Quotulatiousness

October 9, 2013

Craft brewers against the big breweries in North Carolina

Filed under: Business, Law, USA — Tags: , , , — Nicholas @ 07:33

The rising tide of craft brewing runs up against the entrenched political interests of the big brewers in Raleigh:

North Carolina politicians in Raleigh like to say they’re pro-jobs and pro-business.

But what happens when lawmakers are forced to pick sides between new, small businesses growing jobs and big legacy businesses trying to hold on to the market share they’ve got? Would it help you to know that the big legacy companies give hundreds of thousands of dollars in campaign contributions and the new small businesses are not yet organized?

There’s just such a battle brewing in North Carolina over beer — and who gets to distribute and market it. It pits a growing number of small craft brewers against big distributors. And the big distributors who are among the largest campaign contributors have state lawmakers on their side.

The number of craft breweries in North Carolina is growing rapidly. The state ranks 10th in the country in the number of craft breweries (70) but drops to 19th in overall beer production. Some small brewers say they could grow faster and generate more local jobs in North Carolina if lawmakers weren’t forcing them to hire outside distributors.

Lawmakers capped the amount of beer brewers can make before they are forced to hire outside distributors to transport and market their product. The law sets the cap at 25,000 barrels per year or 775,000 gallons.

One Charlotte brewer is joining others in pushing back against the cap — saying it’s bad for business and a job killer.

Update: I guess it would help if I included the link to the original article…

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