Posted On January 20, 2015
The 2015 Montana Brewers Act will allow Montana’s craft brewing industry to grow within the current three-tier system that regulates the production, distribution, and sale of alcohol in the state. The goal of the legislation is to allow microbreweries to keep their tap rooms and employees as they grow, and to provide brewers with choices about how they can grow their business. It will ensure that brewers, their businesses, and employees are not penalized for success by current artificial limits.
“I am proud to sponsor legislation that will allow the craft brewing industry to grow and continue employing people in my district and across Montana,” stated Representative Pat Noonan, D-Anaconda. “This bill is a common-sense-solution that allows the craft brewing industry to become an even greater point of pride than it already is in our communities and our state. This bill will provide a boost to the Montana economy by providing brewers with clear paths to grow and expand their businesses, grow jobs, and produce more beer for in state and out of state distribution. ” continued Noonan.
The Montana Brewers Act is a product of collaboration of industry members who met throughout this past interim to hammer out a solution. This industry coalition included 15 members, including the Montana Brewers Association, the Montana Tavern Association, the Montana Restaurant Association, the Gaming Industry Association, the Montana Beer and Wine Distributors Association, and the state’s Alcohol Control Division, and is a solution that most industry members support. The solution lifts the 10,000 barrel sample room limit to 60,000 and allows breweries to grow beyond 10,000 barrels and not cause them to close their tap rooms and forfeit the ability to sell their beer on premise. Brewers exceeding 10,000 barrels will be able to operate modest tap rooms with on-premise consumption of not more than 500 barrels annually. Additionally, the bill allows brewers to co-locate a retail license, if they choose, under the brewer’s name for those brewers that prefer to sell their beer past 8pm and to have greater retail ability. Sam Hoffmann owner of Red Lodge Ales in Red Lodge, and a member of the coalition said: “I am happy to have worked with our partners in the industry on this compromise bill. Retail-focused breweries can participate in Montana’s retail system, and production breweries can continue growing without shutting down their popular tap rooms.”
And current taverns who would like to get into the brewing side of things and purchase a brewers license and hold them under the same name, and to provide stability co-located license holders are limited to holding only two additional retail licenses. “Some of our taverns and restaurants would like the opportunity to serve their customers a beer that was crafted in house and to transition their businesses more toward the brewpub model and this compromise will allow them to do just that” said Mike Hope President of the Montana Tavern Association. Brad Anderson, representing the Restaurant Association on the coalition, and owner of Montana Buffalo Wild Wings in Montana stated, “This bill supports the three tier system and allows all members to participate in the growth in the industry, while placing parity on the industry”.
Josh Townsley, President of the Montana Brewers Association said, “Our goal is to give our members options. Current brewers and new entrants can continue to operate tap rooms, and are not forced to give them up as they grow. Craft Brewers have developed a reputation for providing outstanding craft beer in our communities, and the local and visiting public enjoys sampling our beers at our breweries. This bill will provide needed choice for brewers to successfully grow these small main street businesses in Montana”.
The only known opposition to the proposed legislation is the Montana Beer and Wine Distributors Association consisting of the 22 beer and wine distributors in Montana. Originally a member of the coalition of industry members who met throughout the interim, the MBWDA has since pulled out of the coalition in December of 2014, citing concerns about how the bill would affect the integrity of the three-tier system. Other industry members do not share this concern and point out that breweries in other states throughout the country are able to own retail licenses without disruption to the three-tier system, and that the “middle” tier is doing fine in those states. “Our brewers want and need our distribution partners in Montana, and we’d like them back at the table. This bill will not change the facts one bit that 97 % of all beer sold in Montana goes through the distributors, and only 3 % is sold directly by our brewers. To the contrary, it is likely that passage of this bill will send more beer through the distribution tier, added Townsley”.
For further information contact:
Tony Herbert, Executive Director of the Montana Brewers Association, 406-439-8075, [email protected],
John Iverson, Government Affairs Director of the Montana Taverns Association, 406-459-3344, [email protected].