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Boston Beer Company Tries to Keep Its Craft Brewing Status

By RJ | June 16, 2010 | 3 Comments |

Boston Beer Company—the leader of the craft brewing movement and makers of Sam Adams—is currently facing a scenario where they could lose their “Craft Brewing” label. The Brewers Association, a national trade group, defines craft brewers in part as producing fewer than 2 million barrels a year. On March 9, 2010, Boston Brewery estimated that their total shipments in 2009 were approximately 2 million barrels.

Boston Beer Company isn’t just worried about labels though, there are also financial liabilities that come with losing their status. The federal government defines small brewers similarly, imposing a lower excise tax on those that stay under the 2 million barrel threshold. Jim Koch, president of Boston Beer Company, recognizing that his company was on the cusp of a financial strain, approached Senator John Kerry to come up with a solution for the Massachusetts based firm.  We wrote about the proposed bill earlier this week.

Simply put, the bill will revise the definition of “craft” changing the limits from 2 million barrels a year to 6 million barrels a year. Boston Beer Company under these terms would have plenty of room to grow (over 200%) and perhaps could look at merging with some other well known breweries around the country to help diversify their products.

“If we’re not a craft brewer,” said Koch, “what else are we? We’re certainly not Budweiser.”

That’s the truth. Certainly, craft brewers aren’t solely defined on their production but also a culture of excellence and flavor. While Boston Beer Company grows larger, we still believe they have their roots in the craft tradition.

Your Choice. Your Beer. Drink Up.
- Beer Universe