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Breweries for NC crafts compromise with wholesalers



By ending a two-year battle, North Carolina's biggest brewers reached a compromise with the country's wholesale distributors, who would have allowed them and other big brewers to at least double their annual output.

The founder of NoDa Brewery Susie Ford and Tim Kent, CEO of the NC Beer & Wine Wholesalers Association, applauded the deal in a joint statement.

The Assembly honors the spirit of commitment and cooperation by submitting the Law on Distribution and Modernization of Craft Beer, "they said. "We are convinced that its move will add extra opportunities to the brewing industry in North Carolina. This measure will correct existing legislation to create new breeding opportunities.

Both sides plan a morning press conference in the legislature.

Breweries and distributors have been in conflict for more than two years. Then Ford, her husband Todd and John Marino, owner of the brewery Charlotte Old Mecklenburg, started the fight for what they call "Craft Freedom." Producing a barrel above, forcing brewers into an expensive contract with one of the major distributors of the state. What is known as a franchise law gives distributors control over sales, marketing, delivery, quality control, and even pricing. The distributor essentially controls the rights of eternal times.

Efforts have been directed at the fast-growing beer industry against wholesale distributors, a group that has strengthened its influence with nearly $ 1.5 million in political contributions over the past four years. More than 200 breweries from the state have a yearly economic impact of $ 1.2 billion, according to the NC Craft Brewers guild.

Both sides found themselves in court after a panel of the House approved a watered version of the Upper Borders Bill. This would increase the annual production capacity of breweries from 25,000 to 200,000 barrels before a brewery contract with a distributor.

The compromise announced on Wednesday will create a new category of "medium-sized independent breweries" like NoDa, Olde Meck and Red Oak. Self-dissemination capacity will be increased to 50,000 barrels. The new law will allow medium-sized breweries to distribute "up to" 50,000 barrels a year.

Breweries will not lose this permission if they exceed 50,000 barrels. This new license, however, will be restricted to those breweries selling less than 100,000 barrels of beer per year.


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