Jun 15, 2013

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Craft Beer Legislation Signed into Law

Craft Beer Legislation Signed into Law
Texas Governor Signs Most Impactful Craft Beer Legislation in 20 Years

Austin, TX – June 14, 2013 – Today, Governor of Texas, Rick Perry, signed into law the most sweeping craft beer legislation of the last 20 years, improving the overall competitiveness of the Texas craft beer market. The laws, which go into effect immediately, are the result of the hard work of numerous stakeholders in the craft beer industry, including the Texas Craft Brewers Guild (TCBG), large brewers, distributors, retailers, and the grass roots consumer movement, Open the Taps. The TCBG applauds this progressive step forward in making Texas the epicenter of craft beer development and growth.A working group of these stakeholders, convened and led by Senator Leticia Van de Putte, was able to find common ground to advance Texas craft beer for the benefit of all involved. Following months of work, Senator Kevin Eltife introduced the package of craft beer legislation to the Texas Senate where it received approval in April of this year. The bills were then championed by Representative Wayne Smith in the House where they were approved earlier in May. The TCBG is grateful for the efforts of Senators Eltife and Van de Putte along with Representative Smith in advancing change that will lead to more craft beer for the consumer, more jobs for Texans, increased tourism and greater tax revenue for the State.

Senator Van de Putte (center) with (L-R) Vickie Jones, Davis Tucker, Scott Metzger and Amber from Senator Van de Putte’s office

Even prior to the enactment of these new laws, the Texas craft beer industry has regularly demonstrated its economic potential. In 2012, Texas Craft Brewers, defined as holders of a brewers, manufacturers, or brewpub license with under 225,000 barrels of annual production, produced 186,663 barrels (a barrel being roughly equivalent to two (2) kegs of beer), up 55,514 barrels or 42% over the previous year. Commensurate with the growth in production, the economic impact of the industry reached $737 million in 2012, compared with $608 million in 2011. Texas craft beer now accounts for an estimated 0.98% of all beer consumed in Texas, but it employees 59.7% of the people who work in breweries in the state.

Overall, the new laws assist Texas craft brewers in the following manner:

  • Gain the ability for packaging breweries to sell their products to consumers on the premise of their breweries
  • Gain the ability for brewpubs to sell their products into the wholesale tier while also increasing the annual product limit of brewpubs
  • Protect small brewer’s existing rights to self-distribute and build brand value
  • Achieve these goals while protecting the integrity and viability of the 3-tier system

    Craft beer bills are voted on in the House of Representatives. They went from there to the Governor’s desk where he signed them into law on June 14, 2013.

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