NOTICES
DEPARTMENT OF AGRICULTURE
Pennsylvania Malt and Brewed Beverage Industry Promotion Board; Grant Solicitation and Application Procedures for Act 57 of 2024 Funding
[55 Pa.B. 278]
[Saturday, January 11, 2025]Under Act 39 of 2016, the Pennsylvania Malt and Brewed Beverages Industry Promotion Board (Board) annually, or more frequently as the availability of funds permits, solicits proposals for grants to conduct promotion, marketing and research projects to increase the quality, profitability, production and sale of malt and brewed beverages produced in this Commonwealth.
The Board was established by section 446.1 of the Liquor Code (47 P.S. § 4-446.1). The Board makes recommendations for the awarding of grants by the Liquor Control Board (LCB) from funds provided through the Liquor Code (47 P.S. §§ 1-101—10-1001). This notice establishes the procedures by which grant applications will be solicited and reviewed, and grants awarded.
1. Grant Solicitation. The Board will be accepting grant applications for the purposes, in the form and according to the schedule set forth herein for not less than 30 days beginning on the date of publication of this notice in the Pennsylvania Bulletin. Additional publication and dissemination of this notice shall be made and may include direct dissemination to State universities and State-supported universities located in this Commonwealth, universities with colleges of agricultural science located in this Commonwealth and individuals or entities who have requested notification from the Department of Agriculture (Department) or the Board of grant availability. Private sector parties are encouraged to apply if their project will have a positive macro impact on the industry. There is a $700,000 pool of funds for marketing proposals as detailed in paragraph 14.a. An additional $700,000 is available for the various types of projects detailed in section 14.b.—14.f.
2. Process Overview. The Board will employ the review process described as follows to select projects and funding levels to recommend to the Secretary of Agriculture (Secretary) for the making of a grant. In the event of a recommendation to the Secretary to make and fund a grant, the decision as to whether to award a grant will be made by the Secretary.
a. If the Department approves the grant recommendation, the terms and conditions of the grant will be governed by a grant agreement between the Department and the applicant, which shall be tendered to the applicant for execution by the Department, returnable to the Department in no more than 30 calendar days.
b. The Department grant agreement is attached hereto as Addendum 1 and incorporated by reference. This grant solicitation will be incorporated by reference into, and become part of, the Department grant agreement that will govern all grants awarded under this grant solicitation. With certain limited exceptions for university applicants, the terms are non-negotiable; therefore, applicants must carefully review the Department grant agreement to ensure that proposed projects are compliant with agreement requirements.
c. The Grantee expressly warrants that, as it relates to the performance of the project that is the subject of this Grant Agreement, it shall at all times comply with the Liquor Code and the Liquor Control Board's regulations at 40 Pa. Code §§ 1.1—17.41 (relating to liquor). For proposals which involve the sale, distribution or any other physical interaction with alcohol, it is recommended that applicants seek private counsel experienced in the Liquor Code to provide guidance as it pertains to the Liquor Code and the LCB's regulations, to ensure the legality and viability of grant projects and proposed activities. Approval of a grant is not a defense to any violations involving the Liquor Code.
3. Concept Paper and Application Deadlines.
a. Concept Paper. Interested applicants must deliver a concept paper and draft budget, in the form set forth in paragraph 4 of this notice, to the Board by 4 p.m. on Friday, February 21, 2025. Applicants will need to create a Keystone login and submit their proposals through the Single Application for Assistance located at https://grants.pa.gov/Login.aspx.
b. Application. Applicants whose concept papers are preliminarily approved by the Board will be invited to submit a Project Proposal and Grant Application, in the form set forth in paragraph 5 of this notice, to the Board by 4 p.m. on Friday, May 30, 2025. Proposals should be sent electronically as a PDF file to RA-AGCommodities@ pa.gov. The file should not exceed 5MB.
c. Presentations. Applicants must be prepared to provide a brief 3-minute presentation of their proposal to the Board, and answer questions, either in person or by conference call, at the Board's next scheduled meeting on Thursday, June 25, 2025, at 9 a.m. If requested, presentations may be given virtually by means of Microsoft Teams.
4. Format of the Concept Paper. Failure to follow this format could cause the applicant's proposal to be rejected. The concept paper will be submitted on the provided template which is downloaded from the Single Application for Assistance. Up to three pages should be uploaded along with the concept paper template as an addendum. Applicants should follow the following formatting to create the application.
a. Project Coordinator/Qualifications. Identify the person who will be directing the proposed project and clearly state their qualifications including:
i. Research projects—Full and complete literature references to (up to) five key published journal articles directly related to proposed research/outreach.
ii. Marketing projects—Sample images from (up to) three previous marketing campaigns along with a description of in-market implementation plan (including types of medium such as print, digital, display, TV/radio, out of-home and the like) and performance metrics to include both impressions and cost-per-conversion.
b. Organization History. Indicate whether the organization has previously received Board or agriculture-related grant funds.
c. Area of Focus. Select a funding priority from paragraph 13. of this notice.
d. Project Purpose. In one or two paragraphs, clearly state the specific issue, problem, interest or need, and how the project will address it. Explain why the project is important and timely.
e. Estimated Timeline. State the estimated timeline for the proposed project. The timeline may not extend beyond the term of the grant as set forth in more detail at paragraph 9 as follows.
f. Expected Measurable Outcomes. What are the goals and objectives of the project? How do the objectives support the goals? Goals are long-term broad visions and may take time to achieve. Objectives are significant steps that must be completed to achieve the goal. Objective statements should focus on the outcome, rather than the methods used. Each goal should have one or more objectives. Describe at least one distinct, quantifiable and measurable outcome that directly and meaningfully supports the project's purpose. Typically, outcomes are those measures that are quantifiable, measure direct benefit and are documented through data or information collection. In the case of research projects, it is important that this section is written for a non-technical audience.
g. Preliminary Project Work Plan. List the major tasks of the proposed project.
h. Draft Budget. State the budget for the proposed project using the categories from paragraph 5.f. If a project is selected to submit a proposal, more detailed budget information will be required.
5. Format of the Project Proposal and Grant Application. Failure to follow this format could cause the applicant's proposal to be rejected. The project proposal, grant application and budget must be completed within the templates that will be provided with the notice to proceed. The narrative section of the template must include the following:
a. Section 1, titled Statement of Purpose, addressing the purpose for which the grant funds would be utilized; how the project links, supports and benefits the industry in this Commonwealth; methodology and evaluation, a qualitative or quantitative estimate of economic impacts (direct, indirect, induced); and the sectors of the industry that will receive this benefit.
b. Section 2, titled Statement of Need, addressing the need for the grant funds sought; any other partners or partner organizations that will be involved with the project; and any other funding or noncash resources that will be committed to the project and the sources thereof.
c. Section 3, titled Evaluation and Reporting, shall identify expected measurable outcomes previously identified in the concept paper and outcome measures and include a narrative describing data collection to inform the outcome measures. This section must be clear and unambiguous as it will inform expectations of progress and final reports.
d. Section 4, titled Industry Support, addressing the extent of support, participation and funding from the Commonwealth's distilled spirits industry, including associations, organizations or agencies, or both, with an interest in the project outcome. Letters or written confirmation of that support, participation or funding should be included in this section.
e. Section 5, titled Budget Narrative, there is a separate section in the template for the Budget Narrative that proceeds the Narrative. Applicants will provide details of how they arrived at the estimated expenses in the budget and describe how each expense will lead to the success of the project. A separate section inside the Budget Narrative shall discuss in detail, the source and usage of any required matching funds, if that requirement applies to the proposal.
f. Section 6, titled Budget, there is a separate template provided for the Budget. The applicant will show a detailed budget for the proposed project or program, including any other matching funds and the value of any noncash resources that will be included in the project. Applicants must also complete the section of the template for matching funds if that requirement applies to their proposal. For all applications, each and every item of direct expense to be incurred in the project shall be separately set forth, including all purchases of consumable or nonconsumable goods or equipment, listing the disposition of all nonconsumable goods or equipment upon completion of the project; all travel by dates, purpose, destination, mode of transportation and rate; a full breakdown of other costs, if any, and the method used to calculate those costs.
i. Personnel—Includes employed personnel. Those employed elsewhere should be listed as subcontractors or consultants in the Contractual cost category. Provide detail of all personnel by name devoted to the project, their professional qualifications, the amount of time calculated by hours and the tasks to be performed by each of the named personnel. In the case of graduate student participation, reasonable stipends will be allowed, and tuition will not be allowed.
ii. Fringe benefits—For personnel of the Grantee only, provide the rate of fringe benefits for each project participant's salary or wages. Identify the total for all funded fringe benefits.
iii. Travel—For personnel of the Grantee only, calculate the costs for travel by considering destinations, number of trips, days traveling, transportation costs, estimated lodging and meal costs and estimated mileage rate.
iv. Supplies—These are consumables procured for and used in furtherance of the projects and include items as lab or field equipment.
v. Contractual—Those costs paid to other nonemployee individuals or entities to perform specific work or to provide specific services in accordance with the approved project. By way of example, this could include speaker fees, facility and equipment rental costs, software subscriptions, and costs for social media placement and data collection. If contractual work will be involved with carrying out the work of the project, identify the total contractual expenses. When determining the total cost for this category, include the fees for the professional services, contractor travel costs and any other related contractual expenses.
vi. Other—This category includes fees for conferences or meetings, membership dues, honorarium, scholarships, postage/shipping fees and publication costs.
vii. Indirect costs—Grant awards may include an allowance for indirect costs of up to 10% of the total direct costs. Total direct costs are defined as the total of the above six budget categories (Personnel, Fringe Benefits, Travel, Supplies, Contractual and Other) and are often referred to by Grantee entities as Facilities and Administration or Overhead.
6. Scoring of Applications. The Board will evaluate each complete and timely filed project proposal and grant application received in accordance with a 100-point scale as set forth in Addendum 1.
The purpose of the program is to advance the industry Statewide. In the past, the Board has received project proposals which were designed to, or would have the primary effect of, benefiting only one individual entity or small group of entities, with only tangential, secondary benefits to the industry as a whole. Thus, any proposal containing a request to fund the purchase of equipment must clearly and accurately describe, in detail: (1) how the equipment is necessary to the proposed research or project being conducted; (2) why the proposed research equipment or project equipment must be funded by the program; (3) what the primary purpose of the equipment is; (4) how the applicant plans to use the equipment to benefit the industry as a whole, rather than just an individual entity or small group of entities; (5) the timeframe during which the equipment is expected to provide a benefit to the industry; and (6) plans for the disposition of the equipment at the conclusion of its use under the project. The Board reserves the right to downgrade or to refuse to recommend funding any application that does not meet these requirements. Industry-wide shared use will be prioritized over any individual profit. If any costs are charged for shared use, they will be limited to expenses incurred in facilitating access to the equipment (for example, transportation, reasonable staff cost to operate equipment and the like) To reiterate, the applicant should also demonstrate that the equipment will, in fact, benefit the industry as a whole rather than an individual entity.
7. Required Matching Funds. Applicants submitting a proposal may be required to commit a percentage of documented matching funds at the discretion of the Board. These contributed matching funds may be used for contractual expenses but not for personnel expenses. In-kind contributions will not be considered.
8. Evaluation, Recommendations and Awards. The Board reserves the right to request modifications or clarifications, or both, of project proposals and grant applications, including but not limited to additional detail of purpose, reduced or modified budgets, and the like. Upon completion of evaluations, the Board will prepare a record of each complete and timely-filed project proposal and grant application received, and the numerical score assigned to each. In the event of one or more recommendations to the Department to make and fund a grant, the Board will transmit to the Department the complete and final project proposal and grant application along with the score assigned by the Board and any other information deemed relevant by the Board or requested by the Department. The Department will directly contact those applicants whose proposals were approved for funding. The Department is responsible for notifying applicants whose projects were recommended by the Board for the Department funding, but which the Department determined not to fund.
9. Term of Grants.
a. Grant Agreements will become effective on the date of the last required Commonwealth approval and can span up to 2 years. Expenses that occurred prior to the effective date of the contract may be reimbursed as long as they were included in the original proposal, Attachment G.
b. A Notice to Proceed, Purchase Orders, fully executed agreements and invoicing instructions will be provided by the Department by email.
c. Final invoices shall be submitted to the Department within 60 days of contract end date as set forth in the Grant Agreement.
d. See Addendum 2 Grant Agreement for more details about the Department's grant administration practices.
10. Progress Reports. Progress reports are to include the deliverables from paragraph 5.c. and be delivered by email to RA-AGCommodities@pa.gov no later than October 1, and April 1, every year for the duration of the project, or as requested by the Board. Final reports should be submitted within 90 days of contract end date. Failure to meet these deadlines constitutes a breach of the grant agreement, will result in nonpayment of invoices and could jeopardize future grant awards.
11. Grant Agreement. The Department will provide applicants with a grant agreement for execution and return by the Grantee within 30 calendar days. The Department will obtain the required signatures on the grant agreements, including any other required Commonwealth entities, and return a copy to the applicant. No grant agreement is effective, and work should not begin until all required signatures have been applied to the grant agreement and a Notice to Proceed is issued. Among the terms of the grant agreement shall be a requirement that the grant recipient provide the Board and the Department full and complete access to all records relating to the performance of the project and submit information as the Board or the Department, or both, may require.
12. Cost-Reimbursement Grant. Payment of all grant funds will occur on a reimbursement basis only. In the case of graduate student participation, reasonable stipends will be allowed and tuition will not be allowed.
13. Funding Priorities. The Board has identified the following funding priorities. The name given to each priority area is not intended to limit the intended scope and creative thought applied by applicants in developing projects that serve the purposes articulated in this notice.
a. Statewide Marketing Campaign: This Commonwealth boasts a diverse malt beverage industry with historic breweries, vibrant craft brewers and a rich brewing heritage. The Commonwealth lacks a unified brand that encapsulates its malt beverage industry's quality, diversity and innovation. This initiative seeks to develop a brand that aligns the industry under one identity, creating a powerful, recognizable narrative that can be utilized by breweries, retailers, tourism agencies and other stakeholders to drive revenue growth. Marketing projects should:
i. Develop a cohesive brand architecture for the malt beverage industry in this Commonwealth that resonates with target audiences, including consumers, breweries, distributors, retailers and tourism partners.
ii. Create a unique brand identity that reflects the distinct beer culture, history and craftsmanship in this Commonwealth.
iii. Build brand messaging and assets that are adaptable for various applications (for example, events, tourism campaigns, digital platforms and merchandise).
iv. Provide strategic guidance and tactical recommendations for launching and sustaining the brand.
v. Proposals should include the following in their structure:
1. Discovery and Research
a. Conduct comprehensive research on the malt beverage industry in this Commonwealth, focusing on:
i. Market trends, consumer demographics and audience insights.
ii. Competitive analysis with key insights from leading beer regions.
iii. Review of existing brands, regional identities and marketing materials.
iv. Gather input from key stakeholders, including breweries, distributors, industry associations, tourism officials and consumers, to understand their values and needs.
2. Brand Strategy Development
a. Develop a brand positioning statement that highlights this Commonwealth's unique place in the malt beverage industry.
i. Create brand pillars that serve as the foundation of the brand, emphasizing the core values, identity and unique characteristics of beer in this Commonwealth.
ii. Define target audiences and personas that will inform brand messaging and activation strategies.
3. Brand Identity and Messaging
a. Develop the brand name, tagline and visual identity that convey the unique beer culture in this Commonwealth.
b. Logo design, color palette, typography and graphic elements that reflect this Commonwealth's character. Brand voice and tone guidelines to maintain consistency across all communications.
c. Sample messaging for different platforms and target audiences (for example, advertising, social media and website content).
4. Brand Activation and Tactical Plan
a. Develop a tactical plan with recommended strategies for launching and promoting the new brand, both regionally and Nationally.
b. Outline potential tactics and campaigns that can amplify the brand across digital, social media, events, public relations and partnerships.
c. Recommend a social media and content strategy that supports ongoing brand engagement with target audiences.
5. Brand Toolkit Development
a. Create a comprehensive brand toolkit that includes:
b. Brand guidelines detailing the use of logos, colors, typography, messaging and brand tone.
c. Templates and assets for use in marketing materials, social media and events.
d. Guidelines for breweries, retailers and tourism partners to adopt and incorporate the brand in their own promotions.
6. Training and Support
a. Conduct training sessions with Malt Beverage Board and key stakeholders to ensure a clear understanding of brand standards.
b. Provide ongoing support and consultation for an initial launch period to address any brand implementation challenges.
7. Deliverables
a. Research Report: Comprehensive analysis of the malt beverage industry in this Commonwealth with competitive insights and target audience profiles.
b. Brand Strategy Document: Includes brand positioning, target personas and brand pillars.
c. Brand Identity Package:
i. Brand name, tagline and logos.
ii. Full visual identity guidelines (color palette, typography, design elements).
iii. Sample messaging framework.
d. Brand Activation Plan: Tactical recommendations for brand promotion, including campaign concepts, content strategy and a high-level roadmap.
e. Brand Toolkit:
i. Complete brand guidelines for internal and external use.
ii. Design templates and visual assets for consistent application.
f. Training Sessions and Documentation: Training materials and sessions for all stakeholders.
b. Agriculture: Projects are sought that will lead to the expansion, through means including cultivation, value-added manufacturing and research, of beer industry-related raw material produced or grown, or both, in this Commonwealth. Some examples of desired project scope include:
i. Research and development that will increase the production, quality or yield, or both, of Pennsylvania-produced raw agricultural commodities (hops, barley and the like) used by the beer industry.
ii. Research that will identify growing conditions for hop production and evaluate each of the Commonwealth's 67 counties on the criteria.
iii. Outreach and support to encourage existing agricultural producers to consider hop production.
iv. Matching funds for small Commonwealth-based start-up businesses or ventures focused on agricultural related cultivation (hops and barley) or value-added manufacturing of beer related raw materials (malting).
c. Tourism: Projects are sought from organizations interested in marketing and integrating the Commonwealth's beer industry into new or existing regional and Statewide tourism initiatives, such as:
i. Development of beer tourism and beer trails (using and expanding upon the ''Bourbon Trails'' model).
ii. Regional integration of breweries and brewery visitation with existing attractions, destinations and the regional hospitality industry.
d. Distributor Licensee Outreach: Projects are sought that will assist ''D'' license holders in efforts to change existing business models and remain viable, competitive and profitable within the parameters of the Liquor Code, including providing consultation, training and business plan development to interested ''D'' licensees to assist them in transforming their business models. The proposer should illustrate the ability to:
i. Understand, interpret and transfer knowledge related to the current Liquor Code.
ii. Understand both the new opportunities as well as the threats presented to distributors as a result of 2016 changes to the Liquor Code.
iii. Have working knowledge of the beer industry trade and practices, the constraints on the industry, standard operating procedures, financial models and the like.
iv. Identify and document best practices within the Commonwealth's beer industry (D license holders) regarding layout and design (shelf space, lighting, signage), hours of operation and staff models, promotions and displays, value added merchandise, and best practices in urban, suburban and rural markets.
v. In conjunction with existing industry stakeholders, like the Malt Beverage Distributors Association (MBDA), develop guidelines, standards and communicate best practices in a user-friendly format, as well as offer training and outreach conferences in appropriate locations throughout this Commonwealth.
vi. In conjunction with existing industry stakeholders like the MBDA, the project may include efforts to create special grants or business loans made available to retailers to implement new business models.
e. Beer Industry Research: The Board seeks research and the development of quantitative data on the beer industry in this Commonwealth, such as:
i. Research that will identify and map the size and impacts of the Commonwealth's macro beer industry (production, wholesale and retail) identifying direct, indirect, induced impacts.
ii. Research that will identify the upstream and downstream economic opportunities related to this Commonwealth's beer industry.
iii. Research that can measure the economic impacts on this Commonwealth's beer industry of 2016 changes to the Liquor Code.
iv. Research that will offer guidance on public policy and best practices to benefit the beer industry in this Commonwealth and improve regulatory efficiency.
f. Technical Assistance, Support and Research and Development: Projects are sought that will advance best practices, technology transfer, research and development, workforce development and training in the Commonwealth's brewing industry. The Board is interested in funding projects that will: increase beer knowledge/science; advance best practices in brewing; provide education/training opportunities related to beer production, quality, packaging, marketing and sales; and promote innovation in the brewing and manufacturing processes. Examples could include:
i. Engagement of consultants, speakers and subject matter experts for industry related training, presentations or problem solving in conjunction with conferences, technical work groups and association members.
ii. Research and development projects on relevant topics concerning brewing and manufacturing processes.
iii. Customized training/education in areas related to: differing levels of brewery, wholesale and retail management; sales and marketing; brewery—wholesaler relationships; beer market best practices; and industry recognized certifications.
g. Innovation: The Board will consider projects that do not fall into any of the other funding priorities but nevertheless offer unique approaches to supporting and promoting Pennsylvania beer. The Board believes that innovation is the driving force behind the growth and success of the Commonwealth's beer industry. This category of funding is designed for projects and initiatives that demonstrate new thinking, ideas and approaches to promoting Pennsylvania beer—and do not fit into any other category.
RUSSELL REDDING,
Secretary
Addendum 1
BOARD GRANT SCORING CRITERIA & SCALE
Section Title Evaluation Criteria Points Feasibility • To what extent can the Purpose be accomplished with the funds requested?
• Is there enough non-cash capacity to fulfill the objectives of the project?
• Are the proposed outcomes and impacts in proportion to the grant request?
• Can the project be completed within the timeline established?
• Are the outcomes proposed realistic?10 Linkages to PA's Beer Industry • Is there a compelling link to PA's Beer Industry?
• How quickly will the industry benefit from project outcomes?10 Innovation • Does the proposal offer a ''new approach'' in supporting PA Beer?
• Will the project offer or create any new competitive advantages?
• Do the project outcomes offer new and unique benefits to the industry?
• What components of the project are sustainable once completed?
20 Expected Impacts & Outcomes • Will the project raise the visibility of PA Beer?
• Will the impacts and outcomes offer long-term benefits?
• Do they provide solutions to current industry challenges?
• How will the impacts and outcomes ultimately strengthen PA's beer industry?
• How much of the industry will benefit from the project?20 Economic Benefits Generated • Does the project create jobs?
• Does the project save money for the industry?
• Will it strengthen the economic viability of the industry and how?
• Does the project support and promote intrastate and/or interstate tourism?20 Methodology & Evaluation • Can the methodology produce the desired outcomes?
• Does the evaluation component measure the right outcomes?
• Can the methodology produce stated economic benefits and can the evaluation
accurately measure so benefits?
10 Industry Support • Is there strong industry support for this project?
• Are there any matching funds or leveraged resources?
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[Pa.B. Doc. No. 25-39. Filed for public inspection January 10, 2025, 9:00 a.m.]
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