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Governor Signs TABC Sunset Bill: Beer-To-Go Sales to Begin Sept. 1st

Governor Abbott signs Beer-To-Go into law. Photo Credit: Office of the Governor

On Saturday, June 15th, Governor Greg Abbott officially signed the HB 1545, the TABC Sunset Bill. Among the many positive reforms to the Texas alcoholic beverage code contained in the law, Beer-To-Go sales from manufacturing craft breweries will become legal on September 1, 2019.

The Texas Craft Brewers Guild was honored to welcome the Governor, as well as Senator Dawn Buckingham, Senator Brian Birdwell, Representative Eddie Rodriguez, Representative Chris Paddie, TABC staff, industry stakeholders, and members of the media to Austin Beerworks for this momentous occasion.

Check out the video below for a behind-the-scenes look at this historic event:

You can also watch video of the full press conference via Facebook Live HERE.

Thank you to our CraftPAC supporters for raising their voices this session and finally getting Beer-To-Go across the finish line! While we still have work to do to make Texas the best state for craft breweries, we took a giant leap forward this session and it was in no small part due to grassroots support for Beer-To-Go!

See you all at your local craft brewery on September 1st!


Comprehensive Bill Which Has Now Passed Both Legislative Chambers Contains Historic Gains for Texas Craft Brewers and Consumers


AUSTIN, Texas (May 23, 2019) In a landmark victory for the Texas craft brewing industry and craft beer consumers, 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 in a generation, while serving the entire industry from the manufacturer down to the consumer,” Texas Craft Brewers Guild Executive Director Charles Vallhonrat said. “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.”

Under the final Senate bill, patrons will be able to purchase up to 288 fluid ounces of beer per calendar day from a brewery’s tasting room. The allotment is the equivalent of one case of 12 oz bottles or cans— or—nine 32 oz crowlers.

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 Senator Brian Birdwell, Senator Dawn Buckingham, Representative Eddie Rodriguez, and

Representative 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,” Senator Dawn Buckingham said. “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,” Texas Craft Brewers Guild Legislative Committee Chair and Austin Beerworks Co-Founder Adam DeBower said.

Some of the additional modernizations to Texas beer laws included in the TABC Sunset Bill which will most impact craft brewers 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 the 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 the other reforms contained in the Sunset Bill for over a decade. The movement to #FixTexasBeerLaws gained tremendous 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.


The Texas Craft Brewers Guild exists for the purpose of promoting Texas craft beer, educating the public about the qualities and attributes of craft beer and advancing the common interest of Texas craft brewers. The Guild’s Board of Directors hail from craft breweries in all the major metropolitan regions of the state, as well as different brewery types and sizes to represent the Guild’s over 250 brewery members throughout the state, including operating breweries, as well as those that are in the advanced planning stages. The Guild also welcomes allied trade and retail members who support the craft brewing industry. To learn more about the Texas Craft Brewers Guild visit

CraftPAC is a Texas-based general purpose Political Action Committee (PAC) founded by members of the
 Texas Craft Brewers Guild. It is a Board of Directors led organization formed to protect the rights of Texas craft breweries and champion common sense, 21st century legislative reforms. To learn more about CraftPAC visit

Beer-To-Go Passes Texas House as TABC Sunset Bill Amendment

Texas craft brewers gathered at the Capitol to be present for the TABC Sunset and Beer-To-Go Amendment votes on the House floor.

Beer-To-Go passed the Texas House on Thursday, April 25 as an amendment to the TABC Sunset bill.

Here’s the Texas Craft Brewers Guild’s statement from Thursday night immediately following the big vote:

Today was a major victory. The Beer-To-Go TABC Sunset amendment passed the Texas House! THANK YOU to State Representative Eddie Rodriguez, a tireless champion for Texas craft beer, for fighting so hard to clear this milestone today.

We still have hurdles ahead in the Senate before Beer-To-Go can become law of the land, but luckily with our Senate Champion Dawn Buckingham leading the way.

Thank you to the thousands of you who have called your legislators, signed the petition, and stuck with us throughout this process. Please continue to stay engaged and involved! Onward!

Check out the press coverage below for more details!

Austin 360: Texas House OKs sales of beer, wine on Sunday mornings, plus beer-to-go

KVEO Brownsville: State of Texas: Amendment saves beer bill – for now

Austin Chronicle: UPDATE: Beer-to-Go Passes House but the Battle Will Rage On in the Senate


Fort Worth Star-Telegram: Texas House OK’s earlier beer and wine sales on Sundays and beer to go from craft breweries


AUSTIN, Texas (February 13, 2019)The Texas Craft Brewers Guild (TCBG), the trade association representing nearly 300 small and independent Texas craft breweries, and the Beer Alliance of Texas (BAT), a trade association representing malt beverage distributors across Texas,have reached a stakeholder agreement on SB 312 and HB 672, the bipartisan Beer-To-Go bills currently filed in the Texas Legislature.

With the endorsement of both the TCBG and BAT, soon-to-be-filed committee substitutes of both bills,  authored by Senator Dawn Buckingham (R-Lakeway) and Representative Eddie Rodriguez (D-Austin), would, if passed, 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.

“I am proud to be part of a win-win agreement for every level of the three-tier system,” Senator Dawn Buckingham said. “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,” Representative Eddie Rodriguez said. “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.”

In an effort to foster regulatory stability for the industry, the Texas Craft Brewers Guild and the Beer Alliance of Texas 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,” Beer Alliance of Texas President Rick Donley said. “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.”

TCBG and BAT applaud Senator Buckingham and Representative Rodriguez’s commitment to setting craft brewers on a more equal playing field with Texas wineries, distilleries, 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,” Texas Craft Brewers Guild Board Chair Josh Hare said. “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.”

Key Points of the SB 312/ HB 672 Agreement:

● Retain the 5,000 barrel cap on taproom sales.
● Allow sales for off-premise consumption in amounts up to 576 fluid ounces per calendar day, per person.
● Any product offered for sale in the taproom which does not have an approved label must post in plain view the alcohol content of that product.
● The total amount of on and total amount of off-premise sales shall be reported (in barrels) to TABC on a monthly basis. The Commission shall hold the records for public review.

So far, more than 12,000 Texans have signed an online petition urging the Texas Legislature to pass Beer-To-Go this session. People who would like to join the cause can visit


The Texas Craft Brewers Guild is the not-for-profit trade association committed to advancing the common interest of Texas craft brewers. The Guild’s Board of Directors hail from craft breweries in all the major metropolitan regions of the state, as well as different brewery types and sizes to represent the Guild’s nearly 300 brewery members throughout the state, including operating breweries, as well as those that are in the advanced planning stages. The Texas craft brewing industry has a $5.28 billion dollar economic impact on the Texas economy, responsible for the creation of approximately 30,000 jobs.

The Beer Alliance of Texas is a trade association representing malt beverage distributors across Texas, from the high plains to the coastal region to the Panhandle and West Texas to the Rio Grande Valley. The wholesale beer business employs more than 65,000 Texans with a $2.5 billion payroll, contributing almost $1 billion in state, local and federal taxes. Our members strictly adhere to today’s state-based regulatory model, including maintaining the three-tier system, while exploring new technologies and marketing to better serve the interests of Texas retailers and consumers in the malt beverage industry.

Press Release: Bipartisan Beer-To-Go Bills Filed in Both Legislative Chambers

Texas Craft Brewers Support the Filing of SB 312 /HB 672 Which Would Make Texas the Final State in the Country to Permit Beer-to-Go Sales From Craft Breweries

beer2go largeAUSTIN, Texas (January 8, 2019) — Texas State Senator Dawn Buckingham (R-Lakeway) and State Representative Eddie Rodriguez (D-Austin) have filed SB 312 and HB 672, for consideration in the 86th Legislative Session. These important companion bills propose to legalize beer-to-go sales from Texas craft breweries, an issue which the Texas Craft Brewers Guild, along with its political action committee arm, CraftPAC, have strongly advocated for as a means of supporting small businesses, increasing consumer choice, and creating more quality manufacturing jobs for Texans.

As the only state left in America that doesn’t allow beer-to-go sales, the Texas Craft Brewers Guild applauds Senator Buckingham and Representative Rodriguez’s commitment to bringing Texas on par with the rest of the nation and setting craft brewers on a more equal playing field with other Texas 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,” said Rep. Eddie Rodriguez (D-Austin). “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 annually of beer produced on the premises to tasting room visitors for on-premises consumption. SB 312 and HB 672 propose a simple addition to 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 annually 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,” said Senator Dawn Buckingham (R-Lakeway). “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.”

In 2018, at the Texas Republican Party Convention in San Antonio and the Texas Democratic Party Convention in Fort Worth, both political parties included for the first time, rare, bipartisan support for beer-to-go sales in their respective party platforms.

“The fact that both parties expressed unequivocal support for beer-to-go in their 2018 platforms demonstrates the bipartisan, grassroots momentum surrounding this issue,” Texas Craft Brewers Guild Executive Director Charles Vallhonrat said. “This is something Texans care about and the more they continue to make their voices heard, the harder it gets for big beer distributors to ask lawmakers to defy the will of their constituents and vote against something that both major political parties, the brewing industry, and consumers support.”

So far, over 7,000 people have signed an online petition to urge the Texas Legislature to legalize beer-to-go sales. Texans who want to get involved in the fight to #FixTexasBeerLaws can visit

The Texas craft brewing industry has a $4.54 billion dollar economic impact on the Texas economy, the equivalent of 53,000 full-time jobs.

Support Beer-To-Go

Texas Craft Brewers Applaud Commission’s Findings: Outdated Beer Laws Need Serious Reforms


Thursday, December 13, 2018

The Texas Sunset Commission, an independent body tasked with evaluating the performance of state agencies, is holding a hearing this morning at the Capitol to take public testimony on its review of the Texas Alcoholic Beverage Commission.

Eliminating burdensome over-regulation of the craft beer industry and balancing the statutory power across the three tiers outlined by the code are paramount to the continued growth of the craft beer industry in Texas. In October the Sunset Commission released its Staff Report for TABC. From its recommendation to eliminate the antiquated distinction between “beer” and “ale” in Texas, to consolidating redundant licenses and permits, to disposing with superfluous state-level label approvals, we applaud the independent commission for its thorough and thoughtful review of the agency and concur with the overall theme of the findings–TABC and the Alcohol Beverage Code are still in serious need of modernization.

“To be perfectly clear, Texas craft brewers believe that if the Code isn’t substantially updated to reflect the obvious realities of the 21st Century marketplace, it will eventually die of its own weight and old age,” Texas Craft Brewers Guild Executive Director Charles Vallhonrat said.

Texas craft brewers have been participating as stakeholders throughout the Sunset process. A live stream of this morning’s hearing, which will include testimony from representatives of the Texas Craft Brewers Guild, is available HERE.

You can read written testimony from Josh Hare, Founder and President of Hops & Grain and Board Chair for the Texas Craft Brewers Guild, below:

Written Sunset Testimony from Josh Hare:

Thank you, Mr. Chairman and Commissioners. My name is Josh Hare and I’m the Board Chair of the Texas Craft Brewers Guild and the owner of Hops & Grain Brewing. I come before you today to speak on behalf of the nearly 300 small brewers that make up our organization – but also in my personal capacity as a Texas consumer and as a lover of craft beer.

I can tell you that the craft brewers represented by our organization embody the very best attributes of Texas: they are entrepreneurial, ethical, hard-working, and fiercely independent. They are the small business people that help drive our Texas economy forward – risking capital, paying taxes, and offering a livelihood to thousands of our fellow Texans. The Brewers Association says that in 2016 Texas craft breweries contributed over $4.5 billion dollars to the state economy. This is despite the fact that small craft represents only about 2.5% of the total beer consumed in Texas today.

From every corner of our state – the singular thread that draws together the brewers of our organization is an overarching sense of pride in what we do – using our talents and toil to produce a unique and delicious product that we can share with our fellow Texans.

Now, some of the people with us here today have suggested that the members of our organization are anarchists who want to burn TABC to the ground and advocate for the wholesale repeal of the Texas three-tier system. Nothing could be further from the truth.

The reality is, the Texas Craft Brewers Guild is, and always has been, fully supportive of the foundational principles that brought us the three-tiered system in the first place – the prevention of an integrated beer and alcohol monopoly that would rob Texas consumers of choice, quality, and competition.

Without the Texas three-tiered system, it’s possible to imagine a dark and colorless world where Budweiser is the only beer available to Texas consumers…because Budweiser had been allowed to purchase every bar and retailer in the state. In that way, I suppose it’s fair to argue that without the three-tiered system, there theoretically could have been no craft beer in Texas at all.

That’s why I want to make it absolutely clear today that our issue isn’t with TABC itself or even with the three-tiered system itself…it’s with the decades of legislative efforts that have been made by certain interests to game that system at the expense of Texas consumers – perverting it from a safeguard against monopolies to a safeguard against competition.

The 17th-century political philosopher John Locke argued that the fundamental purpose of any government should be the preservation of the natural rights of its citizens. Locke believed that for a citizenry to live in freedom, the power of law should be cautiously applied and only in service to the direct preservation of the life, liberty, and property of the governed.

Over the decades, I think it’s safe to say that we’ve moved farther and farther away from that ideal. But as the honorable members of this Commission evaluate the TABC and consider the proposals offered to modernize the outdated system of laws that govern the production, distribution, and sale of alcohol in Texas – may I suggest that you ask yourselves the following questions:

1. Does this regulation exist to protect the lives of Texans or promote public safety?
2. Does it exist to affirm our individual rights or liberties in some way?
3. Does it exist to protect the property of Texans or the rights of Texas consumers?

If the answer to those three questions is “NO”…then I believe it’s worth asking why the law or regulation does exist and what compelling public interest it’s intended to serve. Do the laws governing the TABC exist to advance the greater interests of the Texas consumer…or are they instituted for some other purpose, like preserving the financial advantage of one business over another?

Texans take great pride in our sense of independence, and as such, we tend to view any new law or government regulation with a healthy degree of skepticism. That’s because, as the members of this Commission are aware, every new law passed in Austin or Washington results in the degradation of some amount of our individual freedoms – however minor or imperceptible that loss may be.

Oftentimes, that sacrifice of freedom is justified by the greater good it serves. There are times, for example, when I’d like the freedom to drive my car 120 mph down the highway…but my freedom to do so is plainly outweighed by the greater risk that this conduct poses to the public safety. As obvious as this rationale may seem to most people, most of our state’s beer and alcohol laws appear to follow no such logic.

I ask you…what is the compelling public interest served by requiring the small businesspeople of this state to navigate a tiresome regulatory structure that seems to be, at best, needlessly burdensome…and at worst, almost intentionally non-competitive?

What compelling public interest is served by requiring small business owners in Texas to pay for and maintain two separate licenses for products as substantially similar as beer and ale? How does that serve the Texas consumer? How does it serve the Texas economy?

Does the TABC’s arduous and time-consuming label approval process make anyone in this state safer? Or does it just add another outdated and unnecessary regulatory headache for a small businessman like myself to overcome?

I could go on, but won’t.

As you evaluate Sunset’s proposed changes to TABC, it is the hope of the Texas Craft Brewers Guild that the members of this Commission will ask themselves these fundamental questions.

We ask that you would first seek to understand how such a frustratingly complex regulatory scheme came into existence in the first place, and ultimately draw your own conclusions about whether you believe this to be a truly fair system designed to serve the people of Texas, or a corrupt and arbitrary collection of laws designed to protect the narrow interests of the powerful and well-connected.

We’re not asking for handouts or special treatment – just fair treatment. We’re here today simply because we want the state we love to adopt a legal and regulatory framework that loves us back.

We have a number of specific thoughts to offer regarding the recommendations made by the Sunset Commission staff, but fundamentally, our request to you is simple and straightforward: the Texas craft brewers want the freedom to make and sell beer to our fellow Texans who demand it in the real world marketplace with as little regulatory interference as is necessary to preserve the health and safety of the public.

On behalf of the entire Texas Craft Brewers Guild, I thank you for the opportunity to address the members of this Commission and I’d be more than happy to answer your questions at this time.


After today’s hearing, the Commission’s recommendations will ultimately be crafted into a bill which will go through the legislative process during the 2019 session. Stay tuned to for legislative updates as we move into 2019.

Texas Republicans, Democrats Support Beer-to-Go Sales from Craft Breweries in 2018 Party Platforms

At State Conventions, Parties Show Bipartisan Support For Granting Manufacturing Breweries the Same Rights as Breweries in 49 Other States

Screen Shot 2018-06-24 at 3.38.49 PMAs the 2018 Midterm Elections and 2019 Legislative Session approach, Texas Democrats and Republicans have included planks in their party platforms supporting expanded rights for Texas craft breweries. As the only state in the country to disallow beer-to-go sales from manufacturing craft breweries, Texas Republicans, holding their convention in San Antonio June 14-16, and Democrats, holding theirs in Fort Worth June 21-23, have agreed that this needs to change.

“The craft brewing industry has a $4.54 Billion impact on the Texas economy and represents a growing manufacturing industry for our state,” Texas Craft Brewers Guild Executive Director Charles Vallhonrat said. “This is a Bipartisan issue. While both parties may have different approaches, they share clear, unequivocal support for beer-to-go sales directly from manufacturing craft breweries. This is a right exercised by breweries in 49 other states, and one we strongly hope to see extended to Texans in the 2019 Legislative Session. That both parties are expressing support for this issue in their platforms demonstrates the bipartisan grassroots momentum around this issue leading into next session.”

Under current Texas law, wineries, distilleries, and brewpubs are allowed to sell some quantity of their products to-go from their tasting rooms, leaving manufacturing craft breweries as the only local makers in the Texas alcohol beverage industry who do not have the right to sell packaged products to a tasting room patron for take-home enjoyment. This discrepancy robs Texas craft breweries of a valuable revenue stream and an important brand building opportunity.

While Texas boasts over 250 breweries and brewpubs, the state still ranks 46th when it comes to breweries-per-capita. Texas craft brewers believe that modernizations to the Texas Three-Tier System, including allowing beer-to-go sales from craft breweries, will lead to more entrepreneurism, economic development, tourism, and quality manufacturing and small business jobs.

Texans who want to show support for beer-to-go sales can do so by signing our online petition.

Republican Platform Language:
34. Three-Tier Alcohol System: We urge the Texas Legislature to adopt legislation eliminating the mandatory three-tier system of alcohol production, distribution, and retail. Texans should have the freedom to purchase alcohol directly from manufacturers, just as any other retail product.

Democratic Platform Language: 

(Jobs Section) Democrats support modernizing the TABC’s 3 tier system because Texas’s craft breweries create jobs, encourage tourism, grow the economy, revitalize communities and add incremental tax revenues. Democrats support legislation allowing craft breweries to enjoy the same rights as their competitors in every state that allow them to sell and market their products directly from their breweries to consumers for take-home consumption, and ensure fairness in distribution across the state.

Support Beer-To-Go

Why beer middlemen stand in the way of craft beer legislation that would help Texas thrive

Manhole.jpgCollectively, small Texas craft breweries make up only a 3% share of the total beer marketplace in Texas. While these businesses serve as incredibly outsized sources for economic impact, jobs, and industrial revitalization, there’s no denying that 3% is a sliver of the overall beer industry pie. Meanwhile, a disproportionate amount of the nation’s largest beer wholesalers call Texas home. Protected from competition and fueled by consolidation, these wholesalers hold duopolistic control of nearly every Texas market, and monopolistic control of individual brewery rights inside of those territories.

It’s illegal for a brewery to sell its territory rights to a distributor in Texas. Instead, all of the brand equity a brewery builds must be given away for free to a middleman that now holds exclusive distribution rights for the life of the business unless extraordinary cause for termination can be demonstrated. Meanwhile, distributors are free to profit from the sale and exchange of brewery rights with one another if they decide its in their own best interest to do so.

Top Distributors for Political Contributions. 2013-2016. Courtesy of the Texas Tribune.

You may ask yourself why Texas beer wholesalers spend so much time fervently opposing positive craft brewery legislation (not to mention pushing insidious anti-craft legislation and misinformation of their own), given Texas craft beer’s growing, but still disproportionally small, market share. The answer is clear. When beer wholesalers lobby against common sense, consumer-friendly legislation that will lead to more jobs, tourism, and economic impact for Texas and its craft beer industry, maintaining unparalleled economic protectionism is the chief motivation.

The Texas Alcoholic Beverage Code was largely crafted in a time when a few powerful breweries (now owned internationally) could exercise control over mom-and-pop retailers and bootstrap wholesalers with small territories and limited portfolios caught in the middle.

Today, these same laws have become a protection racket to preserve the multigenerational wealth of a small handful of politically connected families in this state. Meanwhile, hundreds of persevering craft breweries operate under some of the most restrictive laws in the country in a time where consolidation has led to two effective choices for wholesale partners in each market.

Craft breweries want the Three-Tier System to work for everyone—not just wealthy wholesalers. It’s in the Texas Legislature’s power to ensure that a more equitable, prosperous path forward begins in 2019. We need passionate craft beer enthusiasts across Texas to join the cause.