Texas craft beer news

Read this today, St Arnolds makes some good craft beer, anything that is good for the craft beer scene is good for the homebrewer in my opinion.

Texas Senate support could help the business of craft breweries

HOUSTON (FOX 26) -
Craft beer brewing, in Texas, is worth hundreds of millions of dollars. Now, the state Senate has given unanimous support to the first of several bills that could expand how those businesses make money.

At popular breweries, Like Saint Arnold, tours include an opportunity to sample some suds.

But legal restrictions prevent customers from buying beer, directly from brewers.

In Austin, a package of bills is gaining support that would, first, allow craft brewers to sell their products for on-site consumption.

It would also allow the state's brew-pub restaurants to sell a portion of their products to distributors, for sale in stores.

Supporters say it creates business opportunities that don't exist now.

St. Arnold's owner, Brock Wagner, says, "It's the difference between opening the doors to your brewery and not being profitable for three years, and opening your doors and, maybe, being profitable in the first six months. It's that kind of a difference which can have a huge effect on the success of a company."

If passed by the Texas House, and signed by the governor, the new laws could be in place by September.

My dreams are coming true.

I hope this passes, but I'm not getting my hopes up. It's been tried several times in the past and always come sup short. InBev has a lot of pull. I would just really like it if I could buy my kegs directly from the brewery, instead of having to go through a liqour store.

This bill is not all its cracked up to be. The only on site sales would be pints, I believe up to 3 per customer. No growler fills, no keg/bottle/cans to go. The bill also takes away the brewery's rights to sell their distribution rights, they have to give them away free, even though the distributor can then sell them to another distributor. Its anti-craft bill according to most craft brewers in TX. Its good for distributors and brewpubs only. If you want to read more read the opinions of Michael Peticolas, a lawyer and founder/brewer of Peticolas Brewing in Dallas:
http://peticolasbrewing.blogspot.com/2013/03/anti-craft-beer-bill-sb639-mars-craft.html

Well crap. Being able to buy kegs and growlers would be awesome.

Has anyone read the text from SB 516 - 518? There's more included than 3 pints if this passes through. For distributorship, if you make less than 125,000 BBL you can sell up to 40,000 BBL to the same persons that a licensed distributor can sell to. For sale to ultimate consumers, if you make up to 225,000 BBL you can sell up to 5,000 BBL to ultimate consumers on premise. These seem like good changes to me.

*EDIT* for typos. It's early

USMCPayne said:

Has anyone read the text from SB 516 - 518? There's more included than 3 pints if this passes through. For distributorship, if you make less than 125,000 BBL you can sell up to 40,000 BBL to the same persons that a licensed distributor can sell to. For sale to ultimate consumers, if you make up to 225,000 BBL you can sell up to 5,000 BBL to ultimate consumers on premise. These seem like good changes to me.

*EDIT* for typos. It's early

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Have ou compared this to the current situation? If you make 75,000 or less Bbl you can sell it all to bars/retail establishments, so this actually takes away 35,000 bbls a year you can self distribute. The only benefit to the craft brewers is the selling on site, which is limited to pints, not growlers, or anything to go. So to see benefit they have to set up a bar, hire bartenders etc...

Can you point me to where it specifies what they can sell (pints vs growlers)? I can't seem to find that and would like to read up on it.

USMCPayne said:

Can you point me to where it specifies what they can sell (pints vs growlers)? I can't seem to find that and would like to read up on it.

Click to expand...

SB 518 states they can sell up to 5,000 bbl directly to consumers for consumption on the brewer/manufacturers premise. That means no to-go sales, no growlers, bottles, sixpacks, or kegs can be sold to go.

ftp://ftp.legis.state.tx.us/bills/83R/billtext/html/senate_bills/SB00500_SB00599/SB00518S.htm

Indytruks138 said:

SB 518 states they can sell up to 5,000 bbl directly to consumers for consumption on the brewer/manufacturers premise. That means no to-go sales, no growlers, bottles, sixpacks, or kegs can be sold to go.

ftp://ftp.legis.state.tx.us/bills/83R/billtext/html/senate_bills/SB00500_SB00599/SB00518S.htm

Click to expand...

True, SB 518 says if you make up to 225,000 BBL you can sell up to 5,000 BBL per year for ultimate consumption, i.e. pints on premise.

However, SB 517 says if you make up to 125,000 BBL you can sell up to 40,000 BBL to the same people that a general distributor can, on premise. This is growlers, 6-packs and other "to-go" sales as you put it.

517 is not referring to on site sales. It is referring to self-distribution, they are allowed to sell to the same people a distributor can, i.e. bars, gas stations, supermarkets, beer/wine/liquor stores. Distributors are not allowed on-site sales, only distribution to retailers, that is the 3-tier system. Manufacturer, Distributor, Re-seller. 517 is extending the right for smaller brewers to continue to self-distribute, it is however limiting the amount they can self distribute down to 40,000 barrels. I promise you, these new laws are not allowing growler or to go sales at craft breweries.

Indytruks138 said:

517 is not referring to on site sales. It is referring to self-distribution, they are allowed to sell to the same people a distributor can, i.e. bars, gas stations, supermarkets, beer/wine/liquor stores. Distributors are not allowed on-site sales, only distribution to retailers, that is the 3-tier system. Manufacturer, Distributor, Re-seller. 517 is extending the right for smaller brewers to continue to self-distribute, it is however limiting the amount they can self distribute down to 40,000 barrels. I promise you, these new laws are not allowing growler or to go sales at craft breweries.

Click to expand...

That is how I understand things too. Hopefully next time we can get to go sales.

The text of SB 517 states, "(b) The total combined sales of beer under this section, together with the sales of ale by the holder of a brewer ’s permit under Section 12.05 at the same premises, may not exceed 40,000 barrels annually."

Am I misunderstanding the meaning of "at the same premises"? I don't speak legal very well

USMCPayne said:

The text of SB 517 states, "(b) The total combined sales of beer under this section, together with the sales of ale by the holder of a brewer ’s permit under Section 12.05 at the same premises, may not exceed 40,000 barrels annually."

Am I misunderstanding the meaning of "at the same premises"? I don't speak legal very well

Click to expand...

Yes, you are reading this very wrong. They are speaking to the manufacturers and brewers license at the same premise, not the sales at the premise. 517 does not speak at all to on premise sales, only 518 speaks to on-premise sales and clearly states only for on-site consumption. 517 is only speaking to the rights to self-distribute up to 40,000 bbl instead of contracting with a distributor to sell to bars and retailers. They are completely different bills.

Ok, that makes a little more sense. Well, if they can self distribute, then theoretically they could distribute growlers and the like, yea? So, you could just go to the store (which may be closer to you in the first place). Seems at least like it's a step in the right direction. We know that change, especially with law, is a slow process. OpenTheTaps seems to have their foot in the door and maybe we can hope for additional changes in the years to come.

Thanks for straightening me out!

USMCPayne said:

Ok, that makes a little more sense. Well, if they can self distribute, then theoretically they could distribute growlers and the like, yea? So, you could just go to the store (which may be closer to you in the first place). Seems at least like it's a step in the right direction. We know that change, especially with law, is a slow process. OpenTheTaps seems to have their foot in the door and maybe we can hope for additional changes in the years to come.

Thanks for straightening me out!

Click to expand...

Yeah they could technically sell a growler through the store the way you can buy a growler of Rogue's Dead Guy. The appeal of growler fills is going to the brewery and getting a great price on a rare beer, and being able to re-use your container so it cuts down on teh cost. There is no cost savings if the brewery is having to sell growlers in the store where there is no refill option. It is a step in the right direction to allow on-site pint sales indeed, but breweries already had self distribution if they weren't over 75,000 bbl, that maybe only affected Saint Arnolds or Shiner? They both def use distributors anyways. The bill is a mixed bag but Open The Taps is def fighting the good fight and trying to make positive change!