opinion

Ky. bill would hamper beer selection

The craft beverage culture in Kentucky is booming, and as the co-founders of Rhinegeist Brewery in Cincinnati we've been anxious to get our beer out to a thirsty commonwealth. So, we went searching for the right distributor to take our beer to market, and although there are some great distributors in Kentucky, we struggled to find someone with the right craft-focus and a small enough portfolio to ensure our mindshare.

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After speaking with a variety of other brewers, winemakers and importers, we found this to be a common theme. That's when the entrepreneurial excitement kicked in, and we thought, why not open a new distribution company – one that's agile, passionate about craft culture and entirely focused on high-quality craft brands?

So, we consulted our attorneys, as well as the Departments of Commerce in both Ohio and Kentucky, both of which concurred that opening a separate distribution company in Kentucky would be entirely legal. That's when Riverghost Distributing was born. We built a plan, invested $250,000 and received our distribution and wholesaler licenses in December, with goals of creating 50 jobs in the next three to five years.

Unfortunately, House Bill 168 would force brewers that also own a distribution company to close down, and would therefore nullify our investment and deprive the commonwealth of those jobs and subsequent tax dollars.

Speaker Greg Stumbo has stated that this bill is designed to ensure that "… distributors will not be taken over by large, out-of-state corporate companies." Riverghost Distributing is the exact opposite of that scenario.

As owners of a craft brewery that self-distributes in the state of Ohio, we are uniquely positioned to represent other craft breweries in Kentucky. We know the product intimately. We recognize the concerns of the brewers and small business owners because we live with those same concerns every day. And we understand how to position craft beer and increase its market share relative to the "large, out-of-state corporate companies." We have proved this in Ohio.

A number of craft breweries are currently negotiating with Riverghost to distribute their product in Kentucky. These breweries are from all over the country – from Kentucky and Ohio to California.

However, most are unwilling to commit to us while this legislation is pending. The fact that Kentucky is even contemplating this legislation is having a direct negative impact on our business. Many of those breweries may not distribute in Kentucky at all if Riverghost Distributing is not an option. They believe that without Riverghost, there will not be a distributor in the Commonwealth that could adequately represent their interests and their brand.

Likewise, we just started distributing the wineCRAFT portfolio of outstanding craft wines, most of which were previously unavailable in Kentucky. If Riverghost were forced to close, most of these wines would go back to being absent from retail beverage stores and restaurants throughout the state.

The industry group KEG that supports this legislation, stands for "Kentuckians for Entrepreneurs & Growth." We at Riverghost are those passionate entrepreneurs. We have a growing business that will create jobs, support the local economy, and expand the presence of craft beer and wine in the market – all of which will be lost if House Bill 168 is passed.

This bill wouldn't just affect Anheuser-Busch. As it's worded, it would also force Riverghost Distributing to close down. We invested in something that was entirely legal, and two months later the government is turning around and threatening to take it away from us.

What sort of message does that send to entrepreneurs and investors looking to grow businesses in the state? If you support craft beer, great wine, entrepreneurship and small business in Kentucky, please encourage your legislators to vote no on HB 168, or to modify the bill to exclude existing businesses and/or small businesses.

Bob Bonder and Bryant Goulding are co-founders of Rhinegeist Brewery in Cincinnati and Riverghost Distributing in Erlanger.