Self distribution in ILL.

[Root64]

Does anyone know if, in ILL, can a person hold a brewers liscense and a distributors liscense? Allowing them to self distribute.

[jesskidden]

Does anyone know if, in ILL, can a person hold a brewers liscense and a distributors liscense? Allowing them to self distribute.

Yes, according to the Brewers Association which links to and quotes the law as:

"ARTICLE V. LICENSES Class 3. In state brewers may make sales and deliveries of beer to importing distributors, distributors, and to non licensees, and to retailers provided the brewer obtains an importing distributor's license or distributor's license in accordance with the provisions of this Act."

[Root64]

Thanks for the reply, I found that post minutes after I posted.

[admin]

There has been a highly publicized issue on this in Illinois in the last half year or so. If you are contemplating self-distribution in the state, you should so some serious due-diligence before starting.

A court ruling just came down last week that appears to suggest that in-state brewers will no longer be able to self-distribute.

http://www.probrewer.com/vbulletin/s...7582#post57582

[BigMuddyBrewing]

Yes, we have till the end of march to change the law.
Many are working on it already.
It will be a challenge to get it done by the end of March.

http://www.alcohollawreview.com/2010...e-in-illinois/

Chuck Stuhrenberg
Big Muddy Brewing

[KaskaskiaBrew]

It's absolutely amazing how big breweries have no problem crushing others as long as they benefit from it. This comes as a pretty big blow to anybody (like myself) who is planning on opening a small brewery/nanobrewery in Illinois. Worst case scenario is that small breweries will have to go the route of Two Brothers and create a completely separate Distribution Company. It's a lot more of a headache, but it can still be done.

Chuck, keep up the good fight. I'm pulling for you.

Cheers,

Jared Kueker
Kaskaskia Brewing Company (future)

[lagunabrewdude]

I just contacted the Illinois liqour control last week about this same question. They said the law just changed thanks to an InBev court decision which had nothing to do with craft brewers and in a few months self-distro will be illegal in the state of illinois.

[bb23]

So, is this not current then?

Ch.235
ARTICLE V. LICENSES Class 10. A craft brewer's license, which may only be issued to a licensed brewer or licensed non‑resident dealer, shall allow the manufacture of up to 465,000 gallons of beer per year. A craft brewer licensee may make sales and deliveries to importing distributors and distributors and to retail licensees in accordance with the conditions set forth in paragraph (18) of subsection (a) of Section 3‑12 of this Act (see following).
(18) (A) A craft brewer licensee, who must also be either a licensed brewer or licensed non‑resident dealer and annually manufacture less than 465,000 gallons of beer, may make application to the Commission for a self‑distribution exemption to allow the sale of not more than 232,500 gallons of the exemption holder's beer to retail licensees per year.

[KBrown]

That should be current as of 2011.

[bb23]

So then a brewpub *can* self-distribute in Illinois, right?

[KaskaskiaBrew]

I remember when this all went on, breweries in Illinois were still given the ability to self distribute (although this total amount was limited) but brewpubs were not allowed to. If you are going to apply as a brewpub, you also must fill out this form here which takes away the ability to self distribute: http://www.state.il.us/lcc/DOCS/SpecialtyRetail.pdf

I am about 99% sure that a brewpub doesn't allow you to self distribute but you may want to check with the state of Illinois. We just submitted our Illinois paperwork this week but the only thing I was unsure of was if we needed to also submit a distribution license application. It didn't say we need to so we didn't fill it out but they may come back and tell us we need to.

Cheers,

[bb23]

Interesting. Can you post back here when you find out if you have to apply for that as well?

So, if I set up my brewery and only sold pints out the front in the tasting room, but didn't sell food too could I be considered a brewer only and not a brewpub and then be able to self-distribute?

[beejay]

Brewpubs can't self distribute in Illinois currently. Not sure about breweries with tap rooms though.

For small breweries that want to self distribute, you do not need a distributors license, just the Craft Brewers License. We applied for our state license and the craft brewers license simultaneously and received both at the same time.

One thing to note is that after you submit for the craft brewers license there is a mandatory 45 day waiting time before it can be issued. Not sure why, maybe so distributors can try to get you to sign on??? Not sure, but applying for both helped us a lot since it took so long to get the state license to go through.

[KaskaskiaBrew]

Thanks for the heads up Beejay. We submitted both the manufacturer and the craft brewing license so hopefully it only takes the 45 days. We struggled with what to put on the registration form where it asked for the wholesaler but hopefully we filled it out right. Other than that, the forms seemed pretty straightforward. I think the self distribution is based off your TTB filing type so I would think a brewery with tasting room would still qualify but definitely worth checking with Illinois. If I can get ahold of them, I'll ask because we want to add a tasting room by early summer.

Thanks again for the info Beejay. Next time I come through Chicago I'd love to swing through to see your setup.

Cheers,