Craft Brew News # 34 – More Beer in Charlotte and Less Tax in PA


    Craft Brew News 7/05/19

    (Courtesy of Brewbound.com)

    German Brewer Gilde Reveals US Expansion Plans

    German Brewer Plans to Operate Large Manufacturing Brewery in Charlotte

    German brewer Gilde has an ambitious plan to build one of the largest individual craft brewing facilities in the United States.

    According to the Charlotte Observer, the company is looking into the possibility of eventually brewing upwards of 500,000 barrels annually in North Carolina, however the timetable for beginning that project is still nearly three years away.

    In the meantime, Gilde CEO Karsten Uhlmann told the outlet that his company would begin by importing beer into the U.S. via Anheuser-Busch wholesaler Adams Beverages this month.

    The Hanover-headquartered beer company — which produced 850,000 barrels of beer last year — then plans to open a 5,000 sq. ft. small-batch brewery called “The Embassy” before the end of 2019. Two-to-three years later, Uhlmann added, the company plans to open a 100,000 sq. ft. facility capable of being scaled to 500,000 barrels that will also feature a taproom, beer garden and kitchen.

    Pennsylvania Lawmakers Lower Brewery Sales Tax

    Pennsylvania lawmakers and Gov. Tom Wolf on Friday approved legislation (H.B. 262) to lower an impending sales tax on beer sold in taprooms, tasting rooms and brewpubs. In a press release, the Brewers of PA announced that after 18 months of negotiations with legislators and the governor’s office, an agreement had been reached.

    The Pennsylvania Department of Revenue (DOR) was slated to begin collecting a 6 percent sales tax for every dollar of beer sold directly to consumers at brewery locations starting July 1. That tax would have been on top of an existing $2.48 per barrel state excise tax that Pennsylvania beer companies already pay.

    However, H.B. 262 amends to the tax code to allow breweries to “pay 6 percent sales tax on 25 percent of the retail sale” of a pint. According to the Brewers of PA, that formula is in line with the wholesale price paid for beer by restaurants, bars and grocery stores.

    Canopy Growth Corporation Terminates Co-Founder and Co-CEO Bruce Linton

    Canopy Growth Corporation (TSE: WEED) today announced that co-CEO Bruce Linton has stepped down as chief executive and board member.

    However, Linton, who co-founded the company in 2013, called into CNBC to clarify that he was fired from the world’s largest cannabis company.

    “I think stepping down might not be the right phrase,” he said. “I was terminated.”

    Mark Zekulin, who had been co-CEO with Linton, will takeover as the sole CEO, while Canopy works to identify a replacement.

    Last August, Constellation Brands upped its investment in the company, spending $4 billion to acquire 104.5 million shares of Canopy, raising its stake to about 38 percent.

    In April, it struck a deal with Acreage Holdings, agreeing to acquire the New York-based cannabis company for $3.4 billion when marijuana becomes federally legal in the U.S.

    Linton had a knack for deal making, and helped lead a company that was growing revenue at a healthy clip, but Canopy last month reported a record low gross margin of 16 percent during the fourth quarter of fiscal 2019, and an EBITDA loss of $98 million.

    Meanwhile, during Constellation Brands’ first quarter earnings call, CEO Bill Newlands said the company was “not pleased” with Canopy’s recent financial results.

    Bell’s Offers Employees Assistance in Obtaining GEDs

    Bell’s Brewery is making an effort to help employees without high school diplomas to pass the GED (General Educational Development) test. The Michigan craft brewery is offering employees access to free tests, online study tools in and a personal advisor through the GEDWorks program.

    Bell’s human resources services manager Emily Schuiling said in a press release.
    “When we discovered a talent pool that was rich in passion and dedication, but didn’t meet the hiring requirements for some of our roles, we knew we needed to help fill that gap. GEDWorks has been nothing short of amazing,”

    Bell’s employs more than 550 workers across 41 states, Washington, D.C., and Puerto Rico.

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