It’s difficult to follow the law if you can’t understand it. For businesses in Wisconsin that make, sell, and distribute alcohol, following the state’s alcohol laws can be incredibly challenging. However, some local breweries say a recently passed law related to alcohol sales in the state will clarify a myriad of gray areas they must
It’s difficult to follow the law if you can’t understand it. For businesses in Wisconsin that make, sell, and distribute alcohol, following the state’s alcohol laws can be incredibly challenging.
However, some local breweries say a recently passed law related to alcohol sales in the state will clarify a myriad of gray areas they must currently navigate.
Wisconsin Act 73 was signed into law by Gov. Tony Evers on Dec. 6. The bill makes several changes to the state’s alcohol regulation laws and creates a dedicated division at the Department of Revenue for regulation and enforcement called the Division of Alcohol Beverages. The new regulations are set to go into effect May 1.
"Ensuring that our state’s regulations and policies are modernized and updated to meet this ever-evolving industry remains a priority for the safety of consumers, producers, and Wisconsin as a whole,” said Evers in a statement.
Among the biggest changes businesses can expect is the addition of DOR staff who will not only enforce the new regulations and provide guidance to businesses, but also help educate business owners. A director of legal education and community outreach and a director of legal service will help perform these tasks. Up until now, it has been difficult for breweries to get a solid answer as to what is legal for them to do and what isn’t.
“There weren’t very many enforcement agents and the agents that they (the DOR) did have were overwhelmed,” said Max Borgardt, co-owner of Eagle Park Brewing. "You'd have five different lawyers who have a different answer. How do you enforce laws when lawyers can't agree?”
[caption id="attachment_581962" align="alignleft" width="259"] Ryan Bandy[/caption]
Ryan Bandy, chief business officer at Minneapolis-based Indeed Brewing, echoed that sentiment by saying it’s currently nearly impossible to get a clear answer on any business question they might have. He believes the educational component to the new alcohol regulation law will be invaluable.
In addition to Minneapolis, Indeed Brewing also has a taproom in Milwaukee's Walker's Point neighborhood. While there currently isn't too much overlap between the beverages sold at both locations, the new Wisconsin regulations would allow for more products to be shared between both taprooms.
“I used to have this idea that regulation was a bad thing for business, but I’m finding that it really clarifies things,” said Bandy. “When things are gray and unclear, it’s harder to do things as a business.”
He added it’s been hard for Indeed Brewing to continue innovating because of the lack of clarity. Now that there is an updated set of rules, the brewery has clear pathways for innovation.
“If we wanted to add a new section or add a second taproom (in Wisconsin), it’s just hard (right now) to get answers on those things,” said Bandy, adding a final decision on a second Milwaukee-area taproom has not yet been made.
The new regulations also double brewpub production and self-distribution caps, allow wineries to sell wine to other producers, expand the availability of winery permits to manufacturers and rectifiers, create uniform closing hours for retailers and producers, and more.
“It’s as simple as we didn’t have a closing time,” said Jake Schinker, co-owner of Eagle Park Brewing. “We could technically be open 24 hours a day.”
While breweries and taprooms had no set closing time, wineries had to close by 9 p.m. The new law provides more uniform guidance and states businesses should shut down at whatever time is set by their municipality.
As a brewery, Eagle Park will soon be able to serve a full slate of spirits, wine and beer at both their locations. Spirits have been prohibited at the brewery’s Milwaukee taproom. Eagle Park, and other breweries, will also soon be able to sell beer from companies located outside of the state.
Other changes for businesses include the addition of a statewide bartender’s license, which means bartenders don’t have to get a different license for each municipality they work in. The number of locations a single brewery can have under one permit has also increased to three. Breweries will no longer have to make everything they serve in-house and will be able to purchase ingredients like liqueurs from distributors.
“For the general public, the main thing they’re going to see is more options to drink,” said Borgardt. “It’s not too much on the consumer’s end. A lot of the laws that were cleaned up in this bill were to make sure there was clarity for all the different tiers – manufacturers, distributors and retailers. There was just so much gray area.”
Bandy believes that moving forward, there will be less distinguishment between taprooms and bars as businesses begin sharing all of their products between all their locations.
“I think consumers will start to see taprooms that have more cocktail and liquor options,” he said. “You wonder, will consumers start to see more of the same brand? It will definitely change products and collaborations.”
