In light of the recent controversy regarding the Texas Alcoholic Beverage Commission (TABC) decision to ban the sale of crowlers from any location that does not produce or brew beer (i.e. brewpubs), the craft brewing industry in Texas has moved to fight back against the TABC and its governance of all laws restricting craft breweries. On Monday, Deep Ellum Brewing Company in Dallas filed a lawsuit against the TABC claiming that the brewery cannot sell their product directly to the consumer and that the unconstitutional nature of treating one industry governed by the same alcoholic beverage commission differently than another is harming the consumer’s ability to purchase the product.
One of the major problems Texas craft breweries face is the sale of alcoholic beverages varies based on licensing and alcoholic beverage types. For example, if a craft brewery elects to pursue a brewpub license as opposed to a production brewery license, it is allowed to sell their beer for consumption at the brewery as well as sell take away bottles or cans. Also, a Texas winery can sell bottles of wine directly to the public; a Texas distillery can also sell their bottles of spirits directly to the consumer. Unfortunately the same does not hold true with production breweries in Texas.
Granted, TABC has loosened many of the restrictions they used to have pertaining to craft breweries. Recently, the law allowing Texas brewpubs to sell their product directly to the consumer prompted a massive shift of breweries applying for brewpub licenses instead of production brewery licenses (i.e. Jester King). However, for those breweries who are larger and well-established in the state, like Deep Ellum, this doesn’t seem like a viable option. Their challenge and the Texas courts’ decision on the matter should be monumental for the future of craft brewing in Texas.
If the court rules that all production breweries can sell their products on-site, then the Texas landscape should see a massive influx of new craft breweries popping up at a rate that should outpace the current growth levels. If not, then Texas will remain behind craft brewing leaders like Oregon and Colorado, both of whom allow directly sale to the consumer.
Deep Ellum has a strong case because, unless TABC can provide proof they have a legitimate governmental purpose for treating craft breweries differently than wineries or distilleries, the court will have little choice but to change the law pertaining to craft breweries. The U.S. District Court’s decision will be under intense scrutiny from both supporters and dissenters of the motion, but ultimately, let’s hope craft breweries and the industry win. It will only mean more jobs, better beer for the consumer which means more consumer spending, and more opportunity to make Texas the hotbed of craft brewing in the United States. I’m still skeptical of the success of the motion because, after all, we’re still in the Bible Belt. However, with the amenable changes that have already occurred, this seems like the next natural step in the process.
If you want to support Deep Ellum in their fight against TABC and help fund their lawsuit to get craft breweries the same rights to sell on premise, check out their Indiegogo crowdfunding page. At posting, they have already raised over $21,000 of their $100,000 goal.
UPDATE (9/17/15 @ 11:00 AM) – Grapevine Craft Brewery has joined the effort of suing the TABC regarding this matter and has linked up as a co-plaintiff with Deep Ellum in the lawsuit. Read more about it here.