Proposed bill in state senate aims to allow more small brewery distribution

ATLANTA, Ga. (Atlanta News First) — Small and independent brewery owners from across Georgia gathered at the State Capitol Monday to urge lawmakers to support Senate Bill 456. The bill has the potential to expand sales at local small breweries.

Schoolhouse Brewing in Marietta is on board.

“There could be huge marketing potential for this,” said Thomas Monti, the owner and head brewer at Schoolhouse Brewing.

The legislation would allow limited self-distribution for small breweries, and lift Georgia’s outdated daily to-go sales cap.

Small brewers are currently limited in how they can sell to retailers without going through a distributor. They must go through their distributor to sell to those entities, even if the buyer is right around the corner from them.

The bill would cut out the distributor for in-county orders. Brewers will still need to use a distributor for out-of-county orders.

Schoolhouse Brewing’s distributor is in Cumming. The distributor has to pick up orders at the brewery in Marietta, bring them back to Cumming, then sometimes deliver right around the corner from the Marietta brewery.

“So in all practicality, this would increase my sales top line numbers. It would be able to build better relationships in our community, and it also helped the local community with its economy,” said Monti.

The second part of the bill will allow customers to purchase more than one case of beer at a time from small breweries, which lifts the daily to-go sales cap.

“So the idea of having the somebody being able to come in and purchase two, three cases, it’d be great,” explained Monti.

“It’s an artificial and arbitrary barrier on success. And you know, when they’re operating on thin margins, it’s been a tough few years, every little bit helps,” said Joseph Cortes, executive director of the Georgia Craft Brewers Guild.

The Georgia Craft Brewers Guild defines small breweries as making less than 2 million barrels a year.

Cortes said all of the craft production combined in Georgia equals around a half-million barrels a year, even when including the largest craft breweries.

The Guild said the bill is about giving small businesses the flexibility they need to grow and thrive, amid inflation, tariffs and supply chain issues.

Cortes explained, “They shouldn’t be having to deal with outdated regulations that hinder their ability to hire more employees, to keep their staff to, you know, thrive and serve their communities as again, these gathering spots, which are so critical to neighborhoods.”

The Guild said beer wholesalers have opposed this bill, citing concerns of public safety and taxes. The wholesalers argue that allowing small breweries to self-distribute up to 3,000 barrels annually disrupts the established “three-tier” system and say their opposition is intended to protect that system. Wholesalers argue that the current system ensures a stable, regulated market and that market failures, rather than lack of self-distribution, are causing small brewery closures.

However, Cortes said, customers are still paying taxes on products and there are common-sense regulations to protect public safety and health.

The bill is currently assigned to the Senate Regulated Industries and Utilities Committee and has been called up for a hearing Tuesday, Feb. 10.