22 Jul The details
Under the current microbrewery statute (A.R.S. § 4-205.08):
- A microbrewery may sell its beer for consumption on or off the premises.
- A microbrewery may sell its beer to a wholesaler, to any retailer (up to 3,000 barrels a year), and to any of its own retail establishments at an unlimited amount.
- A microbrewery may own an unlimited amount of retail licenses.
- Production cap is currently at 40,000 barrels. A microbrewery that exceeds 40,000 barrels shall receive a producer license. Producers may not own retail licenses, with some exceptions.
Proposed Changes to Microbrewery Statute (A.R.S. § 4-205.08)
(Objective: create two levels of craft breweries in order to promote growth in the industry and maintain the three-tier system.)
- Additional privileges and changes for microbreweries that produce less than 40,000 barrels:
- Microbreweries may sell beer produced or manufactured by other microbreweries for on-premise consumption, but cannot exceed 20% of the licensee’s annual sale of beer on the premises. This beer shall be purchased from a wholesaler if that microbrewery has a wholesaler agreement.
- Microbreweries may sell wine produced by farm wineries for on-premise consumption only, but cannot exceed 20% of the licensee’s annual sale of alcohol on the premises. The wine shall be purchased from a wholesaler if that farm winery has a wholesaler agreement.
- Microbreweries may hold only bar, beer and wine bar, and restaurant licenses. (Currently, a microbrewery may hold any type of on-sale retail license.)
- Microbreweries may hold a combined total of seven retail licenses, both adjacent and remote. (Currently, a microbrewery may hold an unlimited amount of retail licenses.)
- Once a microbrewery reaches 40,000 barrels and has a producer license, the microbrewery:
- May not self-distribute, unless to own adjacent licenses.
- May not add any retail licenses.
- May not give up or shed any existing licenses when reaching producer status.