Tuesday, February 10, 2015

"Battle brews over craft beer production caps" in Indiana.

As it pertains to alcoholic beverage initiatives, the current legislative session in Indiana has become fiendishly difficult to explain, and about as hard to handicap. Beer production caps have less to do with how many barrels a "small" Indiana brewer can brew and still remain small.

In my opinion, it has far more to do with the right of small brewers in Indiana to self-distribute, and more succinctly, how the state's traditional wholesaling tier feels about it ... and the extent to which Indiana's traditional wholesalers want to disrupt something they can't get a piece of.

Cher once sang of gypsies, tramps and thieves. She omitted leeches.

That's also my opinion, of course.

Battle brews over craft beer production caps, by Maureen Hayden (CNHI)

 ... Indiana now has more than 100 microbreweries on tap, with more in development. At Three Floyds, head brewer Chris Boggess said production caps, which he calls "stupid" and "arbitrary," are hindering the brewery's growth.

Three Floyds is poised to expand far beyond the 40,000 barrels it produced last year, with a $4 million investment in a new bottling line that could produce 150,000 barrels within five years.

“People keep saying, ‘Send us more beer,’ and that’s what we want to do,” Boggess said.
Standing in the way are alcohol distribution laws that date to the end of Prohibition. Designed to control an uncorked industry and collect millions in alcohol tax revenues, the 1935 liquor control act created a three-tier system that separated alcohol makers from retailers with a middleman - distributors.

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