State considers relaxing brew rule

Next month, the state is set to consider loosening the rules on what visitors can get when they visit a brewery. That would be a win in the craft beer industry’s campaign to sell suds more widely.

“If you cant go to a brewery and buy a beer, Georgia is going to remain behind other states when it comes to how the industry is growing, how profitable it is,” said Nancy Palmer, executive director of the Georgia Craft Brewers Guild, a industry group.

Georgia splits the beer business into three parts: brewing, wholesaling and retailing. A company that does one part generally cannot do the other parts, though brewpubs are an exception.

That three-tier system is similar in other states. It’s set up in part to limit the power of any one company that deals in the popular, but potentially problematic, product. In most other states, however, brewers can generally sell to the public. In some states, they can even sell to bars.

Soon, though, Georgia may let brewers start to tap the keg of direct public sales.

Don’t call it a menu, but under a rule change set for consideration by the Georgia Department of Revenue on May 6, breweries would be able to offer tours at different prices, which could come with different choices of “sample” or “souvenir” take-home beer.

Palmer said craft brewers don’t want to dismantle the three-tier system. Because of it, she said, mega-breweries cannot squash little guys by, say, owning bars that only sell company suds.

But Palmer said the law basically limits small brewers to one business model: selling to wholesalers.

Wholesalers say they think there is evidence in the number of breweries opening that the current system works well in the state of Georgia.

“Georgia’s system of production, distribution and retail outlets allows brewers of any size, whether they are new to the market or established brands, to be distributed to the more than 47,000 alcohol retail outlets, restaurants and bars across the state,” said Georgia Beer Wholesalers Association Assistant Director Martin Smith via e-mail.

Smith said wholesalers work with brewers and lawmakers to enact changes that encourage industry growth.

But plenty of lawmakers are interested in the issue.

State Rep. Michael Caldwell, R-Woodstock, got a majority of House members to sign a resolution this year that would create a study committee on craft brewery competitiveness. He wanted a look at how other states have rebalanced their three-tier systems. He said craft-brew growth could mean thousands of jobs for the state.

“Let’s see what sister states are doing that works. These breweries would love to come to Atlanta. Georgia’s a great market for them. But we make it prohibitively expensive for them to do business here,” Caldwell said.

That bill did not pass the House. Caldwell blamed poor timing in a year when the House limited the number of study committees it created.

This story was originally published April 19, 2016 at 5:49 PM with the headline "State considers relaxing brew rule."