Controversy Between Shelton Brothers & Brooklyn Brewery Over NY State Tax

imageThis may be a tough one to follow, but basically the NY State supreme court recently made a ruling requiring NY State breweries to pay label registration fees (among other things.)  With chatter on many of the beer blogs about what pricing affect this would have on craft-beer, Shelton Brothers sent a statement to Todd Alstrom that explained their position and took a jab @ Brooklyn Brewery’s Garrett Oliver for a comment he made in a private e-Mail to Shelton brothers…

From Shelton Brothers:

If it really is a matter of whether Brooklyn’s head brewer gets a bonus or not, New York has to decide whether it wants to give him and his colleagues that money, or use it for other essential services, like education, fire and police protection, etc., etc. We know how we’d vote on that. Unfortunately we don’t live in New York. But New Yorkers should be asking why tax breaks intended to reduce the cost of New York-brewed beers are being pocketed by some brewery big- wigs. And people are mad at us?

To which Brooklyn Brewery’s Garrett Oliver replied:

Well, well, well. I have just been made aware of this thread. Let me just make a few points here. I am not a lawyer like Mr. Shelton, so I cannot claim to have any direct knowledge of what effects these tax law changes will have. I also have nothing to do with legislative issues or dealings with political figures - I make beer. I argued to Mr. Shelton, in a private email, that perhaps he should not be doing things that will have negative effects on small breweries.

I pointed out that I like many of the beers he imports, that I have helped promote them (as most of us have, in some way or other), and that I've poured them in numerous tastings. Why, I wondered - talking, as I thought I was, to him alone - would he want to do a thing like this? Even if his statements regarding tax law are correct (and I have no idea whether they are), many states have situations that in some way favor in-state brewers. Frankly, it never occurred to me to think of them as unfair. I will not go down this path and print bits and pieces of Mr. Shelton's response; I would, however, characterize it as inflammatory. Mr. Shelton and I have had many heated arguments, often to the wee hours, all over foreign capitols; it's a running joke at this point.

I will also say that I have not, with anyone, anywhere, discussed, mentioned, or alluded to this issue. Nor have I read any of these blogs he speaks of. Did I ask Mr. Shelton "WTF"? Yes, I certainly did. I did not expect to find my comments to him characterized in the press; I thought I was talking to Mr. Shelton. But then again, I'm an adult, and I do read the news, and I should know better - people do these things. And, the more I think of it, in this situation, that makes me the idiot here. Mr. Shelton is far smarter, and knows exactly what he's doing.

The thread is here, but unfortunately it is now overrun with so many other comments it’s likely to be locked.  Stay tuned and we’ll see exactly what effect this will have on beer pricing.

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