The Texas legislature sure passed a doozy. There are quite a few folks outraged at the outcome of the bill that came out of left field, seemingly flew through both houses, and was quickly signed into law. Let’s dig into it a little bit.

First, pour yourself a nice local craft beer. We’re going to be here a minute.

Alright ready? Let’s go.

Texas Brewers Fear Layoffs, Closures Following Senate Vote to Curtail Taproom Sales

Now, Brewbound does an alright job of breaking down the major components of the bill. But let’s add some commentary and clarity to some things they skimmed over.

1. The Senate version of this bill is not nearly as bad as the original House version. The cap is right around 225,000 barrels of beer. The language is, if your brewery produces more than 225,000bbl of beer a year (That’s 450,000 15.5 gal kegs, or 675,000 5.2 gal kegs (1/6bbls).

If that sounds like a ridiculous amount of beer, it is. No CRAFT brewer in Texas is affected by this bill. So a lot of folks need to calm down. In fact, the closest breweries to this magical 225,000? Aren’t even to 100,000bbl of production. So let’s put the pitchforks back in the barn and goosfraba a minute.

2. Independence. They get the short of the stick on this one. I feel bad for the Cartwrights on this. Because they took an investment from Tony Magee of Lagunitas, who had taken a payday from Heineken they get caught in a crossfire. Now, this does clarify that only breweries with a larger than 25% stake are affected. I had not heard of a disclosure of stake in the past, but the fact that the article is quoting Cartright and she is saying they are affected leads me to believe they took significantly more money from Lagunitas than I originally thought.

*An interesting aside, I do encourage each of you whom is interested to read “So you want to start a brewery” by Tony Magee. It is not a how to, if you buy it with intentions of getting a blueprint for a brewery, you will be sorely disappointed. It is however a good look at the Lagunitas history and it clearly shows you why they sold their brewery to Heineken. I suspect there are a lot of things unwritten that led to the sale as well. Someone who has read it let me know your thoughts.

3. Ceiling of success claims. Really? Talk about a whole lot of “sky is falling economics” If I hear the claim that “this bill makes Texas breweries unattractive to outside capital” one more time, I may just lose it. Well, DUH! Why does your brewery need venture capital? Have you given up on the dream of being a craft brewery? Breweries that need that sort of capital have essentially sold out. With a couple of breweries in Texas remaining independently owned and approaching 100,000 barrels of beer? I stand fast to the principal that it CAN be done, and that for intuitive and well run breweries, it WILL be done.

Do you really want more InBev money coming in and buying out our breweries? Then what? You bitch and complain about this cap, but what happens when Tenth and Blake comes in and buys Lakewood? What happens when Constellation Brands buys Freetail?* You will turn around and shun those very breweries because they took a payday from outside capital. Folks say to drink local, but that they want the “ability” to take outside investment? Why do you need it? To expand? Sure, expand. To sell out and take a payday? I find this scenario exponentially more likely.

*I do not see Lakewood or Freetail selling out.

4. This is where I take my first cause with this bill. The self distribution cap. Previously an entity with multiple locations was able to self distribute 40,000bbls per location until they hit a cumulative 125,000bbl of production. Again, no brewery in Texas is even close to this threshhold. Well, this bill significantly lowers the threshhold to a cumulative 40,000bbl. THIS I take issue with. A horrible provision.Wholly unnecessary and bad, bad, bad. Breweries up until ~2013 were able to self distribute 75,000 barrels (which would cover all but 2 craft breweries in the State of Texas). The tap room compromise lowered that to 40,000bbl per location, but in exchange breweries across the state could now “sell beer for on premise consumption”, again capped at something silly. I want to say 5000bbl through the taproom.

5. Revolver. Cry me a river. I have no pity. They took Miller Coors money and have plans to build this (https://www.guidelive.com/craft-beer/2016/11/02/revolver-brewing-open-second-location-texas-rangers-new-entertainment-district) conveniently not mentioned in the story. This bill raises their COGS and would make them lose margin on their $10 beers at the ballpark. Wah wah wah.

6. Deep Ellum. I think Reardon is only quoted in these articles because he is so vocal about everything. There is a lot of fishy happenings at Deep Ellum, there are a lot of backroom conversations and underhanded deals. They are not a wholesome bunch and they do not have the community at the forefront of their business model. They were built to sell (and sell out they have done).

7. Karbach. Ken Goodman penned this about six weeks ago. http://www.houstonchronicle.com/opinion/outlook/article/Goodman-Prohibiting-tap-rooms-will-crush-craft-11074428.php

The article then began a flurry of comments how Karbach sold out, distribution money, yadda yadda yadda. The bills language has been altered and they will not be closing their restaurant / taproom. They may charge higher prices or accept lower margins, but they will remain open.

Now, that is a lot of information to digest. Here are some more thoughts.

This bill protects Texas breweries from outside financial influence. As I pointed out earlier, it makes significant investment in our craft breweries less appealing. It will help keep craft breweries, craft. For breweries with agendas and business plans that include selling out down the road, this bill sucks, it lowers their future payday (if they get one at all now).

This bill also protects AbInbevs monopoly on beer in Texas. Without outside money pouring in, no brewery in Texas will be able to match AB in terms of equipment, marketing, clout, etc. It protects Karbachs position in the market as well. AB can pump as much money as they want into Karbach and it will continue to grow, unfettered throughout the state and beyond.

Here is what I fear will happen. They 225,000bbl cap gets lowered in the coming legislative sessions in “compromise” bills. This is the biggest danger of the bill.

I also do not like how this bill was shoehorned through the legislative branches. Something is fishy. There has been a movement for years to get a bill proposed to allow Texas manufacturing breweries (note: not brewpubs) to be able to sell packaged beer to go from the breweries. This is legal in 49 states, but not ours. This proposed bill did not even get a hearing. The distributor alliance stranglehold in the Texas legislature is real. It is real dangerous.

This coming Saturday at The Point Park and Eats. Come out for some donut balls, beer, and knowledge!

Every bottled vintage of Sisyphus (2002-2017). Amazing does not encapsulate the awesomeness and generosity of Brad and Co. at Real Ale. Amazing brews, amazing hospitality. #lifesshortdrinkgoodbeer #beerwithblake #realale

This is pretty nifty and innovative. Martin House Brewing Company introduces us to 2-pack boxes. One of the coolest packaging ideas that I have seen lately.

What are some of the coolest packaging ideas that you have seen / heard about that are coming down the pipeline? I like Founders Brewing Co. 15 packs.

On the flip side of the coin, what are some pack sizes that you have seen that just don’t work as well as one would think?

To me, it truly depends on the style of beer and price point. Frankly, some of these breweries try a one size fits all approach and it ends up not appealing to their base, and not appealing to folks looking to try new beers. You have to be smart with packaging. That is why we have seen the 12oz 6 packs become the golden staple of the industry. A distant second would be the 16oz 4 packs. However, with retailers consolidating more and more shelving units for uniformity, it makes the best business sense to double pack the shelves with 6 packs instead of a single stack of 16oz cans.

Maybe someone reading this will comment from their retailer perspective?

What is your current go-to, easy drinking beer? As we prepare for summer here in Texas (Yes, I do realize that it is February) it is time to begin thinking about lawn-mowing beers.

I’ve been thoroughly enjoying Alamo Beer‘s Munich Dunkel and Pilsner lately. I am excited to see Ranger Creek Brewing & Distilling‘s San Antonio Lager hit the shelves this week.

It’s great to have an easy drinking crisp pilsner for these hot spring days. Let’s hear it, what are you keeping stocked in your fridge and possibly drinking way too much of?

While last years Beer Camp was pricey, it had some solid beers in it. I do enjoy this series, and the concepts behind the series. It is a great way to enjoy the work of brewers around the world who may not have a presence in your local market.

Also, they did a stand up job on the video this year.

#sierranevada #craftbeer #beerwithblake

http://beerstreetjournal.com/next-level-dogfish-head-creat…/

Dogfish has gone and done it again. Innovation keeps Sam and his crew well ahead of the curve. I am intrigued and hope that this is online by the time I make it back tout there in July.

Alrighty, you’ve had a couple of days to simmer and think, and to recover from all the amazing craft beer that you consumed during the Superbowl. Let’s look at a commercial that is getting a lot of attention.

https://www.nytimes.com/…/bus…/super-bowl-ads-politics.html…

Now, there seems to be quite a bit of backlash and folks are turning this into a political spectacle. The commercial was actually filmed long before the election, but lets not let politics poison our beer.

While I am not the biggest fan of what has become ABInBev, I found the commercial in good taste and not a swing at craft beer like they have done the previous couple of superbowls. The story of Anheuser and Busch is actually a pretty good read. In fact, if you want a relatively brief overview, check out “Ambitious Brew” by Maureen Ogle. It is a solid overview of beer in America. It covers both macro and micro and when read with an open mind it will give you an appreciation for some of the original big guys that paved the way.

What did you think of the commercial from a beer perspective? It shows a passion, it shows a drive, and it shows the initial meeting. Now, that is wholly fictionalized, but it sure made for some good tv.

Don’t go be picking up a sixxer of Bud Light now, but definitely check out some of your local craft lagers. Perhaps the brand new San Antonio Lager from Ranger Creek, Alamo Pils, or if you need a solid national brand Upslope has a Craft Lager that is quite delightful.

Appreciate the seemingly simple, for they are more complex than most folks realize.

Prosit!

It’s Friday in the Hill Country. Which local brewery will you be visiting this weekend? Do you make your decision based on which beers are on tap? The staff that is working or the owners? Is it a community staple? Or perhaps you haven’t been there yet / in awhile?

What are some of the criteria that you utilize to decide where you #drinklocal?

I tend to go for breweries that I have not been to in awhile, at all, or fall within the geographic area that I plan to traverse that day. E.g. last weekend I visited New Braunfels Brewing Co, Ruggedman Brewing Company LLC, Cactus Land Brewing Co., and Fredericksburg Brewing Co. The week before I stopped in to hang out with Guadalupe Brewing Company. Where will I be this weekend? Well, I don’t know yet, but I am sure by the end of the day I will figure it out.

I mean, when the time is right… the time is right. Drink em if you’ve got em.

It’s 1/20 … you know what to do.

If you’re in the Austin / San Antonio area, or even just passing through. Get these guys on your radar. They kicked things off this Friday (Jan 6) and are having their grand opening weekend the 20-22nd of Jan.

They’ve been planning and working out the beers for years and they opened their doors ready to rock. I’m excited to see them progress further and kick some ass.

I am a beyond harsh judge of Blonde ales, they have two (American, and a Belgian) that are truly outstanding. I can’t wait for their stouts and porters to kick off in two weeks.

If you’re in the San Antonio area this is going to be a great event. Stay tuned as we have some great things coming up for 2017 at The Point Park and Eats.

#2016BURGERBRAWL TAKE 2 happens on January 14th! Come on out and try burgers from the 6 competing food trucks then vote for your favorite!

Guest judges include:
Craft Cruiser (Dan)
Legal Draft Beer Co. (Dan)
She’s Crafty: Talk on Tap (Catherine)
Pedernales Brewing Company (Mike)
Independence Brewing Co. (Holly)
Beer With Blake (Blake)

Let’s talk Texas TABC drama. As recently of last night, I am being told that TABC has begun to crack down on Randalls. (http://shop.dogfish.com/…/b…/other-accessories/Randall-3.htm). This is the actual code as written:

We are looking at sections 2, and 5 directly. ((2) furnish, give, or lend any money, service, or thing of value to a retailer), ((5) furnish, give, rent, lend, or sell to a retail dealer any equipment, fixtures, or
supplies to be used in selling or dispensing alcoholic beverages).

Sec. 102.07. PROHIBITED DEALINGS WITH RETAILER OR CONSUMER. (a) Except as
provided in Subsections (b), (d), and (g), no person who owns or has an interest in the business of a
distiller, brewer, rectifier, wholesaler, class B wholesaler, winery, or wine bottler, nor the agent, servant,
or employee of such a person, may:
(1) own or have a direct or indirect interest in the business, premises, equipment, or
fixtures of a retailer;
(2) furnish, give, or lend any money, service, or thing of value to a retailer;
(3) guarantee a financial obligation of a retailer;
(4) make or offer to enter an agreement, condition, or system which will in effect
amount to the shipment and delivery of alcoholic beverages on consignment;
(5) furnish, give, rent, lend, or sell to a retail dealer any equipment, fixtures, or
supplies to be used in selling or dispensing alcoholic beverages, except that alcoholic beverages may be
packaged in combination with other items if the package is designed to be delivered intact to the ultimate
consumer and the additional items have no value or benefit to the retailer other than that of having the
potential of attracting purchases and promoting sales;
(6) pay or make an allowance to a retailer for a special advertising or distribution
service;
(7) allow an excessive discount to a retailer; or
(8) offer a prize, premium, gift, or similar inducement to a retailer or to the agent,
servant, or employee of a retailer.
(b) A permittee covered by Subsection (a) of this section may furnish to a retailer without
cost advertising specialties showing the name of the product advertised. The total value of all advertising
specialties for any one brand furnished to a retailer in any one calendar year may not exceed $78. Not
more than once a year, the administrator on the administrator’s own motion or on the motion of the
permittee may increase or decrease the total amount of advertising specialties permitted under this
subsection by not more than six percent based on the consumer price index and previous adjustments, if
any. For the purposes of this subsection, “consumer price index” means the annual average over a
calendar year of the consumer price index (all items, United States city average) published monthly by the
Bureau of Labor Statistics, United States Department of Labor, or its successor in function. Permittees
covered by Subsection (a) of this section may not pool or combine their dollar limitations to provide a
retailer with advertising specialties valued in excess of the maximum permitted under this subsection.
(c) No person who owns or has an interest in the business of a package store or wine only
package store, nor the agent, servant, or employee of the person, may allow an excessive discount on
liquor.
(d) A permittee covered under Subsection (a) may offer prizes, premiums, or gifts to a
consumer. The use of rebates or coupons redeemable by the public for the purchase of alcoholic
beverages is prohibited. The holder of a winery permit may furnish to a retailer without cost recipes,
recipe books, book matches, cocktail napkins, or other advertising items showing the name of the winery
Texas Alcoholic Beverage Code (2015) 137
furnishing the items or the brand name of the product advertised if the individual cost of the items does
not exceed $1.
(e) A permittee covered under Subsection (a) may conduct a sweepstakes promotion. A
purchase or entry fee may not be required of any person to enter a sweepstakes event authorized under
this subsection. A person affiliated with the alcoholic beverage industry may not receive a prize from a
sweepstakes promotion.
(f) Notwithstanding Subsection (a) of this section, Section 108.05 of this code, or any other
provision of this code, a holder of a brewer’s permit, nonresident brewer’s permit, distiller’s and rectifier’s
permit, winery permit, nonresident seller’s permit, manufacturer’s license, or nonresident manufacturer’s
license may, in order to promote the brand name of the permittee’s or licensee’s products, contract with a
person licensed under the Texas Racing Act (Article 179e, Vernon’s Texas Civil Statutes) [Refer to
Appendix for this citation] for on-site advertising signs, for advertising in programs, and to supplement
purses for races even though the licensees under that Act or the owners or operators of the racing facilities
also hold a mixed beverage permit or other permit or license under this code. In addition, a permittee or
licensee described by this subsection may contract for off-site advertising promoting specific races. A part
of the cost of an advertisement or promotion authorized by this section may not be charged to or paid,
directly or indirectly, by the holder of a wholesale permit, general class B wholesaler’s permit, local class
B wholesaler’s permit, local distributor’s permit, general distributor’s license, or local distributor’s license,
except through the price paid by that holder for products purchased from the holder’s supplier.
(g) Subsection (a) does not prohibit a permittee covered under Subsection (a) from
prearranging or preannouncing a promotional activity otherwise permitted by this code with a retailer
about a promotional activity to be held on the retailer’s premises. Notwithstanding any other provision, a
permittee may:
(1) preannounce a promotion to a consumer; or
(2) preannounce the purchase of wine, distilled spirits, ale, or malt liquor to a consumer.

Now, what does all of this legalese mean? It means that as TABC lost their crowler case suit brought on by their unlawful actions at Cuvee Coffee, they have tried to backdoor their stance and have doubled down. (https://www.oskarblues.com/crowler), (http://spirits.blog.austin360.com/…/cuvee-coffee-bar-told-…/), (http://www.sacurrent.com/…/tabc-faces-setback-in-its-war-on…), etc.

What does this mean for the consumer? It means less variety of containers for beer to go, it means less creativity from brewers in terms of special events and beer infusions.

There are most certainly some work arounds for the Randall equipment issue. If you or your bar are interested in these, please contact me directly and I will share the blueprints with you.

But why Blake, why is TABC cracking down on Randalls? Well, merely because they are manufactured by a producer tier member. Randalls are collateral damage in the war against crowlers. TABC has also been conducting stings throughout Houston yesterday as well. I imagine that things are going to be relatively tense for a little while longer as they flex their enforcement muscles.

Following the Karbach announcement Deep Ellum posted quite the succinct note to Facebook stating “Bet you thought it was going to be us” referencing the sell to AbInBev. Well, it looks like they have started down that road on their own.

http://www.brewbound.com/…/texas-deep-ellum-sells-stake-sto…

A couple of very telling quotes from the article.

“Now, I want to align myself with strategic partners who understand the long-term play of craft beer and can help me realize my goal ofbecoming a dominant brewery – not just in Texas, but also in the region.”

“This is the fastest, most entrepreneurial way to allow me to do what I want to do, remain independent, and build a brand,”

Fun fact, it’s hard to be independent when you only have a 40% stake in your own business. I wish that I could say that I was surprised, but I am not. For some of these folks it’s not about the passion, the beer, or the movement. It boils down to dollars.

EDIT:
http://www.prnewswire.com/…/the-votes-are-in-100-vcs-and-an…

Now….This infers to me that this latest sellout was to remove the influence of the angel investors from 2010. Do any of you have an inside source at Deep Ellum Brewing Company that may know more?

Texas’ Deep Ellum Sells Stake to Storied Craft Breweries

Texas’ Deep Ellum Brewing has sold a majority stake to Storied Craft Breweries, an upstart growth capital group founded by the creators of Effen Vodka and …

BREWBOUND.COM

Here is a short read on the transformation currently going on at Grapevine Craft Brewery http://www.guidelive.com/…/grapevine-craft-brewery-3-year-a…

I am glad to see the brewery surviving opposed to merely being a second brewhouse for Deep Ellum. I’ll be glad to see some more Armadillo Ale Works in the market in the near future as well.

3 years in, Grapevine Craft Brewery isn’t what it used to be | Guidelive

Grapevine Craft Brewery is not one of Dallas-Fort Worth’s oldest breweries, but it’s certainly one of the most storied. Since opening in late 2013

GUIDELIVE.COM

My find of the week. A huge shoutout to Jody and Candace for getting me taken care of. An 8yr weizenbock, covered in thick dust. I’m stoked to get into these over the weekend.

http://www.saintarnold.com/divine-reserve/

This beer was bottled before I could legally drink it.

It is a holiday week. What all do you have in mind to drink out of your cellar for this week? Anything special? What beer or style have you discovered this year that you have truly, truly enjoyed? Maybe the rediscovery of an old favorite or the uncovering of a new favorite?

In 2016 I have strayed from all of the uber vinegar sours and moved towards brett forward beers when I am drinking Wild Ales. I have made the conscious effort to explain the difference in sours and wilds whenever possible to folks asking.

I have also focused more towards lagers and Kolsch styles. I have reintroduced myself to brown ales. I plan to continue my trek of “back to the basics”. They are what built this craft beer empire, we have to continue to show them some love.