re: Baton Rouge Market for a Craft Brewery

quote:

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What is an “alternating brewery proprietorship”? An “alternating proprietorship” is a term we use to describe an arrangement in which two or more people take turns using the physical premises of a brewery. Generally, the proprietor of an existing brewery, the “host brewer,” agrees to rent space and equipment to a new “tenant brewer.” The tenant qualifies as a brewer under part 25 by filing the appropriate documents with TTB. The tenant produces beer, keeps appropriate brewery records, labels the beer with its own name and address, obtains the necessary COLAs, and pays tax at the appropriate rate upon removal of its beer from the brewery. The tenant brewer has title to the beer at all stages of the brewing process. Alternating brewery proprietorships allow existing breweries to use excess capacity and give new entrants to the beer business an opportunity to begin on a small scale, without investing in premises and equipment. Regulations in part 25 do not refer to this type of arrangement. However, in the mid-1980s, ATF began approving applications for alternate methods and procedures that allow two or more brewers to alternate the use of brewery premises and equipment.

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