Nebraska Lawmakers Seek to Expand Craft Beers

Three state senators are looking into how the current distribution system could better serve small brewers.

July 16, 2013

LINCOLN – Three Nebraska state senators have introduced a legislative study to assess expanding the presence of craft breweries in their state, the Associated Press reports. 

Currently, brewpubs and microbreweries are allowed to sell alcohol at retail, but craft brewers maintain that delivering beer is limited because they have to work through distributors, which cuts into their thin profits. As a result, many craft brewers struggle to deliver their product because of their small size, said Paul Kavuluak, co-owner of the Nebraska Brewing Company in Papillion and president of the Nebraska Craft Brewers Guild.

"Many of the laws were built around an industry that was quite a bit bigger," he said. "We're just trying to create a nurturing atmosphere."

The senators will study whether self-distribution would help the small breweries grow along with a check-off program to promote Nebraska-made beers.

While the state’s distribution system for alcohol helps track and collect excise taxes, some lawmakers have said a change is needed to help microbrewers, at least until they’re large enough to need a regular distributor. 

The study was introduced by state Sens. Kate Sullivan, Colby Coash and Russ Karpisek.

"I think it is feasible, and something we probably need to look at," Karpisek said. "It's just hard to have two different rules for the craft guys and for the big guys."

Nebraska law defines a microbrewery as one that produces up to 20,000 barrels of beer per year.

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