Rob Fullmer and Steve Barclay

AZ We See It

There's more to the David vs. Goliath story about a brew bill

Our bill ensures that brewers%2C their businesses and employees are not penalized for success

The Wine and Spirits group shouldn't fear competition

The Arizona Republic recently editorialized about a brewing fight at the Legislature between those who support the craft beer industry and those who want to keep it artificially contained ("Brace for the Great Beer War of 2015").

While we appreciate the editorial staff's acknowledgment that this is a true David vs. Goliath fight, we want to clarify some important facts about the issue.

The Arizona Craft Brewers Guild, representing 57 microbreweries, and the Beer and Wine Distributors of Arizona, representing 11 beer and wine distributors, have been working together for nearly a year on legislation that would allow Arizona's craft brewing industry to grow within Arizona's current three-tier system that regulates the production, distribution and sale of alcohol.

Our goal is to allow microbreweries to keep their restaurants, pubs and employees as they grow past the legal limit of 40,000 barrels per year and not force them to shut successful restaurants and pubs in order to produce more beer. Our bill ensures that brewers, their businesses and their employees are not penalized for success.

New breweries coming to Phoenix area:

Contrary to earlier reports, the solution drafted by the brewers and the distributors is one both the brewers and distributors support.

Our proposal allows craft breweries to grow beyond the 40,000-barrel limit while not causing them to forfeit the retail licenses they hold or let go of employees. This promotes growth in the industry while strengthening the three-tier regulatory system.

For further stability, microbrewers under the 40,000-barrel limit will be limited to seven retail licenses, while today they can hold an unlimited number. Craft brewers producing more than 40,000 barrels cannot add more retail licenses or continue to self-distribute, unless to their own adjacent establishments.

This solution strengthens our system and ensures that as microbrewers graduate into producers, they won't be forced to relinquish the restaurants and pubs that are vital to their business and have created permanent jobs across Arizona.

Arizona craft brewers and distributors are creating jobs and growing our economy. In Arizona, brewing, distributing and retail supported 20,430 jobs and more than $6 million in wages and have a total economic contribution of $1.2 billion.

Craft brewing alone had a $664 million impact in Arizona in 2012 and created 3,486 jobs. This growing industry is important to our economic recovery and the vitality of Arizona. Craft brewers are creating quality products that are in demand, and our opponents should not seek to hinder their growth or stifle the success of hard-working Arizonans.

The only known opponent of our bill is the Arizona Wine and Spirits Wholesale Association, consisting of three companies that primarily distribute wine and spirits: Alliance Beverage Distributing, Southern Wine and Spirits, and Young's Market. One might ask what these companies could have against craft brewers and economic opportunity.

The answer is they must be afraid of good old-fashioned competition.

This proposal will help small businesses grow without fear of having to close their establishments due to success. That means opportunity for all craft brewers. We are confident Arizona lawmakers will agree and do what's best for Arizona jobs and businesses.

Rob Fullmer is executive director of the Arizona Craft Brewers Guild. Steve Barclay is executive director of the Beer and Wine Distributors of Arizona.