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Wilmington Brew Works Supports H.B. 170
Delaware House Bill No. 170, introduced by Representative Debra Heffernan (RD-6) on May 15th, proposes to allow current microbrewery license holders to operate a second microbrewery within Delaware. Wilmington Brew Works strongly supports this bill and intends to open Brew Works North in the Brandywine Hundred area of North Wilmington immediately upon its passage.
About Wilmington Brew Works:
Wilmington Brew Works, a microbrewery and cidery operating within Wilmington’s city limits since 2018, is located on Miller Road. This establishment has fostered both business development and residential growth in Wilmington’s 9th Ward through its community-focused brewery and taproom.
Background:
Wilmington Brew Works was afforded an opportunity to inherit a space at Branmar III on Marsh Rd, formerly operated by Bellefonte Brewing Co. CEO Craig Wensell consulted with the Office of Alcohol Beverage Control early in the process, discussing licensing plans with the Deputy Commissioner prior to signing a lease for the property. The Commissioners office informed Wilmington Brew Works that a second microbrewery license was not permissible, precedent notwithstanding, but as the plan was to move Cider operations Brew Works North, operating as a Farm Winery was suggested by the Deputy Commissioner. Cider can be produced in Delaware by Microbreweries or Farm Wineries. There is no regulation requiring farming operations to operate a Farm Winery, however Brew Works North planned to cultivate a small orchard on the property.
During final review of Brew Works North licensing, the OABC Commissioner informed Wilmington Brew Works that her office would not grant a Farm Winery License, to protect the Farm designation. The Commissioner proposed a legal solution and drafted a bill with Rep. Heffernan allowing Microbreweries in Delaware to operate an additional location.
Benefits:
Delaware House Bill No. 170 is expected to foster the expansion of microbreweries statewide and would directly enable Wilmington Brew Works to establish a second location. Substantial resources, both time and capital, have already been invested in anticipation of achieving this expansion.
How can Wilmington Brew Works Customers can help:
Call or Email your State Representatives and Senators and encourage their support of HB 170!
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Expanding Microbrewery Licensure in Delaware
Current Delaware statute restricts microbrewery license holders to a single microbrewery and a maximum of two brewpubs, totaling three licenses. House Bill No. 170 seeks to maintain the existing cap of three licenses while providing enhanced operational flexibility. The proposed legislation would authorize microbrewery license holders to operate either two additional brewpubs or a combination of one additional microbrewery and one brewpub under the same ownership.
Problem Statement:
The existing statutory framework in Title IV imposes limitations on the expansion of small businesses within the microbrewery sector in Delaware by limiting license holders to one microbrewery license. Successful microbreweries are unable to expand their businesses in their area of expertise, stagnating growth. This limitation impedes business development and compels microbreweries to explore expansion opportunities in neighboring states with more permissive regulatory environments.
Proposed Solution:
House Bill No. 170 has been introduced to the 153rd General Assembly of the Delaware Legislature.
- The bill amends the language of Title IV, Section 512C.
- The total number of licenses is still capped at three.
- Section 512C is amended to allow for one Microbrewery and up to two Brew Pubs, or two Microbreweries and one Brew Pub.
Benefits:
Passage of House Bill No. 170 will stimulate business growth for members of the DE Brewers Guild.
- Microbreweries can expand in their focused business area, without having to consider moving into other sectors (Brewpubs, Distilleries, Farm Wineries).
- Multiple locations will generate additional tax revenue for the state of Delaware and create employment opportunities for Delawareans.
- Empirical evidence suggests that microbrewery expansion contributes to the revitalization of local areas and fosters growth in other sectors.
- Delaware will retain businesses looking for expansion opportunities and prevent States that allow multiple microbrewery locations, such as Pennsylvania and Maryland, from luring business away.
What Delaware Legislators Should Do:
We urge Legislators to support small, locally owned businesses by swiftly passing H.B. 170 into law.