Government Affairs

Massachusetts Brewpubs Team Up to Bring Attention to "Common-Sense Legislation"

15 brewpub brewers from Massachusetts pose at Vanished Valley in Ludlow during a brew day for H.401 New England IPA.

Since the dawn of the United States, people have come together over beer to make progress. So to get their point heard on Beacon Hill, Massachusetts brewers recently came together to brew two beers to draw attention to Bill H.401, designed to give brewpubs the power to self-distribute a limited amount of their own beer.

Vanished Valley Brewing Co. in Ludlow hosted fellow pub-brewers from Amherst Brewing, Antimony Brewing, Hot Plate Brewing Co., Northampton Brewing Co., Shire Brewing, Skyline Beer Company, and New City Brewery in November to produce H.401 New England IPA. Also in November, Gardner’s Moon Hill Brewing collaborated with Lost Towns Brewing and Thirsty Robot Brewing to make H.401 Pale Ale. Both beers are available in limited quantities at Vanished Valley and Moon Hill Brewing Co.

The Massachusetts Brewers Guild spent much of the last year circulating a petition in support of Bill H.401, and also encouraging the passage of separate legislation that would allow local craft brewers to sell their beer at retail at farmers markets. (Currently, beer can’t be sold to-go at farmers markets, but wine, cider and mead can.)

Caleb Hiliadis, director of brewing operations at Amherst Brewing, which supplies five Hangar brewpubs in Western Mass., sits on the board of the Mass Brewers Guild and chairs the Events, Government Affairs & Membership Committee. He has been advocating for changes to the state’s brewpub license laws for six years.

“It feels like we're at a turning point. We're effectively communicating to our customers that these bills are important to us,” he says. “In the world we live in, there are a lot of other things that take up a lot of the political capital at the state level. So we have to be more vocal than ever in communicating our needs as small businesses.”

Thanks to much campaigning by Hiliadis and other MBG members, such as Rick Walton, owner of Moon Hill Brewing Co. and Gardner Ale House, Gardner Rep. Jonathan D. Zlotnik re-filed Bill H.401 in 2023 (for a third session). In May, it was referred to the State House’s Joint Committee on Consumer Protection and Professional Licensure, where it remains. 

Meanwhile, 1,708 Massachusetts beer fans from across the Commonwealth have signed the MBG’s pub brewer petition. Another 508 have added their names to support updating the farmers market legislation.

Hiliadis is optimistic that this legislative session is the time for change. “The biggest thing is to keep attention” on the craft beer industry’s priorities, he says, because when people hear about these issues they agree, “both of these bills are common-sense legislation.”

What’s the issue around H.401? 

Currently, breweries with a pub-brewery license like Amherst’s must go through a third-party distributor to move any product, even from their own brewery to a sister pub, or to a neighboring business. “The beer has to go to Chicopee before it can go next door,” Hiliadis says, describing the protocol to deliver his product to the liquor store and restaurant that share Amherst Brewing’s parking lot. Breweries that hold a farmer brewery license can self-distribute up to 10,000 barrels. Pub-brewery license holders are the only brewery class in Massachusetts that cannot self-distribute their products. It’s a limitation that results in lost revenue, more trucks on the roads, and added administrative burdens for pub-brewery owners.

Bill H.401 would only allow a pub brewery to self distribute 50,000 gallons of beer a year - roughly 3,000 kegs. So passage of this bill will not replace brewpubs like Amherst’s wholesale relationships, Hiliadis says. In fact, being able to self-distribute the relatively small amount of beer it sends to its own brewpubs and neighbors will allow Amherst Brewing to grow its statewide distribution. “We could invest more to keep up with the demand and do more with our distributors,” Hiliadis says. 

Amherst Brewing’s wholesale partners are well aware of the industry’s proposed changes to brewpub self-distribution guidelines and have presented no opposition to H.401, Hiliadis notes. For years, his company’s distribution contract agreements have outlined the brewpub’s intent to self-distribute a limited amount of beer, should the bill pass. “I still don't know where the opposition is at the state level,” Hiliadis admits. “At some legislative hearings, you talk to people, and they're like, ‘I thought you were already doing that.’ So we have to keep educating and using whatever voice we have,” he says, to bring attention to these issues.

Thankfully, Hiliadis says, the local beer industry has a supportive and vocal community. “Leaning on that as craft brewers and saying to our customers, ‘We need you to let your legislator know that this would be important to us,’ is bringing a lot of attention to these priorities.”

Limited amounts of both H.401 beers are available at the participating brewpubs. Call ahead if you want to be sure to try it—and please, contact your legislators about these issues today.

Raise A Glass - After a Decade Long Battle Massachusetts Craft Brewers Achieve Franchise Law Reform

MBG Glass Porter.jpg

FRAMINGHAM, Mass. | In the wee hours before the end of the 2020 legislative session, Massachusetts lawmakers voted to reform the state’s franchise laws.  

This is a momentous occasion for Massachusetts craft brewers who since 2011 have been working to ease the historical constraints on terminating contracts with their wholesaler.  

Members of the Mass Brewers Guild and the Massachusetts Wholesalers Association worked together to craft legislation Bill S.2841 which creates a new “qualified brewer” definition. This would allow any operation that produces fewer than 250,000 barrels annually a path forward to end their contract with their wholesaler. Under existing law, breweries are held in their contracts in perpetuity until they can prove “cause,” in the court of law – a long and costly process that a craft brewer would unlikely to survive. As a part of the three-tier system, wholesalers are largely responsible for distributing brewers’ products to restaurants, bars, grocery and convenience stores.

The barrelage cap will cover every craft brewery in the state apart from Boston Beer Co., makers of Samuel Adams. For the past 10-years Jim Koch, founder and head brewer of Samuel Adams, and founding member of the Mass Brewers Guild, has led the charge to change the state’s laws to give the hundreds of craft brewers in the Commonwealth the ability to grow their businesses. Wholesalers would not support the proposed legislation without exclusion of Boston Beer. In order to clear the way for the legislation to become law, Boston Beer agreed to be excluded from the benefits of the legislation that will now be enjoyed by all other Mass Brewers Guild Members.

“There is a long list of people who helped to make this ten-year effort a reality,” says Sam Hendler, co-founder of Jack’s Abby Craft Lagers and president of the Mass Brewers Guild. “More notably Senate President Spilka and House Speaker Mariano. Equally as important, we have to recognize past and present board members and members of our community who laid the groundwork of educating legislators, the countless legislators that championed our bill on Beacon Hill session after session and moved it forward, and our incredible craft beer fans who signed our petition and voiced their support on our behalf. It’s a great day for craft beer in Massachusetts.” 

The state’s franchise laws were enacted in 1971 by state legislature to protect in-state distributors from large out-of-state and foreign brewers, at a time when small, independent craft brewers did not exist. As such, these laws provided un-waivable legal protections to beer distributors to protect the termination of their right to distribute a brand.  

Today’s beer landscape looks much different as beer distributors have continued to grow and consolidate while hundreds of new craft breweries open each year. To date, there are  roughly 30 beer Wholesalers in Massachusetts compared to 210 craft breweries across the Commonwealth, with 20 breweries expected to open before the close of 2021, and an additional 10 breweries in planning stages. 

“With the unbelievable financial pressures that have come down on our industry due to the impacts of the coronavirus pandemic, there will be breweries whose existence is saved by gaining this flexibility to control their destiny,” says Hendler. “Combined with the increasing importance of  wholesale distribution with the obvious challenges running tap rooms, we need strong relationships with our most valuable partner. This will help us get there. There’s a lot that we can accomplish together.”  

The new measure now advances to Gov. Charlie Baker to sign or veto the bill, or allow it to become law without his signature. 

Massachusetts will join New York, Maine, Washington and Vermont, states that have successfully reformed their franchise laws, with only an additional five states nationwide that have created an easier path to termination through legislation.  

From the bottom of our beer glasses Massachusetts brewers thank the many people who helped us achieve this new state law. This herculean effort would not have been possible without the long-fought work of so many people. 

 

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ABOUT THE MASS BREWERS GUILD: 

Founded in 2007 by a group of committed and passionate brewers, the Mass Brewers Guild, is organized for the purposes of promoting craft brewing and protecting the interests of craft brewers across the Commonwealth. The association is membership based and open to all Massachusetts breweries licensed by the federal Tax and Trade Bureau and the Commonwealth’s Alcoholic Beverages Control Commission. The nonprofit creates a community of brewers while shining light on the broad range of breweries and styles offered throughout the state. Through industry and educational events, its mobile application beer trail map, and by providing resources and marketing support to brewers, the nonprofit works to highlight Massachusetts as a top travel destination for craft beer in the U.S. The board also continues its work at the legislative level, serving as the voice of craft brewers on Beacon Hill. The Massachusetts Brewers Guild is a 501(c)6 not-for-profit organization. For more information, visit MassBrewersGuild.org.