Local breweries, wineries react to changes in alcohol laws

After three years of advocacy, Beer’d Brewing Company co-owner Aaren Simoncini was thrilled to see passage of a bill that, among many other things, raised the limit on the amount of beer people can purchase at breweries for off-site consumption.

Previously, a person couldn’t buy more than nine liters of beer on a single day, an unfortunate situation considering that equals about 19 16-ounce cans of beer — not even a full case. Now, the limit is nine gallons, allowing for the sale of three cases.

“We’ve already seen a lot more traffic to our taproom, because people now think it’s worth it to drive a couple of hours,” he said. “You look at states like Vermont, where for years they’ve had no limits, and people make pilgrimages there.”

Asked which legislators he most credits, Simoncini first pointed to Sen. Heather Somers, R-Groton, for being “one of the first to go to bat for us,” as well as Rep. Christine Conley, D-Groton — and both thanked Beer’d for their hard work in getting the bill through.

Simoncini also pointed to Rep. Mike D’Agostino, D-Hamden, as “an industry champion” who “really gets it,” and to Sen. Kevin Witkos, R-Canton, for having “a lot of great input.”

The bill also consolidates four beer manufacturer permits into one, allows wineries to sell beer made in Connecticut, allows manufacturer permittees to also hold a restaurant permit, allows cider manufacturers to sell cider for on-premises consumption, and creates a new permit with much of the same features as a farm winery permit but without the requirement of a farm.

While some — like winery owner Jonathan Edwards — may not like everything the 76-page bill (S.B. 647) does, it passed 35-1 in the Senate and 140-5 in the House, and Gov. Ned Lamont signed it.

One downside Simoncini sees is that the bill tightens the excise tax exemption on beer that manufacturers sell for on-premises consumption. Currently, all such beer is exempt from this tax, but effective Jan. 1, only the first 15 barrels produced annually — a barrel is 28 to 31 gallons — will be exempt from the tax, which is $7.20 per barrel.

Still, Simoncini called this “pretty fair” and questioned, “We don’t see other members of the three-tier system (producers, distributors and retailers) getting this exemption, so why do we?” He noted the exemption was helpful when Beer’d was an early startup but now the company can afford to pay the excise tax.

Zack Adams, owner of Fox Farm Brewery in Salem, feels the increased tax “is heavily outweighed by the benefits” of being able to sell more beer for the road, a provision that went into effect as soon as Lamont signed the bill.

“It’s an unmistakable kind of sales lift, and it couldn’t come at a better time,” Adams said. “It might be seasonal in nature; we do have kind of the summertime activity going on, where people are stocking up for barbecues and weddings and get-togethers, so it was a real, immediate benefit.”

Adams said it “was a frequent, uncomfortable conversation” to inform people they couldn’t take more than nine liters of beer with them, and out-of-state visitors were confused. As a brewery that sells 16-ounce cans, 1- and 2-liter growlers, 750-millileter bottles and more, mathematical equations would pop up several times every day.

While breweries have long had the ability to sell wine and cider, the bill now allows wineries to sell beer. Adams said wineries have approached him about selling Fox Farm beer, but he can’t take on any more business now.

Both he and Jenn Sakowski, co-owner of Niantic Public House and Brewery, credited Rep. Holly Cheeseman, R-East Lyme, for visiting and listening to their concerns.

“I think the deregulation is certainly bringing Connecticut into line with the other states, and making breweries more competitive, which in turn can help tourism,” Sakowski said.

For several reasons, Outer Light Brewing Company will not be as affected by the bill as some other breweries, co-owner Matt Ferrucci indicated.

For one, Outer Light sells its beer in 12-ounce cans, meaning a full case of 24 cans already was under the previous 9-liter limit. And while Beer’d mostly self-distributes, Outer Light has a distributor and is pleased with their relationship.

Additionally, “For the smaller guys, it’s getting harder and harder to get into it, so I think it’s probably a bigger win for them, but it’s great for us,” Ferrucci said. “If somebody wants to buy a little more beer, it’s great.”

Another brewery that’s also not as affected is Tox Brewing Company, which just opened in New London in April and is not selling cans yet, though it does sell growlers. The same is true for Niantic Public House, which opened in November.

But Tox co-owner Dayne Laskey noted another new brewery that will see a large impact is Skygazer Brewing Company in Southington, which sells cans but doesn’t have a taproom. Its website has been updated to reflect the limit of three cases per customer.

Laskey noted that as a member of the Connecticut Brewers Guild, he was kept up-to-date on the progress of this bill, and he was pleased to see this pass rather than a bill that would’ve threatened local breweries.

How does the bill impact local wineries?

Michael Connery, co-owner of Saltwater Farm Vineyard in Stonington, has found that while vineyards have been established and legitimized for a long time, it’s taken awhile for laws to catch up with “this explosive growth in breweries.”

“Vineyards haven’t had a lot to complain about,” he said, “and I think the breweries just wanted to be on sort of even footing, and I think the bill basically accomplishes that.”

But come July 1, 2020, wineries will be permitted to sell Connecticut beer. Connery imagines that Saltwater Farm would have a limited selection of craft beers, probably with an emphasis on local breweries.

“I think the important thing for vineyards is just to maintain their integrity as wine-first entities,” Connery said. He said he “would do this carefully and selectively, because I don’t want to change the vineyard image, nor do I want to change the vineyard experience.”

Ebbie Young, tasting room manager and event coordinator at Stonington Vineyards, said her company would love to sell beer at some point. She agreed that the bill benefits breweries more than wineries but said “being able to crosssell is huge.”

“I just think if it’s good for one, it’s good for all,” she said.

Jonathan Edwards, owner of the eponymous winery in Stonington and president of the Connecticut Vineyard and Winery Association, said the ability to cross-sell could open the door to new customers, “but then you weigh that against diluting your message as wineries.”

But his main talking point on the bill is opposition to the fact it creates a permit without the obligation to grow at least 25 percent of the fruit used in the wine on premises, which is the current requirement of a farm winery permit holder.

“We are concerned about that, because it does disincentivize farming in the state,” Edwards said. He called this provision a “headscratcher” and wondered why wholesalers were OK with this, since it subverts the three-tier system.

Rep. Mike France, R-Ledyard, was one of the five House members who voted against the bill, and he told The Day last month it was because of the ability for people to manufacture wine without a link to agriculture.

There are four farm wineries in France’s district: Holmberg Winery, Maugle Sierra Vineyards, Preston Ridge Vineyard and Dalice Elizabeth Winery.