Senate committee hears arguments for and against limited brewery self-distribution in SB 456

The Senate Regulated Industries and Utilities Committee heard testimony Tuesday on Senate Bill 456, a proposal that would remove a 288‑ounce off‑premise malt‑beverage cap and allow small breweries to self‑distribute up to 1,000 barrels per year to retailers within the county where the brewery is located. Chairman Collisert opened the hearing and said the session was for testimony only.

Sponsor Senator Bearden framed the measure as a targeted fix for small brewers. He said the bill ‘‘does nothing more than help our neighbors and small businesses’’ and noted states including North Carolina and Tennessee allow greater self‑distribution flexibility. Bearden pointed to Section 3, which would permit local sales capped at 1,000 barrels and remove the statutory 288‑ounce limit on off‑premise sales.

Small brewers and trade groups urged the committee to advance the bill. Spencer Nicks, cofounder and CEO of Reformation Brewery, told senators his company produces about 4,000 barrels a year and relies on wholesalers for roughly 2,500 barrels. ‘‘SB 456 makes practical, targeted updates that help small brewers survive and grow without tearing down the system,’’ Nicks said, adding the measure would help local businesses build demand and jobs.

National advocates echoed that assessment. Sam DeWitt, state government affairs director for the Brewers Association, said 38 states allow some form of capped self‑distribution and that jurisdictions that authorize it ‘‘have paid dividends for small brewers and wholesalers alike.’’ DeWitt urged the committee to consider a capped approach that preserves the 3‑tier structure while providing a bridge to market for new brands.

Brewery witnesses and industry representatives described compliance and tax reporting systems to address enforcement questions. Thomas Monte, a brewery operator, said excise liabilities are reported monthly and tracked by the Department of Revenue when product leaves the brewery: ‘‘The moment it goes out of that door…we send that into the DOR every single month,’’ he said, adding that modern accounting makes monitoring feasible.

Wholesale and retail groups strongly opposed the proposal. Martin Smith of the Georgia Beer Wholesalers Association said the bill would create a broad ‘‘small brewer’’ category and allow brewers to ‘‘cherry pick’’ prime accounts, undermining wholesalers’ investments in distribution and franchise territories. Stoney McGill of the Georgia Alcohol Dealers Association warned the change could disadvantage independent retailers who rely on equal access to wholesale supply.

Public‑health witnesses and faith groups urged caution. Michael Mumper of the Georgia Alcohol Prevention Alliance cited national and state figures and said increased availability tends to raise consumption and harms; he warned the change ‘‘might be a small break, but this is a break’’ in the 3‑tier system. Mike Griffin of the Georgia Baptist Mission Board argued the historical purpose of regulation was to limit accessibility and protect communities.

Committee members pressed witnesses on several technical points: how the 1,000‑barrel cap would be verified, whether county boundaries are the right geographic limit for local sales, and what definition should determine a ‘‘small brewer.’’ Several witnesses said 1,000 barrels could be a practical compromise and that most Georgia craft brewers operate at hundreds of barrels annually rather than thousands.

Chairman Collisert closed the hearing without a committee vote, saying members would have time to digest the testimony and consider amendments. He told members he did not expect the bill back this week and that the committee would meet again Thursday to set future agendas.

The committee record for SB 456 will include testimony from brewery owners, trade associations and public‑health groups; whether the committee adopts amendments on geographic scope, monitoring and the exact cap remains to be seen.