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Monday, February 23, 2009 , Updated

Texas brewers hoping for “parity amendment” support this legislative session

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According to a recent email from the Rahr & Sons Brewery in Fort Worth, potential amendments being introduced in the current legislative session could have a big, positive impact on brewers in Texas. State Representative Lon Burnam and Senator Wendy Davis have each sponsored the "Texas Brewers Parity Amendment" in their respective houses in the Texas state congress (House Bill 1062 and Senate Bill 754). For more information on how this would affect local breweries, read an excerpt from the Rahr Brewery missive below:

As many of you know Texas breweries are prohibited by law, from selling beer directly to the public at their breweries - no 6 packs to take home on Saturday or kegs to purchase directly from the brewery for that special party at home.

While this is no great imposition to the public, it has had a significant impact on the number of, and financial health of, Texas brewers. There are only 8 commercial package breweries in Texas (this does not include brew pubs). In other states - CO, WA, OR, CA. NY etc - there are many times the number of craft brewers than in Texas. In California for example there are over 150 breweries. Many of these beers are well known here in Texas.

Texas is the 2nd largest beer market in the US, next to California. So why are there so few craft brewers in Texas? We believe it is because Texas brewers are required to grow almost solely through the Texas wholesale distribution system. This system has served Texas well but it takes a very long time for a small brewer to build enough sales through this system before it is profitable.

In many other states including the ones noted above brewers can earn extra income, early in their development, through direct brewery sales to the public. These additional revenues can help sustain a young brewery while it builds sales through the wholesale distribution system.

In 2005 Texas Wineries were successful in changing these laws allowing Texas vintners to sell wine to the public at their wineries. Texas brewers are not only seeking PARITY with Texas wineries but also with the many out of state breweries which sell their products in the Texas market and that also prosper through direct sales to the public at their breweries in their home states.

Texas brewers are not asking for special treatment - just PARITY. We don't mind the ever-increasing number of new beers entering the Texas market - they make us work harder to produce even better beers. However, without this amendment we feel that Texas is exporting brewery jobs to other states and in turn importing the results - there is no shortage of new craft brands of beers from out of state on our store shelves.

Source: Rahr & Sons Brewery



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Chris Kidd, says:

I have to agree, this is one of the dumber laws on the Texas books. Alot of this is perpetuated by the TABC and their almost mafia-esque hamstrung control of the industry that only allows distribution companies sell to the public. Id love to see this law reversed, as id rather be able to head down to a micro/craftbrewer and purchase fresh product than be forced to pay a markup at the beer store.

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9 months ago
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John McClelland, says:

The distributors control the flow of beer and the flow of campaign contributions.

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9 months ago
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Scott Doyle, says:

Pls bump this if passed. Have a feeling I'll be making more trips than before to McKinney for some fresh Franconia.

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9 months ago
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