Louisiana Craft Beer Reform 2024
• Permit Microbreweries to Enter the Distribution Market
A rapidly growing sector of Louisiana's breweries consists of microbreweries licensed as AG (Bar permit) or AR (Restaurant Permit), with the capability to brew beer. Despite their ability to brew, Louisiana law currently prevents these craft beer makers from distributing within the state. Louisiana based beer wholesalers collaborate with out-of-state microbreweries with similar permits, distributing their products in Louisiana. This restriction hinders consumer choice and impedes the growth of burgeoning Louisiana-based businesses. Allowing microbreweries to enter the distribution market within the state would rectify this issue.
• Allow Manufacturers to Sell Other Alcohol at Retail
Louisiana's craft breweries not only produce exceptional beer but also serve as community hubs and visitor destinations. Many craft brewers operate on-site restaurants, provide tours, and host events. However, existing law limits them to serving only alcohol produced on-site. To enhance the operations and offerings of these businesses, it is essential to permit the sale and service of outside alcohol for on-premise consumption, providing consumers with more choices.
• Streamline Transfer of Beer Laws
Some of Louisiana's most successful brewers have expansion plans within the state. However, current laws need refinement to support the progress made a few years ago. While the law allows breweries to engage in transferring, cleanup language is required to facilitate the process. Since the law's passage in 2022, no brewery has initiated this process to date.
• Enhance Brewery Self-Distribution Laws
Although Louisiana law permits breweries to engage in self-distribution, there is a need for cleanup language to streamline the process. Since the law's passage in 2022, only one brewery has obtained a permit under this provision.
• Allow Direct Beer Shipments to Residents
Currently, Louisiana law prohibits breweries from directly shipping beer to consumers. This restriction puts local breweries at a disadvantage in the online marketplace, as out-of-state breweries and retailers can ship directly to consumers. Notably, Louisiana wineries are allowed to ship directly to consumers. Revising the law to permit direct beer shipments would level the playing field for in-state breweries.
• Remove Protectionist Distribution Contract Restrictions for Small Breweries
Louisiana law imposes significant restrictions on brewers' ability to amend or terminate distribution agreements, particularly for small breweries. The 1993 "Beer Franchise Law" favors licensed wholesalers, making it challenging for small, independent craft breweries to navigate exclusive agreements. The state should ease termination procedures for small breweries and address the imbalance created by protectionist distribution laws.