Alcohol Regulation Roundup

Alcohol Regulation Roundup: April 10, 2013

by Michelle Minton on April 10, 2013

in Alcohol Regulation Roundup, Features

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National: Constellation Brands revealed this Monday that a preliminary deal has been reached regarding the sale of Gupo Modelo — the maker of Corona. The $20 billion deal was stalled when the DOJ filed a suit to stop the merger of Modelo and Anheuser-Busch (ABI), citing anti-trust concerns. In the revised deal, it seems that ABI would sell its 50 percent ownership of Crown Imports to Constellation Brands — giving Constellation full control of Crown — the importer of Corona in the U.S. That, along with the sale of the Modelo’s Piedras Negras brewery to Constellation, appears to be enough for the DOJ to allow the merger to go through.

Alabama: The House of Representatives approved a bill earlier this month that would legalize home brewing in Alabama — the last state that maintains a ban on the activity. Representatives voted 58-33 in favor of the bill that would allow those 21 and older to make up to 15 gallons of beer, wine, mead or cider every three months so long as they are not in a dry county or city. The measure now moves to the Senate for consideration.

Arizona: Two sisters who wanted to open a combination vineyard and brewery were thwarted by an Arizona law that banned such combinations on the same property. However, the Governor signed legislation last week reversing the ban.

Florida: Bills that would legalize the standard growler (64 ounces) in Florida are essentially dead after The Florida Beer Wholesalers Association, which opposed the bill, convinced Rep. Debbie Mayfield, R-Vero Beach, not to give it a hearing at the House Business and Professional Regulation Subcommittee she chairs. Currently, only 32 ounce containers or gallon-sized containers may be filled by breweries.

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Alcohol Regulation Roundup: January 25, 2013

by Michelle Minton on January 25, 2013

in Alcohol Regulation Roundup, Deregulate to Stimulate, Features, Personal Liberty

National: According to the Brewers Association, the trade group that represents smaller craft breweries, the Small BREW Act will be reintroduced in Congress in January 2013 after failing to come to a vote in 2012. H.R. 1236 and its companion legislation, S. 534, would have reduce excise tax rates for small brewers (those making under 6 million barrels a year), from $7.00 to $3.50/barrel on the first 60,000 barrels and $16.00 per barrel on beer production above 60,000 barrels up to 2 million barrels.

Alabama: Rep. Mac McCutcheon has proposed a bill that would legalize home brewing in Alabama — at least a very small amount of it. If passed, HB 9 would make Mississippi the only state maintaining a ban on home brewing. The bill would allow Alabamians to legally brew up to 13 gallons of beer, wine, cider, or mead every three months.

Colorado: Rep. Kevin Priola thinks he’s found a way to solve the ongoing battle to get full strength beer in grocery stores. Currently, grocery and convenience stores may sell beer with an alcohol content of 3.2 percent or less. Priola’s bill would let stores carry full strength beer made by “craft” brewers — that is, beer makers who produce less than 6 million barrels a year. MillerCoors and AB InBev will almost certainly push back against the move, as will liquor manufacturers being left out in the cold. When you try to change an entrenched system you will never make everyone happy, but perhaps this different approach is the step forward that can get the ball rolling.

District of Columbia: It’s now officially legal for stores to sell and deliver liquor on Sundays. On January 15, 2013, D.C. Mayor Vincent Gray signed the Omnibus Alcoholic Beverage Regulation Emergency Amendment Act and by the next day the Alcoholic Beverage Regulation Administration began accepting applications from liquor stores hoping to stay open on Sundays. In addition to Sunday sales, growlers (reusable containers holding up to 64 fluid ounces of beer) can now be sold and filled by brew pubs, liquor stores, and full service grocery stores for off-site consumption.

Kentucky: Kentucky legislators are scrambling to respond to a court decision last year that overturned the state’s ban on selling wine and hard spirits at grocery stores and gas stations. The judge stayed his ruling, preventing stores from acting on the changed laws, but if the legislature can’t come to an agreement in the 2013 session, the ruling will go into effect.

Maryland: Lawmakers in Maryland have introduced measures (House Bill 4 and Senate Bill 32) that would allow breweries to sell beer on site, up to 6,000 barrels a year.

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Alcohol Regulation Roundup: Turkey Day 2012 Edition

by Michelle Minton on November 21, 2012 · 2 comments

in Alcohol Regulation Roundup, Features

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While most people in the U.S. are fantasizing about turkey slathered in gravy, yams, and pumpkin pie right now, beer connoisseurs throughout the nation — like me — are dreaming of the beer that they will savor at Thanksgiving dinner. This year we lovers of libations (not to mention the folks who make them) have a lot to be thankful for. While some states take steps backwards and others don’t seem to budge, we can raise our glasses to the increasingly liberal alcohol laws throughout most of the nation, that benefit of businesses and consumers and have contributed to making the U.S. one of the most vibrant environments for alcohol production.

Below is a collection of regulatory news items on proposed regulations or regulatory changes that affect the sale, production, and distribution of alcoholic beverages? Jump to the bottom of this post for suggestions on how to find the perfect beer to go along with your holiday meal. And remember, if you’re planning on buying alcohol you’d better check your state liquor laws. As I noted in my Christmas-ban post, many states have laws that make purchasing alcohol on a holiday difficult or outright impossible.

National: Should we be worried about the size and scope of America’s beer producers? Should we try to stop them from increasing in size or disallow them from distributing as well as producing beer? According to several publications, we should. The American Antitrust Institute released a white paper opposing a merger between Grupo Modelo — Mexico’s largest beer producer — and Anheuser-Busch, while an article in the Washington Monthly (echoed by Mother Jones) seems to suggest that we must stop brewers from merging or allowing them to distribute or we risk having a world where one company terrorizes the market and we have epidemic levels of alcoholism. I will have a more in-depth discussion on that in another post, but the short answer is: we shouldn’t be worried about stopping “big beer,” we should be thinking about how to get out of the way of craft beer. Up until recently, big beer companies had been experience a multi-year decline in sales, while craft brewers were experiencing a boom. There will not be a monopoly so long as small brewers can make and get their beer to market. Eliminate their taxes, let all brewers self-distribute, let them advertise, and we will never see a beer monopoly while Americans still have taste buds.

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Alcohol Regulation Roundup: Election Hangover Edition

by Michelle Minton on November 12, 2012 · 1 comment

in Alcohol Regulation Roundup, Features

How did the election affect alcohol laws? Alcohol is regulated by states, cities, counties and towns, and hundreds of them had alcohol-related measures on the ballot Nov. 6. Georgia alone had more than 100 alcohol-related items on various ballots. Tennessee voters approved six of seven alcohol-related ballot measures. Blount County, Alabama, voted to stay dry, but four counties in Arkansas and two in Texas voted to go wet.

Six cities in Ohio voted to allow alcohol to be sold on Sundays, as did Lancaster, York,  Greenwood and North Augusta counties in South Carolina and Clay and Holmes counties in Florida.

Illinois: Congrats to Anheuser-Busch on winning the right to be both beer maker and distributor in Chicago. Opponents claimed it was illegal for an out-of-state brewery to own a distributing license, but a judge determined such a law was discriminatory since in-state breweries could hold a distribution license. The Illinois Liquor Control Commission agreed and allowed AB to maintain a 30 percent ownership stake in City Beverage-Illinois — the largest distributor of Budweiser in the state.

Maryland: For the first time since prohibition, businesses in Damascus in Montgomery County will be allowed to sell wine and beer. Until last Tuesday’s vote, the town of about 15,000 residents had remained dry despite five attempts to lift the ban through a referendum vote.

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Alcohol Regulation Roundup: Election Day Edition

by Michelle Minton on November 6, 2012

in Alcohol Regulation Roundup, Features, Personal Liberty

While Mitt may not drink, many of the voting public and the candidates themselves hope to celebrate/drown their sorrows at the bar while the returns roll in. If you were planning on knocking a few back with friends at the pub, you might be in for an unpleasant surprise depending on where you live. A couple of states still ban all sales of alcohol on election day while others have some interesting restrictions — all of these so-called “blue laws” are hangovers from prohibition

Only two states, Kentucky and South Carolina, ban sales of all alcohol on Election Day, which includes sales at stores, restaurants, and bars. Unlike South Carolina, which seems content with the ban, some lawmakers in Kentucky, are attempting to update the laws.

According to a Time blog post on the issue, Kentucky Rep. Arnold Simpson has tried no less than 5 times to lift the ban and save the state’s bars and restaurants from the $4.5 million in revenue they reportedly lose for being closed on the day.

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Alcohol Regulation Roundup: October 19, 2012

by Michelle Minton on October 19, 2012

in Alcohol Regulation Roundup

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The only real change of late seems to be happening to leaves on trees. But on the alcohol regulatory reform front, the following states have taken baby steps toward updating their laws.

Alabama: Lawmakers in Alabama are talking about getting the state out of the liquor business. State Sen. Arthur Orr authored a bill that would eliminate the state’s 172 state stores and allow hard liquor to be sold by private retailers.

Illinois: In the next legislative session, State Rep. Keith Farnham plans to introduce a bill that would allow home brewers  to offer free samples at public gatherings. Although the bill is based on a similar Wisconsin law, Farnham worked with local home-brewing clubs to draft his specific proposal, which he says has a “good chance” of being approved.

Indiana: Though not on the official legislative agenda, it is likely Sunday alcohol sales will come up in the next session. Last May, Connecticut became the 49th state to allow Sunday sales, leaving Indiana as the last state in the nation to maintain its prohibition-era ban on Sunday off-site alcohol sales for all three categories of alcohol.

Kentucky: A district court judge halted an order that would allow gas stations and grocery stores to sell wine and liquor. In August, the same judge ruled the state’s laws banning wine and liquor sales at gas stations and other retailers was unconstitutional, but he ordered sales not begin immediately so state regulators  could have a chance to address the statute without creating a “legal mess.”

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Alcohol Regulation Roundup: Columbus Day Edition

by Michelle Minton on October 3, 2012

in Alcohol Regulation Roundup, Nanny State, Personal Liberty, Regulation

Alcohol has a long and complex history in the USA. In fact, it’s probable that the Scandinavian Vikings that tried to conquer North America in the 10th century had plenty of mead on board their ships. While Christopher Columbus never actually stepped foot in the land we know now as the United States, he definitely made it to the Caribbean islands where he introduced sugar cane and kick-started the vibrant tradition of rum-making so many Americans enjoy today. But since the earliest days of settlement, a fight has been going on between those who want less alcohol and greater government oversight and those who believe alcohol should be cheaper and easier to make or purchase. Below are a few notable developments from various states.

National: As I wrote about last February, a Sioux tribe in South Dakota filed a lawsuit against beer stores and national beer manufacturers such as Anheuser-Busch. The tribe claimed that the stores and makers supplied alcohol to members of the reservation where alcohol is prohibited, causing $500 million worth of damages. This week, the lawsuit was dismissed by a federal judge in Nebraska who said the case belonged in a state court.

Alabama: Prohibition is alive and well in the Heart of Dixie. Newspapers reported that a small beer, wine, and homebrew supply store was raided by agents from the Alabama Alcoholic Beverage Commission (ABC). An attorney for ABC says it wasn’t a raid. They didn’t break down any doors, but they seize $7,000 worth of merchandise like boxes of beer brewing kits, carboys, immersion chillers, and books about brewing. Well, just as long as it isn’t a “raid.” Hopefully 2013 will be the year that Alabama legalizes home brewing. Mississippi and Alabama are the only two states that maintain the home beer brewing ban.

Also in Alabama, lawmakers are beginning to talk about how to reduce the state’s involvement in alcohol sales. Currently, it is one of eight states that maintains government-run retail liquor stores. Proponents claim that privatizing retail liquor sales could save the state between $40 million and $50 million dollars a year.

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Alcohol Regulation Roundup: Back To School Edition

by Michelle Minton on September 14, 2012 · 3 comments

in Alcohol Regulation Roundup, Nanny State, Personal Liberty, Regulation

Alabama: Up until last year brewpubs were illegal in Alabama due to a law that prevented beer being sold on the same site where it was brewed. Since the change, thanks to the efforts of the grassroots group Free The Hops, the state has seen about a dozen brewpubs open for business.

Also in Alabama: The liquor control board reversed its earlier ban on beer with “bastard” in the name thanks in part to those diligent ‘Bama beer fans who cried foul when ABC rejected the labels for use of “rough” language. Stay up to date with changes in Alabama beer laws by following @freethehops on Twitter.

California: San Rafael hops on the bandwagon by creating an individual rights free zone, I mean alcopop-free zone. Conjured up by neo-prohibitionist group “Alcohol Justice” (yes, that’s really their name), alcopop-free zones urge retailers to stop selling pre-made sweetened malt beverages like twisted tea and hard lemonade. For now, at least, it is a voluntary program.

Kentucky: Good and bad news out of the Bluegrass State. The good news is that a federal judge ruled in August that the state’s law banning wine and spirits sales in grocery and convenience stores is unconstitutional in violation of the equal protection clause.

The bad news is liquor stores filed an appeal less than a week later.

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Alcohol Regulation Roundup: Dog Days Edition

by Michelle Minton on August 13, 2012 · 1 comment

in Alcohol Regulation Roundup, Features, Nanny State, Personal Liberty, Regulation

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These days in D.C., the mercury regularly rises above the 90-degree mark right along with most of the U.S. As unpleasant as it might be to live on the surface of the sun, there’s nothing quite like enjoying a cold one with friends to celebrate as that damnable orb descends below the horizon each evening. Take a look below at the regulatory changes around our sticky nation that could affect the ease and cost of obtaining your preferred poison.

Alabama: is expecting an influx of new beers in coming weeks thanks to a change in the law that now allows beer to be packaged in bottles as large as 25.4 ounces where previously they were limited to 16 ounces in most of the state.

Arizona: The new growler laws go into effect this month allowing restaurants to fill the take-home jugs where before only microbreweries and brewpubs were allowed to do this.

California: Apparently California lawmakers don’t have a whole lot of pressing issues to deal with so they have to get into the business of regulating celebrities signing wine bottles. The State Assembly passed bill 2184 at the end of July which stipulates that 1) Consumers must not be required to buy anything to get an autograph, 2) They don’t have to pay a fee for the autograph, and 3) The store is required to pay for the services needed to carry out the autograph promotions. Where it gets really crazy is that the bill also stipulates that the retailer may advertise the event, but the brand owner may not (i.e., Jacob’s Creek couldn’t put an ad on its website or Facebook page). Also, it states the signing may happen in retailer shops, but not restaurants and that the brand owner may only visit a retail shop twice per year to do autograph sessions. As Tom Wark over at Fermentation: The Daily Wine Blog noted,

These and so many other alcohol regulations not only serve fears that originated 100 years ago and no longer matter, but now only serve to protect the financial interests who have used 100 year old fears to game the system to their own economic interests.

Also in California: beers aged in used wine barrels are officially still legally considered beer. Last month Gov. Jerry Brown signed a bipartisan bill ensuring that microbreweries don’t have to worry about aging beer in wine/liquor barrels. Some in the industry feared that because the beer derived some of its flavor from the barrels which previously held wine or liquor, that the beer might be considered a distilled spirit by the state, which would require much higher taxes.

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Alcohol Regulation Roundup: Friday The 13th Edition

by Michelle Minton on July 13, 2012

in Alcohol Regulation Roundup, Features, Nanny State, Personal Liberty, Regulation

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Happy Friday the 13th, everyone! Remember: raise your glasses with extra care this evening.

Connecticut: In a continued effort to remain competitive with alcohol sales in surrounding states, Connecticut’s Competitive Alcohol Liquor Pricing Task Force is planning to come up with recommendations for the General Assembly — one of which will likely address the state’s price-fixing scheme, which prevents liquor stores from offering discounts.

District of Columbia: Though Councilman Graham’s omnibus alcohol reform package clearly identifies some of the major issues facing the District’s booze-biz, many are calling his solutions ineffective at best. For example, the law that allows a group of five citizens to thwart liquor license holders is addressed in the package, but the only change Graham proposes is to require the five members to live within 400 feet of the offending establishment instead of the current 600 feet. For those following the plight of Hank’s Oyster Bar, you’ll note that this solution would not help the owners from this quintet of terror.

Additionally, the bill addresses the growler sales in the District. The good news is that the bill would open up growler sales to large, full-service grocery stores. The bad news is that it does not afford the same privilege to all retailers of beer. This kind of favoritism ultimately hurts the city’s economy by giving an unfair advantage to one type of retailer over another. He ought to open up growler sales to all licensed beer retailers.

Idaho: The privatization bill failed to get enough signatures to make it onto November’s ballot, but supporters are optimistic about 2013.

Missouri: Missouri Gov. Jay Nixon thankfully vetoed a liquor bill that would have tied alcohol producers to their distributors by putting their contract under “franchise protection.” Had it passed, the new law would have made it more difficult for producers (like wineries and breweries) to get out of contracts with their distributors. Franchise laws are almost universally bad and are used to limit competition in the market. After all, if you can’t be fired in favor of a competitor, what motivation would you have to perform more competently or offer better rates?

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