Why Repeal Day Matters in 2024

December 5th may slide by unnoticed amid the hustle and bustle of the holiday season for many. However, this day marks a milestone in American history that all members of the alcohol industry recognize—the repeal of Prohibition through the passing of the 21st Amendment. As CEO of the Beer Institute, I see this day as a chance to celebrate all that the beer industry means for the American economy and keep a watchful eye on the ever-changing market and the opportunities in front of us.??

The initial implementation of Prohibition saw a staggering loss of jobs—nearly a quarter of a million Americans were affected. The economic impact hit the federal government equally as hard. They faced $11 billion in lost tax revenue ($180 billion in 2024 – according to BLS CPI Inflation Calculator) and the law cost $300 million to enforce. Beyond the direct economic impacts, organized crime rapidly rose and controlled the market. During all of this, soldiers returned from World War I to an already declining economy, and the promises of the temperance movement, which hoped to create new industries and stabilize markets, quickly fell apart.?The unintended consequences of the movement’s ideological beliefs depleted industries, including entertainment and transportation, which ultimately worsened the Great Depression.?

More than one hundred years later, the economic impact of the beer industry cannot be overlooked. The industry contributes $409 billion to the U.S. economy and supports 2.4 million jobs—nearly the population of Chicago. There is a brewery in every congressional district, underscoring the impact of the beer industry – making it clear that beer is here to stay.??

But as we commemorate this day, our industry – yet again – faces challenges from neo-Prohibitionists trying to reshape the narrative of moderate, responsible consumption.??

News to you? Let me explain.?

Every five years, the Dietary Guidelines for Americans (DGAs) undergo a review. In 2022, the review of consumption of alcohol was extracted from this process after the 2020 changes did not meet evidence-based requirements. As a result, Congress appropriated funds to the National Academies of Sciences, Engineering and Medicine (NASEM) to evaluate alcohol consumption science. During this period, the Department of Health and Human Services (HHS) secretly initiated a duplicative science review process under the Interagency Coordinating Committee on the Prevention of Underage Drinking (ICCPUD) made up of a six-person panel, including the lead member who mismanaged the alcohol science review for the 2020 DGAs. Within this panel, appointed in secret, lies neo- Prohibitionist sentiment that calls into question the process. Not only is the ICCPUD process duplicative, but several members of the panel also have ties to new-age temperance movements and Movendi – a fraternal organization that is part of the temperance movement that promotes abstinence from alcohol.???

As a result, we’ve seen more than 100 members of Congress call on the Department of Health and Human Services to bring an end to the ICCPUD study, including House Committee on Oversight and Accountability Chairman James Comer (R-KY) issuing subpoenas to HHS and the U.S. Department of Agriculture (USDA) requesting more transparency in the ICCPUD process.??

Since the 1980s, the Dietary Guidelines for Americans have maintained the same recommendations on moderate consumption of alcohol. The current guidance, which allows for two drinks per day for men and up to one drink per day for women, also recommends that some Americans – such as those who are not of legal drinking age and those who are pregnant or have certain preexisting conditions – abstain from consuming alcohol altogether. The Beer Institute strongly supports these recommendations, providing consumers with a reasonable set of guidance to follow.??

Brewers and beer importers positively contribute to a multitude of U.S. industries: agriculture, transportation, hospitality and much more. As we innovate our products and produce low and no alcohol options for consumers to enjoy, decisions for our industry should not be based on predetermined ideological biases and secretive processes.?

As I reflect on Repeal Day, the 21st Amendment's legacy is clear in my mind: return the power to the consumer. Every American can enjoy a beer or two in moderation. But I could not have predicted that in 2024 I would be writing about the rising concern of neo-Prohibitionists on Repeal Day. Nevertheless, our industry, like always, will demonstrate resilience and adaptability.??

Let us learn from the lessons of the Prohibition era, using them as a testament to the strength of the billion-dollar industry we have built, the American jobs we provide and the brewers, hospitality workers and farmers who rely on us as much as we rely on them.???

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