Amid continued economic volatility and mounting challenges for small producers, members of the American Craft Spirits Association (ACSA) gathered in the nation’s capital for the annual Legislative Fly‑In,advocating for federal policies to strengthen America’s craft spirits industry.
“Craft spirits producers operate in a regulatory landscape that wasn’t built with us in mind. We have legislators who were elected on the promise of removing barriers for small businesses, and it is our responsibility to educate them on the issues we face and the assistance we need from them,” Tom Bard, ACSA Board of Directors President, stated. “Advocacy for craft spirits is the backbone of ACSA, and we’re confident that our efforts this week are going to facilitate changes that we need to navigate the current industry headwinds.”
The July 2026 Fly‑In centered on three key issues shaping the future of the industry: the SPIRIT Act (H.R. 9407) and the need for a Federal Trade Commission (FTC) study of the U.S. distilled spirits distribution system, and expanded shipping access through the USPS Shipping Equity Act (H.R. 3011). Together, these priorities are aimed at supporting small producers, improving competition, and expanding market access.
Key Issue: The SPIRIT Act (H.R. 9407)
The Supporting Producers Through Incentives from Rural Ingredients and Tax Relief Act would provide a $2.35 federal excise tax (FET) credit for small producers sourcing at least 90% U.S.-grown agricultural ingredients, effectively lowering the rate to $0.35 per proof gallon.
For distilleries producing up to 100,000 proof gallons annually, the tax relief could provide significant annual savings that producers can reinvest in local agriculture, employees, production materials, and business growth.
“This year’s Legislative Fly-In proved once again that craft spirits’ impact goes well beyond the tasting room. I’m grateful to every distiller who showed up, told their story, and helped policymakers understand what’s at stake,” said Emily Pennington, ACSA CEO.
USPS Shipping Equity Act (H.R. 3011)
The USPS Shipping Equity Act would allow the U.S. Postal Service to ship beverage alcohol in states where shipping is already permitted, providing another delivery option for craft distillers and their customers. Currently, craft producers may only ship spirits through private carriers such as UPS and FedEx, and only in states where direct‑to‑consumer shipping is permitted. Distillers from rural regions described inconsistent service, limited pickup availability, and missed opportunities to reach customers who rely on USPS as their primary delivery provider. During the Fly-In, ACSA members urged lawmakers to cosponsor the legislation and highlighted how expanded shipping options could support small businesses, rural communities and consumer choice.
FTC Study on U.S. Distribution System
Craft distillers highlighted the current distribution landscape as increasingly challenging, with continued consolidation and shrinking access to market pathways. ACSA is seeking congressional support for the Federal Trade Commission to conduct a comprehensive study of the distilled spirits distribution system, examining competition, market structure, barriers to entry, and the impact on consumer choice. The study would provide policymakers with data to better understand changes in the marketplace and evaluate potential policy responses.
Meeting with TTB Senior Officials
ACSA members met with senior officials from the Alcohol and Tobacco Tax and Trade Bureau (TTB) to discuss ongoing efforts toward regulatory modernization. The conversation centered on practical ways to ease compliance for small producers, including reducing the number of required operational reports, providing clearer guidance for distillers facing nonpayment issues with distributors, and exploring the regulatory flexibility available to TTB in the pending nutritional information labeling rulemaking. These discussions underscored ACSA’s commitment to ensuring that federal regulations evolve in step with the realities of small and rural distilleries.
Celebrating Industry Leadership
During the Fly‑In, the Craft Spirits Champion Award was presented to Rep. Jeff Hurd (R‑CO), recognizing his steadfast support of small distillers and commitment to advancing the craft spirits sector.
Representative Hurd joined members for the Congressional Reception Featuring American Craft Spirits, held in honor of the Congressional Craft Spirits Caucus, where attendees shared their products and stories with lawmakers and staff.
A Unified Voice for Craft Spirits
“During ACSA’s 2026 Fly-in we had a large number of conversations with lawmakers all over the country about the challenges our small businesses are facing. There was real interest in all our initiatives: the SPIRIT Act (HR9407), the USPS Equity Act (HR3011), and looking at competition in a holistic fashion,” said ACSA Government Affairs Chair, Becky Harris. “We encourage all our members to reach out to their legislators soon and tell them why these will help their businesses. Stay tuned for more details, or reach out to me with questions! becky@catoctincreek.com.”
As producers face rising costs, shrinking distribution options, and regulatory uncertainty, ACSA continues to champion policies that support independent distillers, expand market access and strengthen the agricultural communities they support.
