The Senate approved a compromise Thursday that would resolve a long-standing feud between craft brewers and the beer distribution industry to allow a smaller brewery to opt out of their contract with distributor if they feel their brand is not being properly marketed.
The issue has been a point of contention between the two industries for over a decade, but they were able to reach an agreement that came together over the weekend after Jim Koch, the founder of Boston Beer and brewer of Sam Adams, took his company out of the considerations.
The compromise legislation would now allow a craft brewer that produces fewer than 250,000 barrels of beer a year to end their relationship with a distributor after giving 30 days notice and compensating the distributor fair market value for the brand.
Boston Beer, which produces closer to 4.5 million barrels of beer a year, is the only Massachusetts brewery that would not be covered under the new provisions, but it was something Koch agreed to in order to facilitate a deal.
Sen. Joseph Boncore, who helped facilitate the compromise with Sen. Paul Feeney and Sen. Cynthia Creem, said the agreement will ensure that small craft brewers can continue to thrive in Massachusetts. The Winthrop Democrat said breweries have become key to revitalizing neighborhoods in cities around the state, and they create jobs and generate tourism.
The bill passed the Senate 40-0 on Thursday, and now moves to the House where both brewers and distributors have pointed at House Speaker Robert DeLeo as someone who has been encouraging of the two sides to find common ground. Senate President Karen Spilka, who has several craft brewers in her district, has said she believes the fact that the two sides are in agreement should pave the way for the bill’s final passage through the House.
