Springfield, Illinois – A new sports park on the horizon in Springfield could potentially cause a significant economic impact on a local brewery due to restrictive state liquor laws. Brent Schwoerer, the owner of Engrained Brewery, faces a challenging decision that might force him to halt beer deliveries to multiple distribution partners in Sangamon County, a move that could cost his business between $50,000 and $70,000 annually.
Schwoerer, navigating the complexities of being a small business owner in the competitive brewery industry, emphasizes the desire for a more supportive environment for business growth in Illinois. “It’s tough to be a small business owner,” Schwoerer said. “I think what we want is a state where we can grow our small businesses.”
The heart of the issue lies in the type of brewer’s license Schwoerer holds. With a class three brewer’s license, he is permitted to self-distribute only up to 200 barrels of beer annually under current Illinois laws. This cap significantly restricts the volume of beer he can distribute independently.
The upcoming opening of Scheels Sports Park presents a new opportunity and challenge for Schwoerer, forcing him to prioritize sales at the sports complex over his current distribution networks. “We would have to cut our distribution footprint in the rest of the county,” Schwoerer noted. “I have to prioritize the sports complex, it’s right in my backyard. That’ll drive more business over to the restaurant.”
In Illinois, there are four types of brewer licenses. Class one and class two licenses restrict holders to only selling beer, whereas class three allows for the sale and self-distribution of beer, wine, and spirits. The Brewpub license also allows for selling these beverages but prohibits self-distribution.
Schwoerer, who also runs a restaurant, believes switching licenses would not be beneficial for his business, especially since different patrons have varied beverage preferences. “I’m going to turn away a lot of consumers and guests if I don’t have differing options,” he explained. “The beer lover might come in for the beer, but if the wine lover or the bourbon lover doesn’t have the drink of their choice, I’m going to lose those visits.”
The Illinois Craft Brewers Guild is actively working to address these restrictive distribution caps. They are currently in talks with the Associated Beer Distributors of Illinois to draft new legislation that could increase self-distribution limits from 200 barrels to 2,500 barrels. Ray Stout, the guild’s executive director, highlighted the importance of this change: “200 barrels a year works out to be about eight kegs a week. You can’t run a business selling eight kegs of beer a week. To allow these small independent breweries to grow and reach consumers through other retail avenues.”
Raising the self-distribution cap would not only benefit Engrained Brewery but also other class three licensed breweries in Illinois. Stout’s efforts are aimed at creating more business opportunities for the approximately 100 breweries holding this license type in the state.
As for Schwoerer’s immediate plans, he mentioned that he is holding off on making any significant changes or reaching out to his 40 accounts in Sangamon County until there is more clarity from legislators regarding the proposed changes.
The legislation in question, Senate Bill 1662, is currently under negotiation in the senate, potentially spelling a turning point for small brewery owners across Illinois.
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