Brewers hopeful as growler bill gains traction

There are close to 200 breweries in Minnesota, but only five of them are prohibited by law from selling growlers. One of them is the famed August Schell Brewing Co. in New Ulm. 

Schell’s and several other state breweries are asking lawmakers to remove the state’s cap on who can sell growlers, and a bill reforming some of those laws is on the move at the Legislature.

Visitors at Schell’s in New Ulm can take a tour or enjoy a beer inside the brewery’s taproom. But, “inside” is the operative word. 

Guests often ask General Manager Curt Van Asten about buying a growler or two at the end of their visit, which then leads to conversations about the state’s liquor laws. 

“They’re here having a beer during the tour, taking in the grounds,” Van Asten said. “But at the same point too, they’re not able to grab anything to go. If you were a bakery, baking cupcakes, or danishes, or whatever, everyone [go] there and eat it, but no one could buy them at your store.”

Inside of Schell’s bottle house, production of several new products is in full swing. Legions of gleaming cans swirl down conveyors to be filled, sealed and packaged. They’re stored at a warehouse and then delivered to distributors. 

Current liquor laws prohibit breweries producing 20,000 or more barrels of beer a year from selling their own beer in 64-ounce growlers from their taprooms. Schell’s averages about 120,000 barrels every year, one of five Minnesota breweries that exceed that limit. The cap is the reason Lift Bridge Brewery in Stillwater expanded across state lines to New Richmond, Wisc., where it can produce more beer.

But now change may be underway after years of legislative gridlock. A liquor bill which would permit broader sales of growlers, some six packs and other bottles of liquor at distilleries has passed one House committee. 

Bob Galligan, director of government and industry relations for the Minnesota Craft Brewers Guild, said it’s good news. 

“People in Minnesota want their craft beer and we definitely want to make sure we give it to them,” Galligan said. “But this is just kind of cracking open the spigot just a little bit more, giving us a little bit more room to actually supply.”

Rep. Zach Stephenson, DFL-Coon Rapids, chair of the House Commerce Committee, said that striking the right balance is important between allowing breweries and distilleries to grow, while also making sure wholesale retailers and liquor stores aren’t hurt. 

“I’m hopeful that we’re going to get this one across the finish line and deliver a good bill that modernizes Minnesota’s liquor laws in a way that everyone who’s involved in the liquor industry is on board for,” Stephenson said. “In a way that gives a good shot in the arm to our craft brewers and distillers that Minnesotans really value.”

In 2019, similar reforms were considered but failed. Opponents within the liquor industry worry about the impacts on liquor stores and distributors. Representatives of those groups declined comment for this story. 

However Sen. Gary Dahms, R-Redwood Falls, Chair of the Senate Commerce Committee recently said he’d be taking a look at the current bill, but was unwilling to say much more. 

“I’ll start taking a look at what’s floating around in the alcohol world,” Dahms added. “But that would be my answer at this point.”

Dahms previously said that he would only consider supporting liquor law reforms if all stakeholders agree.

A five page document outlining a possible side-agreement between factions in the liquor industry is circulating at the Capitol.  Stephenson described it as “a cease-fire.” However it does not guarantee the liquor bill will pass before the end of the session in May.

Schell’s Brewery President Ted Marti said his and other breweries aren’t pushing for the relaxation of the sales caps because it’d be a huge financial benefit for themselves. He added that growlers would only account for 1 percent or less of Schell’s overall business.

“We’ve always been part of the community and we always will be,” Marti said. “I think in the end, people know we’re not in the business to take them out of business. We’re in the business to grow everybody’s business.”

Marti sees the bill as a sign of progress and said the end goal is to bring more tourism into the communities. 

“We want to bring as many people as we can here, and enjoy, enjoy the day, enjoy it in the event that we might be having, the music and the beer garden in the summer,” he said. “We have this perfect environment, and we’d like to share it with everybody.”

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