Georgia Lawmakers Consider Legalizing Self-Distribution, Removing To-Go Sales Cap
Georgia craft brewers may soon have more options to take their products to market, as the state Senate is considering a bill that would legalize self-distribution.
The Craft Beer and Local Economy Revitalization Act (S.B. 122) would permit small breweries to sell up to 3,000 barrels annually “to retailers licensed in this state that are located within a 100-mile radius of the small brewer’s licensed premises,” the bill reads.
S.B. 122 was read and referred to the Senate Regulated Industries and Utilities Committee on February 10. The Georgia Craft Brewers Guild said it expects the committee to vote Tuesday, February 25.
“Georgia’s craft beer scene has been thriving, but restrictive laws have compounded other challenges and more breweries are being forced to close,” the guild wrote. “S.B. 122 would provide more flexibility, create jobs and boost local economies.”
The guild called for members and supporters to contact local legislators asking them to vote in favor of the bill, and share information about it on social media.
In addition to self-distributing to licensed retailers, small breweries would also be able to sell their beer to other breweries and brewpubs, and vice versa.
Georgia law defines a brewery as “small” if it does not account for 15% or more of a wholesaler’s overall sales within a calendar year.
If adopted, S.B. 122 would also remove the 288 oz. per person daily cap on off-premise sales at taprooms. However, it would limit beer to-go sales at “6,000 barrels in the aggregate among all brewer’s licensed premises making such sales.”
In addition to making it easier for small Peach State breweries to sell beer, S.B. 122 would also permit them to give it away. Small brewers would be able to donate beer to any “bonafide non profit civic organization” with a “charitable event permit” that allows for alcohol consumption.
Beer donated to events “shall not exceed the amount necessary for the permitted charitable event,” according to the bill. Any beer not consumed during the event must be returned to the brewery, and only the event permit holder or the brewery can transport the beer to and from the event location.
“This bill will allow Georgia’s craft brewing industry to generate more in tax revenue and support thousands of jobs, while removing barriers to further growth,” Brewers Association (BA) state government affairs manager Sam DeWitt wrote in a post about the bill. “It will also allow Georgia brewers to better compete with neighboring states, while giving consumers more choice.”
The Peach State is home to 181 craft breweries, ranking 18th in number of breweries, but with just 2.3 breweries per capita ranks 45th nationwide, according to 2023 data from the BA. Those breweries collectively produced 495,990 barrels of beer and generated $2.024 billion in economic impact in 2023.
In addition to Georgia, nine other states ban self-distribution: Alabama, Delaware, Florida, Kansas, Louisiana, Mississippi, Missouri, Nevada and South Carolina.
Idaho Considers Self-Distribution Expansion to Out-of-State Breweries
A bill in Idaho (House Bill 276) would grant self-distribution privileges to out-of-state breweries so long as they maintain warehouses in Idaho.
The new law would apply to any brewery making fewer than 30,000 barrels annually. Any beer brought to Idaho for self-distribution would have to stay in the brewery’s warehouse for at least 24 hours, according to the bill.
“The in-state warehouse requirement ensures that all beer products produced in or transported into Idaho are subject to inspection,” the bill reads.” In that regard, the Idaho Legislature declares that maintaining a brewery or a physical warehouse in the state of Idaho is paramount in the interest of protecting the health, safety, and welfare of Idaho citizens and for the establishment of an orderly marketplace.
“Such physical presence achieves unquestionable jurisdiction, provides immediate accountability for suppliers, and provides the ability for regulators to remove bad actors and unsafe products from the market,” it continued.
H.B. 276 was introduced on February 20 and referred to the State Affairs committee.