• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Advertise
  • About Craft Brewing Business

Craft Brewing Business

Professional Insight, Unfiltered

Craft Brewing Business Craft Brewing Business
  • News
  • Business & Marketing
  • Packaging & Distribution
  • Equipment & Systems
  • Ingredients & Supplies
  • Webinars & White Papers
  • News
  • Business & Marketing
  • Ingredients & Supplies
  • Packaging & Distribution
  • Equipment
  • Webinars & White Papers
  • COVID-19

Texas distributors and craft breweries tangle over beer legislation

February 27, 2013Keith Gribbins

texas flagNo one seems to be happy with Texas’ three-tier beer distribution system. Texas beer distributors want more controlled distribution, and Texas craft breweries want more flexible laws. Under Texas’ three-tier distribution system, a majority of craft brewers cannot sell directly to retailers or consumers but must enter exclusive contracts with wholesalers to sell their beer brands to retailers in designated territories. For obvious reasons, Texas craft breweries don’t like the law, but it could get even worse. According to a recent article in the Houston Chronic:

“Texas brewers would lose a potential source of capital and some flexibility in negotiating sales under a bill before the state Senate … The bill authored by state Sen. John Carona, R-Dallas, chairman of the Senate Business and Commerce Committee, would prohibit brewery owners from selling distribution rights for their beer and it would restrict them from selling beer at different prices in different geographic areas.”

The Wholesale Beer Distributors of Texas is supporting the bill, as they by law have exclusive rights to sell beer from most Texas breweries to retailers. Currently, distributors can pay breweries for distributing rights (that’s not required), but it’s often a great way for craft breweries to earn extra capital. This bill would take away that right, as well as make a one-price-fits-all sales model for Texas’ many regions.

Luckily, there is other legislation being considered. The Texas Craft Brewers Guild has been busy promoting the best interests of its members with some excellent and innovative bills of its own. On February 12, Senator Kevin Eltife (R-District 1) introduced bi-partisan legislation to modernize the state’s alcohol regulatory system, making Texas small craft brewers more competitive. The legislation’s joint authors include Senators Brian Birdwell (R-District 22), John Carona (R-District 16), Eddie Lucio (D-District 27), Leticia Van de Putte (D-District 26), Kirk Watson (D-District 14) and John Whitmire (D-District 15).

The Texas Craft Brewers Guild has been directly involved with the Senate in the crafting of these bills. Should these bills pass, said the guild, they would allow Texas small craft breweries to grow and thrive in an open and competitive market place, resulting in increased job creation, capital investment and tax revenues. Here’s a summary directly from the Texas Craft Brewers Guild website:

SB 515

  • Increases the production limit for a brewpub from 5,000 to 12,500 barrels (bbls) annually.
  • Authorizes a brewpub to sell their products to the wholesale tier for re-sale.
  • Authorizes a brewpub to self-distribute up to 1,000 barrels annual to the retail tier for re-sale.

SB 518

  • Authorizes a production brewery under 225,000 bbls of annual production to sell up to 5,000 bbls annually of beer produced by the brewery to ultimate consumers for consumption on the premise of the brewery.

SB 516 & 517

  • Authorizes a production brewery under 125,000 bbls of annual production to self-distribute up to 40,000 bbls annual of beer, ale and malt-liquor to retailers. (Note: this right currently exists but is being adjusted. Currently, a brewery under 75,000 bbls of annual production may self-distribute up to 75,000 bbls . These bills increase the size of a brewery that may self-distribute while reducing the amount they may self-distribute. There are two bills because it affects both the “Manufacturer” license — Ch. 62 of the code — and the “Brewer” permit — Ch. 12 of the code.)
  • Eliminates discrimination against out-of-state suppliers.
Texas craft beer bills pass house committee
Texas craft beer legislation marches through House committee
Texas Senate passes craft beer legislation
Texas Senate passes craft beer legislation
Cropped shot of male hand holding beer bottle & national flag of USA against setting sun. River background. Happy independence day
TTB proposes some welcome changes to Brewer’s Notices
TTB application process
TTB might eliminate standards of fill for wine, distilled spirts

Reader Interactions

Comments

  1. jdaylett says

    February 27, 2013 at 10:50 am

    The more exposure the better: Texas distributors and craft breweries tangle over beer legislation http://t.co/VZPsgcn6no – @CraftBrewingBiz

    Log in to Reply
  2. DenverBeerGuy says

    February 27, 2013 at 10:03 am

    RT @CraftBrewingBiz: Texas distributors and craft breweries tangle over beer legislation @TXCraftBrewers http://t.co/C32UfnGT9l

    Log in to Reply

Leave a Reply Cancel reply

You must be logged in to post a comment.

Primary Sidebar

Latest News

  • Cadaverine: When your beer smells like dead human
  • Unfiltered: There are weevils in my grain – what do I do?
  • Festo takes new approach with VZXA angle seat valves
  • People news: Industry icon John Mallett steps down from Bell’s + moves from Craft ‘Ohana, BrewDog USA and more

Sign up for our newsletter

unsubscribe from list

Most Popular Today

Recent Features

  • Cadaverine: When your beer smells like dead human
    January 26, 2023
  • beer taps brain distribution cbb cropUnfiltered: There are weevils in my grain – what do I do?
    January 26, 2023
  • People news: Industry icon John Mallett steps down from Bell’s + moves from Craft ‘Ohana, BrewDog USA and more
    January 25, 2023
  • Premium beer products were one of the top growth markets of 2022, says IWSR 
    January 23, 2023
  • Fair State Brewing Cooperative launches Minnesota’s first cannabis beverage fulfillment, copacking and distribution center
    January 23, 2023
  • Fat-Tire-cansFat Tire and other craft beer legacy brand updates to know in 2023
    January 17, 2023

Footer

  • Email Newsletter Sign Up
  • About Craft Brewing Business
  • Contact Us
  • Advertise on Craft Brewing Business
  • Media Kit Download
  • Privacy and Terms

© 2023 · CBB Media LLC