Craft Brewers, Beer Distributors Reach Agreement on Brewers’ Bill

Boston - July 18, 2020 -- The Massachusetts Brewers Guild, representing craft breweries, and the Beer Distributors of Massachusetts today announced they reached an agreement that ends the 10-year-old dispute over changing the Massachusetts beer industry’s brand distribution agreements. Both associations said they will support a bill that changes state law to facilitate further growth and promote the health of the craft beer industry in Massachusetts. This agreement resulted from a focused dialogue that concentrated on exchanging substantial ideas that will continue to expand availability and deliver even more choices and new products for the Massachusetts beer consumers. 

The bill will allow breweries that produce less than 250,000 barrels (or 3,445,000 cases) of beer, over a 12-month period, to terminate their relationship with a distributor at any time with 30 days’ notice, while recognizing the beer distributor’s investment in marketing, sales, promotion and inventory. 

Over the past decade on Beacon Hill, craft breweries and distributors have disagreed on proposed legislation that would allow breweries to end relationships with their beer distributors. Legislative leaders had urged the two sides to hammer out their differences. In recent weeks, the two sides did that and are now agreed on this bill. 

Massachusetts has more than 200 breweries across the state. This agreement provides expanded opportunities for breweries to continue to grow their businesses, while Massachusetts’ consumers will continue to enjoy a wide selection of high-quality beers. 

“This legislation is a victory for the more than 200 craft breweries across Massachusetts,” said Sam Hendler, President of the Massachusetts Brewers Guild and co-founder of Jack’s Abby Craft Lagers. “We are incredibly grateful to those in the beer community, the wholesalers, and the legislature, who are working together to support this agreement. We appreciate the ability to continue our work as craft brewers and support the growth of this community in every corner of the state.” 

“We strongly support this bill that allows us to move forward and focus on strengthening our relationships with our partners in the beer industry,” said Bill Kelley, President of the Massachusetts Beer Distributors. “We appreciate the hard work by the craft breweries and beer distributors that led to this agreement and are grateful to all the legislators who understand the economic importance of the growing beer industry in Massachusetts.