Monday, June 18, 2007

Beer tours could go flat

Posted by Scott Henry on Mon, Jun 18, 2007 at 6:04 PM

Georgia’s arcane and uberstrict beer regulations have been blamed in part for the demise of several local microbreweries over the years. Now, a proposed new state rule that could bring an end to beer tours at Atlanta’s two remaining breweries is being described as, in effect, an effort to knock the companies down to size.

In the 14 years that the Atlanta Brewing Company has hosted brewery tours, says CEO Bob Budd, there hasn’t been an incident where a patron had to be carried out in a drunken stupor or wrapped his car around a tree on the way home.

So why, he wonders, is the Georgia Department of Revenue suddenly looking to limit the beer samples handed out during the tour to a measly 2-ounce pour?

“It’s obviously an arbitrary limit,” he says. “If you’ve ever tried to pour 2 ounces of draft beer, it’s mostly going to be foam.”

Currently, there is no official restriction on how much beer can be sampled at a brewery, but Budd says he and his much larger, friendly competitor, Sweetwater Brewing Company, both have firm policies allowing a maximum of 48 ounces over a two-hour period – either 8-ounce tastes of six beers or 6-ounce tastes of eight beers. By contrast, the state aims to cut tour patrons off at a buzz-killing 16 ounces.

If a pint of foam is all they can sample, few folks will come for the tours, and the breweries will have wasted costly upgrades on their tasting rooms, Budd says.

“Half our assets will be invested in facilities we won’t be able to use,” he says.

“Microbreweries use beer tours as their primary marketing tool, so this change would cripple us.”

Budd believes the proposed reg is reprisal for a state lawmaker’s failed bill to let brewers sell beer directly to the public. Georgia’s Prohibition-era alcohol laws – termed the “three-tiered system” – now allow breweries to deal only with wholesalers who, in turn, market the beer to retailers.

“If they try really hard, they can find a way to kill us, but how that serves the public I can’t imagine,” he says.

Dave Guender, sales director at Sweetwater, suspects the proposal is the result of pushback from local bars and restaurants who view the popular beer tours as competition. On a good Friday evening, he says, Sweetwater draws upward of 500 tour patrons, which can create a “happy-hour” atmosphere.

Although a 2-ounce limit simply isn’t practical, Guender says, “We’re not opposed to cutting back to a 4- or 5-ounce sample. We want to be partners and supporters of our local retailers and believe we can attract business to them through our tours.”

Budd says he’s also willing to scale back the volume of brew offered at tours if the limit is reasonable.

“If it’s 40-something ounces, we can live with it,” he says.

Department of Revenue spokesman Charles Willey confirms that the proposed rule was spurred by industry concerns. “There was some feeling that the breweries were overstepping the boundaries of the three-tiered system,” he says.

Willey, however, notes that public reaction to the proposal seems to be overwhelmingly negative. The department is accepting public comment until 10 a.m. Tuesday, June 19, at regcomments@dor.ga.gov. A final decision could come later this summer.

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