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New laws benefit Indiana’s growing spirits industries
 
By JOHN BELDEN
Indiana Correspondent

INDIANAPOLIS, Ind. — Near the end of the 2015 state legislative session, Indiana Gov. Mike Pence signed bills that affect the state’s growing microbrewery scene and aid those who produce wine or spirits, as well as beer.
One notable measure was state Senate Bill 297, signed into law April 29, which increases limits on brewers’ production. The bill authored by State Sen. Ron Alting of Lafayette, with fellow Republicans James Merritt (Indianapolis) and Mark Messmer (Jasper), changes the number of barrels of beer a small brewer may manufacture in a calendar year for sale or distribution within Indiana, from 30,000 to 90,000.
The limit applies to the total production of all brewing sites under the same ownership, so this measure is a boon to breweries seeking to expand, including Sun King Brewing Co. of Indianapolis and 3 Floyds Brewing of Munster, both of which expressed support for the bill.
“We want to sincerely thank 3 Floyds and the great people of Indiana who supported this change and helped get the bill passed,” said Elizabeth Belange, marketing and promotions director for Sun King.
The Indy brewery previously found itself up against the former production limit, and had to put expansion plans on hold until the legislation passed.
“Last year Sun King produced 27,000 barrels of craft beer,” Belange said. “After we upgrade our facility to accommodate increased production, we hope to produce up to 33,000 barrels a year. We are already investing in upgrades to our current (Indianapolis) facility.
“Our statewide growth will be gradual, as we will need to work with distributors to broaden our distribution. It’s our hope that we can have broader statewide distribution by the end of the year.
“We are currently building out the Fishers Tap Room to provide our fresh local beer to the residents on the north side (of Indianapolis). The 6,000 square-foot space will be home to a three-barrel brewing system and a tap room featuring an event space for community and private events. Our goal is to open on July 1, when the new law will take effect,” she said.
Alting also authored SB 113, which removes the state’s requirement that winemakers can only sell directly to customers face-to-face, allowing for online ordering and shipping of wine. That bill was signed by Pence in early May.
One new law removes what had been an odd inconvenience. House Bill 1053, authored by Rep. David Ober (R-Albion), does away with a rule that governed tasting rooms for microbreweries and vineyards, requiring a business that makes both beer and wine to set up a separate room or walled-off area for each product.
“It was a little shocking,” he said, “that we had a state law or some ruling on the books that you can serve both beer and wine, but you have to have it separated in a different room. So when my constituents brought it to me and said, ‘Hey, this is what we’re being told. Is there something we can do about it?’ I was a little taken aback.”
His fellow lawmakers seemed to agree a change was in order. “When the bill was filed and started to go through the process, it was a pretty simple idea that didn’t face any real strong opposition,” Ober said. “In fact, I think it passed the house unanimously and there were only a few ‘No’ votes on the Senate side.”
In committee, the bill was altered to include brewers and vintners also making spirits.
“We had three birds with one stone,” he explained, “so we don’t have to come back next year and add distillers into the mix. But I think any winery or brewery that would like to get into distilled spirits can do that now. They don’t have to separate out their serving bars. So, it’s a deregulatory effort as much as anything else.”
The bill was signed by Pence on April 30.
As brewing, winemaking and distilling grows in Indiana, these new laws can benefit these businesses, as well others, including farmers who supply the ingredients.
“Sun King uses as many locally sourced ingredients, hops and grains, to produce beer as we can,” said the brewery’s co-founder and head brewer, Dave Colt. “These are burgeoning industries and the law (raising production limits) can only help increase the demand for locally grown and produced ingredients.”
5/21/2015