Swansenreport

Wisconsin Department of Revenue agents seized roughly $25,000 worth of canned beer from Minocqua Brewing Company’s taprooms in Minocqua and Madison Thursday night, in a dispute over permits and excise taxes for beer the company has been having brewed under contract in Illinois. The company’s outspoken owner says the enforcement action borders on harassment; the state says the inspection was planned and coordinated with the company’s own legal counsel months in advance.

According to video provided to the Lakeland Times, which first reported the seizure, agents arrived at the Minocqua taproom around 5:30 p.m. Thursday and spent about an hour carting out cases of beer. Owner Kirk Bangstad said in a Substack post and Facebook message that all of the beer canned and packaged for Minocqua Brewing in Illinois was seized from both locations. Both taprooms remain open, though with reduced inventory.

What the state says

The Department of Revenue confirmed it had inspected the Minocqua Brewing locations, calling the matter “an active law enforcement action” and declining to discuss specifics “due to the ongoing nature of this investigation.” The department said the inspection was conducted “pursuant to an application” with the agency, and that it had been “discussing concerns with the Minocqua Brewing Company and its legal counsel for several” months following an unspecified complaint filed in 2025. Notably, DOR also said the inspection itself “was planned and coordinated with Minocqua Brewing Company’s legal counsel well in advance” — meaning the company’s own attorneys reportedly knew the visit was coming.

A DOR spokeswoman told the Milwaukee Journal Sentinel that state law bars beer brewed in other states from being sold in Wisconsin without the proper permit or license, describing the rules as designed “to protect consumers, promote public health, and track alcohol beverages for tax and safety purposes,” and to ensure “no permit or license holder gains an unfair advantage by bypassing tax obligations or evading safety protocols.”

What Bangstad says

In a nearly 2,000-word Substack post, Bangstad laid out a timeline of his dealings with DOR’s alcohol enforcement division. He said the brewery began having beer canned under contract by a partner brewery in Illinois, and that its accountant began paying excise taxes on that beer to Illinois rather than Wisconsin. When DOR told the company it owed roughly $500 in Wisconsin excise taxes for 2025, Bangstad said the company tried to pay — but was told it couldn’t, because the beer was made by another brewery in Illinois, even though Minocqua Brewing held a permit to import it.

Bangstad said the company then arranged for its Illinois partner brewery to enter into an “alternative proprietorship,” a legal arrangement that would make the Illinois-brewed beer technically Minocqua Brewing’s own product for tax purposes — which he said would have resolved the issue. He also said the company applied five months ago for a permit to use a refrigerated warehouse in Madison to store the Illinois-brewed beer, and that DOR canceled scheduled inspections of that warehouse twice before finally inspecting it — and seizing the beer — on June 11.

Bangstad described a Wisconsin law requiring a “250 barrel threshold” before an out-of-state brewer needs a Retail Service Permit, calling it a year-old law that Minocqua Brewing may effectively be test-casing for enforcement. He said the company’s attorney has argued the rule could conflict with the U.S. Supreme Court’s 2005 decision in Granholm v. Heald, which barred states from imposing stricter regulations on out-of-state alcohol producers than on in-state ones.

Bangstad called DOR’s “lack of leniency in allowing us to come into compliance” something that “borders on malicious harassment,” and suggested — without offering evidence — that Gov. Tony Evers’ administration was retaliating against him over his past criticism of the governor.

The context

Bangstad has been a high-profile, openly partisan figure in Wisconsin politics for several years, known for politics-themed beers tied to Democratic figures and for past clashes with local officials, including a since-resolved zoning dispute with Oneida County over his Minocqua taproom. He recently filed paperwork for a Democratic run for governor, but the Wisconsin Elections Commission rejected it for insufficient valid signatures. The Milwaukee Journal Sentinel reported that the Department of Revenue confirmed Bangstad is under investigation, though it declined to detail the allegations.

Why it matters here

Minocqua Brewing’s canned beer — including the Illinois-brewed product at the center of this dispute — is sold at retail locations around the state, including in the Bayfield area. Whether retail inventory is affected by the same permit and licensing questions that led to Thursday’s seizure at the company’s own taprooms is not yet clear; the seizure as reported was confined to product held at Minocqua Brewing’s own locations, not third-party retailers. The Swansen Report is following up with a local retailer to find out where their current stock originated and whether they’ve received any communication from the state or their distributor.

This is a developing story and will be updated as more information becomes available.

Sources: Lakeland Times, Wisconsin Examiner, Wausau Pilot & Review, WSAW, Minocqua Brewing Company (Substack)