Craft brewers in Kentucky are cheering a Senate committee decision to move House Speaker Greg Stumbo’s “beer bill” to the full chamber. The measure would take the world’s largest brewer out of the distributing business in the Bluegrass.
Beer-makers in Kentucky must abide by what’s known as the “three-tier system," which requires producers to sell their products to retailers through distributors. The question for lawmakers: Should the state allow major brewers, such as Anheuser-Busch, to own distributorships, which could nudge smaller craft brewers out of the market?
If the General Assembly says yes, Daniel Harrison, co-founder of Country Boy Brewing in Lexington, fears a domino effect.
"We know the Anheuser-Busch-owned distributorships don't carry craft brands, so if we take this on down the line and they buy every distributorship in the state... those houses of distribution don't carry craft brands. We rely on independent distributors to get our products onto shelves and into taps at local bars," he says.
But Damon Williams with Aneuser-Busch argues it’s unfair to force his company to divest itself of distributorships in Louisville and Owensboro.
"It's a free market issue," he argues. "We're talking about the seizure and taking to auction of a company that has been a good corporate citizen and I have yet to hear one reason why that decision would be made that is warranted. This is a serious bill."
House Bill 168 now moves to the Senate, where Majority Leader Damon Thayer has signaled support for the legislation.
