Growler bill pits Florida microbreweries against big-money beer interests

What started as an effort by Florida microbreweries to sell beer to consumers in popular half-gallon “growler’’ containers has morphed into a measure some say could put them out of business.

04/22/2014 4:29 PM

04/23/2014 5:58 PM

Florida’s Republican lawmakers frequently talk about creating a business-friendly climate. But this week, the Senate Rules Committee voted 9-4 for a bill that would heavily restrict a burgeoning industry in Florida: craft breweries.

What started as an effort by Florida microbreweries to sell beer to consumers in popular half-gallon “growler’’ containers has morphed into a measure some say could put them out of business by strictly limiting retail operations.

SB 1714 is heavily backed by the Florida Beer Wholesalers Association, which has controlled beer distribution in the state for decades. The group has at least doubled its contributions to the re-election campaigns of senators who have voted on the measure, which was approved Monday by the powerful Rules Committee.

Call it a sobering civics lesson in the power of campaign cash.

“It’s classic crony capitalism,” said Joey Redner, the founder of Tampa’s Cigar City Brewing, after the Rules Committee vote.

Specialty beer establishments can already sell their beers in containers of a gallon or more, and in containers of a quart or smaller. Fans say the half-gallon — equal to four, 16-ounce servings — is ideal for home consumption in a day. Only Florida, Idaho and Mississippi forbid craft beer to be sold in the half-gallon size.

SB 1714 would allow micro-breweries selling up to 2,000 kegs a year of their own brew to sell growlers of any size. But if they sell more than 2,000 kegs, they would be prohibited from selling their brew in sealed cans or bottles for home consumption directly from the microbrewery.

Instead, they would be required to funnel their business through one of the state’s established beer distributorships. Then, they would have to buy back their own product — at marked up prices — before they could sell it to consumers for home consumption.

The purpose, according to the bill’s sponsor, is to preserve the state’s beer distribution system, implemented to protect consumers in the chaotic post-Prohibition beer market.

“Once you’re at a level where you’re brewing that much beer, you’ll have to play by the same rules as everyone else,” said Sen. Kelli Stargel, R-Lakeland.

But brewers who drove up to Tallahassee from Tampa Bay to object said the 2,000 limit was too low.

Redner said Cigar City sells about 100,000 kegs a year, which hardly puts it on par with Anheuser-Busch InBev, which sells about 100 million kegs a year.

“We’d lose $175,000 in profit,” Redner said. “We can survive that, but other small brewers can’t.”

David Doble of the Tampa Bay Brewing Co. agreed. “I break even at 14,000 kegs,” he said. “So 2,000 kegs is absolutely nothing. If this bill were to pass, I am done. For people to say no jobs are to be lost are fooling themselves.”

As Americans have thirsted for a more complex brew, craft beer pubs have exploded in recent years. About 100 craft beer establishments are expected to be open for business in Florida by the end of the year, including about a dozen in South Florida.

Several upstart breweries in Miami-Dade and Broward counties have been urging their customers to help them fight the proposed legislation.

“The battle for 64-ounce growlers has turned into a political mess, with paid-for senators producing this bill as the result,” Oakland Park’s Funky Buddha Brewery posted this week on its Facebook page. “Please let your voice be heard by calling your Florida Senate or House Representative and letting them know you do not support 1714.”

After the bill was voted out of the Senate Rules Committee, Funky Buddha updated its post, asking its followers to keep fighting:

“The rules committee just concluded its vote as favorable, moving the bill on to an official Senate vote. The senators listed below listened to statements from your Florida brewers, and then coldly voted against job creation, economic growth and the people by sending this bill on. Don’t give up the fight — let your local representative know your stance on SB1714 today.”

Despite the growing numbers of craft brewers, the traditional distribution system in place since the repeal of Prohibition wields enormous clout. The Florida Beer Wholesalers Association has contributed at least $65,600 to the 2014 or 2016 re-election campaigns of senators who so far have voted on SB 1714. That’s twice the amount than the last election cycle for the same senators.

Those who voted for the bill in its two committee stops have received a total of $51,500 from the beer distributing industry, while those voting for craft breweries have received only $2,000.

Stargel collected at least $6,000 from beer distributors since late last year for her 2016 Senate re-election race, or about 12 percent of her total. The same interests contributed $500 to her 2012 campaign, when she wasn’t sponsoring such a bill.

Sen. President Don Gaetz, R-Niceville, brought attention to this pay-for-play dynamic when he told the Associated Press in March that he didn’t object to microbreweries. However, he said, they are an issue to one of his friends, Anheuser-Busch distributor Lewis Bear. Distributors contributed at least $8,000 to Gaetz’s 2012 campaign, with Bear kicking in at least $2,000.

Stargel said Monday she would work on the bill and reconsider the 2,000-keg threshold.

After Monday’s vote, more than a dozen craft brewer owners and employees from all over the state huddled with an ally in the Florida House: Majority Whip Dana Young, R-Tampa.

“I see the dramatic impact the craft brewing industry has on Florida and the Tampa Bay region,” said Young. “I am willing to expose the absurdity of the Senate’s punitive bill and fight any attempts to hurt the industry.’’ Though Gaetz fast-tracked the bill in the Senate, it has no House companion, meaning that its future depends on end-of-session wrangling between legislative leaders.

“Why would the Senate want to do this?’’ Young asked. “It goes against every free market, small business principle we have.”

Miami Herald Food Editor Evan S. Benn contributed to this report.

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