Last week we celebrated with Texas craft brewers after Judge Karin Crump came down in their favor against SB 639. This bill required craft brewers to use distributors after they exceeded 125,000 bbls a year, while also totally ceding those distribution rights to the distributor. This is the main reason SB 639 needed to go, but there was another lesser known provision that said craft breweries had to sell their beer in any part of the state for the same prices. This obviously led brewers to choose the highest pricepoint for that single price.
All of this means savings will be passed on to the Texas beer drinker, which improves the competitive position of local beer within the market.
From Dallas Business Journal:
“When you increase the distribution costs, who’s paying? The local customer,” said Craig Weichmann, founder of Fort Worth-based Weichmann & Associates, an investment banking consultancy specializing in restaurants.] “It begins to push the price out of what consumers would be willing to pay. It restricts trade because it imposes an additional cost factor.”
Just another reminder that, usually, when craft beer wins, everybody wins.