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| Texas craft brewers visited the State Capitol for Lobby Day in February (Texas Craft Brewers Guild). |
The Texas Craft Brewers Guild has announced support for three bills filed for consideration by the 89th Texas Legislature now in session. These proposals seek to address crucial aspects of brewery operations throughout Texas.
- Beer To You (SB 246 / HB 2441): would allow Texas brewers to safely and legally deliver and ship their products directly to consumers, mirroring paths to market already afforded to Texas wineries and all Texas retailers with the exception of brewpubs. Beer To You bills were first introduce during the 88th Texas Legislature, but were denied hearings in both House and Senate committees.
- Interfacility Transfer (SB 1240 / HB 4773): would reduce regulatory hurdles currently experienced by multi-location breweries simply trying to move their own inventory between their own facilities. Such barriers involve either having to pay a distributor to move their product, or being forced to structure their locations as separate business entities just to sell the product back to themselves.
- Beers For Steers (SB 1554 / HB 3336): would provide targeted tax relief for Texas craft breweries who donate their spent grain to local agricultural producers by offering an excise tax credit. This bill incentives brewers to support nearby businesses and keeps valuable resources in local economies while helping to lower feed costs for Texas farmers and ranchers.
"The craft beer industry is a vital part of the Texas economy, driving tourism, economic development, and job creation across the state," says Caroline Wallace, executive director of the Guild. "With these bills, we have a clear path to support our small manufacturing and hospitality businesses and enhance their ability to operate efficiently and sustainably."
Texas ranks third nationally in craft beer production, with the industry contributing $5.3 billion to the state's economy. Despite this significant economic impact, Texas sits at 48th when it comes to craft breweries per capita, underscoring substantial opportunity for continued growth in a large, highly populous state.
In the years following the COVID-19 pandemic, Texas has seen a rise in brewery closures and a slowdown in new brewery openings, reflecting the broader challenges faced by the hospitality industry.
Small breweries have contended with supply chain disruptions and increased costs of raw materials, capital, and real estate. Price hikes, driven by inflation and further compounded by environmental challenges and global factors affecting supply chains, have significantly impacted operational costs. With the industry already facing headwinds, it's essential that we examine laws currently inhibiting breweries' ability to compete effectively and return to growth in a rapidly changing marketplace.
"We are at a pivotal moment where legislative progress can profoundly influence the growth and success of the craft brewing industry in Texas," says Travis Bailey, government affairs associate for the Guild. "Our Texas beer laws have improved substantially over the past 12 years, and each legislative change has spurred brewery growth. Still, the market and consumer expectations have moved faster, and our craft breweries continue to face more regulatory hurdles and barriers to growth than their counterparts in many other states. It's time to modernize our laws to reflect the evolving needs and potential of this industry and enable Texas craft brewers to truly compete."
