in finds itself tinkering with state laws that govern the production of beer, the latest in an effort to lure a California brewery's $20 million eastward expansion.The fledgling craft beer movement in South Carolina has been throttled by Prohibition-era laws, but advocates for the industry and a collection of state lawmakers say rules must continue to change to compete for investment.
This week, an amendment to beer laws dubbed the "Stone Bill" was filed in the state Senate by Republican Sen. Sean Bennett of Summerville in an effort to attract Stone Brewing Co.
Stone, the nation's 10th largest craft brewer, earned more than $135 million in revenue last year and is looking to expand east of the Mississippi, according to its 36-page request for proposal issued this spring, which drew interest from across the state.
The new bill calls for a change in how brewpubs are defined, allowing them to produce more beer and sell the product to distributors.
Currently, state law allows beer to be produced under two legal constructs — as a brewpub or a brewery, said Greenville lawyer Brook Bristow, who represents the South Carolina Brewers Association and helps new breweries negotiate the legal process.
"I certainly think we're in the running and have a shot at it," Bristow said. "The issue is how far down the track we are."
Brewpubs are allowed to sell unlimited quantities of beer for on-site consumption, but they can't distribute their products to the market.
Breweries can have their beers distributed but are only allowed to offer the equivalent of three pints of beer to be consumed on the premises per person per day.
The change in law would allow Stone to operate under the new definition of a brewpub, upping brewpub production limits from 2,000 barrels per year to 500,000.
The brewery also has plans to open a restaurant, which is currently only allowed under the state's brewpub laws.
The proposal comes less than a year after legislators amended brewery laws to allow on-site consumption of up to three pints from a previous restriction to only samples.
The change was important, brewers said, to allow them to market their businesses as tourist destinations, as successful breweries in North Carolina do.
Bennett sponsored the "pint law" in the Senate last summer.
Republican Rep. Derham Cole of Spartanburg pushed the pint law through the House and said he plans to introduce similar brewpub legislation.
The company plans to identify a location this year for a $20 million investment to produce 120,000 barrels of beer initially with plans to expand to 500,000 per year, according to the brewery's RFP.
The company projects revenues to exceed $100 million by the end of year four, according to the RFP.
