SC distilleries fight for justice in the legislature

By Parker Milner, special for Statehouse Report | South Carolina has 28 microdistilleries, none of which can serve customers after 7 PM or on Sundays like breweries and wineries. In fact, these small companies can only sell their own brands of alcoholic beverages. And they cannot serve food or cold beer.

The intriguing restrictions faced by state distilleries, which say they support 20,000 jobs in South Carolina, are causing even more damage to a group that, as sales dropped to a drip during the pandemic, changed operations to produce the much needed hand sanitizer. But a bipartisan project sponsored by nearly 30 state legislators could address what spirits industry leaders say is a fundamental issue of justice.

“When we look at parity, and that’s the main thing we’re seeing is partial parity with breweries, most lawmakers we talked to said, ‘That makes sense,’” said Scott Blackwell, owner of High Wire Distilling, from Charleston. “(Distilleries) are great for the community, they employ people, they are places where many people take their dogs and children. Breweries attract many more residents because of the friendliness of the laws. Without tourists in this city, it is overwhelming. ”

Blackwell serves as president of the South Carolina Distillers Guild, a group of three-year-old volunteers who have struggled for parity since its inception – the pandemic has made their mission more urgent, Blackwell said. High Wire, Charleston Distilling Co., Twelve 33 Distillery, Palmetto Distillery, Six & Twenty and Burnt Church Distillery are leading the way in obtaining the SC Micro Distillers Parity Act, H.3769, signed into law this summer.

The Distillers Guild did not include everything on their wish list in the bill, filed in the state House and Senate, but it addresses many of the limitations imposed on the business. Currently, South Carolina distilleries are treated as liquor stores, which means that opening hours are limited from 9 am to 7 pm, Monday through Saturday.

“We would like to open on Sundays and stay open a little later – another hour or so,” said Charleston Distilling Co. owner Steve Heilman, who serves as the guild’s treasurer. “Few people want to go drinking at 9 am”

While several distillers in the state also want to extend bottle sales hours and push for other items such as self-distribution, Blackwell said, the Distillers Guild filed “realistic” orders on the account. The most expensive items include:

• Increase hours to seven days a week, but follow retail sales restrictions on Sundays;
• Allow outside beer and wine for consumption on site;
• Increase the tasting limit from 3 ounces to 4.5 ounces;
• Allow tastings to take place in tasting rooms, with food; and
• Increase the quantity of liquor to be sold for external consumption from 3 bottles to 9 liters.

Republican Sean Bennett of Summerville, the main sponsor of the Senate bill, helped SC breweries to pass so-called Stone and Pint bills, which increased the amount of beer that breweries could sell and customers could consume. on site. Bennett started working with distilleries in late 2020, before presenting the bill in January, he told the Charleston City Newspaper.

“I am relatively hopeful, mainly because we are not trying to do anything differently. In fact, we are just trying to bring microdistilleries to the same level of parity with breweries, ”said Bennett.

“As an effective advocate for an industry that has a significant footprint in Charleston and North Charleston, my job is to break the mysterious barriers that, in my opinion, no longer need to exist,” said Sen. SC Marlon Kimpson, D- Charleston. “During the summer, I visited some of these facilities and, for me, asking for food made perfect sense, especially when you look out the window and see a brewery capable of doing the same thing. What this bill does is essentially close the gap. ”

State Representative Wendell Gilliard, D-Charleston, hopes that one of the bills will be approved by April 10 to be considered by the other chamber.

“I believe that competitiveness is always good for business and, for me, that makes all these types of businesses competitive. It’s a win-win situation and I think it’s coming on time, ”said Gilliard. City newspaper.

The project’s main sponsor in the House, Congressman Leon Stavrinakis, D-Charleston, did not respond to requests for comment.

According latest SC Brewers Guild statistics, the number of South Carolina breweries has more than tripled since 2013, which means more production, distribution and revenue for breweries and distributors. Still, Bennett knows that the bill will face opposition from beverage distributors, who believe that relaxed laws will fall on its margins. He said he expects them to realize that making distilleries’ businesses more viable will help the industry as a whole.

“We have very strong resistance from people who participate in the three-tier system,” said Bennett, referring to the state system that requires alcohol distributors to act as intermediaries between wholesalers and retailers. “Beer distributors probably agree that it helped their industry. We have a good story to tell. “

Why does it matter

In small distilleries, there can be a big increase in sales if the account is approved, Traxler Littlejohn, owner of the Nippitatty Distillery, told the City Newspaper.

“It would mean a lot to us, because it would increase a huge revenue stream. Now, even during COVID, our overall sales in the tasting room dropped, but people were still coming to take a tour and pick up a bottle, ”said Littlejohn. State regulations prohibit consumers from purchasing more than three bottles directly from an alcoholic beverage producer. “This (would allow us) to sell more bottles.”

Scott Newitt, owner of the Firefly Distillery in North Charleston, took the SC liqueur industry out of the dark ages in 2007, helping to promote legislation that allowed tasting inside distilleries and reduced the cost of opening a distillery. He said opening distilleries on Sundays is the next logical step, as Charleston seeks to rekindle its tourism industry after the pandemic.

“It’s all about being open when tourists are here, so the possibility of being open on Sunday is a big deal. That would be great for tourism for us and for promoting South Carolina products, ”said Newitt. Currently, when Firefly closes at 7 pm, Newitt customers can turn the corner to Holy City Brewing, which operates a full-service restaurant and bar until 10 pm every night – with Firefly, Nippitatty and High Wire spirits on the menu.

“I just want people to be able to come and prove my brand at my home,” said Newitt.

Blackwell can barely contain his frustration when talking about the current laws facing local distilleries. It is time for South Carolina to provide relief to distilleries like other states did during the pandemic, he said.

“It’s kind of maddening, so I’m very passionate about it. Its neighboring states are already doing this. These states are way beyond where we are, ”said Blackwell. “(Distilleries) have to pass more background checks than any bar or restaurant and are not allowed to do a fifth of what they do.”

Parker Milner is a reporter for Charleston City Newspaper. Have a comment? Send to: [email protected]. Make sure to add your name and contact information for verification.