Libertarians think this is the natural end of government

I was formerly involved a little bit with this, so I thought I'd note Robb Walsh's excellent article in the Houston Press:

There's a Texas law that prohibits breweries from selling their beer in their gift shops. Bill Metzger, the publisher of Southwest Brewing News, says it's the worst of many bad beer laws in Texas.

"It doesn't make any sense," he says. "It's like you make a killer brisket at your barbecue joint, and when people come to visit, you have to tell them you can't sell them any. I can't tell you how many small breweries in New York and California have told me that without their gift shop they would go out of business."

Once you subtract retail markup and the distributor's cut, a small brewery sees very little of the price you pay for a six-pack in a supermarket. Fledgling craft breweries don't make enough beer to interest distributors or retailers either, according to Tony Formby, managing partner of Rahr & Sons Brewing Company in Fort Worth. Selling beer for full retail from a gift shop can help a tiny brewery survive.

Yup. Regulations are hindering Texas small businesses in favor of out-of-state brewers. Good job, Texas legislature!

Posted by Evan @ 11/21/08 08:09 AM


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