CHARLOTTE, NC -- Two Charlotte-area craft beer breweries are suing the state of North Carolina, saying legislation passed by the General Assembly that forces them into business with wholesale distributors restricts their competitiveness and economic liberty.

Olde Mecklenburg and NoDa breweries filed the lawsuit May 15, saying the 25,000-barrel production cap and franchise law also harms consumers "by artificially inflating prices and reducing consumer choice," The Charlotte Observer reported Monday.

State law requires craft breweries enter a distribution contract with a wholesale once they produce 25,000 barrels.