The brewing industry is one of the fastest-growing markets in the state of Michigan. Microbreweries are beginning to pop up at an increased rate, but some of the state’s out-of-date liquor laws might be hampering these companies’ potential.
Michigan citizens and companies are working to change these laws to make it easier for people to get into the brewing industry. Generation Opportunity is a nonprofit millennial advocacy organization based in Washington, D.C., with a network of grass roots organizations in several states. The Michigan branch of Generation Opportunity is fighting these out-of-date laws to help the brewing industry in the state.
“The regulations against the brewing industry in Michigan are unfair and make it hard to get into the business,” Generation Opportunity’s Regional Press Secretary Rebecca Coffman said.
Many of the laws that are in place are from the Prohibition Era and are against the growth of anything to do with alcoholic beverages. On Monday, Generation Opportunity held their “Free the Brewers” event at Founders Brewing Company in Grand Rapids, Michigan. The goal of the event was to raise awareness about these out-of-date laws and gain support from young people in the state. Rep. Justin Amash and Lt. Gov. Brian Calley spoke at the event.
“We are out there trying to bring in people to raise awareness about these issues,” Kevin Gardner, Generation Opportunity’s state director in Michigan, said. “We are going to lawmakers to change things.”
Of all of the laws hampering the brewing industry, three stand out: the three cheers system, licensing requirements, and state and federal taxes on beer.
“The three cheers system requires brewers, distributors, and retailers as separate entities,” Gardner said. “If you want to sell beer you need a middleman, the system inflates the cost of beer and hurts entrepreneurs trying to get in the industry.”
As far as licensing goes, the government is very involved in the process and makes it very difficult for local brewers to get the proper license to brew. There are some harsh limits about how many licenses are given out and how many barrels a microbrewery can brew in a year.
“It’s the government thinking that it knows what is best for consumers when it’s actually harming them,” Gardner said.
The tax on beer harms brewers as well. In Michigan, beer is taxed at the state and federal level. Currently the state tax is 20 cents per gallon, which is the 28th-highest tax in the country. Higher taxes make brewing beer more expensive and tough for young brewers trying to start a company. Right now some of the laws are turning brewers away.
“I have looked into brewing as something to do after I graduate,” senior P.J. Cooley said. “If the laws for licensing and selling beer were updated and made more sense for the time we’re in, it would definitely make joining the brewing industry more enticing.”
The main focus with this campaign is to improve the conditions for current and future generations in the brewing industry.
“We know we can get the country back on track with entrepreneurs in our own states,” Gardner said. “What works is less government and more opportunity.”
Generation Opportunity will be at Hillsdale from 6-8 p.m. on Tuesday at the Dow Leadership Center as they continue their tour of Michigan campuses. There will be free dinner and drinks while they talk about their mission and gain support.
