HB 660

I support any legislation that advances the craft beer movement in equal opportunistic fashion.  I will also say out front that I support HB 660.  There are some issues that need to be addressed. 

Maximum production

As written 660 imposes a 75,000 bbl limit on production under a brewpub permit, excluding Shiner, Miller and Bud facilities(It’s worth noting Saint Arnold is around the halfway point of this mark). Why? If this bill is supposed to be an economic home run, why not make it a grand slam?  Why limit the size of a brewery that can obtain this new license?  Give Shiner, Miller and Bud a chance to tango as well, while allowing Saint Arnold to dip more than just a foot in. 

The problem with a limit is that almost regardless of the limit imposed it is going to suffer from being both too big and too small.  If it isn’t big enough, it’s just going to rub established breweries and brewpubs the wrong way.  If it isn’t small enough people will bitch and moan about X fold growth to potential brewpubs output without benefit to others. 

Timeframe

HB 660 will deeply affect Texas breweries and brewpubs alike.  Breweries will be faced with big decisions as to how much of the newly enacted law they want to take on.

 It’s not as simple as deciding, “ok we are open, pull up chair next to that bottling machine, here is your burger and beer, that’ll be 10 bucks. “  Point of Sales systems have to be implemented.  Buildings assessed.  Permits, tables, chairs, employees, loans, taxes, insurance……

It’s not just for breweries either.  Likewise brewpubs will need time to consider things like expansion opportunities, vehicle purchase, employees and learning the ins and outs of the retail system including delivering, invoicing, standing in the yellow lines and oh yes (welcome to hell) merchandising. 

September 1st is too early.  But waiting for another fiscal year is too long of a delay in my opinion.  Waiting ‘til December gives everyone more time to decide, act and file and will make a hell of a Christmas present. 

Don’t invite someone to a swimming party and then start playing basketball.  Or at least give them time to change lest some speedo may slap your face when I’m slammin’. 

HB 660 would be a game changer.  It would help Texas craft beer in a multitude of ways.  It is great for the consumer.  It will increase awareness of Texas beer in general. But don’t put a bill out that cracks the valve.  We aren’t gearing up for a freeze.  Open the damn thing up and let it rain like El Nino.  Comprende?  

Amend not abolish

If you read my last post on the 3-tier system you might think I want to rage against it all and tear down the whole system.  The truth is, by slightly modifying small portions of the TABC code we can make giant progress towards opening up healthy competition, generating additional tax revenue and providing better consistency in the law.

What should be added

Chapter 16 Winery Permit of the TABC permit, section 16.01 Authorized Activities:

5)     sell wine to ultimate consumers:

(A)  for consumption on the winery premises; or

(B) in unbroken packages for off-premises consumption in an amount

not to exceed 35,000 gallons annually

Add a similar section in the brewer’s permit. 

What should be changed

Sales of alcohol in general need not be restricted differently on any day of the week.  I understand that Sunday is special day for many people for many different reasons.  But we live in a much different society than we did when these restrictions were put into place.  We are a 24/7 world workforce now.  We have superstores, fast food, convenient stores and donut stands that never close.  Is it too much to ask for consistent alcohol sales hours?

The distinction between beer and ale need to be addressed.  Texas defines   beer as below 5% alcohol by volume (ABV).  Any thing above 5% is considered ale.  The problem with this law is that it makes Texan brewers look like a group of morons.  The definition of ale has nothing to do with ABV and everything to do with yeast selection. 

Enough is enough

Many may think that the later two points (Sunday sales, beer/ale distinction) are nitty.  But laws that don’t make since call in to question the entire body of laws and that is generally not desirable.   Limited brewery beer sales are healthy for brewers, wholesalers and retailers through increased exposure.  Opening up sales hours will prevent lost sales opportunities, which is better for the brewers, wholesalers and retailers.  Addressing the beer/ale distinction increases the sophistication of the Texas beer culture which is beneficial for, you guessed it, YOU.  Stay classy Texas

More legislative articles

Here are a few more articles on what is going on:

Crocker Blog

Austin Chronicle

I love Beer

Bills bills everywhere!

A couple of bills hit the floor in Texas this week.  One pertains to brewpubs and one to microbreweries.  Time to start contacting your Reps

HB 660
Essentially allows brewpubs to bottle and sell beer to distributors.  I am not as familiar with brewpub laws but I think this also calls for a call in maximum production per calendar year.

HB 602
This is the bill that would allow breweries to get beer to the ultimate consumer.  I don't say sell because the wording of the bill is such that the beer would be included in a brewery tour.   Get behind it and contact your state rep.

Baby Goats and 3X Tier System

Celebrator

No baby goats were harmed in the tasting of this beer.

Celebrator is a classic example of a Doppelboch.  "boch" is German for goat and traditionally these beers are brewed before Christmas.  Whats the astrological sign in December again?  Ohh yes, its a goat.  How cool!  To aid in the tasting, and to lend an air of sophistication I have procured a baby goat for this tasting.

The beer is beautiful.  A dark amber color with a thick bullet proof head of a cream/tan color.  The nose is amazing as well.  Brown sugar, caramel and a bit of fruitiness like an apple.  

It has a nice full body and the taste follows the nose-- though I was not able to pick up any apple flavor and the aroma subsided as the beer warmed.  

This beer goes great with BBQ, I had a couple of Earl Campbell's with mine.  At 6.5%, celebrate with respect!

Three Tiered System

Most people walk into a grocery store or bar, buy a beer, take it home and never think any more of the transaction.  But where does that beer come from?   The brewery right?  That's why you see all those giant beer trucks running around.  Wrong.  

At the end of prohibition in 1935 the TABC was established to make sure that gangsters would never use alcohol as a way to leverage the little man into debt and then into a life of crime.   There was a lot more that went into the thinking I'm sure but protecting shop keepers is specifically mentioned in the code in an aside.

The TABC decided that the best way to protect us was to create the Three-Tiered System(here on TTS).  TTS separates Manufacturers, Wholesalers and Retailers in to three completely separate groups that may not overlap in ownership, duties or functions.  

For example,  a Brewer is allowed to brew beer but not sell it.  A wholesaler can sell beer to a retailer but not to the ultimate consumer.  A retailer can sell be to the ultimate consumer but can not produce beer.

There are exceptions, for example brewpubs and the ability of small breweries to self-distribute.  But for the most part, TTS must maintain a separation. 

Supposedly, some nefarious individuals were making hooch themselves then turning around and delievering it on credit to a barkeep.  The barkeep must have been a bad business man because A) he was dealing with gangsters B) he went into debt and C) he couldn't pay his bills!  Nonetheless, the nefarious gangsters supposedly would come back with "an offer" the barkeep "couldn't refuse" i.e. wheel and deal our drugs and guns and hookers or we will shoot your face off!

It gets dense from here, but I think we have made some solid headway.  Share this with your friends and stay tuned for more info on the state of Texas Beer!  It is a really important time for beer and the only way to make change is to band together.

Until next time...

New Year for Beer

I could write a book on what is wrong with TABC regulation.  But I’ll start with 2 things I would love to see changed in 2011.

Breweries should be able to sell packaged product to end consumer

The laws that govern breweries are outdated and go against the free market principles that the conservative majority of this state claim to be proponents of while limiting the consumer in a way that is not beneficial to anybody.

The brewery and the beer drinking public are obviously limited by current regulations.

 You might make the argument that wholesalers would be affected and lose profits.  I disagree and believe that it would lead to more sales for the wholesaler.

  The wholesalers would miss out on some sales, but the convenience of going to the store close to your house as opposed to trekking out to the brewery will trump.  Most Brewery beer sales would come from individuals attending in house brewery events (tastings) whom tasted something they enjoyed and wanted to enjoy more at home.  These same fans would then be inclined to purchase more of said beer.  Once again the convenience of picking up beer on your grocery trip is more appealing than trekking to the brewery every time. 

  Wineries can do it.  Both are fermented, both alcoholic, both in bottles and Wine is more potent (on average). 

Stores should be able to sell alcohol before noon on Sunday

In Texas, before noon on Sundays you can’t purchase a 6 pack at a local grocer.   You can go to your local bar and grill(next door)  order a side of fries and proceed to drink a 6 pack before you drive home(I’m not suggesting that you ever drive intoxicated, only showing the absurdity of the law). 

What difference does it make that it is Sunday?  What does the day of the week have to do with responsibly consuming alcohol?  How much business does a grocer lose on Super Bowl Sunday because of this? 

What can we do?

It just so happens this is a Legislative Session year in Texas(starts 1/1/11).  That is special because they meet every 2 years. 

Start By finding out who represents you . 

And then take the time to call or email them.  Let them know that you love craft beer, the laws are outdated, you have a voters registration card and you aren’t afraid to use it. 

I will keep you posted with all the relevant news as it posts. 

Share it with your friends!