Sunday, February 9, 2014

From the Texas Tribune: Craft Brewers Celebrate New Beer Laws

The Texas Legislature made selling craft beer much easier last year:

Marking the passage of sweeping Texas beer industry reform, Uncle Billy’s Brew & Que in Austin on Friday will load a keg onto a distributor’s truck, which, for the first time since Prohibition, will transport the beer to a bar six minutes up the street.

It will be the first transaction in what some predict could become a multibillion-dollar industry over the next decade.
Until January 1 of this year, brewpubs like Uncle Billy’s could only sell their product on site: If you wanted an Uncle Billy’s beer, you had to go to Uncle Billy’s. That changed with the passage of Senate Bills 515, 516, 517, 518 and 639 last year, the largest overhaul of the beer industry since the Legislature legalized brewpubs in 1993.

Under the new rules, the cap on brewpub production doubled, growing from 5,000 barrels a year to 10,000. Now, brewpubs can distribute their beer using third-party distributors, and they can sell limited amounts of their own beer directly to retailers.

Rick Engel, the co-founder of Uncle Billy’s, opened Texas’ first brewpub in Houston in 1993, the first year brewpubs were made legal since Prohibition. Since then he has been working with members of the Texas Craft Brewers Guild to pass major reforms to beer laws.
This ties into our look at economic development policy in the state as well as the influence of interest groups in the state.