The latest casualty of the government shutdown: Craft breweries

Just one more way congressional inaction can be a total buzzkill

Craft beers
(Image credit: (AP Photo/Michael Conroy))

Sure, you can still find plenty of booze while "nonessential" parts of the government are closed. Some lawmakers reportedly proved that when they tipsily rang in the government shutdown.

However, the shutdown has shuttered the federal agency that approves alcohol recipes and labels, putting new boozy offerings temporarily on hold — which has really gummed up the works for craft breweries and small-batch distilleries.

The little-known Alcohol and Tobacco Tax and Trade Bureau (TTB), which also handles permits for new breweries, wineries, and distilleries, is closed for business. As a result, many purveyors of liquid intoxicants will have to wait until the government returns to full strength before they can roll out their products.

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The esoteric TTB is a relatively new agency splintered from the larger Bureau of Alcohol, Tobacco, Firearms, and Explosives in 2003. The TTB operates under the Treasury, and, as its name suggests, issues permits for and collects taxes on booze, tobacco, firearms, and ammunition.

Would-be brewers could be feeling the pinch for a while to come. With a backlog of paperwork awaiting TTB employees once they return to work, booze sellers may have to wait months to get their production back to normal.

And to add insult to injury, the agency will still collect taxes during the shutdown.

"One could think of this shutdown as basically stopping business indefinitely for anyone who didn't have certain paperwork in place back in mid-August," Paul Gatza, director of the Brewers Association, told the Associated Press.

Booze businesses waiting for federal loans to either open up shop or expand their facilities may have to put those plans on hold, too. The federal Small Business Administration is also closed for now.

The shutdown won't have much, if any, effect on brewing behemoths like MillerCoors, which have stuck with the same basic recipes for decades. That means you can still get a keg of the champagne of beers, or a six pack of Bud Light Lime with no delay.

On the other hand, craft breweries that constantly devise new recipes won't be able to ship their new innovations until they can get their labels approved by the TTB. While seasonal brews often come out earlier than expected — really, pumpkin beer in July? — processing delays could cause breweries to miss out on sales, or force them to rush the beers to market before they go stale.

Already, breweries across the country, from California to Connecticut, are reporting maddening hold-ups.

As for distilleries, some find themselves caught in a legal no-man's-land. Though they have the the permits to manufacture booze, they've yet to receive approval for their labels. Pittsburgh's Allegheny Distilling, for instance, has been preparing for two years to start selling rum, but is now stuck waiting for the TTB to approve its labels.

So the next time you crack open a craft beer, or a fresh bottle from your favorite distillery, pour one out for the furloughed TTB employees. They work hard to bring you your booze. If only Congress would work just as hard to keep them on the job.

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Jon Terbush

Jon Terbush is an associate editor at TheWeek.com covering politics, sports, and other things he finds interesting. He has previously written for Talking Points Memo, Raw Story, and Business Insider.