Cape and Islands State Senator Julian Cyr.
HYANNIS – The Massachusetts State Senate recently passed legislation resolving a decade-long distribution dispute between brewers and wholesalers within the Commonwealth.
The existing law made it difficult for a brewer to end a relationship with their distributor.
The compromise legislation will would allow a brewery that produces less than 250,000 barrels a year to end their relationship with a distributor with a 30-day notice, alongside granting other protections.
The brewery would be responsible for fairly compensating the wholesaler the fair market value of the distribution rights in addition to other costs for inventory and marketing investments.
The parties are called by the legislation to engage in an expedited arbitration process to resolve such issues.
“Craft breweries on the Cape and Islands are bastions of young, entrepreneurial talent in our region, but like so many sectors of our economy, COVID-19 presents them with a formidable challenge,” said State Senator Julian Cyr (D-Truro).
“I am proud of my colleagues for working with both sides of this longtime logjam in the industry to give small brewers an economic lifeline in the nick of time. We also took important legislative steps today to help the demand side of the brewing industry.”
In separate legislation, the Senate also codified Governor Charlie Baker’s legislation to allow the restaurant community to adjust alcohol licenses for outdoor dining.
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