Breweries And Fans Push to ‘Save The Growler’ In Minnesota

The familiar battle between craft breweries and distribution companies is playing out again, this time in Minnesota, where some hope to raise a ‘growler cap’ that threatens their businesses.

Here’s what we know…

A Minnesota law that allows breweries to produce up to 20,000 barrels of craft beer while selling growlers out of their taprooms, is causing successful breweries like Castle Danger Brewing to choose between growth and the ability to sell growler fills at their taproom, sales that contribute significantly to the brewery’s profits.

Based near Lake Superior in Two Harbors, Minnesota, Castle Danger Brewery, has been named the best brewery in the state for two years running by Minneapolis Star Tribune readers. And it’s a beer mecca for many willing to travel more than two hours north of the Twin Cities to fill their growlers with its award-winning beers…

But that sort of success comes with a downside. Castle Danger has announced that will hit the 20,000-gallon threshold soon and will stop selling growlers on October 1.

In a September Facebook post, the brewery launched Save the Growler, a grassroots effort aimed at building support for a change in the law. And according to the Duluth News Tribune that campaign has already amassed more than 10,000 signatures advocating for a production cap increase that would allow breweries such a Castle Danger to grow and still sell beer directly to consumers.

That petition, which asks Gov. Tim Walz to raise or eliminate the cap, was sent to legislative leaders last week by Minnesota state Sen. Karin Housley. But as things stand now, Castle Danger may no longer be selling growlers beginning this week.

“Growler sales account for (about) 30 percent of taproom sales at Castle Danger — and that’s not insignificant,” Representative Housley said in a release….

This isn’t about politics; it’s a bipartisan issue with bipartisan support. It’s about supporting our local businesses and allowing them (to) grow.”

“These aren’t massive breweries; they’re small businesses homegrown in our communities — and we’re punishing them for success.”

Reason argues persuasively as to the ridiculousness of Minnesota’s current beer law…

“Why should a successful brewery be banned from selling beer in certain containers? There’s no public health justification for saying that it’s OK for a brewery to sell 64-ounce bottles of beer to the public as long as the brewery makes 19,999 gallons of beer each year, but that a brewery producing 20,001 gallons of beer shouldn’t be allowed to do the same.”

“It’s all about the political power of beer distributors and liquor stores. Once a brewery hits the 20,000-gallon threshold, the only way to get its beer to the public (aside from what might be served in glasses at the brewery’s taphouse) is to contract with a distributor.”

“In practice, the rule is a way to guarantee distributors get a piece of the action, but it also unfairly punishes breweries for doing nothing more than increasing production to meet the demand for their products.”

American Craft Beer couldn’t have put it better…And laws that limit the growth of small breweries like Castle Danger need to be changed.