United States: AB InBev’s New York brewery extremely worried by a 3-cent-per-gallon tax increase on beer

Disappointment over Gov. David Paterson's decision to leave an increase in the beer tax in the state budget turned to action, Central New York News communicated on March, 30.

Anheuser-Busch Inc., the owner of a Baldwinsville brewery employing 800, the Teamsters who work there and local politicians said they will turn up the heat on state legislators to get them to turn down a 3-cent-per-gallon tax increase on beer.

"It's amazing all the information we provided to them on what a beer tax will do the industry, that they went ahead and reached an agreement with the beer tax in (the budget) anyway," said Steve Richmond, president of Teamsters Local 1149.

"There is little question that raising the excise tax on beer will reduce sales, threaten jobs and jeopardize the viability of the beer industry at a time when the state - and the industry - can least afford it," said Jerry Mullane, vice president of state affairs for Anheuser-Busch.

The Teamsters fear that if the state increases the beer tax, it will give Anheuser-Busch's new owner, Belgian brewer InBev, an excuse for closing the Baldwinsville brewery.

Even though the excise tax hike from 11 cents to 14 cents is much smaller than the 24 cents Paterson originally proposed, it's still an increase that threatens jobs, said Onondaga County Executive Joanie Mahoney.

The county executive said that she would make a final plea on behalf of the brewery jobs.

"Those jobs at Anheuser-Busch are very valuable to us. They are playing with fire when they increase the excise tax and give InBev the opportunity to take those jobs elsewhere," Mahoney said.

01 April, 2009