Breweries Welcome Missouri's Lower Beer Production Costs

Missouri Governor Signs Bill to Reduce Tax on Malt Liquor

Springfield, Mo. – Governor Kehoe recently signed House Bill 1041, which marks a significant change for the brewing industry in Missouri. The legislation reduces the tax per gallon of malt liquor produced by breweries, offering relief to both small and large craft beer producers.

Scott Wuest, owner of Turkey Creek Brewery in Hollister, Mo., praised the new law as an important step for supporting local breweries. He explained that the bill cuts the tax from six cents per gallon to two cents, saving four cents per gallon of beer manufactured. While this may seem like a small amount, Wuest emphasized its significance for smaller breweries.

“In the world of brewing for smaller breweries like ourselves, it may not add up to a lot of money—maybe a few hundred dollars of savings—but that’s important,” he said. This reduction helps offset some of the financial pressures faced by independent brewers, especially with rising costs for ingredients and packaging materials.

Craft beer producers in Missouri have been struggling with increased expenses, including tariffs on essential brewing ingredients and high aluminum prices for cans. These factors have placed additional strain on their operations. The tax cut is seen as a welcome relief, allowing breweries to redirect funds toward other areas of their business.

For larger domestic beer producers, such as Anheuser-Busch, the impact of the bill is even more substantial. Wuest noted that while the savings are greater for big companies, the benefits will still trickle down into brewery operations. Anheuser-Busch, a major player in Missouri and nationwide, is expected to use these savings to enhance its production and distribution efforts.

Holly Neal, co-owner of Malt and Barrel Brewing Co. in Branson, Mo., highlighted how the bill supports smaller craft breweries in investing back into their communities. She described breweries as vital gathering places that foster social connections and community engagement.

“I would say breweries are definitely very important in the community sense. They’re a great big gathering place. You can have all kinds of family gatherings, community gatherings. Our space here, we wanted to develop it into something that felt like it was for everyone,” Neal said.

Representatives from the Missouri Brewers Guild welcomed the passage of House Bill 1041 as a positive development for the state's craft beer industry. They view the tax reduction as a necessary step toward fostering growth and sustainability among local breweries.

The bill has been widely supported by industry leaders, who believe it will help strengthen the brewing sector in Missouri. As the state continues to support its craft beer community, the long-term effects of this legislation could be significant for both small and large breweries alike.

With the implementation of House Bill 1041, Missouri is taking a proactive approach to ensure that its brewing industry remains competitive and resilient in the face of economic challenges. The reduced tax rate is just one of many steps being taken to support local businesses and promote economic growth across the state.