Kentucky Breweries Fighting for Right to Self Distribute Beer

The three tier-system was instituted after the fall of Prohibition as a means to prevent monopolies and corruption from engulfing the craft beer industry. However as the beer industry has flourished in the modern era, many states have recognized that the institution of distribution isn’t completely black and white. As it currently stands, 39 states across the U.S. have made it possible for breweries to sell their own beer directly to licensed retailers, bars and restaurants. This has allowed thousands of small independent breweries across the country the opportunity to grow more quickly with greater access to market. Kentucky is not currently one of those states.

However, Kentucky breweries have introduced legislation to change that. The Kentucky Guild of Brewers and its brewery members introduced Senate Bill 15 to the Senate to Committee on Committees on Feb. 3, 2021. The proposed legislation advocates for two things. First, it would allow brewers to self-distribute up to an annual total of 2,500 barrels per year. Second, it addresses the unfair contractual relationships between the distributors and craft breweries.

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