Breweries take blow from partial government shutdown

RALEIGH, NC (WNCN) — Some breweries in North Carolina are feeling the impact of the partial government shutdown. A federal agency that has to approve the new labels and formulas for beer is closed.

“Above all, you have to, at a bare minimum, have quality,” said Joe Walton. He is the head brewer, COO and co-owner at Gizmo Brew Works.

Gizmo has been open in North Raleigh since 2013.

“We can go from idea to a product that’s out in the market in a package in three weeks,” Walton said.

Business has been good at Gizmo. It plans to add a new taproom in Chapel Hill this spring.

“Every single dollar that’s been made here has been reinvested in the company, and that’s how we’ve been growing. But, with this facility in Chapel Hill, we are going to have to get a loan. Luckily we have one already,” Walton said.

The Small Business Administration is closed, meaning if Gizmo didn’t already have a loan, that resource wouldn’t be available.

The Alcohol and Tobacco Tax and Trade Bureau is also shuttered. Before a new brewery opens, that bureau had to give them the go ahead.

“Before you can apply for this permit, you have to have your lease signed. You have to have your equipment in place. So, as a business owner, you’re hundreds of thousands, if not millions of dollars invested. You’re paying rent on top of it on a large facility,” Walton said.

The TTB also approves new labels and formulas for beer. That’s needed for businesses that plan to ship product out of state.

“In November, those numbers were closer to 86 days for permit approval. But now, everyday they’re closed with thousands of breweries opening a year, now there’s a backlog growing,” Walton said.

Walton said Gizmo is planning to open a new production facility in the near future. He said he’s concerned if the partial government shutdown continues, it will delay those plans.