Wnited States Senate WASHINGTON, DC 20510 January 23, 2019 The Honorable Steven Mauchin Secretary U.S. Department of the Treasury 1500 Pennsylvania Ave. NW 20220 Dear Secretary Mnuchin: We write to raise concerns with the impact the government shutdown is having on Virginia's craft brewers. As a result of the funding lapse, The Alcohol & Tobacco Tax & Trade Bureau (TTB) has ceased its review and approval of labeling changes, new recipes, or permits for brewers and distillers. According to various reports, thousands of applications for alcohol labels have been put on hold. The craft beer industry depends on innovation to drive growth, and the shutdown has and will prevent craft breweries from introducing new beers to the market. It is hard enough for these craft brewers to operate a business, and the shuttering of TTB is yet another example of how the Administration’s shutdown is making it harder for American business owners. Virginia has seen a surge of economic activity resulting from the growth of craft brewing. According to the Brewers Association, Virginia ranks 13" in the country for the most craft breweries, with well over 100 new breweries opening in the Commonwealth since 2011. Virginia is home to 206 licensed breweries, with the craft beer industry contributing more than $9 billion annually to the Commonwealth's economy and employing over 28,000 people in production, distribution, and retail, This includes the new Southwest Virginia Mountain Brew Trail, which boasts more than 18 unique breweries and was a product of years of planning by small businesses and local stakeholders. We have heard from many breweries, large and small, about the negative impacts the lapse in funding has had on their business. For example, Port City Brewing Company in Alexandria ‘wrote to us about how they spent the closing months of last year mapping out their business plan for 2019, only to have the government shutdown “wreck” months of planning. They are unable to introduce new beers and are awaiting a Small Business Administration loan for new bottling equipment. Port City Brewing Company is one of many breweries that have had their operations damaged by the government shutdown. Breweries in Virginia operate in a supply chain, and the shutdown’s impacts on breweries will resonate up and down the supply chain, negatively impacting the farmers, suppliers, and customers. The shutdown will limit business owners’ investment, hiring, and growth. Virginia is not alone in benefiting from this industry; craft brewing contributes $76.2 billion and more than 500,000 jobs to the U.S. economy.Please let us know how many eraft brewery requests for T'TB action are pending and your plans to resolve the backlog expeditiously when the government re-opens. We ealll on the Administration to end the shutdown and put TTB employees back to work. ‘Thank you for your attention to this matter. Sincerely, — ) Mok L Ming ee E> U.S. Senator USS. Senator