Don’t change the system that brought an NC brewery boom

In response to “N.C. alcohol laws should join the 21st century” (April 9 Viewpoint):

North Carolina’s beer and wine industry has experienced recent, tremendous growth. New breweries continue to open, allowing for convenient spaces to gather with friends, grab a beer, play a game and enjoy the sunshine. When you go to your neighborhood store, you’ve likely noticed an increase in the number of local brews and wines available on the shelves.

Today, North Carolinians enjoy an unprecedented level of choice when it comes to alcohol selection. Our healthy, balanced marketplace creates efficiencies and opportunities that help local businesses succeed. In fact, North Carolina has more breweries and brewpubs than any other state in the South.

That’s why I was surprised to read the April 9 op-ed by Yael Ossowski. He and I both value consumer choice, but his article includes several misleading claims. I want to set the record straight.

Ossowski writes: “No one can receive an alcohol shipment from out of state unless they’re a licensed wholesaler.”

This is false. Consumers may receive wine directly from any winery in the U.S., as long as the winery obtains a wine shipper permit from the state ABC Commission.

“Wineries looking to ship bottles must be located in state and can’t send you more than two cases per month.”

This is false. The authorization for direct shipment from wineries applies to both in-state and out-of-state wineries and was a precedent set by the US Supreme Court with the decision Granholm v. Heald (2005), not North Carolina law. Keep this in mind: Two cases per month per winery means 24 bottles each month from each of the 7,500-plus wineries in America. That’s a whole lot of consumer choice!

“Any new entrepreneur is met with a byzantine set of rules and laws that make it almost impossible to survive.”

The facts say otherwise: The number of N.C. breweries has grown from 45 in 2010 to more than 240 today—a five-fold increase. At last count, there are 188 N.C. wineries and 52 distilleries with more on the way.

“The three-tier system … makes it hard for consumers.”

This is false. Thanks to the three-tier system which includes independent wholesalers, U.S. consumers enjoy great choice and an abundance of selection. The existence of a strong, independent middle tier has helped facilitate the explosion of craft distilleries, wineries and breweries.

Ossowski suggests that no one benefits from or is protected by current alcohol laws. Alcohol is a highly-regulated, highly-taxed commodity–and for good reason. According to the Centers for Disease Control and Prevention, alcohol contributes to more than 88,000 deaths each year in the U.S., and the estimated annual economic cost of excessive drinking in the U.S. is more than $224 billion. The beer and wine industry is required by law to produce, market and distribute a controlled substance responsibly. Distributors take their responsibility in this marketplace seriously.

North Carolina consumers have witnessed an unparalleled level of consumer choice and entrepreneurial opportunity in North Carolina’s beer and wine industry—all of which has been enabled by current law and the regulatory environment. As active participants in this industry, we celebrate this growth story and we’re proud to play an active role in it.

This story was originally published April 12, 2018 at 9:00 PM with the headline "Don’t change the system that brought an NC brewery boom."