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Louisiana's Beer Distribution Laws
Posted on 6/29/18 at 9:27 am
Posted on 6/29/18 at 9:27 am
Anyone have any insight if there is a chance our beer laws can get modified.
Currently it states:
Louisiana
License to self-distribute: No
La. R.S. 26:273
§ 26:273. Limitations on the issuance of state permits; exceptions. A. The commissioner shall not: (2) Issue a wholesale dealer's permit to a person or his spouse possessing a manufacturer's permit, retail dealer's permit of either Class A or Class B, or a microbrewer's permit.
I know Texas has had some success. Here are their laws.
Texas
License to self-distribute: Yes
Tex. Alco. Bev. Code § 74.08; Tex. Alco. Bev. Code Title III, Sec. 12A
There are two main provisions for self-distribution in Texas. Holders of a brewpub license may sell to retailers under § 74.08: Sec. 74.08. SALES BY BREWPUB LICENSE HOLDERS TO RETAILERS. (a) In addition to the activities authorized by Section 74.01, the holder of a brewpub license who holds a wine and beer retailer's permit and whose sale of beer, ale, or malt liquor consists only of beer, ale, or malt liquor manufactured on the brewpub's premises may: (1) sell malt liquor or ale produced under the license to those retailers or qualified persons to whom the holder of a general class B wholesaler's permit may sell malt liquor or ale under Section 20.01; and (2) sell beer produced under the license to: (A) those retailers to whom the holder of a general distributor's license may sell beer under Section 64.01; or (B) qualified persons to whom the holder of a general distributor's license may sell beer for shipment and consumption outside the state under Section 64.01. (b) With regard to a sale under Subsection (a)(1), the holder of a brewpub license has the same authority and is subject to the same requirements that apply to a sale made by the holder of a general class B wholesaler's permit. © With regard to a sale under Subsection (a)(2), the holder of a brewpub license has the same authority and is subject to the same requirements that apply to a sale made by the holder of a general distributor's license. (d) The total amount of malt liquor, ale, and beer sold under this section to persons in this state may not exceed 1,000 barrels annually for each licensed brewpub location or 2,500 barrels annually for all brewpubs operated by the same licensee. . . . . A holder of a brewer's permit can also apply for a self-distribution permit pursuant to Title 3, Chapter 12A: Sec. 12A.02. AUTHORIZED ACTIVITIES. (a) A holder of a brewer's self-distribution permit whose annual production of ale under the brewer's or nonresident brewer's permit, together with the annual production of beer by the holder of a manufacturer's or nonresident manufacturer's license at all premises owned directly or indirectly by the permit holder or an affiliate or subsidiary of the permit holder, does not exceed 125,000 barrels may sell ale produced under the brewer's or nonresident brewer's permit to those persons to whom the holder of a general class B wholesaler's permit may sell ale under Section 20.01(3). (b) The total combined sales of ale under this section, together with the sales of beer by the holder of a manufacturer's self-distribution license under Section 62A.02 at all premises owned directly or indirectly by the permit holder or an affiliate or subsidiary of the permit holder, may not exceed 40,000 barrels annually. © With regard to a sale under this section, the holder of a brewer's self-distribution permit has the same authority and is subject to the same requirements that apply to a sale made by the holder of a general class B wholesaler's permit. (d) Ale sold under this section may be shipped only from a brewery in this state.
Currently it states:
Louisiana
License to self-distribute: No
La. R.S. 26:273
§ 26:273. Limitations on the issuance of state permits; exceptions. A. The commissioner shall not: (2) Issue a wholesale dealer's permit to a person or his spouse possessing a manufacturer's permit, retail dealer's permit of either Class A or Class B, or a microbrewer's permit.
I know Texas has had some success. Here are their laws.
Texas
License to self-distribute: Yes
Tex. Alco. Bev. Code § 74.08; Tex. Alco. Bev. Code Title III, Sec. 12A
There are two main provisions for self-distribution in Texas. Holders of a brewpub license may sell to retailers under § 74.08: Sec. 74.08. SALES BY BREWPUB LICENSE HOLDERS TO RETAILERS. (a) In addition to the activities authorized by Section 74.01, the holder of a brewpub license who holds a wine and beer retailer's permit and whose sale of beer, ale, or malt liquor consists only of beer, ale, or malt liquor manufactured on the brewpub's premises may: (1) sell malt liquor or ale produced under the license to those retailers or qualified persons to whom the holder of a general class B wholesaler's permit may sell malt liquor or ale under Section 20.01; and (2) sell beer produced under the license to: (A) those retailers to whom the holder of a general distributor's license may sell beer under Section 64.01; or (B) qualified persons to whom the holder of a general distributor's license may sell beer for shipment and consumption outside the state under Section 64.01. (b) With regard to a sale under Subsection (a)(1), the holder of a brewpub license has the same authority and is subject to the same requirements that apply to a sale made by the holder of a general class B wholesaler's permit. © With regard to a sale under Subsection (a)(2), the holder of a brewpub license has the same authority and is subject to the same requirements that apply to a sale made by the holder of a general distributor's license. (d) The total amount of malt liquor, ale, and beer sold under this section to persons in this state may not exceed 1,000 barrels annually for each licensed brewpub location or 2,500 barrels annually for all brewpubs operated by the same licensee. . . . . A holder of a brewer's permit can also apply for a self-distribution permit pursuant to Title 3, Chapter 12A: Sec. 12A.02. AUTHORIZED ACTIVITIES. (a) A holder of a brewer's self-distribution permit whose annual production of ale under the brewer's or nonresident brewer's permit, together with the annual production of beer by the holder of a manufacturer's or nonresident manufacturer's license at all premises owned directly or indirectly by the permit holder or an affiliate or subsidiary of the permit holder, does not exceed 125,000 barrels may sell ale produced under the brewer's or nonresident brewer's permit to those persons to whom the holder of a general class B wholesaler's permit may sell ale under Section 20.01(3). (b) The total combined sales of ale under this section, together with the sales of beer by the holder of a manufacturer's self-distribution license under Section 62A.02 at all premises owned directly or indirectly by the permit holder or an affiliate or subsidiary of the permit holder, may not exceed 40,000 barrels annually. © With regard to a sale under this section, the holder of a brewer's self-distribution permit has the same authority and is subject to the same requirements that apply to a sale made by the holder of a general class B wholesaler's permit. (d) Ale sold under this section may be shipped only from a brewery in this state.
4
Posted on 6/29/18 at 9:28 am to BugAC
I know the distributors are paying our worthless state legislators well to keep our laws archaic. But there has to be some sort of common sense law where if a brewery produces under x amount of barrels, they are allowed to self distribute.
Posted on 6/29/18 at 9:32 am to BugAC
This was attempted this most recent legislative session as an amendment to allowing wineries to self-distribute, and my understanding is that it was tabled until next year.
Posted on 6/29/18 at 9:35 am to LSUBoo
quote:
tabled
By the distributors before the paperwork hit the committee's desks.
Posted on 6/29/18 at 9:35 am to BugAC
quote:
I know the distributors are paying our worthless state legislators well to keep our laws archaic
The parties the distributors throw during the session are legendary. And they change location frequently for security purposes!
Posted on 6/29/18 at 9:39 am to LSUBoo
quote:
This was attempted this most recent legislative session as an amendment to allowing wineries to self-distribute, and my understanding is that it was tabled until next year.
I thought i remembered something about this. Was there a reason given for tabling the discussion?
Posted on 6/29/18 at 9:53 am to BugAC
quote:
Anyone have any insight if there is a chance our beer laws can get modified.
Posted on 6/29/18 at 10:26 am to BugAC
God I hope we at least get a little progress.
Someone enlighten me on what happened three or four years ago with the change in the law that had an impact on how charities/non-profits had to deal with alcohol.
I had read that it was part of the reason the WYES Beer Festival was done away with. And my friends on committees for school fairs, etc were complaining about things being more difficult.
Someone enlighten me on what happened three or four years ago with the change in the law that had an impact on how charities/non-profits had to deal with alcohol.
I had read that it was part of the reason the WYES Beer Festival was done away with. And my friends on committees for school fairs, etc were complaining about things being more difficult.
Posted on 6/29/18 at 10:33 am to notiger1997
quote:
God I hope we at least get a little progress.
I don't want to do away with the 3 tier system. I think it's actually cheaper if you are a growing brewery to go this route. But if you wanted to start up a nano and just distribute kegs around the city, having to pay a distributor might make that cost ineffective.
Posted on 6/29/18 at 11:12 am to Lakeboy7
quote:
The parties the distributors throw during the session are legendary.
shite all of Mockler's parties are legendary.....I went to one of their Halloween parties about 15 years ago or so.....DAMN SON!!!
Posted on 6/29/18 at 11:14 am to BugAC
If only the local breweries were throwing money at a lawyer to help them fix the issues..........................That dude has the best job ever
Posted on 6/29/18 at 11:18 am to NotGrammarKnotsi
quote:
If only the local breweries were throwing money at a lawyer to help them fix the issues..........................That dude has the best job ever
They are being forced to fund the lobbyist working against them.
The craft beer lobby should fight to put one person in office, and make it known they are the reason why.
This post was edited on 6/29/18 at 11:20 am
Posted on 6/29/18 at 2:42 pm to fightin tigers
In my opinion, this is a short-sighted policy by the distributors. Louisiana is a growing craft beer market. Allowing nano breweries to self distribute will help grow the craft beer market, as well as help that brewery grow to the point where they will need distribution. Most breweries start small - brewing in the garage small. Without being able to self distribute, you have to have at least enough startup money to have a taproom. I suspect that prevents a lot of people from doing garage startups in LA.
As far as the politicians go, they should be run out of office for favoring out of state BMC over local craft breweries that should be opening brewpubs all over the state. Here in Oregon, it is very difficult to find a town of any size that doesn't have a brewpub in it. The economic benefit to the state is phenomenal (billions).
The size of the pie is not fixed with craft beer. I met a guy last weekend who had 12 cases of BA beer in his garage. He only "discovered" craft beer in December. His wife is about to kill him.
As far as the politicians go, they should be run out of office for favoring out of state BMC over local craft breweries that should be opening brewpubs all over the state. Here in Oregon, it is very difficult to find a town of any size that doesn't have a brewpub in it. The economic benefit to the state is phenomenal (billions).
The size of the pie is not fixed with craft beer. I met a guy last weekend who had 12 cases of BA beer in his garage. He only "discovered" craft beer in December. His wife is about to kill him.
Posted on 6/29/18 at 3:02 pm to Jax-Tiger
quote:
In my opinion, this is a short-sighted policy by the distributors.
And the politicians. It's part of the reason we are ranked near the bottom of most economic statistics in the country. Too many people set in their ways with the "i've been doing it this way for x amount of years, not about to change now". This is especially prevalent in our state legislature.
Posted on 6/29/18 at 3:13 pm to BugAC
I guess that the point I forgot to make is that a distributor makes more money selling a 4 pack of Ghost than he does a sixer of Bud. More people drinking craft beer means the distributors will make more money.
Posted on 6/29/18 at 3:19 pm to Jax-Tiger
quote:
I guess that the point I forgot to make is that a distributor makes more money selling a 4 pack of Ghost than he does a sixer of Bud. More people drinking craft beer means the distributors will make more money.
And the more nanobreweries the more the potential for larger scale breweries. Larger breweries require distribution = more business. The current model prevents that nano from even starting up.
Posted on 6/29/18 at 3:25 pm to Jax-Tiger
quote:
distributor makes more money selling a 4 pack of Ghost than he does a sixer of Bud.
The volume makes up for that. They’re selling 5-20 pallets of BMC every week at least depending on the size of the store. I don’t think ghost is doing that.
If you’re trying to make the point that if restrictions were lowered and you’d have a few hundred “parish” brewers selling at a higher price they’d make more money, I’d agree. But at some point the market probably gets too saturated.
I’m all for changes though. Big boy beer distributors have way too much power. Pretty much the power the 3 tier system was trying to prevent producers from having. Now producers basically run distributors.
Posted on 6/29/18 at 3:34 pm to TH03
quote:
The volume makes up for that.
Of course. I specifically said that a distributor makes more money selling a 4 pack of Ghost vs a 6 pack of bud. If 10% of beer drinkers switch from BMC to craft, the distributors win. That's in a zero sum game. The pie is growing larger, and more breweries will accelerate that growth, because the best ambassadors for local craft beer are not the Abitas of the world, but the small, local brewpubs.
Posted on 6/29/18 at 3:41 pm to Jax-Tiger
Alcohol pie doesn't actually grow, it just shifts.
Distributors aren't risking that on a fad.
Distributors aren't risking that on a fad.
This post was edited on 6/29/18 at 4:29 pm
Posted on 6/29/18 at 4:54 pm to fightin tigers
What is their risk? That drinkers go back to BMC? How long do we have to wait before it's no longer a fad? I'm still waiting for the automobile fad to blow over. I'm thinking it's going to be soon, because I have 3 19 year-olds and none of them has their driver's license.
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