Legislature OKs bill giving craft brewers limited self-distribution rights | Regional Government

The Legislature advanced a bill on Monday that will allow Nebraska craft breweries to self-distribute a limited amount of beer to retail locations throughout the state.

A compromise version of Sen. John Lowe of Kearney’s bill (LB1236) would give local beer companies the ability to sell up to 250 barrels of beer — 500 kegs or 82,500 12-ounce bottles or cans — in markets where they do not have a distributor.

A craft brewery could only distribute the beer it produces itself in a vehicle it owns and driven by its employees, under the compromise advanced by lawmakers.

For example, a craft brewery located in Beatrice would be prohibited from selling beer in Lincoln if it already uses a wholesaler, but it could seek out new bars or liquor stores in Omaha if it had not yet hired a partner to distribute there.

The amended version of the bill that sailed through the first-round of debate marks a deal struck between craft brewers and distributors who were at odds during a Jan. 31 hearing before the General Affairs Committee.

Distributors spoke in support of a more restrictive bill (LB1235) that would have set the limit at 500 barrels in markets where the craft brewer did not have a presence; LB1236, as introduced, allowed craft brewers unlimited self-distribution rights.