shyft.

Listen here and on all popular podcast platforms.

Sparkling water maker Hoplark revealed two new flavors – Vanilla Bean + Simcoe Hops and Lemongrass + Lemondrop Hops – today at the Natural Products Expo West trade show in Anaheim, California.

The new offerings will be available via Hoplark.com on Wednesday, March 13, before rolling out to its distribution footprint.

Hoplark CEO Betsy Frost said in an announcement: "With the introduction of Vanilla Bean + Simcoe Hops and Lemongrass + Lemondrop Hops, we're not just expanding our product line; we're redefining the possibilities of beverages brewed with hops. Our goal is to provide options that have a complexity to them with the simplest of ingredients. We have been playing around with flavor expansion in our limited release program for a while and consumers have been asking for more permanent options to expand the variety across occasions.” 

Brooklyn Brewery took a minority stake in Hoplark, which produces teas, sparkling waters and 0.0 non-alcoholic brews, last September as part of a Series A funding round. As part of the “long-term strategic partnership,” Hoplark gets to leverage Brooklyn’s infrastructure for production, warehousing, logistics, sales and administration.

The Brewbound team will be recording the Brewbound Podcast On Location this week (March 12-14) at the California Craft Beer Summit in Sacramento, hosted by the California Craft Brewers Association. 

Look for Brewbound Podcast hosts Jess Infante and Justin Kendall conducting interviews with industry leaders on the show floor, starting Wednesday. 

Reach out to podcast@brewbound.com if you’d like to connect at the event. Also, look for more Brewbound Podcast On Location announcements in the near future.