C.O. Craft Brewers: Govt. Red Tape Hard to Swallow

The craft brewing industry is booming nationwide, and nowhere more so than here in Central Oregon. The brewing industry supports at least 450 jobs in Deschutes County alone. And 10 Barrel Brewing Co. in Bend says business is growing, but government red tape is also hampering growth.

You could call it a “beer summit,” Central Oregon-style. But this time there was no drinking, just discussing.

Rep. Greg Walden. R-Ore., sat down Monday with 10 Barrel Brewing Co. owners to discuss issues they seem to be having with government agencies.

“The over-regulation is very far-reaching,” said Garrett Wales, one of four partners in the brewery. “It’s very difficult to do business in our industry, and it’s very difficult to get help on the federal level dealing with those issues.”

Wales, who also serves as president of the Central Oregon Brewers Guild, says the TTB, or Tax and Trade Bureau, has not been quick to adapt to the emergence of craft beer.

“We are still getting really punished as hard liquor, almost, in some cases,” Wales said. “Because our alcohol is higher than 4 percent.”

Wales says the bureau has been too picky on the labeling of their beer bottles, criticizing the company for the font size, colors and even the location.

“You’re arguing over whether it’s Northwest-brewed — we are the northwest,” Walden said. “Somebody has too much time on their hands.”

Walden says the government over-regulation is not unusual.

“It’s not unlike what we hearing from other businesses and other industries,” Walden said. “The heavy dead-handed government that sometimes slows down innovation and creativity and jobs.”

Walden says he wants to get somebody at TTB to meet with folks involved in the craft industry and begin a dialogue on how to change some of the rules and regulations.

Taxes on craft breweries are a big burden. A special excise tax from the federal government costs them $7 a barrel. Walden has legislation to cut the tax rate in half.

“To roll that back, to give some breathing room to these smaller craft brewers,” Walden said. “To really grow and develop and get their footing under them.”

Something Wales and 10 Barrel would like to see happen.

“Just add some common sense back into the practice,” Wales said. “And take the approach of helping growth and helping the industry go, instead of the other approach that’s holding it back and trying to make it difficult to do business.”

Walden made several stops Monday in Central Oregon. He went down to Sunriver to talk about technology and then to La Pine to address economic benefits for the area.

The tax legislation is before the Ways and Means Committee, and Walden says it has broad bi-partisan support.

By the way, 10 Barrel Brewing says a new pub is on the horizon.