Texas Craft Brewers Guild outlines 2025 legislative agenda

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."

"Beer to You" bills seek to allow home delivery from Texas breweries

Members of the Texas Craft Brewers Guild gather for TCBG Lobby Day at the Texas Capitol (Photo: Emily Love).

Two bills introduced this week in the Texas Legislature seek to allow direct-to-consumer shipping and delivery from Texas breweries and brewpubs. The Texas Craft Brewers Guild (TCBG), along with its political action committee arm, CraftPAC, has strongly advocated for such an action as a means of supporting small businesses, increasing consumer choice and convenience, and creating more manufacturing jobs for Texans.

Dubbed the "Beer to You" bills and sponsored by Texas State Senator Pete Flores (SD 24) and State Representative Shelby Slawson (HD 59), Senate Bill 752 and House Bill 2003 seek to level the playing field with Texas wineries, grocery stores, liquor stores, and restaurants who already enjoy legal pathways to get their products on customers’ doorsteps. Currently, breweries and brewpubs are explicitly prohibited from engaging in home delivery, shipping, or even working with third party delivery apps for pick up from their facilities.

“In an era where consumers can have anything delivered to them with a swipe of a finger, convenience is paramount in the retail market and your license type shouldn’t be the barrier between your product and the customers that want it,” says Jon Lamb, owner of Red Horn Coffee House and Brewing Co. and Government Affairs Chair for the TCBG. “You can have wine shipped directly to your doorstep from a Texas winery, a six pack of beer added to your grocery delivery, or a margarita added to your taco and queso order. It's time to end the prohibition on breweries and brewpubs reaching their customers in this same way.”

Past actions by the Texas Legislature include a 2005 law allowing wineries to ship their products directly to consumers. The state's wine industry has blossomed since, growing from around 40 wineries in 2005 to more than 400 today. Not only that, Texas now ranks second in direct wine sales volume with more than 600,000 cases shipped annually to enthusiasts’ doors.

More recently, the Texas Legislature made temporary pandemic-era delivery privileges for bars and restaurants permanent with the 2021 passage of House Bill 1024, popularly known as the “Margs to Go” bill.

“The Texas Legislature has already demonstrated its support for the safe and legal delivery of alcoholic beverages to Texans’ doorsteps,” says Caroline Wallace, Executive Director of the TCBG. “With Beer to You, the Texas Legislature has an opportunity to support the growth of beer tourism in Texas as brewery visitors send products home, join beer clubs, and support their favorite small beverage producers regardless of proximity.”

Texans who want to support the fight for Beer to You can visit CraftPAC.org/BeerToYou to take action, either by signing a petition or making a monetary donation to CraftPAC.

Court ruling lifts ban on beer to-go for CANarchy

Image credit: Deep Ellum Brewing Co.

Deep Ellum Brewing Co. may now sell beer to-go from its production facility in Dallas, this after a Texas federal court ruled in favor of its parent company, CANarchy, in a case challenging regulations put forth by the Texas Alcoholic Beverage Commission (TABC).

In September 2018, a law authorizing beer to-go sales in Texas for brewers with production below 225,000 barrels a year went into effect. However, breweries operating under the CANarchy umbrella were excluded from the new law due to collective-wide barrelage.

CANarchy challenged the ban, based on arguments of discrimination against interstate commerce and its reading of the text of the regulation. The federal court recently agreed with CANarchy’s reading, a ruling that will allow beer to-go sales moving forward. 

“We’re beyond excited that the court ruled in our favor," says Matt Fraser, president and COO of CANarchy. "This allows us to join our fellow craft brewers to get the freshest beer possible to our fans in package format to-go including cans and crowlers.”

CANarchy was represented by Austin-based attorneys, Cobb & Counsel, whose practice focuses on regulatory compliance and litigation. For more information on the case, click here to read a summary found on the firm's website.

Beer-to-go passes Texas Senate as part of TABC Sunset Bill

Image: Texas Craft Brewers Guild.

Bringing years of legislative posturing to a successful end, substantial modernizations to Texas beer laws, including the ability for manufacturing craft breweries to sell beer-to-go, passed the Texas Senate Wednesday evening with a unanimous vote. Contingent upon the House concurring and the Governor’s signature on the bill, beer-to-go sales are expected to begin September 1, 2019.

“This legislation represents the most comprehensive and positive reform of the Texas Alcoholic Beverage Code (TABC) in a generation, while serving the entire industry from the manufacturer down to the consumer,” says Charles Vallhonrat, executive director of the Texas Craft Brewers Guild. “Brewers will see reduced regulation, the elimination of redundant licensing, and the ability to get product to market faster. Distributors and retailers will see a stronger market with even greater brand choice. And most importantly, consumers will enjoy the fruit of these improvements, including the ability to buy beer-to-go from their favorite brewery.”

Texas is currently the only state in the entire country to prohibit manufacturing breweries from selling beer-to-go. State Representative Eddie Rodriguez (D-Austin) and State Senator Dawn Buckingham (R-Lakeway) set out to change that this session by authoring companion bills HB 672 and SB 312, respectively. After both bills stalled in committee without being granted a hearing, the authors successfully attached beer-to-go amendments to the broader reforms of the TABC Sunset Bill, narrowly passing the House on April 25 before yesterday’s passage in the Senate.

Unanimous passage of both the beer-to-go amendment and the overall Sunset Bill in the Senate came after a stakeholder agreement was reached between the Texas Craft Brewers Guild, the Beer Alliance of Texas (BAT), and the Wholesale Beer Distributors of Texas (WBDT) compromising to reduce the per person beer-to-go limit from two cases to one case per day. Texas craft brewers owe a debt of gratitude to Sen. Brian Birdwell, Sen. Dawn Buckingham, Rep. Eddie Rodriguez, and Rep. Chris Paddie for their work bringing the industry, and in turn, the legislature, to consensus behind beer-to-go and other key aspects of the larger Sunset bill.

“For the first time in Texas, you will be able to take a little bit of your favorite craft beer home from a brewery to share with friends,” says Sen. Buckingham. “This is a huge win for craft beer enthusiasts and also for the tourism it brings. This legislation will help Texans celebrate our great products and share them with the world!”

While not codified in the bill itself, the three trade groups also agreed in writing to a 12-year moratorium on lobbying to raise or lower the allowable malt beverage barrelage caps currently in code to ensure stability in the market and security in business models.

“This enshrines some of our most important rights and lets brewers plan their businesses without the fear of capricious policy change at the hands of other industry stakeholders,” says Adam DeBower, legislative committee chair for the Texas Craft Brewers Guild and co-founder of Austin Beerworks.

Some of the modernizations to Texas beer laws in the TABC Sunset Bill include:

• Harmonization of “Beer” (currently specified in the code as a malt beverage under 5% ABV) and “Ale” (over 5% ABV) into the single category of Malt Beverage. Eliminating this old-fashioned distinction allows for permit consolidation for manufacturers and one set of rules for marketing practices, storage, taxation, reporting, etc. rather than today’s disparate rules for the two categories.
• Adoption of the lower, “Beer” excise tax for all malt beverages. This harmonization will result in an excise tax reduction for craft brewers currently paying the “Ale” excise tax on beers in their portfolios over 5%.
• Self-distributing breweries gain the right to have out-of-county warehouses for malt beverages which will allow them to serve greater areas of the state. Prior to this change, out-of-county warehousing of Ale (over 5%) has been prohibited.
• Comprehensive label approval reform so the federal COLA (Certificate of Label Approval) is accepted on the state level (as is currently allowed for wine and spirits in Texas, but not malt beverages). This streamlining will allow brewers to get fresh beer to market faster by reducing long wait times.

These reforms are poised to go into effect between 2019 and 2021. Texas craft brewers have been advocating for beer-to-go and other reforms contained in the Sunset Bill for over a decade. The movement to #FixTexasBeerLaws gained steam in the run up to the 86th Legislature with the formation of the Texas Craft Brewers Guild’s political action committee, CraftPAC. Overwhelming grassroots advocacy led to over 15,000 petition signatures in favor of beer-to-go and thousands of Texans reaching out to their legislators directly via calls, emails, and social media to demand progress on this critical issue. This victory belongs to the thousands of Texans who have fought so hard for this moment.

Stakeholders reach agreement on beer-to-go

Image credit: Texas Craft Brewers Guild.

A landmark agreement has been reached between the Texas Craft Brewers Guild (TCBG) and the Beer Alliance of Texas (BAT) on SB 312 and HB 672, the bipartisan beer-to-go bills currently filed in the Texas Legislature.

Soon-to-be-filed committee substitutes of both bills, authored by State Senator Dawn Buckingham (R-Lakeway) and State Representative Eddie Rodriguez (D-Austin), would give craft brewers rights they have sought during legislative sessions dating back to 2007. If passed, the resolutions will allow patrons to purchase up to 576 ounces (two cases) of beer per calendar day from a craft brewery tasting room for take-home consumption. This would impact over 30 production breweries currently operating in North Texas.

“I am proud to be part of a win-win agreement for every level of the three-tier system,” says Sen. Buckingham. “This is a big step forward for small Texas breweries and the consumers who enjoy their products. I am grateful to both the Beer Alliance of Texas and the Texas Craft Brewers Guild for their willingness to reach a fair agreement for both sides of this important issue.”

Brewer-wholesaler unity on the bill is bolstered by support from both sides of the aisle. At their 2018 conventions, both Texas Republicans and Democrats included support for Beer-To-Go in their respective party platforms.

"Allowing ‘beer-to-go’ sales is a common-sense issue that both Republicans and Democrats agree on because it’s good for small business and has come to be expected by consumers,” says Rep. Rodriguez. “Texans are incredibly excited about ‘beer-to-go’ as the public support for HB 672/SB 312 has shown, and I am glad that the Texas Craft Brewers Guild and the Beer Alliance of Texas have come to the table.”

Seeking to foster regulatory stability for the industry, the TCBG and the BAT have also agreed to refrain from lobbying to raise or lower allowable Texas malt beverage barrelage caps for a period of 12 years.

“The Beer Alliance of Texas has always worked to ensure a strong malt beverage market in Texas,” says Rick Donley, president of the BAT. “We have committed to working with our friends in the craft-manufacturing segment on sensible regulations that provide for a stable and predictable three tier market in Texas that continues to be recognized as the gold standard for regulatory structures across the country.”

In a press release announcing the news, the TCBG and BAT applauded Sen. Buckingham and Rep. Rodriguez’s commitment to setting craft brewers on a more equal playing field with Texas wineries, distilleries, and brewpubs which are all permitted to engage in to-go sales as a brand-building, tourism-boosting opportunity.

"The Texas Craft Brewers Guild is proud to promote a sensible alcohol regulatory framework that encourages competition, consumer choice and access to market for brewers in our great state,” says Josh Hare, board chair for the TCBG. “We are excited to be working with the Beer Alliance of Texas to promote common sense regulations that ensure the beer industry in Texas will continue to thrive. We look forward to the opportunity to provide consumers with greater access to Texas made beer while ensuring a predictable and effective three-tier system.”

Bipartisan beer-to-go bills filed ahead of 2019 legislative session

Image credit: Texas Craft Brewers Guild.

Ahead of the 86th legislative session, bipartisan bills (SB 312, HB 672) proposing the legalization of beer-to-go sales from Texas craft breweries have been introduced by State Senator Dawn Buckingham (R-Lakeway) and State Representative Eddie Rodriguez (D-Austin).

The Texas Craft Brewers Guild and its political action committee arm, CraftPAC, have strongly advocated for off-premise sales as a means of supporting small businesses, increasing consumer choice, and creating more quality manufacturing jobs for Texans.

Currently, Texas is the only state in America that doesn't allow beer-to-go sales. The move by Senator Buckingham and Representative Rodriguez looks to bring Texas into line with the rest of the nation by setting craft brewers on a more equal playing field with the state's other alcoholic beverage producers.

“HB 672 corrects a glaring disparity in the state’s alcohol laws and gives Texans the freedom to purchase beer-to-go when they visit a local brewery…just like they can when they visit a Texas winery, distillery, or brewpub,” says Rep. Rodriguez. “The fact is, 49 other states already allow consumers to purchase beer-to-go when they visit a local brewery…Texas should be a leader when it comes to supporting small businesses, not the last horse to cross the finish line.”

Current law states that Texas manufacturing brewers who produce less than 225,000 barrels of beer annually can sell up to 5,000 barrels of that beer to tasting room visitors for on-premises consumption. The proposed bills would amend the current law to allow for on-premises “or for off-premises consumption” of these products. This change would not impact the overall quantity of beer brewers can sell from their tasting rooms, but would give patrons more freedom to enjoy that beer either in the tasting room setting or back at their homes.

"As a promoter of a fiscally responsibly limited government, I believe Texas craft brewers should have the right to sell beer and ale to consumers for off-premise consumption — a privilege the state already provides to wineries, distilleries and brewpubs in Texas,” says Sen. Buckingham. "Senate District 24 is home to many craft breweries, and with Texas being the only state in the country that does not permit off-premise sales at production breweries, I have filed SB 312 to encourage further economic development in my Senate District and to eliminate this unnecessary government overreach."

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Click here to support the efforts of the Texas Craft Brewers Guild and CraftPAC by making a contribution or signing the Beer-to-go Sales Petition.

Texas Craft Brewers Guild launches CraftPAC

Image credit: Texas Craft Brewers Guild.

In response to another year of lackluster results with regards to efforts seeking to change archaic and anti-competitive beers laws stifling the industry, the Texas Craft Brewers Guild has announced the launch of CraftPAC, a political action committee (PAC) created to protect the rights of Texas breweries.

Championing job growth, increased economic impact, and expanded consumer freedom, CraftPAC will mobilize the whole Texas craft brewing industry and its community of fans to stand up for fixing the state’s beer laws. It’s time for equitable laws that will allow the Texas craft brewing industry to fairly compete on the national stage, attract more entrepreneurship and investment, and see an untapped rise in craft beer tourism.

"It is time to shine a light on the broken beer laws in Texas,” says Texas Craft Brewers Guild Executive Director, Charles Vallhonrat. “The Texas Craft Brewers Guild has led organized industry efforts at the Capitol and conducted stakeholder outreach and concerted advocacy work for years to drive a legislative agenda that would modernize beer laws in Texas. But, it is time to let the public know that we are dealing with arcane laws written in the 1930s and 1970s that do not reflect current market conditions. We want to get the public involved in developing a craft beer landscape that is responsive to their interests.”

Up until now, Texas craft brewers have simply been outgunned by the Texas beer wholesale lobby which has made more than $18 million in political contributions over the last ten years. In return, this kind of influence has led to the Texas legislature passing anti-competitive, regressive beer laws including House Bill 3287 (2017), which sets a dangerous precedent of wholesaler interference in brewery taprooms. This bill passed despite opposition from the Texas Craft Brewers Guild and more than 15,000 craft beer drinkers who signed the Guild’s petition and contacted their legislators to voice concerns. Senate Bill 639 (2013), another damaging law on the books, prohibits breweries from selling their distribution rights to wholesalers (even though wholesalers are then allowed to turn around and sell these rights to one another). This law has resulted in a lawsuit against the state that is poised to be heard by the Texas Supreme Court.

Numerous bills, filed over the last decade, that would legalize to-go sales from production brewery taprooms rarely even receive a committee hearing because of wholesaler influence. These to-go sales are legal for Texas wineries, distilleries, and brewpubs, not to mention breweries in 49 other states. Consumers not only desire, but have come to expect to-go sales. Ending this arbitrary and discriminatory prohibition against Texas breweries is one of the most urgent legislative priorities of the Texas Craft Brewers Guild and a key goal of CraftPAC.

Ultimately, CraftPAC is a brewer-led effort for the craft beer community to counter the enormous financial influence of beer wholesalers on Texas politics through grassroots fundraising and advocacy.

“The wholesale lobby has exerted massive influence in the state legislature by contributing tens of millions of dollars to elected officials,” says CraftPAC Board Chair and Austin Beerworks Co-Founder, Adam DeBower. “If the Texas craft brewing industry is ever going to achieve its full potential, it has to play on the same field as the wholesalers. CraftPAC provides an opportunity for Texas craft brewers and beer consumers to vote not just with their dollars out in the marketplace, but also in the halls of the state Capitol.”

As the 2019 legislative session and TABC Sunset review approach, CraftPAC will support legislative candidates, ballot initiatives and pieces of legislation which positively impact the growth and sustainability of the Texas craft beer industry, while opposing legislative candidates, ballot initiatives and pieces of legislation which seek to hold the industry back.

The craft brewing industry had a $4.5 billion impact on the Texas economy in 2016, contributing the equivalent of 26,506 full-time jobs. The Texas Craft Brewers Guild and CraftPAC are fighting to make this impact multiply by making Texas the greatest beer state in the nation.

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To learn more about CraftPAC, or to show your support by making a contribution, visit https://craftpac.org/contribute/.

Deep Ellum Brewing launches “Operation Six-Pack To Go” to fight unfair beer laws in Texas

Images courtesy of Deep Ellum Brewing Company.

Today, Deep Ellum Brewing Company of Dallas has launched “Operation Six-Pack to Go,” a crowdfunding campaign on Indiegogo to sue the State of Texas in a battle to abolish unfair laws that impact microbrewers.

According to a press release, Deep Ellum has set a goal to raise $100,000 to fund their initiative to force the State of Texas to change the current law. The injustice in question is the unfair and unconstitutional laws that prohibit microbreweries from selling their products on-site for off-premise consumption, most notably six-packs.

“Texas allows every other alcoholic beverage manufacturer – wineries, distilleries, and even brewpubs to sell their products directly to the end consumer for off-premise consumption,” said John Reardon, founder of Deep Ellum Brewing Co. “Microbreweries cannot, and that’s not right. The alcoholic beverage laws in Texas have served special interests, protecting private, rather than public welfare, and it’s time for a change."

“We have taken legal action against our otherwise great state and we are asking craft beer lovers, both near and far, to support this cause,” added Reardon. “We are sorry that legal action is the only way to bring about fairness in an antiquated system that has failed to adapt to the legal, social, and commercial changes of the past 82 years.”

Help set the beer free.

As to why the brewery chose crowdfunding as a way to finance the project, Reardon believes this is a consumer interest lawsuit where the rights of all citizens of Texas (and visitors from beyond) are being unlawfully stifled. “Lawsuits are expensive and we want to make sure we can see this through to a favorable outcome,” added Reardon. "Crowdfunding sends the right message because it comes from the people. It's a way for everyday citizens to pool together the resources needed to challenge powerful lawmakers and deep pocketed lobbyists."

Deep Ellum is asking backers on Indiegogo to join their “Operation Six-Pack to Go” and Help #SueTABC to abolish the unconstitutional laws that unfairly discriminate against the growing number of microbreweries. A link to the campaign can be found at:

https://www.indiegogo.com/projects/sue-tabc-operation-six-pack-to-go#/story

The brewery has already retained two law firms and several expert witnesses, including the former General Counsel for TABC. The case is being heard in the United States District Court for the Western District of Texas Austin Division - Case 1:15-cv-00821. Read the text of the full complaint at:

http://www.deepellumbrewing.com/suetabc/docs/suetabc-complaint.pdf

Update: As of September 17, 2015, Grapevine Craft Brewery has joined the effort. Read the company's statement here:

http://us6.campaign-archive2.com/?u=d4667b59c1bff0a0d0c06092a&id=2a146581ad&e=[UNIQID]