USA, IL: Illinois craft brewers to limit their beer production

A bill signed into law Monday by Illinois Governor Patrick Quinn will enable the state’s self-distributing craft breweries to produce up to 30,000 barrels annually, doubling the previous amount allowed, Brew Bound reported on August, 21.

According to a statement from The Associated Beer Distributors of Illinois (ABDI) the law, HB 1573, does not affect the ability for a craft brewer to self-distribute up to 7,500 barrels or to simultaneously hold a brew pub (retailer) license.


HB 1573 was sponsored by Representative Charles E. Jefferson (D-Rockford) in the House and Senator Tony Munoz (D-Chicago) in the Senate, and the final bill was the result of several meetings with Senate President John Cullerton (D-Chicago), the Associated Beer Distributors of Illinois (ABDI), the Illinois Craft Brewers Guild (ICBG), and the Wine and Spirits Distributors of Illinois (WSDI).

ABDI Members, who are local, independent beer distributors, have established craft divisions to handle the new products and deliver as many different choices as possible to consumers.

On June 1, 2011, SB 754 was signed into law creating a craft brewer license and an exemption to self-distribute 7,500 barrels if they manufactured no more than 15,000 barrels. SB 754 also allowed a brew pub to simultaneously own a craft brewer’s license with the intent of transitioning the brew pub to a craft brewer. Due to the popularity of craft beers over the past two years, craft brewers will now be allowed to manufacture no more than 30,000 barrels and continue to self-distribute 7,500 barrels.

Through a three-tier regulatory system (independent manufacturers, distributors, and retailers), the General Assembly’s policy “to protect the health, safety, and welfare of the people of this State through the sound and careful control and regulation of the manufacture, distribution, and sale of alcoholic liquor” is maintained.

“Although the craft brewers wanted a larger increase in both production and self-distribution, it is important to maintain the three-tier regulatory system. “Brewers (manufacturers) holding a retail license might lead to out-of-state brewers claiming discrimination, forcing the State to allow large brewers such as Anheuser-Busch InBev, MillerCoors, etc. to open retail stores creating tied houses,” Bill Olson, ABDI president said.

The three-tier system was created when Prohibition ended (21st Amendment) to better regulate the distribution of alcoholic products.