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Judge rules in favor of local brewery

Craft brewery claimed TABC laws violated rights

Updated: Wednesday, 21 Dec 2011, 4:29 PM CST
Published : Tuesday, 20 Dec 2011, 11:01 PM CST

AUSTIN (KXAN) - Craft breweries in Texas have a reason to raise their pint glasses this week.

On Monday, U.S. District Judge Sam Sparks issued his final judgment in the lawsuit that Jester King Brewery and two other plaintiffs filed against the Texas Alcoholic Beverage Commission .

Sparks ruled in favor of the brewery, declaring the statutes and TABC rules in question unconstitutional.

In the fall , the brewery filed a suit stating the TABC laws violate the First and 14th Amendments.

Currently, TABC laws state breweries can’t call a beer a “beer” if it’s more than a certain percentage of alcohol by weight. That means breweries have to market some of their product by another name other than beer.

“We couldn't call our beer what it really is. We had to call it 'ale' or 'malt liquor' if it was above 5 percent alcohol or beer if it was below,  which would create some funny situations,” said Jeff Stuffings, owner of Jester King.

Breweries will also be able to let customers know where they can actually purchase the company’s beer.

“Prior to winning our claim, we couldn't tell people where to buy our beer. People would come to the brewery, want to buy our beer, and ask where to get it and we couldn't tell them. So now we can and that's going be very helpful for small brewers in the state of Texas,” said Stuffings.

What didn’t pass though? Breweries still won’t be allowed to sell their own products at their production sites.

“What we were asking the judge was to be treated the same as wineries and distilleries in Texas. When you go to a distillery or winery in Texas, you can buy wine or distilled spirits to take home with you. If you go to a brewery, you can't sell people beer,” said Stuffings.

This particular item was House Bill 2436 , which was considered during the 2011 legislative session. As well as a bill for brewpubs

While craft breweries in Texas have made some in-roads, they are already thinking ahead to the 2013 legislative session.

“We will continue that fight through the legal process,” said Stuffings.

TABC said it was"pleased to have some direction from the court on these very complicated issues."
 
"It's too early to say exactly what this will mean for malt beverage labels," the agency said in a statement."TABC will have to develop new rules for labeling malt beverages, and as always, we will work with the industry to accomplish that."

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