The story so far
July 1 — Senate Bill 63 becomes law, giving craft brewers the ability to sell facility tours and give away their product — a kind of backdoor way to actually sell their beer directly to customers, something those brewers have long sought. After Gov. Nathan Deal signed the bill into law, the state Revenue Department enacted rules governing the tours. Those regulations allowed brewers to create different tour packages at different price levels.
Sept. 25 — The Department of Revenue issues a "bulletin" saying while brewers can offer different levels of tours, the price differences cannot be based on the value of the beer. Brewers have said they were blindsided by the change in rules, which came after they had hired additional people and made other investments to accommodate the tours.
November — The Atlanta Journal-Constitution reports that emails and records it had obtained show that the politically connected Georgia Beer Wholesalers Association, which had fought with the brewers for years to preserve rules that prevent beer makers from selling their product directly to consumers, had advance notice that the Revenue Department was working on the new regulation and had plenty of access with agency officials beforehand.
December — House Speaker David Ralston says the tour pricing regulation should be reversed and that lawmakers will act if the Revenue Department does not.
January — Craft beer makers and liquor distillers reach an agreement with the wholesalers and state leaders that would allow them to once again sell tours with variable prices, and for the first time, they could also sell food on-site.
Monday — The Department of Revenue issues proposed regulations that would comply with the agreement reached in January. The department must take public comment for 30 days and could officially institute the rules as soon as May 6.
Georgia’s craft brewers and the state’s beer wholesalers united Monday in praise of proposed regulations that would ease rules for how breweries operate tours and market their wares.
The Georgia Department of Revenue is proposing to again allow brewers to sell tours of their facilities at different prices based on the quality and amount of beer customers receive as "free souvenirs."
While it’s far from granting brewers their ultimate wish of being able to sell beer directly to consumers, Monday’s announcement puts the manufacturers back where they thought they were after legislation passed in 2015. The wholesalers and the craft brewers have been at odds for years as the distributors seek to protect the long-standing “three-tier” system of alcohol production and sales in Georgia.
“The regulations released today are a step forward for Georgia’s breweries and distilleries,” Nancy Palmer, the executive director of the Georgia Craft Brewers Guild, said, noting that the proposed rules also would affect Georgia’s liquor manufacturers. “The legal team at the Department of Revenue has written thoughtfully and clearly, and brewing businesses across the state are excited to get back to work engaging with the customers and tourists visiting Georgia’s breweries.”
The department must take public comment for 30 days and could officially institute the rules as soon as May 6.
Senate Bill 63 took effect July 1, and the department quickly issued rules for the new tours. It was a breakthrough for brewers who were for the first time allowed to provide customers with up to 36 ounces of beer to drink on-site or take home as much as 72 ounces if they purchased a facility tour.
Manufacturers spent thousands to create new tasting rooms and hired staff to run tours and serve the “souvenirs.” Many breweries offered different types and amounts of beer with different tour prices. But, three months later in September, the Revenue Department issued a new set of regulations that seemed to reverse course. No longer could the tours have variable prices based on the beer sold, the agency said.
Brewers were furious. The Atlanta Journal-Constitution later reported the change came after agency officials met with representatives of the state's alcohol wholesalers industry, who saw the tour rules as a step toward allowing direct sales from brewers to consumers.
After top lawmakers threatened legislation if the Department of Revenue didn't reconsider its actions, all sides in January came to an agreement on what rewritten regulations would include. The agency on Monday made good on that deal.
The proposed regulations also make clear brewers could offer customers food as part of the tour package and that both brewers and manufacturers could use social media to tell customers where to buy their products. Charities will also be allowed to host events at breweries if the rules become law.
Martin Smith, a spokesman and assistant director of the Georgia Beer Wholesalers Association, said the Department of Revenue has done well.
“First, we would like to thank (Revenue) Commissioner (Lynne) Riley for working with the GBWA and our colleagues at the Georgia Craft Brewers Guild to ensure these regulations are good for the continued growth of the beer brewery industry,” Smith said. “These regulations are very positive for beer lovers across the state and clearly demonstrates how all of us are working together to make Georgia a great state to brew and consume beer.”
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