Texas law restricting craft brewers declared unconstitutional



Keep going to see some of the beers you may not have known are owned by the biggest names in booze. less Live Oak Brewing Co. founder Chip McElroy of Austin is one of the plaintiffs in a lawsuit against the state over a 2013 law that he says unfairly favors distributors.

Keep going to see some of the beers you may ... more Live Oak Brewing Co. founder Chip McElroy of Austin is one of the plaintiffs in a lawsuit against the state over a 2013 law that he says unfairly favors distributors. Photo: Institute For Justice Photo: Institute For Justice Image 1 of / 39 Caption Close Texas law restricting craft brewers declared unconstitutional 1 / 39 Back to Gallery

A judge in Austin has declared a 2013 law that made it illegal for Texas craft brewers to sell territorial rights to distribute their beers is unconstitutional.

The ruling says the government had no compelling state interest in restricting the ability of brewers to be paid for their distribution rights.

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The law was included in a package of laws, including four that benefited small craft brewers in other ways. But the distribution measure, inserted at the behest of some of the largest wholesalers in Texas, remained a point of contention with brewers even after all of the laws went into effect.

"Our hope and the hope of our clients is that this will increase access to craft beer across the state," said Matt Miller, senior attorney and head of the Austin office of the Institute for Justice, which litigated the case on behalf of Live Oak, Revolver and Peticolas Brewing companies.

READ MORE: Is craft beer on its way out? Say it ain't so.

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