When the Boyou Country Superfest starts on May 25, you’ll see consumptions of many kinds of beer; except for craft beer made in Louisiana.
Either international beer or craft beer from other states will gain _ profit.
Louisiana laws restrict craft breweries from self-distributing and to choose either bar or retail sales.
Small craft breweries— local businesses— aren’t allowed to compete with international brands.
Because of this and other regulations, Louisiana ranks 48th in the nation for breweries per capita, closing at double the national average for craft brewer closure rates.
Louisiana craft brewers compete with interstate breweries with fewer restrictions that lead to higher profit.
Legislators killed the Louisiana Craft Brewers Guild bill to expand opportunities on May 21.
Cary Koch, executive director of the Louisiana Craft Craft Brewers Guild, described the bill as a “life raft” to save the remaining breweries in the state, who are restricted from hosting private events and serving foreign alcohol— a significant source of revenue.
These laws hurt small businesses and give breweries from other states a leg up on local ones.
Adding opportunities for craft breweries would benefit customers, businesses, and tax revenue.
Outside-the-state brands from states (with friendly craft beer laws) often beat out Louisiana brands.
But it’s disheartening to see outside-the-state brands (from states with friendly craft beer laws) half as old as ours that are double the size, already expanding into the Louisiana market. We’re sending money outside our state when we could be helping Louisiana brands more.”
Local breweries employ 400 people (excluding distributors and retailers) and raise money for universities and athletic programs.
The legislation killed on May 21 would have loosened red tape on craft breweries and allowed them to host yoga, weddings, and corporate events.
Restrict laws has already driven away business.
Young entrepreneurs returned to Baton Rouge to start a Noble Wave Brewery. But they fled the state once they evaluated their investment, citing “Louisiana’s uncompetitive legal and regulatory landscape for craft breweries,” specifically the ban on distributing beer to retailers.
“We were not going to be well-served by opening in a place, like Louisiana, that forces us to forgo significant revenue options that would be available to us in other states,” the owners said in a press release. “It just doesn’t make sense to handcuff ourselves from a legal and financial standpoint.”
Their business plan included providing full salaries and benefits to employees and donating 50 percent of tips to a companion nonprofit.
Instead, Noble Wave opened in Salem, Oregon, which has the “best-in-class regulatory environment,” according to the businessmen.
Local breweries drive the economy, employing 400 people (excluding distributors and retailers), as well as helping raise money for universities and athletic programs.
The Institute for Justice, a public-interest law firm, ranks Louisiana 43rd in most burdensome licensing laws.
For example, the entry barriers to open an interior design business are $1,240 in fees, six years of education, and one exam.
The brothers aren’t the only ones changing their plans because of regulation. In October, Baltimore’s Flying Dog Brewery Company’s CEO Jim Carus delayed his $54 million expansion plans due to new laws regulating items including taproom hours to on-premise sales.
The Institute for Justice, a libertarian public interest law firm, ranks Louisiana 43rd in most burdensome licensing laws. Occupations require, on average, $360 in fees, 202 days of education and experience, and two exams.
For example, it’s the only state to license florists. The entry barriers to open an interior design business are $1,240 in fees, six years of education, and one exam.
That’s stringent protection against lousy fashion.
Overall, 77 out of 102 lower-income occupations require licensing.