The number of craft distilleries and craft breweries across the country are on the rise. However, the ripple effects of the shutdown are hitting them hard, including right here at home.
For many in the craft industry, it doesn't only mean they can't sell or package new recipes, but it's also stunting their growth, physically--throwing a wrench in business expansion plans.
Seven Troughs Distilling Company recently moved into 'The Basement,' and now effects of the government shutdown have trickled to their business. Thomas Adams, President, of Seven Troughs Distilling Company explains, "We are really highly regulated by the TBB, it's the Tax and Trade Bureau."
With the doors of that federal entity currently closed, craft liquor and beer businesses cannot get new recipes, labels for new items, or new equipment approved. Adams says, "Those are all things that could kill a business."
Since innovation is the name of the game in the craft business, it puts a damper on the flourishing industry. Adams says, "We have triple digit growth, we want to take advantage of that. We want to offer new products that ride new trends, and without having the ability to get those products approved, we're dead in the water."
Matt Johnson, President of the Nevada Craft Brewers' Association and also Co-Owner, of IMBIB Custom Brews adds, "Ten years ago, people really relied on flagship beers; but it has shifted, now people want what's new."
Both IMBIB and Seven Troughs have recipes and labels created just before the shutdown, waiting for approval. Now, their future is in limbo. Adams says, "Without that [approval], we cannot go into distribution, we cannot sell that product."
Permits to expand operations, physically, are also at a halt. In fact, Adams canceled a business meeting just today, which would have focused on the company's growth. Meanwhile, the owners at IMBIB recently signed a lease for a second location Now, they cannot get their license approved.
Even when the government reopens, both Adams and Thompson say the approval process for applications will be backlogged. Thompson adds, "When they finally open back up, it's gonna push a lot of things back."
Both also added that it's not just their businesses that are affected, but it has a ripple effect. For example, the companies they use to print those labels will also be overwhelmed with taking care of back orders if and when the government reopens.
