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Louisiana craft brewers launch public campaign for regulation overhaul
Posted on 12/15/21 at 10:39 am
Posted on 12/15/21 at 10:39 am
quote:
The Louisiana Craft Brewers Guild has put up more than 30 billboards in Lake Charles to urge lawmakers in town for the annual LegisGator event to take a hard look at how the state regulates the craft beer industry, Executive Director Cary Koch says.
The guild argues that Louisiana’s rules governing the industry are outdated and holding back the sector’s growth, which it considers a costly mistake in a state where good food and drink is an important aspect of the economic development brand.
“We are going backwards, because the rest of the nation is moving forward,” Koch says, adding that three breweries are establishing second locations outside the state. “We’re expanding, just not in Louisiana.”
Among several other changes, brewers would like lawmakers to consider letting small breweries sell directly to retailers rather than go through a wholesaler, which other states allow. Wholesale distributors say the system works pretty well as it is, stressing that it is in the best interest of both parties for the craft brewers to succeed.
This post was edited on 12/15/21 at 10:43 am
Posted on 12/15/21 at 10:41 am to cgrand
quote:
adding that three breweries are establishing second locations outside the state.
Parish?
Posted on 12/15/21 at 10:43 am to bnb9433
yes, i meant to bold that...fixed.
wonder who else?
wonder who else?
Posted on 12/15/21 at 10:43 am to cgrand
If this goes anything like last time... it will be all awesome until the big money-filled dick of the BMC lobby comes swinging through and then all those legislators will shoot this down without losing a second's sleep.
Posted on 12/15/21 at 10:44 am to cgrand
quote:
wonder who else?
Tin Roof
Posted on 12/15/21 at 10:45 am to bnb9433
quote:
Parish?
Kept telling you baws Andrew was relocating his headquarters to Fort Bend County. Broussard will just be like a field office or satellite location.
I believe Tiger Ryno confirmed.
This post was edited on 12/15/21 at 10:46 am
Posted on 12/15/21 at 10:46 am to ragincajun03
After Prohibition ended, the American beer industry was divided into three tiers: manufacturers, distributors and retailers. While manufacturers generally must go through a distributor to get to the consumer, many states allow exceptions for small breweries. But Louisiana brewers must sign an exclusive contract with a distributor to get their beer into a given market.
In theory, self-distribution might allow small brewers to play in the minor leagues for a while, keeping all of their sales revenue until they grow enough to need a distributor. At that point, the distributor could pick up a more established brand, while the brewer would be more likely to be a priority for the wholesaler.
In theory, self-distribution might allow small brewers to play in the minor leagues for a while, keeping all of their sales revenue until they grow enough to need a distributor. At that point, the distributor could pick up a more established brand, while the brewer would be more likely to be a priority for the wholesaler.
Posted on 12/15/21 at 10:46 am to ragincajun03
quote:
Kept telling you baws Andrew was relocating his headquarters to Fort Bend County
im fine with it since it's where i live
Posted on 12/15/21 at 11:08 am to bnb9433
Tin Roof and Urban South for sure have breweries outside of LA, not sure of the third one.
Posted on 12/15/21 at 11:09 am to cgrand
quote:
The Louisiana craft brewers ::: Here today, gone tomorrow
Louisiana is built with such a rich history of local music, food, festivals, culture, traditions and tourism attractions covering every square inch of our beautiful state. Louisiana is home to some of the worlds finest hard working people and look no further than the craft beer industry. This burgeoning industry across the state is stuck in a similar political rut that Louisiana business finds themselves in catching up to the rest of the nation. Louisiana is once again in a “Last Mover” position even when it comes to locally produced beer. The lobbying efforts for the status quo in the alcohol industry runs long and deep and have been able to stifle the small entrepreneurial business brewer from advancing in their craft.
The 21st century craft beer is growing leaps and bounds with other 9,000 craft breweries in the US. Every state is catching on by actions - when a pro-craft beer law is enacted, the result is growth in jobs, economic development, tourism, taxes and more family and community-based businesses. It’s time for Louisiana to get on track before we sit and watch this industry that is here today and gone tomorrow. It’s time to dust off the “Open for Business” sign that has been lost for years and we look forward to 2022 being a year of Louisiana Craft Beer Reform.
Unfortunately, our Louisiana Brewers Guild simply can’t compete with the lobbying efforts of those looking to keep the status quo. What we DO have and how we CAN compete is tackling our issues grassroots style…. hence the billboards put up all over the City of Lake Charles. Starting today and tomorrow, most of Louisiana’s political delegation will be in Lake Charles for the annual Legislator luncheon. These boards are there to catch their attention to help bring to light how desperately we need Craft Beer Reform in this state!
If you love craft beer, if you love your local brewery, if you find value in what they bring to your community then act NOW. Like this post, share this post and PLEASE PLEASE PLEASE tag your local legislators so they hear us loud and clear that we need their support.
Louisiana Craft Brewers RECOVERY 2021
• Allow Small Manufacturers to Sell Other Alcohol at their Facilities: Louisiana craft breweries are not only producing world class beer, their tasting rooms have also become community centers and tourist destinations. Many have on-site restaurants, offer tours of the production area, and host events like business meetings and weddings. Current law only allows them to serve alcohol that was produced on-site. To maximize how these businesses can operate, outside alcohol should be allowed to expand their offerings and give consumers more freedom of choice.
• Allow In-Bond Transfers of Beer Between Facilities: Some of Louisiana's breweries would like to open additional in-state locations. Current law prohibits beer to be transferred between facilities and sold to customers. This puts an undue burden on building these multi-location facilities - forcing some of our breweries to build second locations in other states.
• Allow Direct Beer Shipments to Residents: Louisiana law allows wineries, but not breweries to ship product directly to consumers. With COVID19 limitations on breweries, this could be a business-saving revenue stream. Currently 13 states allow direct shipping from brewery to consumer - our own breweries can ship to consumers in those 13 states. Each day, Louisiana breweries lose ground as out of state breweries ship to our residents because the state has no method to regulate this.
• Allow Direct to Consumer Delivery to Residents: Current law allows only microbreweries with a restaurant permit to deliver directly to residents through the 2020 legislation for DTC delivery. We should add manufacturers to the list of licenses that can partake in this new business model.
• Allow Microbreweries to Enter Distribution Market: Many Louisiana breweries are permitted as microbreweries, licensed as either an AG (bar permit) or a AR (restaurant permit). Although beer wholesalers across the state work with similarly permitted microbreweries from outside of Louisiana, state law prohibits our own microbreweries from distributing their product. This inadequacy denies consumers choice and prohibits growth of blossoming Louisiana based businesses.
• Remove Protectionist Distribution Contract Restrictions for Small Breweries: Louisiana law requires breweries to enter into exclusive agreements with wholesalers, with no expiration date, in order to get their product to market. It is virtually impossible for brewers to terminate or amend their distribution agreements. Wholesalers, on the other hand, are free to transfer or sell these distribution agreements with little recourse available to breweries. The 1993 "Beer Franchise Law" that enables this imbalance was clearly designed to favor licensed wholesalers. While such protectionism for wholesalers may be justified against multinational brewers, it puts an undue burden on small and independent Louisiana craft breweries. Louisiana should allow small breweries to terminate their distribution agreements more equitably.
• Allow Breweries to Self-Distribute Beer to Bars, Restaurants and Stores: Louisiana law requires retailers to purchase beer and wine from licensed wholesalers. Breweries and wineries are prohibited from self-distributing their products. This system was put in place to prevent large national and multinational alcohol manufacturers from dominating the retail market. It does not make sense for small local and regional breweries and wineries. The state should allow small manufacturers to self-distribute beer and wine to retailers.
• Provide Excise Tax Relief to Small In-State Breweries: Louisiana's beer excise taxes were recently raised with no consultation with its in-state breweries. Given the size and precarious nature of our small businesses, an excise tax credit for in-state breweries would be put directly back into our economy through investments in equipment, expansion and employment. This could be designed in a revenue-neutral way, ensuring no cost to taxpayers
Louisiana Craft Brewers Guild
Posted on 12/15/21 at 11:16 am to cgrand
quote:
Wholesale distributors say the system works pretty well as it is
I bet they do.
Posted on 12/15/21 at 11:19 am to cgrand
quote:
Wholesale distributors say the system works pretty well as it is,
Well of course they do! Who wouldn't want a piece of action and the ability to monopolize distribution in a given area?
Posted on 12/15/21 at 11:57 am to CoachChappy
Like lifetime Congress critters telling our government isn’t broken.
Posted on 12/15/21 at 12:11 pm to ragincajun03
quote:
I believe Tiger Ryno confirmed
That’s typically the opposite of confirmation
Posted on 12/15/21 at 12:17 pm to AscensionTiger
quote:
Tin Roof and Urban South for sure have breweries outside of LA, not sure of the third one.
Is Parish still contracting out of Florida?
Posted on 12/15/21 at 1:13 pm to cgrand
quote:
We are going backwards, because the rest of the nation is moving forward
And not just with beer …
I hope the brewers are able to get the necessary changes.
Posted on 12/15/21 at 2:34 pm to cgrand
quote:
Wholesale distributors say the system works pretty well as it is,
I do find that when you fore someone to buy a service, the provider of that service thinks the system works pretty well...
Not to get all PT on here, but in a state that professes to support small businesses, small government, and has almost super majorities in both sides of the legislative branch, it is an insane testament to corruption how these reforms continue to get defeated.
Posted on 12/15/21 at 2:50 pm to LSUBoo
quote:
Is Parish still contracting out of Florida?
For some reason I thought they shut that down due to quality control and consistency problems.
Posted on 12/15/21 at 5:28 pm to cgrand
quote:
But Louisiana brewers must sign an exclusive contract with a distributor to get their beer into a given market.
That sounds completely fricking ridiculous and idiotic not to mention anti-capitalist.
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