9 March 23-29, 2023 miaminewtimes.com | browardpalmbeach.com New Times | Contents | Letters | news | night+Day | CuLture | Cafe | MusiC | Month XX–Month XX, 2008 miaminewtimes.com MIAMI NEW TIMES | CONTENTS | LETTERS | RIPTIDE | METRO | NIGHT+DAY | STAGE | ART | FILM | CAFE | MUSIC | laws are more than outdated — they’re proving to be in- creasingly unfair. “It blows my mind that as a brewery owner, I have no control over this part of my business,” Mike tells New Times. “We need a way to negotiate contracts that work for both sides, not just the distributor. That’s really what we, as brew- ery owners, want to see change: to see both parties have equal rights and a normal business relationship.” Brooke Malone, who also serves as president of the Flor- ida Brewers Guild (FBG) trade group, adds that many of the state’s 374 independent craft breweries support several re- forms outlined in the guild’s “Freedom for Beer” campaign. Created in association with the Craft Brewers of Florida Po- litical Committee, the campaign aims to tackle the crucial statutes that govern craft beer manufacturing in Florida: franchise law, self-distribution, licensing fees, and brand registration. As part of the initiative, members of the FBG, along with a host of Florida craft brewery owners and lobbyists, have visited Tallahassee twice this year to meet with state lawmakers. Adam Fine had hoped to tackle big-picture items like franchise law and self-distribution. But the FBG ultimately chose a more modest goal: to clarify how the state assesses brand registration fees of malt beverages via House Bill 1459 and Senate Bill 658. If adopted, the new legislation would specify that brewers would pay brand registration fees only for beers sold outside their taprooms, rather than the cur- rent law, which is ambiguously written. According to former FBG board member and Riverview- based Leaven Brewing Co. co-owner Jillian Lynch, the ef- fort could immediately impact small breweries that produce large numbers of experimental, one-off beers. “A lot of us want laws that are clear and uniform. Right now, we’re all getting different answers with things like brand registration, and that’s definitely something we want to see addressed,” Lynch tells New Times. “I have two core and four seasonal beers that I register and pay for, but I know other brewery owners who are being told any beer they’ve ever made must be registered — which could trans- late to thousands of dollars. If I were to register every brand I ever created, that would suffocate my creativity because I’d have to turn every new beer into the financial decision of, ‘Do I want to pay for that?’” Fine says the decision to hold off on wholesale changes to the law was an intentional, incremental strategy. “While franchise-law reform and self-distribution are the most important issues facing small brewing businesses, they are also met with the most resistance from the distribu- tors who find protection in these existing laws,” he explains. “Franchise law is on the to-do list. Right now, educating the legislators is key,” agrees Joshua Aubuchon, who acts as general counsel and lobbyist for the FBG. “This year, we have 40 new members in the House alone, and for many of them, this will be the first time even hearing about these issues. There’s going to be some work getting them up to speed — even sharing examples like the problems facing M.I.A. — to really show the necessity for the changes we hope to make.” Over the years, many states have amended franchise laws regarding beer to be more equitable, including an option for self-distribution. In those states, breweries are permitted to sell at least some of their beer — often within a short radius of the brewery’s location — directly to bars, restaurants, or li- quor stores without the intervention of a distributor. “To date, 39 states have passed self-distribution legisla- tion for breweries under 60,000 barrels,” Brooke Malone notes. “Is Florida going to be the last?” Fine says prohibiting self-distribution for small brewer- ies has become the elephant in the room. “We believe that a working three-tier system is healthy for the alcoholic-beverage industry in Florida,” says Fine. “However, in its current state, it hinders the ability of small breweries to grow and be successful before committing to a lifelong decision. We believe that with open dialogue, we could reach an agreement that would benefit both sides. Un- fortunately, one side is not willing to discuss these changes because they already have the benefits of the existing laws.” “Distributors are not evil,” M.I.A.’s Eddie Leon hastens to add. “They are a critical part of our industry and have the difficult job of selling, delivering, and maintaining inventory of freshly brewed beer. We see Cavalier’s actions as a blatant abuse of franchise law, one that clearly shows the problems with this type of system in Florida. It’s time for these laws to be amended. Put simply, it’s not fair business practice.” [email protected] “There’s no other business I can think of that is restricted and held hostage in this way.” Source image via Adobe Stock
