Beverage News / Beer

Cider-makers laud congressmen for introducing industry legislation

Manufacturers urge Congress to pass legislation to grow industry, jobs

Congressmen Earl Blumenauer, D-Ore., and Chris Collins, R-N.Y., introduced the bipartisan Cider Industry Deserves Equal Regulation (CIDER) Act. The act would amend the section of the tax code that deals with wine and related beverages to allow hard cider-makers increased flexibility in their final products without potentially facing increased tax liability.

During the fermentation process, a variety of factors can lead to small changes in the composition of a cider’s alcohol content and carbonation. Because of the way that hard cider currently is defined in the tax code, these variations can lead to cider being taxed at a rate as much as 15 times higher than what the statute clearly intended, according to Blumenauer’s website.

Under current federal law, for example, the definition of hard cider allows for up to 7 percent alcohol by volume before it is taxed as a wine and only a certain level of carbonation before it is subject to the Champagne tax, according to the United States Association of Cider Makers (USACM), Chicago.

The Blumenauer-Collins bill would broaden this definition to include pear as well as apple cider and to greatly reduce the chance that this taxation would occur, it notes. It also would increase the carbonation level for hard cider, thereby meeting customer expectations, and align the alcohol content standard for hard cider with the natural sugar content of apples, according to the USACM.

"We are extremely excited to be working with Congressmen Blumenauer and Collins on this very important legislation for our industry and are deeply appreciative of their leadership on this matter," said Mike Beck, president of the USACM, in a statement. "Reps. Blumenauer and Collins deserve great credit for recognizing that America's cider industry is primed for continued strong growth and that we can increase our competitiveness in international markets and create jobs here in the United States if this legislation is enacted."

"This legislation really is about updating the tax law to reflect the realities in today's cider marketplace," he added. "We are going to work hard with Reps. Blumenauer and Collins to educate other members about this legislation and our industry's needs so that we can increase our competitiveness, grow our industry, and create more jobs. We are hopeful that a Senate companion bill will be introduced soon and that this legislative change will be made part of any tax legislation that is considered by the Congress."
 

 Did you enjoy this article? Click here to subscribe to Beverage Industry.  

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

Dinner with Tequila Don Julio

Diageo is taking its Tequila Don Julio brand on the road this summer with a rolling Airstream Speakeasy mobile craft cocktail bar. The team stopped in Chicago on July 29 to share some specialty tequila cocktails paired with food from Chicago restaurants Honey Butter Fried Chicken and The Radler as well as dessert venues Black Dog Gelato and Baker Miller. (Photos by Jennifer Haderspeck)

9/17/14 2:00 pm EDT

The Path to New Product Success: Navigating the latest trends for new beverage development

By attending this webinar, you will learn about the top trends and how they fit into the CPG market, which channels are influencing new products and technology, how Packaging fits into your product development, and ways you can use innovation to increase sales.

Podcasts

Maintaining beverage dispensing equipment

Iuliana Nita, Saint-Gobain Performance Plastics global marketing manager of food and beverage, offers her insights about ensuring sanitary performance of beverage dispensing equipment in foodservice applications. She also will offer some tips about choosing the right kind of tubing to handle acidic beverages.

Beverage Industry Magazine

BI September 2014 cover

2014 September

The September 2014 Beverage Industry includes a cover story on our Wholesaler of the Year, The Odom Corp., as well as articles about single-cup and iced coffees, cconvenience store growth, vegetable flavors, and more. Check it out today!

Table Of Contents Subscribe

Beverage Insider eNewsletter

Are you an Insider? Subscribe to Beverage Industry’s weekly e-newsletter to receive news headlines, new product information and magazine highlights.   

Coffee Segments

Which coffee segment will be impacted the most by coffee bean increases?
View Results Poll Archive

THE BEVERAGE INDUSTRY STORE

cleaning-in-place-dairy-foo.gif
Cleaning-in-Place: Dairy, Food and Beverage Operations, 3rd Edition

This book addresses the principles of cleaning operations, water supply issues and the science of detergents and disinfectants.

More Products

Webinars

Beverage Industry Webinars are an easy, effective and convenient way to get educated and informed on the latest industry trends and topics. All Webinars are FREE unless indicated. For more information, check out our Events page!

STAY CONNECTED

facebook40 twitter    youtubelinkedgoogle+ icon 40px