The decades-old state law can threaten kombucha and non-alcoholic beer makers, distributors

1 April 2022

If a national non-alcoholic brewing corporation announced in an email publication to subscribers that they would certainly no longer be shipping to Sc, alarm bells went away from in Brook Bristow’s brain. Bristow, an attorney at Bristow Beverage Law in Johns Island, realized that the decision simply by Connecticut-based Athletic Brewing Company. to pull products from delivery to the state could imply other kombucha and non-alcoholic businesses and wholesalers within South Carolina were about to become impacted as well. That’s mainly because current statutes dictate that will non-alcoholic beverages are susceptible to the same licensing requirements since alcoholic beverages. And Bristow stated that’s concerning. “This is certainly going to create a lot of uncertainness for a lot of different types of businesses plus, you know, ultimately, the question is, ‘Are we going to apply the particular alcohol rules to businesses who don’t necessarily, you understand, the alcohol is so minimum? ‘” said Bristow, that served as the state’s Brewer’s Guild’s executive director intended for seven years. There are 2 decades-old state statutes which could affect companies that generate or sell non-alcoholic ale or kombucha, like family-owned Lil Duck Kombucha within West Columbia or the forthcoming Peak Drift Brewery upon North Main. In simple terms, both statutes essentially mean 2 things — the first one decides what defines a non-alcoholic beverage, effectively making any kind of fermented drink under 5% ABW, or around six. 5% ABV, classified since non-alcoholic. Many beers come under 5% ABW. The second a single, a related statute, demands that any business offering or producing drinks that will fall under this definition become licensed in the same way that companies that sell or generate alcoholic beverages are licensed. This particular arose because in mid-March, Athletic Brewing Co., the Connecticut-based non-alcoholic beer organization, said in an email declaration to subscribers they would not be shipping to South Carolina because of “the recent legal meaning by state officials for the unique definition of non-alcoholic beverage. “According to the S. Chemical. Department of Revenue, that is responsible for enforcing the statutes that prompted concern with regard to Bristow, the non-alcoholic beverage company was required to stop direct shipping to T. C. customers because of a various statute that prohibits this for both alcoholic plus non-alcoholic distributors — that are regulated under the same guidelines by the statute definitions. Based on the Department of Revenue, this received a complaint regarding Athletic, which caused these to look into it. However , Bristow and Peak Drift’s Jerrika Snyder said the statutes could still cause complications for already operating kombucha producers and sellers as well as for the upcoming brewery complicated on North Main. This particular matters because the process plus cost of applying for a license to market beer is lengthy plus expensive, according to Bristow. The particular fee for wholesale marketers of beer and wines and for breweries is $300, and $400 every 2 yrs for wine and beverage producers, according to the Department associated with Revenue’s website. And this places some already operating companies at risk of having to wait to become approved for permits to keep operating. Meaning that spots such as Lil Duck Kombucha, the nearly eight-year-old business within West Columbia, would have to stop operations until approved for the license, even though they don’t market alcoholic products. “It might be a huge damper on all of us because I mean, if we had been required to have it, even though we all didn’t have alcohol. We might still probably not serve alcoholic beverages, but I would just be concerned about the price, the cost of the particular licenses, ” Debey Hancock, who owns Lil Duck Kombucha with her husband, Wil. Hancock said that although the girl kombucha is fermented, which makes it technically alcoholic, it would consider consuming 20 gallons associated with her kombucha in a quarter-hour to get the same amount of impact as you wine cooler. The interpretation from the law could also affect a future brewery, Peak Drift Making on North Main. The particular 66, 000-square foot brewery and entertainment complex will certainly produce and can non-alcoholic ales, one of the first in the area to do so, based on the brewery’s Director of Product sales and Operations Jason Snyder. “It could drastically influence us, you know. Our strategy all along, was in order to self distribute our (non-alcoholic) beer. Because it’s not alcohol addiction, we, in theory, should be able to accomplish that, ” Snyder said, “If non-alcoholic beer now demands the same type of permit as though it’s alcoholic, then that will… means we can’t personal distribute it like a regular non-alcoholic product, which would become bad. “The two statutes have been state law for more than two decades and seem to be fairly loosely enforced. Kombucha suppliers like Lil Duck nevertheless operate without having to obtain alcoholic beverages licensing. The Department associated with Revenue didn’t indicate there would be a sudden crackdown upon businesses like that, but legislation of state laws could be the role of their office. Plus unless the South Carolina Common Assembly decides to change or even update the laws, the particular Department of Revenue may continue to regulate non-alcoholic makers and distributors in the same way they actually alcohol. As of April one, there are no bills submitted in the House or Senate that could change the law requiring non-alcoholic beverage producers to have alcoholic beverages licensing. But , the Sc Brewer’s Guild meets upon April 5 and six for their annual trade display and conference and it’s particular to be a topic of discussion. Its executive director Mack Sweatman declined to remark because she had not however had the opportunity to hear through local breweries on the issue.

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