The state's two largest breweries are mounting a campaign designed to push legislators to increase the amount of beer that can be produced and sold in Indiana. Munster-based 3 Floyds Brewing Co. and Sun King Brewing Co. in Indianapolis say without raising a current 30,000-barrel limit, both will have to make major changes. Sun King has already pulled back statewide distribution and 3 Floyds says the beer produced through a planned $10 million expansion will be shipped out of Indiana unless legislators bump up production limits for small brewers.
3 Floyds President Nick Floyd says the eventual goal is to eliminate limitations.
Floyd says the company's biggest markets are Chicago and Indiana. He projects that if the limit isn't raised by the end of the year, 3 Floyds will have to stop opening new accounts in the state.
Floyd believes the regulation caps Hoosier breweries at a “baby” level. He says “sooner or later, whether they believe it or not,” the approximately 100 other breweries in the state will have to consider what to do if they near the 30,000-barrel cut-off point.
Source: Inside INdiana Business
January 13, 2015
INDIANAPOLIS, Ind. – In an effort to support small business, boost the local economy, create more jobs and provide more local craft beer to enthusiasts, Indianapolis-based Sun King Brewing Co. and Munster-based 3 Floyds Brewing Co. launched “Support Indiana Brewers,” a public awareness campaign developed to gain support for raising the limit on the amount of beer that brewers are able to produce in Indiana.
Current state law allows Indiana's brewers to produce up to 30,000 barrels per year to be sold in Indiana and keep their Small Brewers Permit. Breweries can produce more beer under the current law, but exceeding the limit would eliminate Sun King's abilities to operate a tasting room and distribute its own beer in Indiana. The current limits forced Sun King to cut ties with distribution partners in 2014 because at the current maximum rate of production, the brewery wouldn't be able to meet demand close to home in 2015 without exceeding the Small Brewers 30,000-barrel limit.
3 Floyds plans to invest more than $10 million on expansion efforts this year, and will have to ship any increase in production out of state if current laws don’t change.
Several Indiana legislators have authored bills recommending the Indiana Small Brewers barrel limit be increased to 60,000 or 90,000 barrels. They will introduce those bills into Indiana state legislature during the current legislative session. Bills include SB 276 authored by Senator James Merritt, SB 297 authored by Senator Ron Alting, SB 281 authored by Senator Carlin Yoder. Representative Ed Clere has also authored a bill for introduction in the House of Representatives.
“Support Indiana Brewers is an effort to update an outdated state law and ease unrealistic regulations on Indiana small breweries, allowing us to employ more Hoosiers and get local craft beer to our fans who love it,” said Clay Robinson, co-owner of Sun King Brewery.
Beer sales from the two biggest Indiana-based craft breweries, Sun King and 3 Floyds, only account for slightly over 1 percent of all beer sales based on 2013 data. Even when Sun King and 3 Floyds sell the maximum of 30,000 barrels each, they will represent less than 1.6 percent of beer sales in Indiana. However, demand for craft beer continues to grow and has more than doubled its share of the local market in the last four years. According to the Brewers Association, the national trade organization that represents craft brewers, the volume of beer produced by craft breweries nationally will more than double by 2020.
In comparison, foreign-owned Anheuser-Busch InBev and MillerCoors products account for more than 84 percent of all beer sold in Indiana according to Indiana Excise reports from 2013.
Raising the barrel limit for Indiana’s breweries benefits the state in several ways including job growth, economic reinvestment and increasing agritourism. According to the Brewers Association, the craft beer industry in Indiana had an estimated economic impact of $609 million in 2013. In just the past several years, breweries throughout Indiana have invested more than $20 million dollars in building supplies, equipment, and contractors in conjunction with the construction of brewing facilities.
Sun King, 3 Floyds, Upland and the other 95 small breweries in Indiana currently provide employment to more than 2,000 local residents, according to the Brewers of Indiana Guild. The number of breweries and the jobs they provide have increased rapidly over the past few years, and increasing the barrel limits will eliminate a roadblock that would prevent the hiring of more Hoosiers.
“By supporting this initiative, you are supporting small Indiana businesses, helping them grow, allowing them to hire more local people, reinvest in our communities, and of course, craft more of the Indiana beer you love,” said Nick Floyd, president of 3 Floyds.
About Sun King Brewery
Sun King Brewing Company is the brainchild of Dave Colt and Clay Robinson. With the help of family and friends – Omar Robinson, Andy Fagg and Steve Koers – the first keg of Sun King beer rolled out the door for delivery in July 2009. Now available on tap and in cans at hundreds of locations around central Indiana, Sun King has grown into the second-largest beer brewer in the state of Indiana. The company's commitment to handcrafted seasonal and specialty beers has been rewarded with multiple medals at the Indiana Brewers Cup, Great American Beer Festival and World Beer Cup competitions. Visit www.sunkingbrewing.com for more information. SunKing Brewery is also on Facebook and Google+
About 3 Floyds Brewing Co.
Three Floyds Brewing Co. first opened its doors in 1996 in Hammond, Ind., by Nick Floyd, with help from his father, Mike Floyd, and brother, Simon Floyd. With the ethos “It's Not Normal,” the 5000-square-foot garage brewery set out to make bold and aggressive beers to stand out in the NWI Region, Chicago, and Greater Indiana markets. In 2000, the brewery moved to Munster, Ind., added a brewpub, and continues to expand today. With brands like Alpha King Pale Ale, Gumballhead Wheat, Dreadnaught Imperial IPA and Dark Lord Russian Imperial Stout, Three Floyds establishes themselves as a world-class brewery, earning many accolades, awards, and top rankings from world-recognized organizations and beer geeks alike for decades. With the addition of brewmaster Chris Boggess and plant manager Rob Dunworth, Three Floyds has built an elite team of brewers, packagers, chefs, and maintenance crew to continue cranking out the best beer possible.Three Floyds is available in kegs and bottles in Ind., Ill., Wis., Ohio, and Ky.
Sources: Sun King Brewing Co. and Three Floyds Brewing Co.