Texas Beer-Distribution Restriction Overturned

A Texas judge has reportedly voided a 2013 law prohibiting Texas
craft-beer brewers from selling territorial rights to distribute their beers,
finding the state had no compelling state interest in restricting the
breweries. The statute was part of a package of other laws benefitting
small breweries, but the distribution limitation was apparently inserted
at the behest of large Texas wholesalers. The rule prevented brewers from
receiving monetary compensation for distribution rights.

The brewer who challenged the law, a former plaintiffs’ attorney, told
Texas Lawyer, “It restores millions of dollars of value to brewers who
had their rights taken from them for no justifiable reason.” See Houston
Chronicle, August 26, 2016; Texas Lawyer, August 29, 2016.

Issue 617