The only thing left standing between Michigan’s craft brewers and expanded self-distribution of their products is a signature from their craft beer-loving governor.
State Rep. Pauline Wendzel’s self-distribution package passed out of the Michigan Senate with overwhelming support today and has been sent to Governor Gretchen Whitmer for her signature. The bipartisan legislation previously passed out of the Michigan House of Representatives back in February with near-unanimous support.
Initially unveiled at the Michigan Brewer’s Guild Winter Conference and Trade Show in early January, the legislation quickly gained the support of Michigan brewers across the state as well as various other local and industry stakeholders.
Jay Fettig of North Pier Brewing in Benton Harbor says, “We appreciate all of the hard work Rep. Wendzel has put in to help Michigan’s great craft beer industry,” and adds, “We believe this package of bills will help simplify and streamline many areas of Michigan’s Liquor Control Code and allow Michigan’s craft breweries to focus on what they do best: Make great beer.” Fettig adds, “Many of these bills will help grow small craft breweries which ultimately will help the State of Michigan through employment opportunities and economic impact.”
Dave Coyle of Arclight Brewery in Watervliet says, “Representative Wendzel really understands small business,” and adds, “This bill gives small breweries like ours a chance to grow organically without imposing burdensome overhead at too early a stage.”
In northern lower Michigan, Scott Newman-Bale of Shorts Brewing Company tells us, “These bills continue to improve the landscape for craft brewers by allowing them an avenue to develop their business,” and adds, “Not only that, but they simplify existing laws on the books to make them more understandable and practical for all parties. We thank Representative Wendzel, and her staff, for working so hard to help our industry and consumers alike.”
Meanwhile, Scott Grahm, the Executive Director of the Michigan Brewers Guild, says, “We truly appreciate Representative Wendzel and her staff for their work on the passage of these bills,”and suggests, “The result will make operations less complicated for breweries in Michigan while maintaining the integrity of our regulatory system.”
David Ringler of Cedar Springs Brewing Company says, “As a small brewer on Main Street in small-town Michigan, and as a member of the Michigan Brewers Guild, I want to express my gratitude to Representative Wendzel for her leadership on this important legislation for our industry,” and notes, “In trying times like these, it is a great comfort to know we have a friend in Lansing who listens and understands the impact these small changes can make for the viability of our small businesses.”
Chris Mason of Watermark Brewing in Stevensville says, “When facing circumstances in today’s current landscape, small businesses need as much help as possible as every penny counts,” and argues, “All breweries in our state already have to jump through so many hoops daily to get beer to our consumers. The proposed package of bills Rep. Wendzel allows small breweries like ours to be even more creative and nimble in how we operate our business. Watermark is proud to reside within Rep. Wendzel’s district along with so many other amazing breweries, as these bills will impact the entire landscape of the State of Michigan’s beer scene for years to come.”
Amid a global pandemic, Rep. Wendzel’s legislation gained a new sense of importance as brewers across the state were shuttered due to the coronavirus. After taking a survey of their members, the Brewers Association found between ¼ and 1/3 of breweries may permanently close due to the pandemic.
For her part, Rep. Wendzel says, “These small businesses are the center of many communities through our state,” and adds, “They provide jobs to our friends and neighbors, they buy produce from our farmers, and they host community events that bring us closer together. This pandemic really hurt them, which is why this legislation has become even more important. I’ll always stand up and support Michigan small businesses, and I’m hopeful this package will help our brewers get back on their feet and recover a little more quickly.”
The main bill in the package, House Bill 5343, allows microbrewers to self-distribute up to 2,000 barrels of beer to a retailer or wholesaler annually. Any on-premises sales from a micro brewer’s taproom would not be included when calculating the 2,000-barrel limit. Additionally, the package gives more flexibility to beer festivals conducting licensed events, clarifies regulations surrounding the manufacturer and wholesaler relationship, reduces the frequency of when beer and wine taxes are paid from monthly to quarterly, and eliminates redundant product registration requirements.
The package is now before Governor Whitmer, an avid supporter of Michigan breweries, awaiting her signature.
