Ohio is considering
a change in the laws that might make it easier for Ohio's micro distilleries to
get their vodkas, gins, rums and whiskeys on barroom shelves thanks to a change
in state rules that will allow small-time distillers to sell products
directly to pubs and restaurants. That
may not sound groundbreaking, but the process to get booze in the hands of a
bartender is so ponderous that many producers didn't even bother trying. Under the Ohio's strict liquor control
rules, all distillers - no matter if they make 100 bottles a year or 100
bottles a minute - first had to ship their products to one of two state
warehouses. The warehouse would send the bottles to a state liquor agency,
where restaurateurs then could buy it wholesale.
"If we
have a micro distillery in Cincinnati, they would have to deliver product to
the Columbus warehouse just to have it come back to the Cincinnati
market," said Kerry Francis, a spokesman for the Ohio Department of
Commerce. "This will eliminate that step." Georgia has very similar laws that are also
causing a rum maker in Richland, Georgia has to send his rum to Atlanta and then it has
to be brought back by a distributor to the bar and liquor store that is right
across the street. All these laws do is
to send the cost of the product through the roof, mostly because of unnecessary shipping. Sales still will be tracked and regulated by
liquor control agents, but officials say the eased rules recognize Ohio's
growing craft distilling industry and are viewed as a way to help support those
businesses.
The changes
likely will boost distillers like Toledo Spirits Co., a four-year-old craft
distillery on North Summit Street in Toledo.
Toledo Spirits still is awaiting final details on how new the process
will work, but partner and co-founder Dustin Wade is excited by the potential. "It becomes more of a volume game for
us," Mr. Wade said. "It'll be great to be able to engage directly
with those local proprietors."
Mr. Wade noted that it was never their intention to put their spirits through
the state system because the batches are very small and unique to Northwest
Ohio. This new law will allow them new
sales opportunity in their specific region.
As an employee
of a small distillery in Florida, I see this issue effecting many of the craft
distillers here as well. Because all
spirits must go through a distributor
in order to get to the market, it
is very hard for the small distilleries to sell outside of their distillery
showrooms. Most of the worthwhile
distributors aren’t really interested in these small distilleries products
because there isn’t enough volume to be worth their time.
Craft
distilleries are nowhere nearly as common as craft breweries, the numbers are
growing significantly every year. Ohio
State officials say in May of 2011, there were two. Today, 57 producers are
licensed to make up to 100,000 gallons of spirits a year. Ryan Lang, president of the Ohio Distiller's
Guild and co-owner of Middle West Distilling in Columbus, said the industry
continues to gain traction and the state's upcoming changes should help with
growing pains.
"This is a big change for Ohio craft distillers.
This is definitely going to help people get to their customers better," I
hope that more of the states will take what Ohio has done and look at doing the
same for the craft distillers in other states.
Read More at http://www.toledoblade.com/Retail/2017/08/01/State-liquor-law-change-helps-micro-distilleries-expand-reach.html
