How Beer Regs Throttle the Brewery Industry

Here in Colorado, many craft brewers have sided with liquor stores to keep it illegal for grocery stores to sell anything other than 3.2 beer (except for one store in a chain). Not only is this stance by brewers morally wrong, because such regulations violate people’s rights, but it is incredibly short-sighted and self-destructive. (See my previous article.) Craft brewers would be far better off if they’d rally to repeal all onerous regulations of the beer industry, rather than undercut their moral authority to do so by selectively endorsing protectionist laws.

As Michelle Minton writes for the Competitive Enterprise Institute, the very existence of craft breweries is due to lifting regulations against it:

[H]ome-brewing was still illegal until 1978 when then President Jimmy Carter signed legislation to legalize brewing in the home for personal or family use. In that year, the number of breweries was at its lowest point after the repeal of Prohibition. But in the 1980s, after states began to legalize brewpubs, the number of brewers began to rise.

But the beer and liquor industry is still very tightly and crazily regulated, particularly in its distribution systems, as Minton notes. She explains that the “mandatory three-tiered distribution system . . . requires brewers to sell their beer to wholesalers and prohibits from selling directly to consumers with a few exceptions.”

People should be able to brew what they want and sell it how they want, and consumers should be able to buy what they want from willing sellers. It’s called liberty.