Snapshot of the alcohol-related bills under consideration
HB 314: Introduced by Rep. Tom Taylor, R-Dunwoody, the bill would allow brewpubs to sell their beer - up to one case per person per day - for off-site consumption.
HB 137: Backed by Rep. Wendell Willard, R-Sandy Springs, it would allow Georgians to include and ship wine in retail gift baskets.
SB 174: Sponsored by State Sen. Josh McKoon, R-Columbus, the bill is companion to HB 314 and would allow brewpubs to sell beer for off-site consumption.
HB 99: Introduced by Rep. Jason Spencer, R-Woodbine, the bill stipulates the quantity of beer one is allowed to produce at home and would allow homebrewers to transport their beer to special events under specific conditions.
HB 185: Led by Rep. Rusty Kidd, R-Milledgeville, distillers would be allowed to directly sell two liters of distilled spirits to one customer per day.
Visit any winery in Georgia and you’re free to purchase a bottle of vino to go. But should you want a fifth of white lightning after touring the Dawsonville Moonshine Distillery, owner Cheryl Wood has some bad news: Find a liquor store.
That’s because Wood’s business, which distills the same all-natural ‘shine recipe her granddaddy perfected, is prohibited by Georgia law from selling directly to her customers.
David Larkworthy is in a similar boat. As co-owner of Atlanta’s 5 Seasons Brewing Company, one of the state’s dozen or so brewpubs, he can sell his pumpkin beer or milk stout to people dining in any of his three locations. Customers looking to take home any of his concoctions, however, are out of luck.
“The whole idea that a Georgia brewery is not allowed to sell its product, and a winery is, is absolutely absurd. It makes no sense,” Larkworthy said.
That could change as legislators take up more than a half dozen “booze bills” this session, two years after legislators passed the Sunday sales law.
The various bills would allow distilleries to sell their liquor on site, brewpubs to send tipplers home with hand-made beer, give homebrewers the right to transport beer for special events, and allow Georgians to ship gift baskets with wine.
You might imagine that temperance types would be the staunchest opponents. Instead, it’s Big Alcohol — the distributors, retailers and larger producers that make up all but a sliver of the alcohol market. They say the bills will unravel the state’s three-tier system, which categorizes alcohol purveyors as either creators, distributors or retailers of booze.
They aren’t trying to hinder businesses like Larkworthy’s from being successful, they say. Rather, they’re protecting a system that ensures fairness and tax regulation.
That nearly 80-year-old system took a big blow when the state allowed wineries to sell bottles off-site, a move applauded by some as a boon for tourism. Opponents of the new bills believe the system can’t withstand another big change.
“(These bills) would put a huge crack in the three-tier system,” said Al Zachry, a wholesaler and vice president of LaGrange Grocery Company. “We understand everyone has good intentions, but the problems stem from the unintended consequences of altering this delicate balance.”
Those consequences, opponents say, include giving brewpubs and distilleries an advantage over retailers. In addition, they say, a provision in the brewpub bill allows breweries to do retail sales, which could harm wholesalers, retailers and craft brewers alike.
Lobbyists for beer and liquor wholesalers, hoping to quash the bills, have purchased more than $2,800 in lunches, drinks and dinners for lawmakers since the beginning of the session, according to records filed with the state Ethics Commission. Lobbyists for craft beer brewers and distilleries have spent $200 on meals for lawmakers this year.
Proponents of the bills say loosening the laws will bolster small business, tourism and revenue for the state. They don’t want to do away with the three-tier system, they say, but update it to allow small alcohol businesses to sell their products in a limited way. Under the law, brewpubs wishing to sell their beer outside of their restaurant must sign up with a distributor.
“I think it meets the balance of offering a limited supply for in home consumption without getting into a situation where we are tipping the balance on the three-tier system,” said Sen. Josh McKoon, R-Columbus.
McKoon is sponsoring Senate Bill 174 which aims to give brewpubs the ability to sell up to one case of beer per person per day. McKoon’s bill is companion to HB 314, sponsored by Rep. Tom Taylor, R-Dunwoody.
Georgia’s wineries, proponents say, are an example of how the exception can work. Chateau Elan, a North Georgia winery, receives about 500 tourists and sells 750 bottles a week, said Rep. Rusty Kidd, R-Milledgeville, who as a lobbyist helped pass that legislation.
That’s what he wants to do for distilleries with HB 185, which would allow those businesses to sell two liters of spirits per customer per day.
“It’s a pro-business, economic issue for a lot of these communities,” he said.
Wood, whose moonshine distillery is located inside the Dawsonville City Hall next to the Nascar museum, believes that allowing her to sell the ‘shine could be a win-win for all parties. Visitors buy their first bottle from her, but are likely to purchase their next from a liquor store close to their home. Wood’s moonshine will soon be sold in other states through a distributor, she said, and thus the initial sales in Georgia would mean more state revenue.
“They should see it as a promotion; an introduction of the product,” she said. She needs the distributors, she said, if she hopes to be successful, and thus doesn’t want to infringe on the three-tier system.
That doesn’t satisfy opponents, such as Fred Kitchens, executive director of the Wine & Spirits Wholesalers of Georgia.
“They say it won’t affect the three-tier system, but this is a one-tier bill,” Kitchens said.
The bills also pose a challenge for the Georgia Department of Revenue, said Howard Tyler, director of the Alcohol and Tobacco Division. Revenue officials fear allowing alcohol producers to do retail sales could lead to out-of-state producers wanting the same in Georgia, complicating their ability to track sales and excise tax.
That fear stems from a 2005 U.S. Supreme Court decision that said allowing in-state wineries to ship wine to consumers, but prohibiting out-of-state wineries from doing so, is unconstitutional.
John Pinkerton, head of the Georgia Craft Brewers Guild and owner of Savannah’s Moon River Brewing Company, said he’s hopeful of reaching middle ground. Neighboring states, such as Tennessee, found a way for brewpubs to sell their product off-site.
His thinks the ability to sell his beer to-go could result in a 15 to 20 percent jump in business. Moon River did $2.5 million in sales last year, he said.
“That’s very meaningful for a small business like ours,” he said. “I wish we had the same kind of freedoms that the wine industry has in Georgia. That’s what we’re fighting for.”
But if the most recent committee hearing is any indication, it’s a losing fight. Only one booze bill, the gift basket measure, looks to have a good shot of passing this year. Committee chairman Rep. Alan Powell, R-Hartwell, asked revenue officials help find a solution in that matter.
Taylor, the Dunwoody lawmaker who’s working with the brewpubs, said his bill is unlikely to pass this session, leaving plenty of time for all sides to find consensus before next year.
That suits him, he said. “I don’t want to referee a big fight.”
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