THU AM News: Indeed Brewing Co. scrambling to determine tariff impacts; GOP lawmakers reintroduce ‘right of first refusal’ bill

February 13, 2025

— Indeed Brewing Company is “scrambling” to figure out what kinds of impacts new steel and aluminum tariffs will have on the business, including a brewery in Milwaukee.

That’s according to Ryan Bandy, the Minneapolis-based company’s chief business officer. In an interview yesterday, he said U.S. craft breweries have largely shifted to using cans instead of bottles over the past decade or so, estimating 70% of the industry’s product is now sold in aluminum cans.

“One of our biggest expenses in a given year is cans, so even going up by a percent or two, for a lot of us, that’s not necessarily a margin we have, especially mid-sized manufacturers,” he told WisBusiness.com. “In past times that we’ve seen can prices go up, especially in a quick way … it’s a really hard battle.”

President Donald Trump recently announced he will enact a 25% tariff on all steel and aluminum imports. Bandy says the move is “definitely going to impact the industry,” especially smaller businesses that aren’t able to stock up on cans before price shifts take effect.

“We either have to eat that margin, or we have to pass it along at least to the wholesaler, and then some wholesalers pass it on — most of them do — to the retailer, and then obviously that hits the consumers at some point,” Bandy said.

The company, which has had a presence in Milwaukee for more than five years, is in the process of tracing the supply chains of its own suppliers to determine where they get their aluminum. Depending on those suppliers’ inventory levels and business models, cost impacts could take months to see, Bandy explained.

“That’s the hardest part about this stuff, is you know that it will affect you, you just don’t know how and when,” he said. “Some form of it is a waiting game, and some form of it is trying to get proactive, and make sure you try to make the right decisions.”

That could include switching suppliers, though he noted it’s not as easy as calling up a different shop in town and switching immediately.

He said company leaders are looking into that possibility, as well as buying as many cans as possible at the current price point. But that poses a challenge of its own, he said, as many smaller companies don’t have enough cash flow to buy supplies for the coming year or two.

“Where can we add on surcharges, or increase the product’s price, those are all the things that we have to be looking at. Not saying we will, but certainly something that we have to do some exploration on,” he said.

See more information from the national Brewers Association on potential tariff impacts on the industry.

— Two GOP lawmakers have reintroduced legislation that would give incumbent utilities a leg up in building new infrastructure after the heavily lobbied bill died last session without a vote in the state Senate.

Senate Majority Leader Devin LeMahieu, R-Oostburg, and Assembly Speaker Pro Tempore Kevin Petersen, R-Waupaca, yesterday introduced the legislation that has been dubbed “ROFR.” It would give utilities already doing business in Wisconsin the right of first refusal to construct, own and maintain a new transmission line that connects to one of their existing ones.

It comes as the 14-state Midcontinent Independent System Operator is poised to send out the first requests for new projects. The regional electric grid that covers the upper Midwest in December approved a $21.8 billion investment for 24 projects across the region with the expectation they will go into service from 2032-34. The initial batch of work is expected to include about $1.8 billion of projects in Wisconsin.

LeMahieu told WisPolitics in a year-end interview that he wanted the proposal to clear the Legislature by spring, citing the coming infrastructure work in the region. The bill cleared the Assembly on a voice vote last session, but didn’t receive a vote in the Senate among opposition from conservatives. The Senate GOP majority has shrunk to 18-15 compared to 22-11 last session, and LeMahieu told WisPolitics in December he was willing to use Dem votes to pass the bill if needed.

Typically, bills are circulated among lawmakers to offer them the opportunity to sign on as co-sponsors. SB 28, though, was introduced without going through that process.

A spokesperson for LeMahieu and Petersen didn’t immediately respond to a message asking about the reason for that decision.

The bill was referred to the Senate Utilities and Tourism Committee, which is chaired by Sen. Julian Bradley, R-New Berlin. He was a lead sponsor on the legislation last session as it cleared the Assembly via voice vote before failing to reach the Senate floor.

The debate has pitted those who argue it would bring continued stability to the state’s transmission system against those who believe it would stifle competition and lead to higher costs for ratepayers.

It’s also already been through an intense lobbying effort. WisPolitics previously reported it was the most lobbied bill over the first 18 months of the 2023-24 session, with groups pouring 5,071 hours into influencing lawmakers.

This session’s version of the bill includes a provision that would sunset the legislation after 10 years, which wasn’t included in the previous version.

The new version also includes a provision that would require a utility with the right to construct a MISO-approved transmission line to submit a report to the Public Service Commission, the Legislature and the guv on how much of the project costs are being charged to energy consumers outside Wisconsin.

WisPolitics reported in December that utilities had begun a new push on the legislation that argued implementing the legislation would allow utilities to share more of the operational costs with ratepayers outside the state compared to current law.

— The latest episode of “WisBusiness: the Show” features Abigail Crocker of Tailored Remedy.

This company uses AI and related software to service long-term care facilities and assisted living centers, as well as in home health care applications. Tailored Remedy took part in this year’s Early Stage Symposium, put on by the Wisconsin Technology Council, which produces the show.

Crocker, who previously worked as a certified nursing assistant, discusses her journey from health care to entrepreneurship.

“Tailored Remedy democratizes medical information, so through the AI platform, complicated medical information is presented in a clear and accessible manner,” she said.

Crocker is targeting up to five facilities in southeastern Wisconsin for a beta launch of the platform, “just to have that relationship, to understand what features are working, what features might not be as necessary.”

The show also previews upcoming Tech Council events.

Watch the show here and find more episodes.

— An attorney representing UW Hospitals said during state Supreme Court oral arguments the SEIU could not prove Act 10 has been unreasonably interpreted in order to gain union recognition.

“A ruling for SEIU would throw this Court’s very recent precedent… into disarray, with the absurd result that the Legislature somehow failed to do what it told everyone, quite oddly, it was doing in Act 10,” James Goldschmidt said yesterday.

SEIU had appealed the Wisconsin Employment Relations Commission ruling that the state’s Employment Peace Act, which grants employees the right to unionize. That was the question at the heart of the case before the state Supreme Court today.

The attorney representing SEIU, Tamara Packard, said the court should focus on the plain language within the act to determine if UW Hospitals must recognize SEIU for its employees. Packard argued the court does not always need to consider statutory history if the text of the law itself, in this case the Peace Act, was clear enough.

Conservative Justice Brian Hagedorn immediately challenged Packard, pointing out that the court has looked at statutory history for years.

Conservative Justice Rebecca Bradley also pushed back against the union’s case.

“I think what your argument is asking this court to do is backtrack off of at least two decades of cases that recognized the distinction between statutory history and legislative history,” Bradley said.

See more at WisPolitics.

— UW-Madison researchers found high school football players wearing padded helmet covers had similar concussion rates as those without the extra padding, though the product maker disputes these findings.

Dr. Erin Hammer, assistant professor of orthopedics and rehabilitation at the UW School of Medicine and Public Health, was the lead author of the study. It was published recently in the British Journal of Sports Medicine, detailing the results for 2,610 Wisconsin high school football players.

Less than half of the players wore the Football Guardian Cap XT, made by Georgia-based Guardian Innovations, while the rest wore helmets but no padded cap. Findings were based solely on practice, and the caps weren’t worn during games.

After following the players from 41 teams during the 2023 football season, researchers found “no effect” on rates of sports-related concussions between the two groups. Of the 64 concussions that happened during practice, 33 were among players wearing the padded caps and 31 were in the other group.

“Given the size of our study, it seems that if Guardian Caps did protect against sports-related concussions in high school players, we would have seen that result,” Hammer said in a release from the university.

In an emailed statement on the study, Guardian Innovations founder and owner Erin Hanson says the study “cannot reliably lead to the conclusion that Guardian Caps are not of benefit.” She argues the study didn’t control for a number of variables, such as player size differences or “if the helmet was even involved” in the collision.

“The NFL has mandated Guardian Caps for all position groups except for Kickers, Punters, and Quarterbacks for all contact practices, resulting in a more than 50% decrease in concussions,” Hanson said. “Last week, the NFL announced the lowest concussion rate since they started tracking data in 2015, due in part to their addition of Guardian Caps.”

Hanson also pointed to NFL lab testing showing the caps reduce impact even better at the lower speed typical of high school football.

Previous testing in a lab setting had found the Guardian Caps could “reduce forces to the head” during an impact, the release notes. But Hammer, who’s also a sports medicine doctor at UW Health, said using these caps may “provide false reassurance” to players and parents about reducing the risk of concussion.

Still, she says these findings can’t be applied to college and professional football, as those players wear a thicker version of the covering. Further data analysis also found other factors didn’t affect concussion risk in the study, such as previous concussions, helmet brand, experience playing football, or playing surface.

Study authors recommend high school football teams use “data-backed interventions” to reduce head injuries, pointing to hiring athletic trainers and making rule changes to reduce contact during practice. Others include additional safety training for coaches and adding jaw padding to helmets.

See the release.

For more of the most relevant health care news, reports on groundbreaking research in Wisconsin, links to top stories and more, sign up today for the free daily Health Care Report from WisPolitics and WisBusiness.com.

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— A coalition of Wisconsin agricultural groups has issued policy priorities for the next biennial state budget, underlining the importance of road projects, market development, conservation programs and more.

The coalition’s top priorities include the Agricultural Road Improvement Program, an $150 million effort to upgrade town and county roads used frequently by farmers and others in the industry. It argues the “overwhelming demand” for the program demonstrates the need for sustained funding for such infrastructure.

It also calls for continued investment in market development and innovation for rural communities, pointing to the state’s dairy and meat processing industries, biofuels and ag exports. It urges “expanded support” for farmer-led projects to improve soil and water quality along with “sustainable” nutrient management practices.

Meanwhile, the coalition also wants ongoing investment in workforce programs that touch members’ industries, including commercial driver’s license grants and technical student groups, as well as better access to mental health services for farm families. And it’s seeking “targeted tax reform” for farmers.

“We are optimistic that policymakers will continue to prioritize the needs of farmers and agribusinesses in the upcoming budget cycle,” the coalition said in a statement.

Members include the Midwest Food Product Association, the Wisconsin AgriBusiness Association, Wisconsin Association of Meat Processors, Wisconsin Biofuels Association, Wisconsin Cheese Makers Association, Wisconsin Farm Bureau Federation and many others.

See the full list in the release.

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TOPICS

AGRIBUSINESS

– Wisconsin Ag Coalition’s key budget priorities for 2025-27

BANKING

– U.S. Bank to close another Milwaukee-area branch

CONSTRUCTION

– After 12 years, Green Bay finds a developer for two long-vacant, historic downtown buildings

ECONOMY

– Wisconsin braces for impact of steel and aluminum tariffs