OLYMPIA – Move over, apples. Beer is the new “it” product in Washington state.
That’s the fantasy of local beer producers, who are pushing legislators to form a state beer commission for Washington breweries that produce less than 100,000 barrels a year.
Only Redhook, at 220,000 a year, wouldn’t qualify.
What’s good for chardonnay is good for pale ale, lawmakers say. The idea is modeled after the Washington State Wine Commission, which was formed in 1984.
By joining together to promote state brews under the umbrella of the Washington Beer Commission, legislators and producers are hoping to expand their market share.
Michael V. Martina / Herald file photos
“When you go to the local supermarket and look at the shelves, two-thirds of (beer) is from out of state,” said Matt Stromberg, head brewer at Scuttlebutt Brewing Co. in Everett, one of the 11 breweries in Snohomish and Island counties that would be eligible to join the commission.
“There’s limitations as far as what we can do on our own.”
Marketing is key
Although Washington beers occupy a small margin of supermarket space, one-quarter of the world’s hops are grown in the state. So why aren’t hops – and beer – as big as apples, salmon and Sasquatch?
Brewers say the answer is in the marketing.
State beers have won medals at prestigious beer festivals worldwide, but residents need to understand how premium the homemade product is, said Arlen Harris, executive director of the State Brewer’s Guild.
The commission’s primary responsibility would be to promote state beer with product logos, ad campaigns, beer festivals and tastings. It also would educate consumers about beer products and safe consumption.
Small breweries like the idea, because they believe the commission would boost the reputation of beer.
“As the tide comes in, all boats rise,” Stromberg said. “Your brand starts to gain inertia, and people buy it because of that.”
Times have changed
The last time the Legislature considered a proposal to form a beer commission, Stromberg and Harris were students at Washington State University brewing their own beer in student apartments.
That was the early 1990s. The Legislature approved the bill, but brewers defeated it with a self-referendum.
Today, “there’s not one dissension among the ranks,” said Rep. Dan Kristiansen, R-Snohomish, one of the bill’s sponsors. “It’s job security to many of them.”
The bill also would help breweries struggling with the expense of doing business in Washington, supporters said. The sales tax and the cost of shipping materials have caused some small breweries to leave the state.
It’s cheaper to do business in California, Colorado or Oregon, Stromberg said. He would hate to see that happen to Scuttlebutt.
“I was born and raised here,” he said. “I have no desire to go anywhere else.”
Wanting wine’s reputation
When the Washington State Wine Commission was formed in 1984, there were 22 wineries in the state. Today there are more than 360, and Washington wines are respected worldwide, as Stromberg discovered on a trip to Belgium a few years ago.
HB 3046 and its companion, SB 6661, were patterned after the same legislation that created the wine commission.
The commission’s budget has not been determined, but Sullivan estimated it would start at about $60,000 a year. HB 3046’s prime sponsor, Rep. Pat Sullivan, D-Covington, is adamant that the money not come from taxpayers.
Instead, brewers such as Scuttlebutt would tax themselves, while other funds would be generated from beer-based events and fundraisers hosted by the commission.
The bills have passed out of committee and will come up for floor votes. If they pass, it would be up to brewers to decide whether they want a commission. Legislators feel that this time, the response will be positive.
“Here is something that is a plus for the beer industry,” Sullivan said. “It’s a huge economic development issue.”
Herald writer Blythe Lawrence: 360-352-8623.
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