Government Operations & Military Affairs committee hears split testimony on H.921 alcohol bill

The Government Operations & Military Affairs committee reviewed Senate amendments to H.921 during a morning session that featured split testimony from industry stakeholders and a statement of support from the Department of Liquor and Lottery.

The hearing focused on three Senate changes to the House bill: reducing the number of fourth‑class tasting‑room locations allowed to carry additional manufacturers’ products (a Senate change replacing a numeric limit of 10 with 5), adding a recordkeeping and annual reporting requirement for manufacturers that self‑distribute, and deleting a sunset that would have ended the limited self‑distribution provision in 2028. Counsel also described two new sections revising the caterer’s-license rules and adding a five‑event-per‑year limit for certain on‑site catering functions.

Jen Kimmick, cofounder and CEO of The Alchemist, told the committee the combined effect of the Senate changes could allow manufacturers to open multiple off‑site tasting rooms and operate what she described as de facto retail outlets that undercut independent retailers, restaurants and distributors. "If this bill is passed as is, we will need to explore this path to stay competitive," Kimmick said, arguing that allowing five off‑site tasting rooms per manufacturing license could let a single manufacturer sell the vast majority of its beer directly to consumers and reduce the need for independent distribution. She urged the committee either to reinstate a sunset, add price and resale controls, or otherwise tighten the bill so it does not enable market concentration.

By contrast, Emma Arian, executive director of the Vermont Brewers Association, urged the committee to concur with the Senate amendments. Arian said the changes — including the removal of the sunset and the added reporting requirement — create a "limited, reported, regulated pathway" allowing manufacturers to self‑distribute up to the House‑passed cap (3,000 barrels annually) while giving the legislature and regulators data to monitor impacts. "This is thoughtful, limited, and responsive to today's marketplace realities," Arian said, adding that the association represents a majority of Vermont breweries and that the industry has worked extensively with regulators and stakeholders.

Amy Bettenheim, president of Mad River Distillers and testifying for the Distilled Spirits Council of Vermont, described the amendments as modest, vetted updates that preserve Vermont’s three‑tier regulatory system. Bettenheim said class‑4 tasting rooms are tightly regulated, allow only limited pours compared with full bar licenses, and that the proposed changes enable collaboration among Vermont producers without dismantling distributor or retail roles.

Wendy Knight, commissioner of the Department of Liquor and Lottery, told members the department supports the Senate amendments because they expand market opportunities for Vermont manufacturers while adding oversight. Knight clarified that the Senate language would reduce the number of fourth‑class locations that may carry additional Vermont products from the higher number in the House text to a more limited allowance, would delete the sunset on self‑distribution, and would require annual reporting of distributed volumes so the department can track compliance and outcomes. Knight also said the department has not identified public‑safety concerns tied to the changes.

Committee members asked for practical details — how many tasting rooms could realistically open, how pour limits differ between class‑3 and class‑4 licenses, staffing and operational constraints, and why some brewers would prefer limited self‑distribution to obtaining a wholesale license. Kimmick and other small‑producer witnesses emphasized that operational realities and current size disparities between manufacturers mean the same changes can have very different effects on small versus large producers.

No formal motion or vote was recorded in the transcript; the chair concluded the morning’s testimony and said the committee will continue the conversation.

The hearing record and a packet of supporting emails and charts referenced by witnesses were posted for the committee’s review.