Texas Craft Brewers Guild Helps Waco Craft Beer Scene Stay Alive!

by Jill King, Owner/CMO, Bare Arms Brewing

Waco has a strong history of people perfecting their craft, from bridge builders, to soda makers to today’s craft breweries. The modern craft beer scene in Waco started when Bare Arms Brewing opened its doors in 2015. Today, Waco enjoys five craft breweries – Bare Arms Brewing, Balcones Distilling, Brotherwell Brewing, Southern Roots Brewing Co., and Waco Ale Company. A strong demand for craft beer exists in Waco. But, all five have been largely shut down this year due to the government’s response to the coronavirus, potentially spelling disaster for the industry. On July 20, the Texas Craft Brewers Guild (TCBG) stated that one in three breweries would close their doors due to the government-mandated shutdowns in less than three months. If the closures continue to the end of the year, like some predict, we will lose two in three breweries. Statistically, up to three of Waco’s breweries could be lost by the end of the year if mandates are not modified quickly.

In 2018, the breweries created the McLennan Pro-craft Forum to share and manage industry-specific regulations and continue to build the Waco craft beer culture. It quickly expanded to include other craft beverage manufacturers like distilleries, wineries, and kombucha producers. The forum was created because “A rising tide lifts all boats,” says Kevin Yackley, owner of Bare Arms. However, in recent months the tides have not been rising. The Pro-craft Forum has been collaborating on ways to stay afloat in the wake of COVID-19, unitedly encouraging craft beer lovers to Think Local Drink Waco and for restaurants to offer more local craft beers to keep Waco strong!

In addition, local breweries have turned to the TCBG for guidance. “They have worked feverishly to help identify legal adaptations to the shutdown and have advocated at the state level for reasonable restrictions and freedoms during COVID-19,” says David Stoneking, co-founder of Brotherwell. Based on guidance provided by the Texas Alcoholic Beverage Commission (TABC), many breweries modified their licensed premises to exclude their outdoor patios so customers could use that space while practicing social distancing and adhering to mask ordinances and sanitation guidelines. It gave a way for customers to return, providing much-needed relief to breweries across the state. But five days later, the TABC issued an update to the closure mandate that breweries may not allow customers to consume alcohol on their premises, even if the area in which they are consuming the alcohol isn’t covered by the license.

In another adaptation, the TCBG petitioned the TABC to restructure the calculation of beer sales allowing breweries to separate their curbside and distribution sales (restaurant, bar, and grocery/liquor store sales) from taproom sales to help offset the 51 percent alcohol/food ratio calculation. Using taproom-only sales changes a breweries calculation making them more likely to be

considered a restaurant vs. a bar. “This requires additional paperwork and restructuring of our license – we are considering it, but this forces us to change our business model just to survive during the mandated shutdowns,” says Dustin Evens, general manager of Southern Roots. However, this helps very few breweries state-wide as most don’t serve food or serve food in greater numbers than they sell beer. Here in Waco, this is a viable option for Southern Roots and Waco Ale but unfair to the other breweries who do not sell food. However, Southern Roots and Waco Ale would still need to sell more food than beer to open their doors. “This adaptation does not provide equality nor establish order in which a law is supposed to provide. Furthermore, it’s not the government’s job to pick winners and losers,” says Yackley. It’s also counter-intuitive for a brewery to be forced to sell an additional product in greater numbers just to enable their core product. So again, the TCBG tries to give breweries relief, but regulation hinders economic progress.

In May 2018, Texas Senate unanimously approved a bill continuing the operation of the TABC for the next 12 years. The bill called for a significant overhaul of the TABC code and the agency itself. The Texas Craft Brewers Guild fights for breweries’ rights to help guide this overhaul so that the government does not overreach and infringe upon freedoms. However, with the onset of COVID-19, state government has thrown our industry back to Prohibition – restricting beer sales, increasing regulations, and adding higher surcharges. If breweries don’t comply, they are threatened with fines, revoked licenses, and shutdowns through the TABC agency. During Prohibition, speakeasies became prevalent, and crime dramatically increased. “Where there is a vacuum, free enterprise will fill the void legally or illegally, and breweries would rather be on the right side of that argument,” says Brett Stewart, Owner of Waco Ale Company.

Waco breweries ask beer consumers and restaurants to buy Waco craft beer. Also, don’t forget to come by the breweries for curbside pickup to enjoy great beer at home. “Your efforts will help keep the Waco craft beer scene alive and hopefully one day return the rising tides,” says Thomas Mote, distillery manager of Balcones. And if you feel so inclined to support your local breweries further, visit craftpac.org/savetexasbreweries for an easy way to help.