Texas Brewers Battle the Three-Tier System

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Regulations in Texas that separate production, distribution, and retailing of alcohol continue to meet strong opposition from local brewers. The Wall Street Journal reports on the ongoing battles in the Lonestar State:

Small brewers are squaring off against distributors and bar owners in a fight for drinkers as craft beer’s once-explosive growth cools...

Growth is being driven entirely by direct sales from brewers to customers, mainly through taprooms and brewpubs. Direct sales last year grew by 24%—accounting for one in 12 craft beers sold— while the remainder of craft-beer sales declined, according to the Beer Institute.

Small brewers are eager to capitalize on the trend—selling direct makes for higher margins— but many distributors and bar owners are feeling shortchanged.

In response, the two sides are waging a lobbying war across the U.S. over exceptions to the post-Prohibition “three tier system” that keeps the production, distribution and retailing of alcohol separate in many states.

Learn more about this lobbying battle here.