Montana Craft Beer At A Crossroads: Which Path Do We Take?

Consider this, if you will: 

“Once considered nuisances, sources of noxious emissions and debasers of public morals, breweries now are being actively courted. Last May, Virginia Gov. Robert F. McDonnell (R) signed into law a measure that allows breweries to retail beer by the pint or growler in their tasting rooms instead of merely giving away samples. That measure was instrumental in Green Flash Brewing’s recent decision to build an East Coast branch in Virginia Beach.”

That’s a quote from a March 19, 2013 article in The Washington Post, titled Beer Madness 2013: Going Local, part of the newspaper’s annual March Madness-style craft beer “tournament.”

Green Flash is a San Diego based brewer of excellent craft beer which is making a push to get distribution to all 50 states.  You can get some for yourself if you make a run over to Idaho or WA.  Green Flash’s new Virginia Beach facility is set to open in 2015 and, at capacity, will employ 40 people and have a capacity of 100,000 barrels. That’s a nice addition to Virginia’s tax base and economy, don’t you think? 

Montana was 13 years ahead of Virginia in allowing breweries to sell pints and growlers. Think about that for a second.  As much as we like to complain about Montana’s strict and archaic laws – and much of that criticism is well deserved – we are sometimes reminded Montana isn’t always behind the times.* 

But consider what Virginia’s recent actions demonstrate: it’s a reflection of an attitude. A choice, if you will.

As of March 2013, there are 2,416 breweries operating in the United States.  That’s an increase of nearly 400 since 2012.  Waaaaayyy back in 2010, there were 1,759 breweries.  Forget the huge increase in styles, flavors and availability of great beer for just a moment; it’s a huge increase in the number of jobs, wages, tax revenues, and every other economic indicator, with associated spin-off benefits like the increasing sale of agricultural products.

We know this is true in Montana.  Thanks to a study prepared by the Bureau of Business and Economic Research of the University of Montana, we know Montana’s craft beer industry created 434 jobs and had a nearly $50 million dollar economic impact in 2011 alone.  Since then seven more breweries have opened up, several have or are in the process of expanding, and several more are under construction or in the planning stages.

It’s all the more baffling then, that the Montana Tavern Association thinks their efforts to enact House Bill 616 would actually benefit it’s members.**  Short term, sure, but long term, certainly not. The average “tavern” in Montana isn’t losing craft beer fans’ business to Montana’s growing number of breweries.  They never had their business to begin with.  Yet, breweries are developing a whole new crop of craft beer fans who are seeking out taverns which provide them with a good selection of craft beer from Montana and beyond.

When it is clear everyone stands to benefit from the undisputed growth of the craft beer industry, why are we even debating the direction we should take? 

Montana, we have a choice.  We can join the growing number of states that are amending their laws to actively court the craft beer industry.***  Or, we can follow the Montana Tavern Association’s lead and reject the jobs, wages, tax revenues, and increasing tourism and agricultural sales by adopting draconian measures like HB 616

It’s an attitude and a choice we get to make.  Let’s make the right one.

For all our articles pertaining to the 2013 Montana Legislature, click here.
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* Of course, under Montana’s current law, Green Flash would still be prohibited from selling pints for on-premise consumption because they will brew more than 10,000 bbl each year, so don’t get overjoyed with the idea that we were ahead of the times.

**Spin it however you want, the net effect of the MTA’s proposed bill is to significantly curtail existing brewery taprooms and create a major disincentive to add new breweries.

*** HJ 18, set for hearing on March 22, 2013 at 8:30 a.m. Tuesday, March 26, at 8:00 a.m., would create an interim study committee to conduct a comprehensive review of Montana’s alcohol laws to “identify recommendations to streamline, improve, and update the alcohol licensing system and regulation in the state to meet the needs of the public, including safety, industry, agriculture, tourism, and the state’s economy.”  While these types of interim studies often hold more promise than they deliver, it at least offers an opportunity to study, discuss and debate the issues – something that is sorely needed.