The PJ Tatler

States Push Back on Microbrewery Production Caps

The craft beer business has been booming around America and some states are taking action to allow microbreweries to increase their production caps.

Arizona’s governor Doug Ducey signed a law yesterday that would extend the caps in a business friendly gesture. “Arizona has a booming craft beer industry and it’s growing every day. I want to ensure that it continues to thrive, unimpeded by overly burdensome regulations,” Ducey said.

Doug Ducey

According to the Brewers Association, craft beer has surged to 11% of the beer market. And this popularity has run into some obstacles created by the three-tier system that governs the beer industry.

But the popularity has craft breweries bumping up against the country’s longstanding three-tier system that governs the beer industry. It was designed to prevent mega breweries such as Anheuser-Busch from controlling beer production, distribution and retail sales at restaurants and stores. The three tiers consist of large breweries, distributors and microbreweries.

In many states, microbreweries can serve their beer at their locations and brewpubs, but lose that ability when they exceed production caps.

Other states that have taken action to grow the microbrewery industry are Wyoming and North Dakota although Montana defeated a measure to extend the caps.

AP has a list of the latest legislation around the country that address the growing craft beer industry.