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Opinion: CT three-tier alcohol system is broken — and small breweries are paying the price 

A recent opinion piece in the Hartford Business Journal painted Connecticut’s three-tier alcohol system as a model of fairness — one that supposedly “works for everyone.” 

But that’s simply not the experience of small breweries in this state. For Connecticut’s independent craft brewers, this outdated structure stifles growth, strips away autonomy and increasingly threatens their ability to survive. 

A one-sided contract — with no way out 

Under current laws, once a brewery signs with a distributor, it’s locked in — for life. These so-called “franchise” laws make it nearly impossible for a brewery to exit a relationship with a wholesaler, even if the distributor fails to support the brand, mishandles deliveries or deprioritizes local craft in favor of global brands. 

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This is not a true partnership. 

While distributors claim this setup ensures stability, in practice it only cements their power while putting our small craft breweries at a serious disadvantage. 

Breweries often invest years into building their brands, only to find themselves stuck with a partner that no longer fits their business — and with no realistic path to change course. 

Not all alcohol is treated equally 

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Here’s where the hypocrisy of Connecticut’s alcohol laws becomes glaring: these rigid franchise rules only apply to beer. 

Wine, cider, spirits and ready-to-drink canned cocktails are afforded the rights to sell their products simultaneously, through multiple distributors or terminate contracts with reasonable notice. 

Why are small breweries — many of whom have invested heavily in local communities — the only producers penalized by laws that date back nearly a century? 

If the system is so fair and functional, why are beer makers uniquely held hostage by it? 

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The illusion of a ‘level playing field’ 

The op-ed argues the system ensures fairness. But when national and global brands dominate distributor portfolios and command the lion’s share of attention, how can a 500-barrel brewery from a little Connecticut town compete? 

Let’s be clear: small breweries are not asking for special treatment. We are asking for the same freedoms and flexibilities granted to our peers in wine, spirits, cider and canned cocktail industries. 

If the state trusts those manufactures to navigate the marketplace without hand-holding and to keep their customers safe, why are brewers being denied that same trust?

Our industry is at a tipping point 

Connecticut’s craft brewing industry supports over 6,000 jobs and contributes more than $1 billion annually to the state economy. Our breweries are gathering places, job creators, and drivers of local tourism and revitalization. 

But many are closing. Others are scaling back. And new startups are choosing to open elsewhere — in states with modern, equitable laws. 

The Connecticut Brewers Guild has fought for years to bring attention to this disparity, urging lawmakers to modernize the rules. Some neighboring states have done so and are reaping the rewards in new business, jobs and tax revenue. 

Connecticut, meanwhile, remains stuck in a system that prioritizes entrenched interests over entrepreneurship. 

Reform is not radical — it’s necessary 

We’re not calling for a dismantling of the three-tier system. We’re calling for balance. For flexibility. For fairness. 

Allow small breweries rights already extended to wine, spirits, cider and cocktails. Give breweries the ability to exit contracts that no longer serve them. 

Until these common-sense reforms are made, Connecticut breweries will continue to struggle — not because their beer isn’t good, but because the system is rigged against them. 

Our state leaders know it’s time to stop protecting the past and start investing in the future — one where local breweries, who do so much for their communities, can grow, compete and thrive on their own merits.

Rachel Diamond is the executive director of the CT Brewers’ Guild, which represents the state’s craft brewing industry. 
 

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