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 Craft beer aficionados in Illinois may soon be perusing thicker
beer menus, as a new law has overturned regulations restricting the variety of
alcoholic beverages taprooms are permitted to serve.
On Aug. 13, Gov. Bruce Rauner signed into law House Bill 4897, which amends the
Liquor Control Act of 1934 by lifting longstanding regulations that banned
taprooms from purchasing and serving beer produced by outside breweries. Under
state law a brewery’s beer selection has long been confined to its own
production capacities. But HB 4897 will bring the possibility for taprooms to
feature guest beers from competing breweries – locally and nationally.
With these barriers lifted, small craft breweries stand to benefit by accessing
markets they might not have otherwise had the resources to reach. For breweries
with smaller production capabilities, the choice to purchase and sell a
neighboring brewery’s product will allow them to enrich their offerings.
 The bill also creates the Brewer Warehouse Permit, which allows breweries to
transfer and store a fixed amount of beer – depending on the class of brewer
license – at an offsite warehouse. Previously, storing beer offsite meant going
through a wholesaler, in accordance with the “three-tier” liquor distribution
system mandated by state law. To bypass the middleman, brewers either had to
open an additional brewery location or expand their existing facility, posing
challenges to the growth of smaller breweries.
Beyond beer, HB 4897 also eliminates longstanding restrictions that prohibit
taprooms from purchasing and serving hard cider.
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State Sen. Jason Barickman, R-Bloomington, a
sponsor of HB 4897, praised the bill ahead of the governor’s
signature, underscoring its potential economic benefits and the
opportunities it presents for entrepreneurs. “This law is a step
toward a stronger free market economy,” Barickman said, “[HB 4897]
makes it easier for Illinois’ craft brewers to market their products
and do business in Illinois.”
At the signing ceremony at DESTIHL brewery in
Normal, Illinois, Rauner declared the law “removes antiquated
regulatory barriers that have stifled the growth of smaller craft
brewers and limited beverage choices for consumers.”
The signing of HB 4897 follows another sensible change to the
state’s liquor law – Senate Bill 2436 – which Rauner signed into law
Aug. 2. Prior to SB 2436, the Liquor Control Act prohibited
businesses located within 100 feet of a school, church or hospital
from obtaining liquor licensure. Businesses could bypass this law –
but only by getting a bill exempting them from the law through the
General Assembly. SB 2436 transferred this exemption authority from
the Statehouse to local governments.
Regulations that narrow breweries’ beer and cider variety serve no
conceivable purpose in regard to public health and consumer safety –
nor do those rules designed to enforce the distribution chain of
liquor. Instead, these laws protect established industry incumbents
from competition posed by newcomers at the expense of consumers. The
craft beer industry, and craft-beer-loving Illinoisans, are far
better off without them.
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