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Texas Craft Brewers Win Suit Over Distribution Rights

Jorge Sanhueza Lyon
Live Oak Brewing Company and two other Texas craft brewers successfully sued the TABC to overturn a law that limited craft brewers' right to sell distribution rights.

A state judge has struck down a Texas law that limits the distribution rights of craft brewers.

Until a few years ago, beer distributors in Texas used to pay craft breweries for the right to sell their product, but a 2013 state law brought changes to the industry. Breweries could no longer accept payment for their “territorial rights” – in other words, the right to distribute their beer.

Several breweries, including the Del Valle-based Live Oak Brewing Company, along with Revolver Brewing and the Peticolas Brewing Company, sued over the change. They argued that they could no longer profit from selling distribution rights, but distributors could still turn around and sell them to others.

Today’s ruling struck down that law, declaring that it violates the Texas Constitution, but the Texas Alcoholic Beverage Commission has the option of appealing the decision. 

Syeda Hasan is a senior editor at KUT. Got a tip? Email her at Follow her on Twitter @syedareports.
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