In recent years, small brewers in Georgia have faced an uphill battle. With increasing costs, a shifting market landscape and economic pressures, small breweries in the state are being pushed to the brink -- with some breweries being forced to close at an alarming rate. These challenges arise from the lack of flexibility for brewers to self-distribute their products, the need for franchise reform and the stark contrast between the privileges granted to out-of-state and foreign based breweries versus local Georgia-based small breweries.
Unless significant changes are made, Georgia risks seeing real damage to a vital and growing industry, leading to further closures and missed economic opportunities.
One of the major hurdles facing small brewers in Georgia are highly restrictive and antiquated distribution laws. Unlike nearly 40 other states that allow breweries the option to directly distribute their products to retailers, Georgia imposes stringent regulations, forcing brewers to solely rely on third-party distributors. This limitation significantly hampers the growth and profitability of small breweries, as it adds unnecessary costs and reduces their control over the distribution process.
Credit: contributed
Credit: contributed
Another critical issue plaguing Georgia’s brewing industry is the lack of fair franchise laws. Under the current system, once a brewery enters into a distribution agreement to get their product out to retailers, it becomes nearly impossible to terminate that agreement or switch to another distributor. This lack of flexibility severely limits a brewery’s ability to adapt to changing market dynamics, explore new partnerships, or negotiate better terms.
If the need for urgent reforms wasn’t enough, an alarming disparity exists between the treatment of out-of-state and foreign breweries compared to local Georgia-based small breweries. While small breweries struggle to survive, an out-of-state, foreign-based brewing company has been granted special privileges, including the opening of a retail location right on the Atlanta Beltline. They enjoy the success that comes with these privileges, while local Georgia breweries fight for survival. This unfair advantage not only undermines the growth and sustainability of small breweries but also hampers the development of a thriving and diverse local craft beer culture.
The local Georgia breweries that have fueled innovation, job creation and community engagement across the state deserve the same opportunities afforded to out-of-state and foreign based breweries. They should not be left behind while others are given preferential treatment. These local small businesses, deeply rooted in the community, should be empowered to not just survive, but thrive. By leveling the playing field and providing equal opportunities, Georgia can harness the full potential of its brewing industry, stimulate economic growth and foster a vibrant and inclusive beer culture.
To revitalize the brewing industry in Georgia and address the current crisis, urgent action is needed on multiple fronts. The General Assembly must prioritize self-distribution rights, franchise reform and the elimination of the disparities that favor out-of-state and foreign breweries.
Georgia’s small breweries are at a critical juncture. While it may be too late for recently shuttered breweries like Second Self in Atlanta, it’s not too late for so many more.
Jason Santamaria, co-founder of Second Self has recently shared his story, and had this to say: “The challenges of self-distribution restrictions, the lack of fair franchise laws and the unfair advantages enjoyed by out-of-state and foreign breweries have placed local, small breweries in jeopardy. Without immediate action, more breweries will face closure, jobs will be lost, and Georgia will miss out on the economic potential and cultural significance of a thriving small brewery scene. It is time for Georgia’s lawmakers to recognize the urgency of the situation. The time for reform is now.”
Joseph Cortes is executive director of the Georgia Craft Brewers Guild.
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