How The CHEERS Act is a Move Toward a More Sustainable Future

The CHEERS Act places sustainability at its core.  

A survey by the Alcohol and Tobacco Tax and Trade Bureau (TTB) and the National Beer Wholesalers Association (NBWA) Industry Affairs revealed that draught beer accounted for nine percent of the total on-premise beer sales in the U.S. during 2023. This indicates that a substantial portion of sales in bars, restaurants, hotels, stadiums, and event venues were from canned or bottled products. While these products are generally recyclable, they pose a challenge to sustainability efforts. The production of these canned or bottled products is still contributing to greenhouse gases. Not to mention the environmental impacts of transportation and distribution of said products. Although many of these products are recyclable, that doesn’t always mean they avoid the landfill.

A report by Reloop, an international non-profit that unites industry, government, and NGOs, highlighted that over 140 billion empty drink containers—encompassing glass bottles, PET plastic bottles, and metal cans—went to waste in the United States in 2019. Data from the U.S. Environmental Protection Agency (EPA) underscores the issue with low recycling rates for key beverage containers in the U.S.: glass beer and soft drink bottles at 39.6 percent, glass wine, and liquor bottles at 39.8 percent, and aluminum beer and soft drink cans at 50.4 percent. These figures underscore the critical need for improvement.

Considering that increasing nationwide recycling rates remains unlikely, bars and restaurants can make a significant impact by offering draught from REUSABLE steel kegs to reduce waste.

The Impact of COVID-19

The pandemic had not only disrupted daily operations but also instilled fear and uncertainty about the long-term survival of many businesses. A report from the National Center for Biotechnology Information (NCBI) outlines the severity, noting that between February and April 2020, over 3.3 million businesses became inactive, a 22 percent decline. This significant drop represents the largest in U.S. economic history, leading to job losses, reduced consumer spending, and slowed economic growth. The downturn has affected nearly all sectors, causing widespread job and income losses, further deepening the economic impact of the pandemic. As the world strives to recover, the resilience and innovation of small businesses are key to overcoming COVID-19 challenges.

The restaurant industry, known for its vibrancy, faced a wave of closures due to forced shutdowns, capacity limits, and safety concerns. With many establishments struggling to shift to takeout and delivery, the financial strain was both immediate and severe. As of 2024, the industry is still dealing with the aftermath, adapting to changed consumer behaviors, and finding the balance between dine-in and off-premise services.

By the end of 2020, the National Restaurant Association reported that over 110,000 U.S. restaurants had closed permanently or long-term. These closures led to significant job losses and affected communities and cultural landmarks. The competitive landscape has shifted, with surviving and new businesses navigating changed consumer behaviors and market dynamics.

The early pandemic saw massive layoffs in the restaurant sector, with many workers moving to different fields. Four years later, the industry faces a labor shortage, with positions unfilled and the workforce still below pre-pandemic levels. In response, some operators are rethinking business strategies to offer better benefits, job stability, and workplace transparency, aiming to attract and retain workers in a post-pandemic world.

How the CHEERS Act Will Help Businesses and the Environment

The CHEERS Act will help businesses financially by providing incentives to implement draught systems that reduce the need for and impact of bottled and canned beverages. Draft beer out of reusable stainless steel kegs represents the most eco-friendly packaging option available to retailers and suppliers, saving ~6 billion single-use containers from waste streams and reducing the carbon footprint associated with bottled and canned beverages. By encouraging the use of these systems, the legislation seeks to offer immediate financial relief to local small businesses, many of which have been struggling.  

This move supports environmental sustainability and aids in the economic recovery of small-scale establishments by reducing operational costs, promoting energy efficiency, and driving growth in the industry. The CHEERS Act recognizes the vital role small businesses play in our society and seeks to support them during this difficult time. By promoting eco-friendly practices and providing financial relief, this legislation can help ensure the sustainability and success of these enterprises in the face of adversity.  

Sean Kennedy, Executive Vice President for Public Affairs at the National Restaurant Association (NRA), highlights the transformative impact the CHEERS Act will have on the American food and beverage industry. Addressing the Steel Keg Association (SKA), Kennedy states, “The CHEERS Act would give restaurant and bar owners new tools to innovate how they serve beer to customers. The result would be more consumer choice, strengthened sustainability options, and needed support for restaurant owners in every neighborhood.”

This legislation is a pivotal advancement, furnishing pubs, restaurants, and breweries with the financial support crucial for recognizing the significance of draft systems in their operations. It symbolizes the industry's resilience and the government's dedication to fostering growth and sustainability.