Vermont’s new beer distribution law went into effect on July 1.
And Jesse Cronin, who owns Lucy and Howe Brewing Company, in Jericho, was out delivering his beer to a store in Burlington the very next day.
“We’ve been working on the legislation for a very long time, and we knew it was coming,” Cronin said. “So I started getting ready for it about a month and a half ago, so I was ready to go as soon as it passed.”
The Legislature this year passed a law that allows small brewers, like Cronin, to distribute their beer directly to stores.
Under the new law, breweries can self-distribute up to 3,000 barrels a year.
Prior to the change, small breweries had to work through a distributor, which often wasn’t economically feasible for either party.
Brewers did have the option of starting their own distribution company, but that cost $1,200 a year and required arduous paperwork whereby the brewers were required to account for the beer they were effectively selling to themselves to distribute.
Cronin said the new law only requires a nominal fee, after which he can throw some cases of beer into his car and then drive it to whatever retail shop wants to carry his product.
“Since there’s no middleman now, I get a larger percentage of the compensation, which is outsized in its impact for a business of my size,” Cronin said. “Every dollar counts, especially nowadays.”
“It’s a huge game changer. For a small brewery, this is extra money that they can put back into the business.”
Emma Arian, Vermont Brewers Association
Vermont Brewers Association Executive Director Emma Arian said the industry has been working on the legislation for the past three years.
The requirement to work with a distributor dates back to the post-Prohibition era in many states, and was designed to prevent alcohol producers from exerting undue control over retailers. But Vermont isn’t the first to loosen the rules for small breweries.
New Hampshire and Maine have similar laws in place.
In light of a very tough business climate where tariffs, supply chain challenges, workforce shortages, and high energy and rental costs threaten small breweries, Arian said the extra income could make the difference between survival and closing a business.
“It’s a huge game changer,” Arian said. “For a small brewery, this is extra money that they can put back into the business, into their employees, into benefits, and continue to be a community gathering space and a good Vermont business.”
Vermont leads the country in the number of craft breweries per capita, and in the economic impact per capita, according to the Vermont Brewers Association.
And the group says the industry brought in $533 million last year, and created 2,764 jobs.
Arian said the new law will specifically help the state’s smallest breweries.
“The change is intended to give small breweries more flexibility,” she said. “It’s a really big win for our breweries.”
Dining and Cooking