Bills pumping up breweries, distilleries advance

By Charlotte Eby

Des Moines Bureau

DES MOINES – Proposals to ease restrictions on Iowa's microbreweries and distillers are gaining traction in the Legislature among lawmakers who see Iowa's homegrown beers and liquors as economic development.

Senate File 2091, which cleared the Senate State Government Committee Tuesday, would allow the manufacture and sale of high-alcohol beer that contains 5 to 12  percent alcohol.

The bill is intended to allow Iowa micro-breweries to compete.

            “This essentially evens the playing field that we've got with Minnesota, Wisconsin, other surrounding states,” said. Sen. Dennis Black, D-Grinnell. 

            Brad Knoke, brewer at Hub City Brewing Company near Stanley, said Iowa breweries currently are at a competitive disadvantage with out-of-state brewers that can produce these beers and bring them into Iowa.

            He describes a growing popularity for the higher-alcohol, gourmet beers.

            “We'd like to be able to at least produce a small amount of them for our own market as well,” Knoke said.

            Travis Scheidecker, brewmaster at Third Base Sports Bar and Brewery in Cedar Rapids, is optimistic lawmakers will take action this year.

“A whole new world of beer to come if it happens – it's great news,” he said.

If he were able to brew these types of beers, he could educate customers about the beer and serve it a premium price, he said.

“There's a large, growing demand for these beers,” Scheidecker said.

Lynn Walding, Administrator of the Iowa Alcoholic Beverages Division, said Iowa brewers can produce the beers with higher than 5 percent alcohol content, but only for shipment out of state.

            Breweries aren't the only alcoholic beverage producers earning the attention of lawmakers this year. 

            A bill that cleared the Senate Commerce Committee Tuesday would allow Iowa's micro-distilleries to sell their product on site for consumption off the premises.

            Templeton Rye President Scott Bush is hopeful the distillery in Templeton will be allowed to sell their whiskey to people who go on a tour of their facilities.

            “This would be a good way to allow us to generate some revenue” to pay for staffing the tours, Bush said.  

A popular whiskey during Prohibition, Templeton Rye was re-launched in 2006. Sales have exceeded expectations as the company won awards for their whiskey, one of the few rye brands in existence.

            Bush noted the comeback of classic cocktails such as the Manhattan and Old Fashioned, which he said were originally made with rye whiskey.

            “We certainly hope and expect some day to be a real national brand that I think will be a great deal for the state,” Bush said.

            Walding said the Iowa Alcoholic Beverages Commission sees micro-distilleries as a great economic opportunity for Iowa.

The commission hosted a series of forums last year on native distilleries, where the commission heard that the ability to sell products at a distillery was important to their vitality.

Walding said they anticipate growing from two distilleries in Iowa to perhaps 5 to 10.

            “That would create a new, robust industry in the state of Iowa,” Walding said.