Beer Flights

In 2013, a law was passed in Texas that restricted what craft brewers were legally allowed to do in terms of distribution. Under the new law, they were banned from selling territorial rights.

However, that law was recently taken off of the books when a judge determined that it was unconstitutional. The ruling says that the government shouldn't restrict the brewers' ability to earn by selling these rights, as the product is their own and there is "no compelling state interest" to put that type of restriction in place.

Wholesaler Pressure

The law was largely passed because the larger wholesale companies in the state wanted it to be put in place. Brewers did not like it from the beginning, even after it was passed, but it presumably helped the wholesalers by influencing prices and distribution. It was added to a group of at least four other laws that were all passed at the same time. Some of those were actually helpful to the small craft breweries, but they wouldn't let the distribution law go. The judge has now come down on their side, justifying their reluctance to see their sales rights reduced.

Increased Access

A few of the breweries involved in the process were Revolver, Live Oak, and Peticolas Brewing. A spokesperson for these companies said they hope that access to craft beer will only increase in the wake of this change. It had previously been said that the law fully favored the distributors, rather than giving a fair ground to the breweries that were actually making the initial product.

Sales and Distribution

Laws regarding sales and distribution are incredibly important, especially to small companies that are trying to grow and increase their influence. It's important for business owners to know what these laws are in their state. On top of that, as this case shows, it's also good for business owners to know what legal options they have if they think that the laws on the books are not fair and just.