Eighty-four Years After the Twenty-first Amendment, Are North Carolina’s Liquor Laws Ready for the Twenty-first Century? – The Independent Weekly
On a recent Friday night at Durham's Fullsteam Brewery, founder Sean Lilly Wilson is pointing to a color-coded menu, helping three customers on the opposite side of the bar decide what to order.
"I'm partial to this one," he says, recommending the Brumley Forest porter, "because we all went out and foraged these nuts to make this beer."
Fullsteam is packed with young couples, families, and dogs. And that's just how Wilson, who until recently was president of the N.C. Craft Brewers Guild, wants it. Before opening Fullsteam in 2010, he helped organize the Pop the Cap movement that in 2005 increased the limit on alcohol content in beers brewed and sold in North Carolina from 6 percent to 15 percent, part of a further-reaching effort to make the state's laws more brewery-friendly in order to foster the kind of community that has grown up around his Rigsbee Avenue business.
It's easy to tell here that North Carolina's craft beer scene is alive and well. Since Fullsteam opened, the number of breweries in the state has grown from 45 to 204, making North Carolina eleventh in the nation for beer production. Albeit with less clamor, the state's craft distilling industry has surged as well, from 13 establishments in 2013 to 46 now.
Some craft brewers and distillers, though, say the state's distribution laws are keeping their industries from reaching their full potential. Two bills currently in the General Assembly could change that by putting more leverage in the hands of alcohol producers. HB 500 would increase how much beer breweries can sell without bringing in an outside distributor; SB 155 would give distilleries more opportunities to directly sell liquor to customers. The debate over these bills pits North Carolina's Bible Belt roots against its more progressive metropolitan centers, entrenched political interests against the conservative cry for small government, and the way things were against the way things can be.
"It's economic development, it's innovation, it's tourismit's all the things that North Carolina loves to celebrate," Wilson says. "But at the same time, it comes down to yet another battle between red state, blue city."
In 1908, North Carolina became the first state in the South to ban the sale of alcohol, eleven years before the Eighteenth Amendment was ratified, and it didn't give counties the option to allow liquor sales until two years after Prohibition ended. In fact, when the Twenty-first Amendment came before the states in 1933, North Carolinaalong with South Carolinarefused to ratify it.
It was out of this post-Prohibition era that our current alcohol-control system originated. And like many octogenarians, it does not take kindly to change.
Like most states, North Carolina has a three-tier distribution system for beer sales. Producers and importers are the first tier, distributors the second, and retailers the third. North Carolina breweries that sell fewer than twenty-five thousand barrels of beer per year can get a wholesaler permit and distribute their own product. Once a brewery hits 25,001 barrels, though, it must sell all of its beer through a wholesaler and sign a distribution agreement giving that wholesaler exclusive rights to sell the product in a given territory. HB 500 seeks to raise the cap on self-distribution to two hundred thousand barrels per year, which state representative and bill sponsor Jon Hardister, R-Guilford, says is the middle ground among the fifteen states that allow limited self-distribution.
HB 500 marks the ninth attempt to raise the cap since it was set at twenty-five thousand in 2003. (Before that, it was ten thousand barrels.) With the support of a brewer-backed campaign called Craft Freedom and some suds-loving legislators, HB 500 appears to have momentum. The House Alcohol Beverage Control committee was expected to vote on the bill Wednesday morning.
When the cap was last raised, there were about twenty breweries and one hundred wholesalers to serve them, says Margo Metzger, executive director of the N.C. Craft Brewers Guild. Today, she estimates, there are about forty independent beer wholesalers that each markets about 980 products. For small breweries, this means competing with larger brands for a wholesaler's attention, and therefore tap and shelf space.
Wilson says the barrel cap is "always on my mind" as he projects his company's growth. Fullsteam, which is on track to brew about seven thousand barrels of beer this year, self-distributes and uses a wholesaler, both locally and in three other states.
"The more successful we are as a self-distribution brewery, the more we're actually going to need a wholesaler as well." Wilson says. "Even in our local market, we rely on a wholesaler to penetrate deep because we just don't have those relationships."
For those rallying to raise the cap, HB 500 is a free market issuebreweries should be allowed to decide if and when they want to hire a distributor, not be forced to retool successful business models to make sure the middle tier gets a cut. Indeed, the John Locke Foundation, Americans for Prosperity, and the Civitas Institute have all voiced support for raising the cap, if not eliminating it altogether.
Hardister, the House majority whip, argues that there should be no cap at all.
"Our laws are outdated," he says. "Obviously our laws are not completely terrible, because then there would be no growth in the industry. But there is potential to make these businesses more successful, and that involves getting the government out of the way."
Just three breweries in the stateNoDa Brewing Company, Olde Mecklenburg Brewery (both in Charlotte), and Red Oak Brewery in Whitsettare pushing the current barrel cap. But given the industry's growth, that likely won't be the case for long.
"All you have to do is look at the curvature and the time it takes to change these different complex laws with a lot of entrenched interests to know that you have to be thinking about the future," Wilson says.
Read the original:
Eighty-four Years After the Twenty-first Amendment, Are North Carolina's Liquor Laws Ready for the Twenty-first Century? - The Independent Weekly
- Here Is Why Harvard Argues That Trump's Funding Freeze Violates the First Amendment - Reason Magazine - April 25th, 2025 [April 25th, 2025]
- Thankfully, Larry David mocks Bill Maher First Amendment News 467 - FIRE | Foundation for Individual Rights and Expression - April 25th, 2025 [April 25th, 2025]
- No, Gov. Lombardo, nobody was being paid to exercise First Amendment rights - Reno Gazette Journal - April 25th, 2025 [April 25th, 2025]
- Letter from the Editor: The First Amendment shaped my time on the Hill - WKUHerald.com - April 25th, 2025 [April 25th, 2025]
- Analysis: Pro-Hamas speech is protected by the First Amendment - Free Speech Center - April 25th, 2025 [April 25th, 2025]
- Who Will Fight for the First Amendment? Protecting Free Expression at a Critical Time - - Center for Democracy and Technology - April 25th, 2025 [April 25th, 2025]
- What the Doxxing of Student Activists Means For the First Amendment - The Progressive - April 25th, 2025 [April 25th, 2025]
- Does Gov. Landrys bid to restrict attorney advertising violate the First Amendment? - Baton Rouge Business Report - April 25th, 2025 [April 25th, 2025]
- Harvard invokes First Amendment in US lawsuit over academic control - Times of India - April 25th, 2025 [April 25th, 2025]
- Fun with the First Amendment: Why Sarah Palins lawyers are happy, and why Deborah Lipstadt isnt - Media Nation - April 25th, 2025 [April 25th, 2025]
- The First Amendment Is Being Rewritten in Real Time - Rewire News Group - April 25th, 2025 [April 25th, 2025]
- Criminalizing the Assertion of First Amendment Rights - Law.com - April 25th, 2025 [April 25th, 2025]
- Massachusetts First Amendment case: Harmony Montgomerys custody hearing audio to be released - Boston Herald - April 25th, 2025 [April 25th, 2025]
- Harvard, Trump and the First Amendment: Will Others Follow Suit? - Law.com - April 25th, 2025 [April 25th, 2025]
- Executive Watch: The breadth and depth of the Trump administrations threat to the First Amendment First Amendment News 465 - FIRE | Foundation for... - April 12th, 2025 [April 12th, 2025]
- Rising Wave of Funders and PSOs Stand Up for the First Amendment Freedom to Give - Inside Philanthropy - April 12th, 2025 [April 12th, 2025]
- Clear commands of First Amendment precedent: Trump-appointed judge rejects government motion to stay court order allowing Associated Press back into... - April 12th, 2025 [April 12th, 2025]
- Distinguished lecture series on First Amendment at URI adds Visiting Professors of Practice Rhody Today - The University of Rhode Island - April 12th, 2025 [April 12th, 2025]
- Everything starts with a voice: Understanding the First Amendment - The Tack Online - April 12th, 2025 [April 12th, 2025]
- This is an all-out war on the First Amendment - mronline.org - April 12th, 2025 [April 12th, 2025]
- The lost right in the first amendment - The Tack Online - April 12th, 2025 [April 12th, 2025]
- Zero-tolerance laws on Tennessee school shooting threats raise First Amendment worries - The Tennessean - April 12th, 2025 [April 12th, 2025]
- Federal Judge Orders White House to Restore Access to AP, Citing First Amendment - Democracy Now! - April 12th, 2025 [April 12th, 2025]
- Does the First Amendment apply to the students in Texas who had their visas revoked? - Fort Worth Star-Telegram - April 12th, 2025 [April 12th, 2025]
- Guest Column: Detention of Tufts Student a Brazen Attack on the First Amendment - The Bedford Citizen - April 12th, 2025 [April 12th, 2025]
- KU students protest for First Amendment rights - The Washburn Review - April 12th, 2025 [April 12th, 2025]
- Trackergate: The First Amendment Fights Back as Schieve and Hartung Face the Music - Nevada Globe - April 12th, 2025 [April 12th, 2025]
- A friend's wedding, the First Amendment - Delta Democrat-Times - April 12th, 2025 [April 12th, 2025]
- Judge rules against White House in AP's First Amendment case - newscentermaine.com - April 12th, 2025 [April 12th, 2025]
- UMass Amherst library hosts webinar on the First Amendment and book banning - Massachusetts Daily Collegian - April 12th, 2025 [April 12th, 2025]
- Kansas Statehouse clownery has torn First Amendment to shreds. Who will tape it back together? - Kansas Reflector - March 18th, 2025 [March 18th, 2025]
- Is Mahmoud Khalil protected by the First Amendment? - CNN - March 18th, 2025 [March 18th, 2025]
- D.C. Media's Gridiron Dinner Features A Toast To The First Amendment --- And Not To The President - Deadline - March 18th, 2025 [March 18th, 2025]
- Mayors Threat to Close Miami Cinema Over No Other Land Screening Condemned by Film Groups as First Amendment Violation - Yahoo - March 18th, 2025 [March 18th, 2025]
- TSA Screeners' Union Sues the Trump Administration for Violating Its First Amendment Rights - Reason - March 18th, 2025 [March 18th, 2025]
- Kevin McCabe: Why defending the First Amendment means protecting the Second - Must Read Alaska - March 18th, 2025 [March 18th, 2025]
- Murder the Truth explores the campaign against the First Amendment - The Washington Post - March 18th, 2025 [March 18th, 2025]
- The Trump-Musk Administration Is Running Out of Ways to Ignore the First Amendment - Balls & Strikes - March 18th, 2025 [March 18th, 2025]
- From Gods to Google: DU Law Professor Sounds Alarm Over First Amendment and Technology Regulation - University of Denver Newsroom - March 18th, 2025 [March 18th, 2025]
- Intimidating abridgments and political stunts First Amendment News 461 - Foundation for Individual Rights and Expression - March 18th, 2025 [March 18th, 2025]
- Opinion | The Khalil case is a threat to First Amendment rights - The Washington Post - March 18th, 2025 [March 18th, 2025]
- Fallout from campus protests sparks debate on limits of the First Amendment - Spectrum News - March 18th, 2025 [March 18th, 2025]
- Troy Carico: Stabbing the First Amendment in the back in Alabama | - 1819 News - March 18th, 2025 [March 18th, 2025]
- Donald Trump Is Tearing Up The First Amendment - HuffPost - March 18th, 2025 [March 18th, 2025]
- Sorry Mahmoud Khalil, Aliens Do Not Have the Same First Amendment Rights as American Citizens - Immigration Blog - March 18th, 2025 [March 18th, 2025]
- BREAKING: Bill Nye to headline annual Loyolan First Amendment Week - Los Angeles Loyolan - March 18th, 2025 [March 18th, 2025]
- Spokane and Bonner county sheriff's offices can no longer hide or delete critical Facebook comments after First Amendment concerns, judges rule - The... - March 18th, 2025 [March 18th, 2025]
- Paula Rigano: Last time I checked, the First Amendment still stood - GazetteNET - March 18th, 2025 [March 18th, 2025]
- Trump is using antisemitism as a pretext for a war on the first amendment | Judith Levine - The Guardian - March 18th, 2025 [March 18th, 2025]
- Professor Can Continue with First Amendment Claim Over Denial of Raise for Including Expurgated Slurs on Exam - Reason - March 18th, 2025 [March 18th, 2025]
- Free Mahmoud Khalil and protect students exercising their First Amendment rights! - MoveOn's petitions - March 18th, 2025 [March 18th, 2025]
- Guy Ciarrocchi: The lesson from Covid the experts hate our First Amendment - Broad + Liberty - March 18th, 2025 [March 18th, 2025]
- Trump Administration Faces Growing Backlash Over First Amendment Concerns and Threats to Free Speech - Arise News - March 18th, 2025 [March 18th, 2025]
- The Lobby, Mahmoud Khalil & the First Amendment - Consortium News - March 18th, 2025 [March 18th, 2025]
- Expressive Discrimination: Universities' First Amendment Right to Affirmative Action Part 2 - Reason - March 3rd, 2025 [March 3rd, 2025]
- Inside Israel's Plan To Resume the War and 'Eradicate Hamas.' Plus, Trump's Press Pool Takeover Is Not an Assault on the First Amendment. - Washington... - March 3rd, 2025 [March 3rd, 2025]
- Expressive Discrimination: Universities' First Amendment Right to Affirmative Action - Reason - March 3rd, 2025 [March 3rd, 2025]
- OPINION: Attacking the First Amendment and America's free press - Midland Daily News - March 3rd, 2025 [March 3rd, 2025]
- Press pool takeover drowns First Amendment - Freedom of the Press Foundation - March 3rd, 2025 [March 3rd, 2025]
- First Amendment Victory! Wyoming Airport Agrees to Settlement After Rejecting PETA Ad - PETA - March 3rd, 2025 [March 3rd, 2025]
- Our View: Theres nothing murky about the First Amendment - Palestine Herald Press - March 3rd, 2025 [March 3rd, 2025]
- Ohio Universitys complicated history with the First Amendment and student expression - The New Political - March 3rd, 2025 [March 3rd, 2025]
- A free press makes a country free The First Amendment protects the liberty of all - Hawaii Tribune-Herald - March 3rd, 2025 [March 3rd, 2025]
- Whats the First Amendment Got to Do With It? The White Houses Associated Press Ban - Law.com - March 3rd, 2025 [March 3rd, 2025]
- Opinion | The First Amendment Isnt on Trumps Side - The Wall Street Journal - March 3rd, 2025 [March 3rd, 2025]
- Trump Tries To Carve Out a First Amendment Exception for 'Fake News' - Reason - March 3rd, 2025 [March 3rd, 2025]
- MTHS receives its 15th First Amendment Press Freedom Award - MLT News - March 3rd, 2025 [March 3rd, 2025]
- The White House takeover of the press pool is a brazen attack on the First Amendment - MSNBC - March 3rd, 2025 [March 3rd, 2025]
- Donald Trump violated the First Amendment when he barred The Associated Press from the White House - The Observer - March 3rd, 2025 [March 3rd, 2025]
- D.C.'s U.S. Attorney Is a Menace to the First Amendment - Reason - March 3rd, 2025 [March 3rd, 2025]
- Ominous Move to Strip Americans of First Amendment Rights - DCReport - March 3rd, 2025 [March 3rd, 2025]
- Editorial New York Daily News: A free press makes a country free The First Amendment protects the liberty of all - The Daily News Online - March 3rd, 2025 [March 3rd, 2025]
- Narrow Applicability Is Not the Same As Narrow Tailoring: Applying the First Amendment in First Choice Womens Resource Centers v. Platkin - The... - February 27th, 2025 [February 27th, 2025]
- More to Every Story: First Amendment rights and public events - KREM.com - February 27th, 2025 [February 27th, 2025]
- Trumps lawsuit barred by the First Amendment, pollsters team argues - The Washington Post - February 27th, 2025 [February 27th, 2025]
- Judge orders local newspaper to remove editorial; owner says this violates First Amendment rights - WLBT - February 27th, 2025 [February 27th, 2025]
- AP sues Trump officials over Oval Office ban, citing First Amendment - Axios - February 27th, 2025 [February 27th, 2025]
- A free press makes a country free: The First Amendment protects the liberty of all - New York Daily News - February 27th, 2025 [February 27th, 2025]
- Ilya Shapiro is back . . . with a new book First Amendment News 458 - Foundation for Individual Rights and Expression - February 20th, 2025 [February 20th, 2025]
- People exercising their First Amendment rights aren't 'wreckers' | Letters - South Bend Tribune - February 20th, 2025 [February 20th, 2025]