By Chris Hermann and Bernie Kipp:

Type of Transaction – Asset Purchase versus Stock Purchase. Very important if the acquiring entity wants an immediate continuing operations privilege. Specifically If a PE firm  purchases the assets of the target company  (including the operating name, equipment, IP, inventory and the current brewery  building) and intends to

Due to the explosive growth of craft beer sales in many states, including Washington, many distributors are combining non-alcoholic and alcoholic beverage sales into their distribution business.  A key point for Washington distributors is to be aware that the Washington Liquor Control Board (WLCB) contends that the so-called “Tied-House” rules governing the sale of alcoholic

The Pacific Northwest Cider Awards (PNWCA) held its second annual cider competition on June 5 and 6 in Seattle. On Friday, June 5, a panel of twenty judges made up primarily of media and cider enthusiasts headed to Seattle Capitol Cider to taste about 145 products in multiple cider categories. Over 35 cideries from the Pacific Northwest participated in the PNWCA. On Saturday, June 6, following the awards, Seattle Cider Company opened its tasting room doors — “The Woods” — to the public and featured 30 ciders from the cideries participating in the PNWCA festival.

The ciders were registered in 14 distinct categories, with gold, silver and bronze medal awarded in almost every category. Each judging panel was made up of 4 or 5 judges who tasted through 2 or 3 categories each. All judges then participated in a second tasting featuring the gold medals of each category to designate the “Best in Show” medal for the 2015 competition. This year’s winner was Wandering Aengus Ciderworks “Bloom,” a cidery based in Salem, Oregon. The complete results of the PNWCA can be found here.

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Continue Reading 2nd annual Pacific Northwest Cider Awards: A celebration of creativity and diversity.

The OLCC announced on May 1st its approach for addressing the implementation of recreational marijuana in Oregon. The OLCC appointed a Rules Advisory Committee (“RAC”) made up of 15 members. The RAC will meet once a month starting June 19, and represents the marijuana industry, local government, law enforcement and the general public.

In addition to the RAC, the OLCC appointed subcommittees to develop draft rules for the different areas related to the regulation of the marijuana industry: Growers, Processors, Extracts, Retail, Advertising/Labeling, Licensing. The subcommittees began meeting the week of June 1. The Growers subcommittee met for the first time on June 1st. The goal of the meeting was to establish an agenda for the next couple of months, addressing issues like: production limits, tracking, licensing, waste disposal, use of natural resources, security and transportation. According to the reaction of the subcommittee, it seems like the main points of discussion will be the establishment of a tracking system, the level of tax to apply, as well as the impact on natural resources (water law, electricity, land use).

The OLCC staff also plan on hosting meetings with other agencies to discuss the impact of recreational marijuana on different areas: land use, banking, energy, and other issues.
Continue Reading Implementation of Measure 91: the OLCC is Picking up the Pace

Clean Water Services (CWS), a water resources management utility in the Tualatin River Watershed, has been creatively exploring a new opportunity for the brewery industry. CWS is taking beneficial reuse of water to a new level by proposing the reuse of recycled water in the brewing process, a proposal first approved by the Oregon Health Authority in September 2014.

The reuse of recycled water in the brewing process has found support in various Oregon organizations: tests showed that the proposed treatment presents very low risk to human health, promotes the importance of conserving water, promotes the need to engage a dialogue about potable reuse, and would help meeting the growing demand for beers. The proposal has the potential to create a new market but raises a few issues.

Health and Sanitary Concerns

The recycled water must be treated to meet or exceed all regulated drinking water contaminant criteria. The analysis regarding the recycled water used to brew small batches of beer revealed that the water was at least as pure and clean as regular water used from municipal resources, and the Oregon Environmental Quality Commission approved the experimentation. A round of public comments on the question was held mid-April 2015. One of the concerns was that wastewater contains “emerging contaminants” that are not regulated by the Safe Drinking Water Act or the Clean Water Act, and consequently, while the recycled water could meet technical drinking water requirements, it still could pose a threat to human health because some of the contaminants are not addressed in those requirements.

The Oregon Department of Environmental Quality (DEQ) is currently revising CWS’s permit requirements to address these issues and make sure that all risks to human health are eliminated when using recycled water in beer production.
Continue Reading Raising water conservation awareness by drinking beer

Attention Washington state retailers: the Washington State Liquor Control Board is kicking off a youth access compliance check program this month. Here’s a guidance the WSLCB recently issued about the program.

The Washington State Liquor Control Board (WSLCB) Enforcement and Education Division’s youth access compliance check program will be beginning in May 2015. The purpose

The interest in urban wineries is on the rise, with companies looking to take advantage of close proximity to customers, empty warehouse and industrial space, and access to city water and sewer.  However, hidden land use issues can present significant problems when pursuing this type of urban property, particularly within the City of Portland (City).

“Grandfathered” Uses

With the changing urban landscape (in-fill development, urban renewal areas, etc.), many older warehouses and industrial spaces are located in zones that now restrict commercial and industrial activities.  This means that although an industrial activity may have historically occupied the building, a new or changed industrial use may be prohibited or restricted under the City’s current land use regulations.  Even if the building is marketed as a “grandfathered” industrial space, that does not mean it has been approved as a legal nonconforming use or situation under the City’s code.  It is important to know whether the City has already issued a legal nonconforming determination for the industrial activities and, if not, to consider whether such a determination can be obtained prior to acquiring the property.  The City’s website provides a good explanation of the process and the review requirements
Continue Reading Hidden Land Use Issues with Urban Winery Properties

We published a post on our sister Food Liability Law blog that has application to AB blog readers also. In the post, we review why popular chain restaurants have started publishing new menus with calorie and other nutrition information. The answer is to be found in the requirements of the Food and Drug Administration’s new

Many sellers of marijuana and marijuana-infused products are using the term “organic” on their labels. They may be unaware that the use of “organic” is strictly regulated by the USDA and the states. It simply isn’t permitted on marijuana products.

Essentially, “organic” is not permitted on a label unless (a) the product is certified by

Congratulations to Pascal Brooks and Janie Heuck for their tremendous success growing Brooks Winery and keeping alive the memory of Pascal’s father and Janie’s brother Jimi.  We join them in looking forward to viewing Strange Inheritance With Jamie Colby that tells the amazing story of their journey to preserve the winery for Pascal, which was