The Craft Freedom bill, formally known as the Craft Beer Distribution & Modernization Act or House Bill 363, passed the North Carolina Senate yesterday, clearing the way for the bill to be enacted following a signature from Governor Roy Cooper. The bill raises the number of barrels a brewery can produce before having to turn distribution over to an outside company.

Previously, the limit was 25,000 barrels. Two of Charlotte’s biggest breweries — Olde Mecklenburg Brewing Co. and NoDa Brewing Co. — joined together with Red Oak to lobby the state for change, calling their initiative Craft Freedom. Both NoDa and OMB were facing the choice between growing production beyond 25,000 barrels and losing control of their sales to distributors or putting growth on hold.

Publicity for the breweries’ fight amplified when Olde Meck announced plans for expanding to the Triad, only to pull out because the expansion would have pushed them passed the distribution limit.

Assuming Cooper signs the bill (which he is expected to), the limit will be raised to 100,000 barrels. Breweries will still be able to use a third-party distributor if they prefer, though many will likely choose not to, as they’ll be competing with much larger brands in the distributor’s portfolio and lose oversight of their sales.

“The overwhelming majority support of the passage of the Craft Beer Distribution & Modernization Act is an important step forward for the beer industry adding to existing opportunities for brewers in North Carolina,” Suzie Ford, NoDa’s founder and Tim Kent, Executive Director of the N.C. Beer & Wine Wholesalers Association, said in a joint statement. “HB 363 provides greatly-expanded legislative support for the state’s Beer Franchise Law and the three-tier system. As North Carolina’s breweries continue to grow, we welcome today’s regulatory achievement.”

We’re hopeful this means the state legislators are also willing to consider changes to the ABC system overall, given the passage of the brunch bill (alcohol during church hours!) and support for Craft Freedom.

For more in-depth reading on this, check out Matt McKenzie’s coverage for Charlotte magazine. —Kristen Wile

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