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Committee approves bill lowering beer alcohol cap to 10% to allow grocery sales of some craft beers
Summary
A House committee voted to pass SB564, which defines beer with an alcohol-by-volume cap of 10%, a move supporters say will let more craft beers be sold in grocery stores and opponents say will hurt independent liquor retailers.
Representative Matt Brown, District 55, told a House committee that SB564, a Senate-filed companion to an earlier House measure, would set a 10% alcohol-by-volume threshold in the legal definition of beer, allowing more craft beers to be sold in grocery stores. "There may be there's very few craft beers that are above 10%," Brown said, arguing the change would let grocery stores offer craft beers while keeping higher-alcohol products out of those venues.
The bill drew opposition from Bill Paschal, speaking for United Beverage Retailers of Arkansas, which represents roughly 70 independent liquor stores. "This will take away or whittle down an exclusive product that we rely on to get foot traffic into our liquor stores," Paschal told the committee, adding that when a previous law allowing grocery sales of 21% wine passed in 2017 some independents lost as much as 10% of their wine business.
Robbie Vogel, representing Golden Eagle of Arkansas, a licensed wholesaler, spoke for the bill and thanked the committee for the compromise that lowered the threshold. After brief discussion and a motion to "do pass," the committee voted in favor and the chair announced, "Congratulations. Your bill's passed." The transcript does not record a roll-call tally or the names of individual members voting yes or no.
The presentation noted Senator Scott Flippo (District 17) filed a corresponding measure on the Senate side; Representative Brown said the House measure mirrors that language except for the lowered alcohol threshold.
Supporters said the majority of craft beers fall at or below the proposed 10% ABV cap and that the change would help small craft brewers expand retail distribution. Opponents focused on potential commercial effects for independent liquor retailers and the concern of placing higher-alcohol products closer to children in grocery stores and convenience stores.
The committee action means SB564 advances from the committee. The record does not state the committee vote tally or specify floor scheduling.
