Beer News

“BeerGate” Unfolds After Officers Raid Bars, Seize Unregistered Brews

On Thursday, March 4th, three Philadelphia-area brewpubs owned by husband-and-wife team Brendan Hartranft and Leigh Maida—Memphis Taproom, Local 44 and Resurrection Ale House—were simultaneously raided in a covert sting operation by the Pennsylvania State Police and Liquor Control Enforcement (LCE) agents.

The troopers seized well over $7,000 in beer from the pubs, much of it rare, expensive craft brews and specialty imports, claiming the beer wasn’t properly registered with the Pennsylvania Liquor Control Board (PLCB). For a beer to be “official” in Pennsylvania, the brewers or importers (not the retailers) must register a brew’s exact name and pay a $75 fee for each product to be sold with the PLCB. Hartranft and Maida obtained their beer legally, from licensed distributors, and paid all necessary taxes.

Shortly after the raid, it was discovered that the officers mistakenly seized brands that were already registered, or registered under a different name. (In one instance, numerous bottles of Duvel Belgian Golden Ale were confiscated—it was on the registered list as “Duvel Beer.”)

Maida tells BA via email that while dealing with the fallout of the raids has been complicated, the state’s outdated laws need revision. “We’re trying very hard to move the focus of this from what happened to us, to the bigger systemic issues within the PLCB and LCE. I have been working hard to contact the members involved to try to get them to consider wider issues than just the registration of beer.”

Maida continues, “The system was developed when craft beer wasn’t a large part of the market … and now that it is such a huge part of the Pennsylvania beer scene, the laws have to be updated … if they want to be even a little bit relevant to the products that they regulate.”

Moosehead, Boston Beer Company Ink International Distribution Deal

The two largest independent breweries in North America, Boston Beer Company and Moosehead Breweries Limited, have agreed on a plan to distribute Samuel Adams beer in Canada on a large scale.

As detailed in a press release from Moosehead, they will now distribute Samuel Adams Boston Lager, seasonals, variety packs and even Twisted Tea (also brewed by Boston Beer Co.) in bottles, cans (for Twisted Tea) and kegs within their Canadian distribution network. All Boston Beer Co. products to be sold in Canada will still be brewed in the US.

Both breweries are excited for the huge growth opportunity this venture brings their organizations. In the release, Boston Beer Co. founder and brewer Jim Koch states, “This alliance is a real win for Boston Beer.” Moosehead president Andrew Oland adds, “My relationship with Boston Beer and Jim Koch goes back many years, and I know that Jim shares the same principles of our own family and company, including a strong belief in quality, tradition, integrity and family values.”

Moosehead vice president of public affairs Joel Levesque tells BA via email, “We are very happy with the success of the relationship to date, and our sales team is experiencing significant success in signing up new draft and package accounts in all regions of the country.”

A-B InBev Bid for Distributor Blocked by State of Illinois

Hoping to boost sales in the Chicago area, A-B InBev (ABI) bid to purchase Chicago-area distributor CITY Beverage. ABI already controls 30 percent of CITY, but the attempt to purchase the remaining 70 percent of the company was blocked by the Illinois Liquor Control Commission (ILCC) on March 10th.

The ILCC states in their ruling that as a company operating outside the state, ABI can’t legally own a distributor based in Illinois; total ownership of a distributor would be in violation of the three-tier system—even though it is legal for Illinois breweries to self-distribute.

ABI has since countered the ruling with a lawsuit, claiming that the state is in constitutional violation of the Commerce Clause because it obstructs interstate commerce and heavily favors in-state breweries. The trial will eventually take place in the US District Court of Northern Illinois.

Iowa, Oklahoma Become Friendlier Places for Craft Brewing

The past month has brought about major changes to beer law in both Iowa and Oklahoma, signaling another step forward for Midwestern beer advocates. On March 3rd, the Oklahoma House of Representatives passed House Bill 2348, which legalizes homebrewing for personal use throughout the state. The bill, sponsored by Rep. Colby Schwartz (R-Yukon), passed with a resounding 76–19 vote and proceeded to the Senate after some spirited debate.

Opposition to the bill, from Rep. Todd Russ (R-Cordell), focused on an increase of alcohol-related deaths and abuse. At one point, he equated the bill to the legalization of marijuana, asking, “If someone in California has managed to get marijuana legalized, would you think that’s appropriate to do in Oklahoma?” Schwartz countered the argument, stating, “It is a legal substance, and it comes down to holding someone responsible for their actions. … These are credible people, who brew as a hobby in their homes.”

Meanwhile, Iowa has made it legal for in-state brewers to sell beer stronger than 5-percent ABV with the passage of the Iowa Beer Equality Bill. Previous laws enabled out-of-state breweries to sell higher-potency brews within the state, yet forced in-state breweries and brewpubs to keep their offerings under 5 percent.

The Olde Main Brewing Company & Restaurant of Ames, Iowa, plans on brewing a Double IPA as a celebratory first high-proof offering. An enthusiastic post on their website reads, “This is opening a huge range of beer styles that we can now make and you can drink!” ■