Editorial: A sensible solution for microbrewers

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Updated: August 4, 2011 4:20PM

A beer fight brewing in Illinois threatens to cripple the state’s microbrewers.

The dispute stems from an attempt by Anheuser-Busch to buy City Beverage, a Chicago-based beer distributor. The Illinois Liquor Control Commission wouldn’t let the deal go through because it would violate the three-tier alcohol distribution system set up after Prohibition. Brewers are required to sell beer to a distributor or wholesaler, which then sells it to bars, stores and other retailers.

Anheuser’s parent company, InBev, challenged the commission’s ruling by pointing out that in-state beer producers already are allowed to self-distribute their beer, so barring out-of-state producers from doing the same was discrimination.

A federal judge agreed, but said the solution is to order in-state brewers to stop self-distribution as well. But he also gave the General Assembly until May to craft a legislative solution that would be less burdensome to small breweries, which otherwise would have to start paying third-party distributors.

A bill being considered in the Illinois House offers a sensible middle road.

It would allow self-distribution for breweries that produce fewer than 20,000 barrels of beer a year, while keeping the three-tier system in place for everyone else. Brewpubs that produce fewer than 50,000 gallons a year also could self-distribute.

The distributors argue that the cap doesn’t have to be that high to protect craft breweries trying to get their business off the ground, and maybe there’s room to negotiate on that. But we can’t see a good argument for further watering down the bill.

Once craft breweries grow to a certain size, they often switch to a distribution network to expand their reach. The proposed legislation would protect their ability, in a highly competitive market, to get that far.