Archive for April, 2009

Hello all check out the following video link;

Below is the speech I gave to the Assembly Health Committee on April 22nd. If you would like to become a beer activist go to http://www.supportyourlocalbrewery.org/

Chair and Members of Assembly Health Committee. My name is Glynn Phillips and I am the owner of the Rubicon Brewing Company, which is six blocks from here, the President of the Northern California Brewers Guild 65 breweries strong, and a past Board member of the California Small Brewers Association 75 breweries strong. I am here to day in opposition of AB1019. I oppose this bill for three reasons, 1) it would put more stress on a difficult beer market, 2) taxing the beer manufactures is flawed in a three-tier system, and 3) I do not like the idea of the BOE (Board of Equalization) having the power to increase fees without a vote.

First if the BOE were to impose the fees proposed, my tax basis would increase from $9048.90 in 2008 to $57,460.51 in 2009 given the same production levels. This extra cost would have to be passed to the consumer in order for me to stay in business. I also submit to you the incredible increases in the costs of commodities last year alone pushed the limits of the consumer’s pocket book, and the ability of small beer manufactures to stay competitive. These increased costs included a 20 percent increase in malted barley and wheat; a 1000 percent increase in hops, a 15 percent increase in fuel, increased wages, an increase in sale tax, and increases General Liability and Workman’s Compensation. When you add all these incredible costs in such a short time we the craft brewers of California find it difficult to keep competitive in a very competitive market. Many manufactures find themselves taking fewer margins than wholesalers or retailers.

Second if the BOE were to impose the fees proposed on the manufactures of California the consumer would see a much greater cost once our products make it to the shelf given the three tier system in place. The proposed $1.07 fee per gallon would start at the manufacture who takes his appropriate price increases, then it is sold to a licensed distributor who takes on average a 30 percent increase to make their margin increasing the fee to $1.40 per gallon, then the licensed retailer takes another 30 percent on average to make their margin increasing the fee to $1.82 per gallon. There are 1.13 gallons in a six-pack of beer, which would leave the consumer paying an extra $2.06 per six-pack just to cover the fees proposed.

Third if the manufactures were to see yearly increases of the fee proposed as described by the bill the costs would increase exponentially as described above. This unchecked increase would severely burden all of the beer manufactures of California, and deter new businesses from opening in our great state.

It is my contention that this bill would have the opposite affect intended. The consumer has a level at which they are willing to spend. To add the extra costs would send a six-pack of hand crafted quality ale into the $15 range. I believe that the market would see a decrease in sales that would decrease the tax revenue generated, not to mention hurt a thriving California industry. I personally employ 35 people that live and work in this area. The fees proposed would make it increasingly difficult to keep them all employed as I believe the consumer would be less inclined to spend at the price levels I would have to charge to keep in business.

Last I invite all of you to stroll to my pub on the corner of 20th and Capitol to share a pint and discuss in depth the true costs of the fee proposed.

Thank you for your time.

The Rubicon Brewing Company is proud to present the following women and the ales they have brewed for our 3rd annual Women in Brewing benefit for WEAVE.

Laura Ulrich / Stone Brewing Company / Smoked Vanilla Porter
Denise Jones / Moylan’s Brewing Company / Dragoon’s Dry Irish Stout
Barbara Groom/Lost Coast Brewing Company/Tangerine Wheat
Ruth Martin / Sierra Nevada Brewing Company / Schwartz Bier
Tami Hucke Norgrove / Bear Republic Brewing Company / Surprise Beer
Brenda Studabaker /Rubicon Brewing Company/Double IPA
Darcy Quinn/Rubicon Brewing Company/Baltic Porter
Lisa Ford/Auburn Alehouse/Scarlet Red
Sarah Irwin/Sacramento Brewing Company/Double IPA

The Rubicon will be hosting an event before the release of Beer Wars. We will be serving guest taps from Stone Brewing, New Belgium Brewing Company, and Dogfish Head. Look for our newsletter to see what we will have on tap from each of those breweries. We will also be serving our great selection of award winning ales. Our brewers will also be here to give brewery tours.

**UPDATE**

Featured Guest Taps:
Sublimely Self-Righteous (a double black India Pale Ale)- Stone Brewing Company
Aprihop (an India Pale Ale brewed with apricots)- Dogfish Head Brewery
1554 Enlightened Black Ale (a Belgian dark ale)- New Belgium Brewing Inc.

The Rubicon has chosen Kevin Depies and his Scottish Ale 80 Shilling as the winner for the Brewer for the Day 2009.