Proposed bills would create new options for state’s craft breweries

Delaware craft breweries and brewpubs, which have been among the businesses hardest hit by the COVID-19 pandemic, could see new opportunities for growth under state legislation filed Dec. 18.

Sponsored by Rep. Bill Bush, D-Dover West, House Bill 45 would allow Delaware breweries to own and operate up to five brewpubs in the state, an increase from the three currently permitted. Brewpubs in Delaware are licensed by the Office of the Alcoholic Beverage Control Commissioner.

“By capping these licenses at three, we are unnecessarily stunting the growth of our brewpubs, and in many cases, causing them to expand out of our state,” said Bush. “Allowing additional licenses will give our local craft breweries the ability to grow, creating jobs and opportunities here in Delaware.”

“The Delaware brewing industry, including microbreweries and brewpubs, all want to stay here in Delaware, so anything the Legislature can do to help us grow and expand our business here is a plus for everybody,” said Eric Williams, president of Mispillion River Brewing in Milford and legislative chair of the Delaware Brewers Guild.

In addition to their impact on local economies, Delaware’s craft breweries and brewpubs attract thousands of visitors every year, bolstering Delaware’s tourism sector.

“One of the main reasons we instituted a cap on brewpub licenses was to keep these international brewery conglomerates at bay to give our locally owned small businesses a chance to build an industry from the ground up,” said Sen. Trey Paradee, D-Dover, the Senate prime sponsor of HB 45.

“Today, our hometown breweries are one of Delaware’s great small business success stories. Some are now so successful that they’re now bumping up against the cap. By passing this legislation, we will continue to reasonably and responsibly foster that growth.”

Another measure filed Dec. 18 would permit Delaware brewpubs and microbreweries to brew, bottle and sell their own hard seltzers, a beverage that has seen a meteoric sales rise in recent years.

While current Delaware law prohibits breweries from creating their own hard seltzers, federal law has permitted the brewing of hard seltzer for decades. House Bill 46, also sponsored by Bush, would update Delaware’s code to mirror the existing federal law.

“I was surprised to learn that Delaware breweries are not permitted to brew hard seltzer, especially due to the beverage’s enormous popularity,” said Bush. “By matching our law to the current federal law, we are giving brewpubs and microbreweries another avenue to grow and compete with larger national companies.”

“Consumer taste changes fast, and the brewery industry has to change with it,” said Paradee, the Senate prime sponsor of HB 46. “Taken together, these bills will give our brewpubs greater flexibility, encourage job creation and allow this booming industry to prosper for years to come.”

Both HB 45 and HB 46 were introduced in the Dec. 18 House pre-file.