News of the Beery
Some interesting news has broken recently and since I don’t have a big take on these items, it seems like a fine time for a round-up. It’s a mix of good and bad news, but the good news is really good. People are taking advantage of some of the bargains on the market and saving valuable but discarded companies. That suggests that we might be nearing the point where people see value in the beer industry again.
1. Skagit Valley Malting Revived
I did not see this one coming, but man, is it great news. Last week, news broke that Skagit Valley malting had been purchased after abruptly shuttering in 2023 and would open this spring. When Skagit Valley closed, it was such depressing news. Not only did the company produce more than a boutique amount of malt, but it was also closely integrated into local agriculture in one of the lushest and most productive valleys in America. Most barley is grown in dry and hot-weather regions, so Skagit Valley offered an unusual opportunity to make malt from barley that wouldn’t grow elsewhere. Apparently, the company had grown too fast and over-extended itself. Evan Turner, the new owner, plans to operate it at a more sustainable level:
“‘If you look around the country, if you go to the craft malt conferences, and you ask them, “How big is your malthouse, how many employees do you have?” They don’t have 12 to 15 employees,’ he said. ‘They have five. They have seven….[Our malt] needs to be used and consumed by a marketplace that would care about it,'‘ Turner said. ‘And ... I have gone to great distances to see how far that care seems to extend and it seems to be (about Portland).’” (Skagit Publishing/GoSkagit)
2. 200-year-old Cask Brewery Purchased
In November 2022, Carlsberg-Marston committed an act of historical violence and closed a gorgeous Victorian brewhouse in Cumbria. Positioned at the feet of the Cockermouth Castle, Jennings had been making cask ale in the old brick building since 1874. To be fair, the parent company did put it up for auction, but apparently withdrew before the sale. Well, whatever was happening behind the scenes, the outcome was delightful:
“However, the site has now been bought by local couple Kurt and Rebecca Canfield who said the brewery could start producing beer again by the summer under the Jennings brand. Chris France, the firm's new managing director, said he had recipes for about 100 beers and planned to "definitely" bring back Cumberland Ale and Bitter.” (BBC)
3. The Beer Industry Employs 1% of the Workers Worldwide
Oxford Economics and the World Brewing Alliance did some research and came up with some pretty interesting facts about the economic impact of beer (most recent numbers from 2023):
It generates $878 billion in total revenue (which includes brewing, agriculture, construction, finance and business services, real estate, distribution, retail, and hospitality).
It employs 33 million people—one percent of the global workforce.
It generates $375 billion in taxes.
Those figures for the United Sates—and this is relevant to our final point below—are $182 billion in total revenue, 1.2 million workers, and $39 billion in taxes.
4. Trump Administration Places 25% Tariffs on All Steel and Aluminum
Not all news can be good news, and so now we come to the nasty business. The Brewers Association had a fact sheet ready for posting the second this news broke, and it’s sobering information. Click through to get more details, but here are a few of the highlights:
In 2018, Trump’s tariffs excluded Canada, our largest source of aluminum, and can prices rose 50%.
Canada and Mexico—not China—are the two largest exporters of steel to the US, accounting for 40% of the total imports.
Even the truncated, hours-long tariffs from last week sparked reprisal tariffs on American goods, including alcohol. More than a third of exports of American craft beer (the segment the Brewers Association represents) goes to Canada.
By the time I’d posted about last week’s tariffs, they’d already been canceled, so who knows how long these might last. They aren’t scheduled to take effect until March 12, which gives him plenty of time to cancel them. Stay tuned.