@@facebook=
@@
A new state law that cuts start-up costs for micro-breweries and makes it easier for a growing number of craft distilleries and brewers to sell to the public will trigger growth and expansion in the emerging industry, promote tourism, create jobs and generate tax revenues, state and industry officials say.
The law allows small breweries to serve samples and to sell their brews from tasting rooms without buying a $3,900 special permit, and it also allows more small-batch distilleries to open in Ohio and to offer samples of their craft spirits from their own tasting rooms. The legislation known as House Bill 243 sailed through both the Ohio House of Representatives and Ohio Senate with unanimous support and was signed into law by Gov. John Kasich in late December. It is scheduled to take effect March 22.
Commerce department officials said the new law will put Ohio ahead of the curve.
“These changes will provide new opportunities for micro-distilleries and craft breweries to operate and expand, creating jobs for Ohioans,” said David Goodman, director of the Ohio Department of Commerce.
Craft distillery is an increasingly popular market that caters to consumers seeking distinctive artisanal products.
State officials and legislators drew a comparison to the economic benefits of Ohio wineries and wine festivals that attract an estimated 2 million visitors annually. The new distilleries and breweries may also create new demand for Ohio agricultural products such as fruits and grains.
Ohio has room to grow. With 47 total breweries statewide, Ohio ranks 32nd among the 50 states in the number of breweries per capita, according to the Brewers Association 2010 data. But there are signs of growth as well: according to the Ohio Department of Commerce Division of Liquor Control, the number of permits issued for new breweries rose from 50 in 2009 to 65 in 2011, and permits for new liquor-spirits producers jumped from four in 2009 to 13 in 2011.
The trend has been felt in the Dayton area, and the growing number of local entrepreneurs who are developing micro-breweries and craft distilleries in the Miami Valley hailed the provisions of the new law. The less restrictive regulations and lower licensing costs scheduled to take effect in March had an immediate impact on the plans of Pete Hilgeman, owner of The Dayton Beer Company who is in the early stages of establishing his micro-brewery in newly leased space at 906 E. Dorothy Lane in Kettering. Hilgeman said he is redesigning the space to include a “tap room” where customers can sample his brews.
“It’s pretty exciting that we can have people come in and taste beers and to be able to talk to them about it,” Hilgeman said. “That’s a real positive for us.”
The first batches of Dayton Beer Company pale ale, blond ale, porter and hefeweizen may be ready as soon as March.
Toxic Brew Co. at 431 E. Fifth St. in Dayton’s Oregon Historic District also will benefit from the changes to the state law, according to general manager and brewmaster Shane Juhl.
Toxic Brew will likely open in May or June with a license that allows it to serve its beer only, but the new law will allow Juhl to sell beers by the glass in addition to other methods, such as by the bottle, refillable “growler” container or keg.
“This gives us a lot more flexibility,” Juhl said.
Eventually, plans call for the brewpub to add additional licenses that will allow it to serve wine, liquor and other beers. A third microbrewery, Vitruvian Brew Company, is moving into 305 Walnut St. in Yellow Springs under the ownership of Shane and Jacqui Creepingbear. Shane Creepingbear said he is still assessing how the new laws will affect his business, but he welcomes the break in licensing fees.
One local brewing enthusiast, however, said the new state laws don’t go far enough in lowering those fees. Eric Zamonski of Oakwood has collected signatures in an effort to get a citizen-initiated statute on the statewide ballot that would reduce the projected state-licensing startup costs of a brewpub from nearly $8,000 to $100 — comparable, Zamonski said, to Michigan’s brewpub licensing fees. Such a move would spur economic development and make Ohio the brewing hotbed that many other states are, Zamoniski said. The new law reduced the licensing fees by half, to about $4,000.
“This is obviously a big improvement,” Zamonski said. “But I still think $4,000 a year is still absurdly high for a small local brewpub” to spend on a state license to operate.
The Dayton area’s growing number of specialty distillers found no faults in the changes in state law that apply to spirits.
“It’s a pretty exciting time for Ohio distilling,” said Meg Gujer of Sugarcreek Twp., business manager of S and G Distillery in Yellow Springs, which will soon start distilling various fruit-flavored schnapps. “Everyone in the industry should welcome the opportunity for more Ohio craft distillers to bring products to market, particularly if the products they bring are uniquely Ohio and utilize Ohio agricultural resources to produce.”
The makers of Buckeye Vodka, the Dayton-based spirit that made its debut locally and across Ohio in 2011, found something to like in the legislation: A lifting of the ban on spirits tastings in liquor stores. That means businesses that sell liquor and spirits with more than 21 percent alcohol (42 proof) can offer small-scale tastings if they follow state guidelines that limit the amounts served and the number of tastings per month. The owners of both Arrow Wine & Spirits stores, who already offer beer and wine tastings on a weekly basis, said they will explore the possibility of offering spirits tastings.
“This will allow us to market directly to consumers,” said Jim Finke, CEO of Dayton-based Crystal Spirits, which produces Buckeye Vodka.
Tipp City micro-distillery Buckeye Distillery — which has no connection to Dayton-based Buckeye Vodka — will likely apply for the necessary license that would allow it to offer samples, owner Aaron Lee said.
The craft distiller produces a 50-proof Buckeye Distillery Cherry Liqueur that is available at multiple spirits outlets in the Dayton, Cincinnati and Columbus areas, and soon will seek approval to sell two other liqueurs — raspberry and blackberry — in Ohio, Lee said.
“I’m excited about this,” Lee said. “This will bring in tourism, and we’ll be able to educate customers about what a micro-distillery is. I see it as a very positive thing.”
Contact this reporter at (937) 225-2258 or mfisher@DaytonDailyNews.com.
About the Author
