BA Testifies in Georgia and Nebraska to Support Small Brewery Distribution Rights

Advocating for Limited Self-Distribution and Elimination of the Daily To-Go Cap in Georgia

I traveled to Atlanta last week to lobby and testify in support of Senate Bill 456, a bill that would allow brewers to self-distribute up to 1,000 barrels of production in the county in which they operate, as well as lift the cap on off-premise retail sales from 288 ounces per person per day to become unlimited.

Georgia small brewers often have a difficult time getting attention from wholesalers. The National Beer Wholesalers Association (NBWA) Beer Purchasers' Index shows that wholesalers are buying fewer craft products than other segments, which leads to increased difficulty in getting new brands distributed.

Self-distribution addresses this issue perfectly, offering an outlet for small brewers to find a market and build brand awareness, while wholesalers can prioritize their larger brands.

On February 9, the Georgia Craft Brewers Guild hosted a day at the capitol for their members. Brewery attendance was strong, and discussions were very positive. Unexpectedly, the Senate Regulated Industries Committee announced a hearing for SB 456 the next day.

While it is difficult to quantify the success or failure of a no-vote hearing like this one, the interaction from lawmakers with members was more inquisitive than it has been in past legislative sessions. Testimony was delivered by guild executive director Joseph Cortes, two member breweries, and yours truly. Additionally, the chairman indicated that it will be the subject of another hearing and possibly a vote as soon as next week.

We will look out for a potential action on the bill in the coming weeks and continue to work with the small number of states where brewers are still unable to self-distribute.

Pushing for Franchise Law Reform in Nebraska

On February 9, vice president of government affairs Marc Sorini joined Nebraska small businesses in testifying in support of L.B. 1115, which would modernize Nebraska's beer franchise law. Like most beer franchise laws, Nebraska's was enacted at a time when there were almost no small breweries and most beer wholesalers were very small local businesses. Today, the law locks small breweries into perpetual contracts that only wholesalers can exit.

The pending bill would exclude brewers producing 20,000 barrels or less per year from the existing franchise law. It would restore balance and fairness to relations between small breweries and Nebraska wholesalers. Larger suppliers, representing roughly 97-98% of the Nebraska distributed beer market, would remain covered by the franchise law.

Two Nebraska small breweries, two hard cider makers, and two specialty beer retailers joined the Brewers Association (BA) at the hearing. Each explained how the current one-size-fits-all franchise law hurts their businesses.

Nebraska's General Affairs Committee has, at the time of writing, not yet voted on L.B. 1115. Regardless of the outcome, the BA will continue to support guilds and brewers seeking to reform beer franchise laws.