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The Brewers of Pennsylvania, a trade group representing Yuengling, Troegs, and other breweries, says it supports the liquor privatization bill. However, the group says portions of the bill could hurt the beer industry and hope to see changes in the state Senate. CHRIS KNIGHT, The Patriot-News
(Photo by Chris Knight, The Patriot-News)
Pennsylvania breweries share a host of concerns about the liquor privatization bill, but they say they won’t oppose the legislation.
The Brewers of Pennsylvania, a trade group representing Keystone State breweries such as Yuengling, Troegs Brewing Co., and dozens of others, issued a statement Thursday offering support for the bill.
While noting portions of the bill could harm the beer industry, the Brewers of Pennsylvania sent a statement to lawmakers Thursday morning saying "the time is right for a change." However, the group is anxious to see changes in the bill in the state Senate.
“When you look beyond self-interested impacts, we brewers feel a certain measure of confidence that House Bill 790 could lead to something positive to the consumers,” said Bill Covaleski, president of the Brewers of Pennsylvania. “We are not standing to obstruct it at this point.”
On Thursday night, the Pennsylvania House of Representatives approved a bill that would take the state government out of the business of selling alcohol. The House passed it by a 105-90 vote, mostly along party lines. It now heads to the state Senate, and the battle over the legislation should only intensify.
Brewers and beer distributors say provisions of the bill could definitely hurt the beer industry, Covaleski said in a phone interview Thursday. Some portions of the bill give the wine industry an unfair competitive advantage over beer, brewers say.
On Wednesday, PennLive reported on a letter signed by Anheuser-Busch, MillerCoors and the brewers' group outlining objections to the bill, saying it would harm the beer industry.
Covaleski said that letter, while accurately addressing the Brewers of Pennsylvania's concerns, was a product of earlier discussions among the coalition of beer advocates.
Ultimately, the Brewers of Pennsylvania doesn’t want to block legislation that could lead to a better environment for consumers, Covaleski said. So while not exactly giving the bill a full-throated endorsement, the brewers group said the bill could be a “viable vehicle for productive change.”
At the same time, Covaleski made it clear that he hopes the vehicle gets an overhaul before it reaches the governor’s residence.
The president and brewmaster of Victory Brewing Co. in Downingtown, Covaleski said he’s hoping for major improvements if the bill reaches the state Senate.
“I kind of likened this piece of legislation to a vehicle,” he said. “This vehicle might be a Chrysler ‘K-car’ right now. It may not make it up the hill. But it is a vehicle that may go in a positive direction for the consumer. I believe we are all working for the consumer in the end.”
“If you try and put self-interest aside, if you try and look at the consumer, the brewers are willing to suffer some of the inadequacy of (House Bill) 790 in the hopes that in the Senate, it could be improved and the consumer could be ecstatic.”
The brewers’ concerns mirror the issues outlined in the earlier letter signed by Anheuser-Busch and MillerCoors, Covaleski said. Specifically, the brewers are worried about the creation of hundreds of new wine and spirits licenses and an unfair market for beer in grocery stores.
Under the bill, grocery stores can sell wine anywhere in the store and in unlimited quantities. Grocery stores would have to sell beer in the restaurant section of their stores, and purchases would be limited to a case. Brewers have noted that some grocery stores may opt to sell wine alone and won't carry beer.
Brewers are worried about the impact of the bill on beer distributors, Covaleski said. Some distributors complain that they wouldn’t be able to afford expanding their stores to allow for wine and spirits.
So they’d have to choose between offering a more limited beer selection (something brewers wouldn’t want) or not offering wine and spirits. The brewers' group is especially worried that distributors facing a space crunch may opt to carry fewer offerings from smaller Keystone State breweries and save space for bigger national brands.
Covaleski said that he hopes the final legislation doesn’t undermine the state’s beer distributors, which are responsible for the vast majority of beer sold in the commonwealth.
Under the bill, beer distributors would get first crack at licenses to sell wine and spirits. After a 12-month period, the licenses would become available for the general public.
Gov. Tom Corbett strongly backs the liquor privatization bill. He has made it one of his top legislative priorities.
The state Senate said it will review the bill, but it's not clear what the Senate will do with the legislation. Some in the Senate crave more convenience for consumers, but some say that could be achieved by modernizing liquor laws rather than privatizing.
The brewers' group would be talking with members of the state Senate to press for changes, Covaleski said.
(This story has been modified from an earlier edition to reflect that the state House has passed the privatization bill.)
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Here's the letter from the Brewers of Pennsylvania sent to lawmakers earlier Thursday.
BOP Statement on HB790
"We Brewers of Pennsylvania respect the efforts of Governor Corbett and members of the House of Representatives to deliver meaningful and respectful change to our 80 year old liquor regulations, in an effort to benefit and offer convenience to all consumers of alcoholic beverages in our Commonwealth.
"However, we firmly believe that the time is right to make a change. Though we have concerns that certain provisions of HB790 could be harmful to the brewing industry in PA – an industry that invests millions of dollars and employs thousands of citizens in the Commonwealth – we believe that HB790 offers a viable vehicle for productive change. If this bill moves forward, we expect that we'll be afforded the opportunity to advise the Senate on further positive changes to this vehicle.
"We have confidence that the Senate will consider and act upon the best interests of all citizens of Pennsylvania."
Bill Covaleski
President
Brewers of Pennsylvania