Austin Frerick: The Rurally Good Newsletter: Craft Beer Edition

I thought this was really interesting. For some reason I am on his mailing list and find his stuff very interesting.
I am also getting stuff from Leann Jacobsen and JD Scholten in the 4th district. I am in the 2nd district.

One of the cornerstones of the Frerick campaign is good jobs in rural areas. Here is the newest edition:


A Brewing Storm
Iowa's economy is stagnant. It's worse than that, really. During the second quarter of 2017, Iowa and South Dakota were the only two states with a negative GDP. We are ranked dead last. Luckily, we have a few plans for how to create positive change in our state. And, luckier still, we're not going to talk about the state of our economy in today's newsletter. We're going to talk about beer.

Our campaign has been championing an anti-trust message. It's a fundamental part of our platform. Although our first op-ed of the election cycle was focused on the Monsanto-Bayer merger, we're talking about way more than agriculture when we talk about monopolies. We know that the price of seed corn doesn't affect everyone. We want to connect this anti-trust message to topics that lots of folks can relate with. That's why, this week, we published an op-ed in the Des Moines Register that dives into the world of craft breweries:


Beer Giants Threaten Craft Breweries
We're living in a golden age for craft breweries. Data collected by the U.S. Census Bureau show that the number of U.S. breweries grew from 398 in 2008 to 5,766 in 2015. Iowa alone is home to 70 craft breweries. We rank 14th nationally for the number of breweries per capita. We even have a bar that serves over 100 Iowa beers on tap!

Craft breweries are a great example of innovative new small businesses challenging monopolistic incumbents. More than 98% of all breweries are locally owned small businesses. These are the type of businesses that grow our local economies.

But the beer monopolies are clever. Anheuser-Busch InBev and MolsonCoors sell 71% of all beer in the USA, which leaves very little room for craft breweries. Yet mega-brewer Anheuser-Busch InBev still finds new and more innovative ways to take independence away from these small businesses. It recently created ZV Ventures, a wholly owned venture capital firm that has been quietly investing in beer ratings websites and delivery services and using them as mechanisms to stifle competition.

Since 2011, Anheuser-Busch InBev has bought 10 craft breweries, including Goose Island and Elysian, to compete with local craft brewers. Anheuser-Busch InBev’s ownership stake in rating websites could allow it to manipulate the ratings to push the craft breweries it owns rather than its smaller competitors. Paul Gatza, director of the Brewers Association, a trade association for craft brewers, expressed concern that Anheuser-Busch InBev’s ratings websites could confuse consumers and would be used to try to influence sales. Sam Calagione, founder of Delaware’s Dogfish Head brewery, echoed this sentiment because of the illusion of independence that these sites project.

What is happening in the beer industry is a microcosm for our economy at the moment. Economists across the political spectrum agree that monopolies harm small businesses and communities and also lead to higher costs and lower quality for consumers. Yet huge corporations are gaining monopolies in many industries. For example, one company has a 73% market share in baby food. One company has 47% market share in pet food. It happens to be the same company: Nestle.

When the robber barons of the gilded age grew too powerful, visionaries like Teddy Roosevelt stepped in to restore competition. Let’s allow Iowa’s craft breweries to thrive. If we want local small businesses to have a chance in the modern economy, we have to enforce our antitrust laws and stop barons like Anheuser-Busch InBev from robbing us.

We have a big month ahead of us. We'll be reaching out to volunteers, traveling around the district, and ramping up our fundraising efforts. We have some ambitious goals to reach by the end of December. Can you help us get there? For the cost of a craft beer, $5.00 - $8.00, you can help us reach that goal. Chip in! We'll send you a thank you card, an #AF sticker, and the satisfaction of backing a candidate who is sticking up for competition, good beer, and a better future for Iowa's economy.

Cheers,
Austin