Texas Craft Brewers Sue To Overturn State Regulation

[TexasTowelie]

A group of Texas craft brewery owners are suing to overturn a state law that affects their distribution rights.

Until a few years ago, beer distributors in Texas used to pay craft breweries for the right to sell their product. But in 2013, state lawmakers passed a bill that brought sweeping changes to the industry. Breweries could no longer accept payment for their “territorial rights” – in other words, the right to distribute their beer.

Chip McElroy is the owner of the Live Oak Brewing Company in Del Valle. It’s one of three breweries that are suing the Texas Alcoholic Beverage Commission to overturn the law.

“The ability to sell our distribution rights was taken away, and we now must give it to them for free, and they’re very valuable and everybody recognizes that,” McElroy said.

Read more: http://kut.org/post/texas-craft-brewers-sue-overturn-state-regulation

[TwistedTinkerbelle]

1. It's more or less a way to starve the smaller breweris out.

Revolver Brewery is in my home town. They were recently acquired by MillersCoors. They're still going to be brewing their brand specialties here in Hood County, but it was the only to ensure they (Revolver Brewery) could get their product out and beat the 2013 law. Still, it's a bad law and the state knows it, but again, corporations rule here and small businesses get screwed constantly.

This article came about it a little while ago. The owner of the brewery is one of the guys suing the state but I guess he gave in. The article kinda puts a good spin on it, but the truth is the acquisition is more about the survival of the business.

http://www.star-telegram.com/opinion/editorials/article96052712.html

[Javaman]

2. I hope this gets overturned...

this whole thing has been heavily influenced by the big name brand beer/alcohol lobbyists at the capital.

My neighbor owns Circle Brewery and it's been nothing but an uphill battle against this regulation.