Govt. shutdown hits WV alcohol producers

One existing brewery’s move to its new facility is stalled. A new distillery cannot get labels approved to begin selling its product. The ongoing federal government shutdown is hitting West Virginia beverage alcohol producers.

Big Timber Brewing’s Matt Kwasniewski alerted me that the shutdown has stalled the approval process for the transfer of production to their new Elkins production facility. The required license transfer is held up with the government shutdown and will not be processed until the Tax and Trade Bureau (TTB) goes back to work. This is delaying the brewery’s move into its new larger production facility and affecting its ability to increase production.

West Virginia’s newest distillery, Mountain State Distillery of Charleston, was about ready to begin bottling and selling its spirits, but the TTB shutdown halted that. Because no federal agents are available to process required bottle label approvals, the distillery’s public opening is set back. Distillery owner Jeff Arthur says the shutdown is tough to endure.

“This has been an especially difficult process for me,” he said. “I’m one person trying to open a business and help bring more interesting attractions to our city. I don’t have the deep corporate pockets that others do. I’ve been paying rent for a year now, but with the threats of this shutdown going on for months, there will be no way for me to make it. I don’t want to get political, it’s just a bad situation for anyone impacted by this.” 

Operating a brewery, winery, or distillery requires federal approval and permits. Breweries, wineries, and distilleries also have requirements for federal approval of their labels for any products that may enter interstate commerce. Moving or significantly modifying a production facility requires amendments to the federal permit. All of these processes are stopped cold in their tracks and it is affecting beverage alcohol producers across the country.

Beverage alcohol producers applying for loans may also be stalled since important information from the federal regulator will not be available to the lender. Breweries, wineries and distilleries are still required to file and pay their federal excise taxes as always.

In the TTB’s notice to industry members, the agency states , “Once funding has been restored and the government shutdown is over, we will work to restore regular service as soon as possible.” Once the shutdown ends, the Brewers Association says brewers should be prepared for slower than normal label approval and permit processing until the backlog of work is caught up.

For a review of the national situation see this piece from NBC News.

If you know of other West Virginia distilleries, breweries, or wineries that are being affected by the shutdown, post a comment about it below.