Local Distilleries Fight For Level Playing Field At Iowa Legislature

Des Moines, IA, April 1, 2016 – Small, locally owned breweries, wineries and distilleries are a popular tourist draw all across Iowa. Many people enjoy sitting up to the bar to enjoy a local brew or opening a bottle of wine while listening to live music at their neighborhood winery. But according to Iowa law, you can’t enjoy these same privileges at Iowa distilleries. That’s something small Iowa liquor manufacturers are asking lawmakers to change.

House File 2431 has been discussed at length this session. The bill would allow Iowa distilleries to sell the spirits they make by the glass in their tasting rooms. The bill would also increase the current daily sales limit from two bottles per person, per day to a standard twelve bottle case. Lastly, the bill would increase a state-imposed production cap that limits the amount of spirits a micro-distillery can make annually. Currently, wineries and breweries in Iowa can sell by the glass and by the bottle with no sales or production limits.

“We feel like this is a fair bill that addresses legitimate issues for small Iowa businesses.” said Garrett Burchett, owner and distiller at Mississippi River Distilling Company in LeClaire, Iowa. “We aren’t asking for special treatment. We’re asking for equal treatment. Since we opened five years ago, a winery and brewery have both opened within a block of our distillery. Our customers expect to enjoy a similar experience when they come to our business, but Iowa law doesn’t allow for it.”

The bill has met with bi-partisan support at the ground level. The bill passed unanimously through the House State Government Committee earlier this session and also passed through the House Ways and Means Committee, with overwhelming support. However, since that time, the bill has not been able to see a vote on the House floor.

Lawmakers in both the House and Senate have voiced support. It is supported by the Iowa Chamber Alliance, the Distilled Spirits Council of the United States, the Iowa Corn Growers and the Iowa Association of Business and Industry.

“We see this as an economic development bill.” said Jason Gordon, Vice President of Public Affairs for the Quad Cities Chamber of Commerce. “It promotes jobs and tourism across the state as a whole, and supports small businesses and entrepreneurialism. We’ve seen so far that these types of attractions really benefit both our cities and our rural areas. We’ve already seen distilleries choose other states instead of Iowa because of these limitations in Iowa Code. We continue to ask the Legislature for support in changing that.” Each State that borders Iowa has made similar changes that match or far exceed those proposed in HF 2431. Over eighty percent of states nationwide have adopted changes for distilleries including an almost identical bill in Kentucky on Monday the 28^th of March.

“We’re hearing that leadership in both chambers isn’t willing to move it forward without approval of the Iowa Beer Wholesalers, who, along with their large out-of-state beer suppliers, are the only organizations registered against the bill.” Said Jeff Quint, owner and distiller at Cedar Ridge Distillery in Swisher, Iowa. “This is an industry we should be laying claim to. Right now, every state surrounding us has adopted code changes that give them advantages we have been unable to obtain in our own state government.”

The political clout of the Iowa Beer Wholesalers does appear to be a big road block. According to the National Institute of Money in State Politics, the organization contributed $142,125 to Iowa Legislature candidates from 2008 to present. Of that money, $48,250 went to the campaigns of former House Speaker Kraig Paulsen, R-Hiawatha, current House Speaker Linda Upmeyer, R-Clear Lake, and Senate Majority Leader Michael Gronstal, D-Council Bluffs.

The Iowa Distillers Alliance, with help from the Iowa Association of Business and Industry, has set up a website at www.IowaDistillery.com that allows Iowans to easily contact their lawmakers through an online form. As the session winds down, Iowa distillers are hoping lawmakers will look past campaign contributions to help small Iowa businesses. “There’s still time to do what is right.” said Todd Dunkel, owner and distiller at Iowa Distilling Company in Cuming, Iowa. “There’s too much upside for this bill to be ignored again this session.”