MuddyCreek
Well-Known Member
They've introduced some legislation that likely won't pass but it's amazing the length to which they'll go in order to give vent to a sour-grapes mindset.
Due to some laws that were passed in the state some 40 years ago, the number of active liquor licenses is set. When the laws were passed, all the existing license holders were 'grand-fathered in'. Now, about 40 or 50 years later the seller's market for liquor licenses is completely out of control. (Recently a fellow in Missoula MT purchased a liquor license for nearly $500,000).
So, since breweries can acquire licenses at much more reasonable rates, and since breweries can serve a scandalous 48 ounces of beer up until 8:00 p.m. clearly this is utterly undermining the tavern industry in Montana. Those poor taverns can transfer their liquor licenses, they can have casino operations in their establishments, they can stay open until 2:00 a.m. and they can serve liquor as well as beer and wine but they are being completely driven out of business because of those nefarious breweries. (All 33 of them in the state.)
The legislation proposed would require existing breweries to pick up $100,000 beer and wine licenses. If said breweries produce more than 300 bbls a year, they would be restricted on how much of THEIR OWN PRODUCT they can serve in their establishment. (Despite the fact that they've picked up a beer and wine license for about 9 or 10 times what a restaurant can get one for...)
The legislation is completely intended to punish what has become the states most dynamic and fastest-growing industry. Last year over 50 million in revenue was produced by just 33 breweries. Clearly the microbreweries are doing good business, and I don't deny that there is a segment of the market that is NOT frequenting the taverns. However it is not reasonable to assume that once the Montana Tavern Association literally shuts down 30 of the 33 breweries in the state that they're going to automatically gain that lost 50 million in revenue.
Fortunately, the bill has very little chance of passing, mostly because it's so one-sided and doesn't actually contain any features that HELP the Tavern Association who is pushing it. Nonetheless, I find it irritating that an organization that was so instrumental in getting very restrictive laws passed two decades ago to limit the retail ability of breweries is now frustrated because those breweries have willingly worked within their legal frameworks and still found a solid business case for success.
Here's an idea. Don't buy a freakin' half million dollar license and assume you're going to break even within 2 months.
Due to some laws that were passed in the state some 40 years ago, the number of active liquor licenses is set. When the laws were passed, all the existing license holders were 'grand-fathered in'. Now, about 40 or 50 years later the seller's market for liquor licenses is completely out of control. (Recently a fellow in Missoula MT purchased a liquor license for nearly $500,000).
So, since breweries can acquire licenses at much more reasonable rates, and since breweries can serve a scandalous 48 ounces of beer up until 8:00 p.m. clearly this is utterly undermining the tavern industry in Montana. Those poor taverns can transfer their liquor licenses, they can have casino operations in their establishments, they can stay open until 2:00 a.m. and they can serve liquor as well as beer and wine but they are being completely driven out of business because of those nefarious breweries. (All 33 of them in the state.)
The legislation proposed would require existing breweries to pick up $100,000 beer and wine licenses. If said breweries produce more than 300 bbls a year, they would be restricted on how much of THEIR OWN PRODUCT they can serve in their establishment. (Despite the fact that they've picked up a beer and wine license for about 9 or 10 times what a restaurant can get one for...)
The legislation is completely intended to punish what has become the states most dynamic and fastest-growing industry. Last year over 50 million in revenue was produced by just 33 breweries. Clearly the microbreweries are doing good business, and I don't deny that there is a segment of the market that is NOT frequenting the taverns. However it is not reasonable to assume that once the Montana Tavern Association literally shuts down 30 of the 33 breweries in the state that they're going to automatically gain that lost 50 million in revenue.
Fortunately, the bill has very little chance of passing, mostly because it's so one-sided and doesn't actually contain any features that HELP the Tavern Association who is pushing it. Nonetheless, I find it irritating that an organization that was so instrumental in getting very restrictive laws passed two decades ago to limit the retail ability of breweries is now frustrated because those breweries have willingly worked within their legal frameworks and still found a solid business case for success.
Here's an idea. Don't buy a freakin' half million dollar license and assume you're going to break even within 2 months.
