There's no lone star in the Texas small brewer scene these days as the country's second largest beer market continues to heat up with homegrown startups and established new entrants. Both Karbach Brewing of Houston and Alamo Beer Co of San Antonio announced plans to spend $23 mil combined on their respective brewing facilities in the last week. Karbach plans to spend $15 mil on expanding its current home in Houston, boosting capacity initially to around 60K bbls but with room to expand to over 200K bbls, according to the Houston Chronicle. Opened in 2011 by beer industry vets including brewer Eric Warner, once head brewer at Flying Dog, and Ken Goodman and Chuck Robertson, founders of distrib CR Goodman. Karbach got off to a fast start: it shipped over 8000 bbls in its first full calendar yr, 2012, according to Brewers Assn stats. It plans to crank out 19K bbls by the end of 2013, also blasting into the BA's regional brewer designation (15K bbls). The team is forecasting 29K bbls in 2014, before the expanded facility comes online in early 2015. Karbach beers don't go any further than "the greater Houston area and San Antonio," according to the release.

Further west, Alamo Beer Co broke ground on its first brewery in San Antonio late last week. Alamo has been contracting its flagship golden ale, (with Blanco's Real Ale Brewing since 2004) but plans to grow the brand to about 40K bbls within 5-7 yrs in the new $8 mil facility, $5 mil of which was secured through an SBA loan by Southwest Securities, FSB. The 18K sq-ft brewery should be completed by next fall. The co hired former Pabst chief operating/strategy officer Jim Walters this past fall to take on the coo role for Alamo Beer.  

Lotsa press about New Belgium Brewing in last week. After controversy resolved in Oh, and New Belgium not able to get big upfront payments from distribs there, New Belgium and distribs able to revise agreements and move forward (as reported in INSIGHTS Express and Beer Marketer's INSIGHTS). Now Oh retailers anxiously awaiting product, which hits the mkt next Monday. And they are "predicting that New Belgium will make a splash similar to when D.G Yuengling & Son entered" Oh, reported The Beer Blog after talking with Ron James, director of beer, wine and liquor for the Wooster-based Buehler's Fresh Foods chain. New Belgium brews will initially be available in 22oz bottles and draft. Recall, 6-pks and 12-pks will be available starting in Feb 2014. NBB held a "special preview tasting" this past Tuesday with Superior Beverage Group, in which "hundreds of others from retailers, bars and restaurants attended," reported Beer Blog. Next states to be announced shortly reportedly are Missisippi and Alabama.

NBB hired a handful of new personnel in Asheville, mainly on the operations side for its upcoming 2d brewery. Positions included Community Relations Specialist, Operations Support Manager, Business Support Manager, Brewing Manager, Packaging Manager, and Liquid Center Manager, reported the Asheville Citizen-Times. "Site preparations continue at the brewery's future location," for construction "expected to begin in May," and "the first public hiring should begin in 2015," added paper.

Then too, NBB already quite active on the new product front, having announced a number of new brews for 2014. A hybrid sour session-able yr round, Snapshot Wheat, in Feb 2014 (see above), and new RyePA, made with all North Carolina rye, as part of Hop Kitchen series for select markets this Mar 2014. Recall, Hop Kitchen series releases different beers quarterly that are aimed to pair well with specific foods. NBB also announced 2014 collaborations with Indiana's Upland Brewing and with NOLA Brewing within the last mo.  

Chandler, Ariz-based SanTan Brewing expects around 60% growth by yr-end, pushing it easily into Brewers Assn's 15K-bbl "regional brewery" status, all in its home state. After expanding its facility to 35K sq-ft with 50-bbl brewhouse this year, SanTan has the fermentation capacity in place to more than double in 2014 as it plans to enter some major nearby beer markets: Calif, Tex, Colo, Nev and NM. To assist with those launches and help SanTan choose new distribution partners, the co hired Wendy Weathers, once national sales director at Oskar Blues. SanTan is committed to "grow the right way" when entering all these new markets, current sales and national acct mgr Chip Mulala, aka Minister of Craft Beer for SanTan, told CBN, which is "why we're so excited getting Wendy on board." The "controlled yet aggressive" launch could be assisted by putting "a rep on the ground in each of these markets," per Chip. SanTan packages its brands, including lead brand Devil's Ale (a pale) and its 5-6 month long-summer seasonal Mr. Pineapple (a GABF award-winning pineapple wheat), solely in cans for the off-premise. That portion of its biz tripled in 2012, Chip shared, and yr-to-date thru Oct 6 in IRI, SanTan's off-premise $$ sales were up 177%, the #12 craft brand family in Ariz.  

Brewing has commenced at Victory's new Parkesburg, PA facility allowing the brewer to open up a handful of new markets in early 2014. Victory expects to produce 104K bbls in 2013, up around 12% from over 93K bbls last year. Starting this month, Victory brands will be distributed by Bigfoot, General and Summit in Oreg, and C. Stein, Odom, Sound and Marine View in Wash - all part of the Great Artisan Beverage group of craft-focused distributor divisions. "There was a time when we would look for a wholesaler that was relatively pure" and "devoid of a thicket of craft brands," Victory co-founder Bill Covaleski told CBN. But "those days are gone." Bill and sales veep Steve German pay particular attention to the value wholesalers provide to retailers, and "part of that value proposition is great knowledge and depth of options in craft." So the team at Victory didn't shy away from Great Artisan Beverage's deep book of craft brands as the group "seems to have better alignment with our scale, better alignment with our portfolio of products." It also allows Victory to head to Idaho for the first time, in January.

Early 2014 will see Victory brands in Ariz and Kentucky for first time too, as well as the UK, Sweden and the Cayman Islands; the new markets bring Victory's total footprint to 34 states plus DC. In Arizona, a market that's "been on our radar for a long time," Victory went statewide with Hensley, and it chose Heidelberg (which also has the brand in Ohio) and River City in Ky. But expanding current distributor relationships to affiliated operations in new territories isn't a given for Victory. Bill maintained his team is "willing to control our own destiny" and that the brewer-distributor relationship "should never be one" that's "bound by obligation." Choices one way or another are "by no means an indication of failure or lack of success."

Exporting Victory scratches 2 itches for Bill, first his "personal interest" in "sharing new experiences with people," and second an interest in further spreading the perception of "the US as a beacon of brewing." Though success abroad may not last forever (since "when you show people these flavors, they can figure out how to do it themselves"), Victory will "participate in this global knowledge exchange" while demand is strong. Bill also mentioned that, while planning for the 2014 World Beer Cup, the Brewers Assn Events Committee he's on has seen a "7-fold increase in the countries represented" in the competition, an indication to him of how foreign brewers are currently viewing the US beer market.  

Less alcohol, more hops and working along the tart/sour spectrum are de rigueur for a growing base of brewers and drinkers alike, leading to changes in year-round and seasonal portfolios for a number of major craft players. The trends are likely to continue. Dogfish Head founder Sam Calagione sees "sour and hops as the big palate directors for many years to come." New Belgium's blending master Lauren Salazar expects 2014 to be full of "lots of sessionable everything" and "even MORE sour beers," according to the Denver Post. "Sour" is on the tip of everyone's tongues these days when asked "what's next," but it's far from new. Entering 2014, some craft brewers, including New Belgium, seem to be using tart or sour flavors to connect with and potentially expand American beer drinkers' perceptions of one of their strongest expectations when turning to beer: refreshment.

New Belgium's New Snapshot Wheat Riffs on Belgian-Inspired Tartness Many could argue that crisp, snappy and traditionally German and Czech styles of beer evolved into the light lagers that dominate the American (and international) beer market largely due to their ability to refresh (an important reason humans choose to consume a beverage in the first place). New Belgium will roll out the "very refreshing" and "invigorating" Snapshot in 2014, NBB's 4th core yr-round release since 2010, and "a sour for the people," according to spokesman Bryan Simpson. NBB did not choose to use "sour" as a primary descriptor for packaging or marketing materials, partly to avoid pushback from sour-junkies used to brands like La Folie, an "11 on the scale of 1 to 10 of sour," sez Bryan. Comparatively, Snapshot might fall in around 2.5 or 3 on that scale. It's important to note that, scientifically speaking, acidity, sometimes identified as "sour" on the tongue, is directly correlated with the perception of "refreshment," summed up by a handy Slate post this summer.

More than Snapshot's "subtle tartness," NBB is identifying the brand as a "wheat beer," a loose grouping of styles largely viewed by beer drinkers as approachable, at least. With Snapshot, NBB will "bring something new to the category," as "this beer definitely wanted to zag a little bit," according to Bryan. To make Snapshot, NBB blends two beers, one fermented with lactobacillus (a souring bacteria often associated with beers from Flanders, Belgium, sometimes shortened to "lacto") and one traditionally fermented. So just as it may "confound" beer drinkers' expectations of wheat beers with the qualities gained thru the lacto fermentation, the "secondary process makes it sessionable," Bryan told us. Snapshot debuts in Feb in 12 oz bottles and cans, 22 oz bottles and on draft.

Boston To Debut Cold Snap for Spring; Changing Belgian White Landscape Boston Beer rolls out its new Spring seasonal Cold Snap in January, a white ale that falls somewhere between "the spicy beers of winter" and "the light, crisp beers of summer," Jim Koch told CBN. Cold Snap builds on a handful of other Samuel Adams brands that also play in and riff off of the Belgian White style, Jim reminds, like White Lantern, White Christmas and Whitewater IPA. Boston implements "spices like hibiscus, plums, vanilla and tamarind to make Cold Snap unique." The co "heard from many of our drinkers that they really missed the white ale style in the spring months," Jim told us, "so we brought it back." Some GABF attendees got a sneak peak of the brand this past Oct and "kept coming back for refills," according to Jim.

Boston's white ale is just part of a growing wave of craft brewer takes on the style entering the market or expanding their reach. Recall the recent intro of Shiner's White Wing this fall. Total Beverage Solution announced this week its purchase of the famed Celis White, the original American white ale, and its plans to relaunch the brand into market in mid-2014. With these entrants and others, the landscape of craft white ales will be quite different in 2014 than 2013 (recall our analysis of Belgian Whites and IPAs from Nov 21).

White Still 3/4 of Allagash Volume, Up Over 25% in 2013 Though nearing 20 years old, Allagash White has continued to pick up steam. By the end of 2013, Portland, Maine-based Allagash will have more than quadrupled production since 2008, when it shipped just under 13K bbls, according to BA stats. This year the co "will be up well over 25% over 2012 with our whole book," founder Rob Tod told CBN, somewhere north of 56K bbls. In that time the brewer's brand "mix hasn't changed substantially," and its flagship White is still "over 75% of our volume." Allagash brands are available down a "narrow strip" of the east coast, "essentially down I-95 to Georgia," plus Chicagoland and parts of California. Allagash White is "very authentic to the style," Rob said, which he "spent years out on the road" just "educating people" about. He "couldn't give the beer away for the first 10 years," but not so any longer as "customers these days are pretty savvy." As "big brewers have pushed their version of the white beer style," Rob believes White is "positioned so much differently in so many ways," that it has grown concurrently with brands like Blue Moon and Shock Top.

Namaste Headed Yr-Round for Dogfish Head, Session Shifts and Sam on Flavor After "listening to our customers at our pub," and frankly a desire to "sell a bigger volume of it," according to founder Sam Calagione, Dogfish Head has moved its Namaste into a yr-round slot and shifted packaging into 12 oz bottles instead of 750 ml champagne bottles. Sam thinks of the brand as a "hybrid between a Belgian White beer and a shandy," since orange flesh (not just peel) added before cooling adds to fermentable sugars, resulting in a "really approachable, food friendly" beer that's "unique, but has touchstones" in two recognizable styles. Sam explained his hope that the brand will attract beer drinkers that maybe haven't yet pushed their palates off the proverbial deep-end yet, but that it will also "give them more confidence" to experiment. He also believes the brand could grow "to number 3 or 4 in our portfolio in 2 or 3 years," along with Sixty-One ("if we can get enough Syrah grape must").

Clocking in under 5% abv, Namaste is also quite sessionable. And it's not the only portfolio change Dogfish Head has made recently that riffs on lighter European styles. Its new winter seasonal, Piercing Pils, hit shelves earlier this month and "orders came in more than our ability to produce it," Sam told us. The brand blends one of those quintessential easy-drinking European styles with a perry (pear cider), another example of Dogfish Head's boundary-crossing beers. Early tasters have reported back to Dogfish that it's "unexpectedly nice to have a crisp, hoppy Pilsner in the winter," Sam said. DFH's summer seasonal, Festina Peche, is also a riff on a classic, refreshing European style, the Berliner Weisse, that "did not sell well" in its first year but is now "our second-highest velocity selling seasonal." The tart brand has picked up enough steam that DFH is bringing back some "small batches of Festina Lente," a wild ale, "almost all" of which "got sent back to us" when it debuted 2 yrs before Festina Peche. DFH recently intro'd its "first sour Ancient Ale," Kvasir. Sam believes greater acceptance of sour and tart flavors, as well as hop bitterness are "indicative of greater trends in the food world," led by a "change in taste" that Sam thinks is "somewhat generational."

Fizzy, Yellow and So Much More Rob told us about his love of "giving beer drinkers a unique new experience," and Sam noted that "generally, people are getting more adventurous." So brands like these, ones that build on and expand drinkers' most basic expectations of beer's visual characteristics (sometimes described as "fizzy" and "yellow") with more complex flavor profiles, open new gateways for beer consumers while providing "All Day" or "Anytime" options for the already-initiated. The session IPA trend works the same way. Some brewpub or nano somewhere is likely already making a slightly tart, heavily hopped, low-abv beer marketed as a "sour session IPA." If more craft brands grab drinkers with style "touchstones" and deliver on experiential expectations like "refreshment," how high is up?  

Lotsa anecdotal reports that craft increasingly part of holiday celebrations, especially Thanksgiving just a couple weeks ago. Latest IRI data backs that up in spades. Craft crossed important milestones in its most developed channel, supers. Two thirds of IRI craft volume tracked is still in that channel. Craft at 15.58 share of $$ last 4 weeks thru Dec 1 in supers nationwide, sez IRI. And $$ sales still up 17.9%, even more than 17% yr-to-date. That's strong. In fact, craft also crossed the 10 share of volume objective in supers that BA has for all channels nationwide by 2017. (Recall, craft segment very close to these milestones in previous 4 week period.)

Other fun factoids: Craft is more than 3 share of $$ larger than subpremiums in supers, 15.58 to 12.27 (even tho subpremiums at 18.6 share of volume compared to craft's 10). Craft closing in on imports at 18.40. Imports lost 0.3 share in last 4 weeks. Craft and imports over 1/3 of $$ in latest period. All above premium segments over 49 share of $$ in latest 4 weeks. Tho volume healthier as total beer biz up 3% last 4 weeks in IRI, premiums and subpremiums still lost almost 3 share of $$ this period. Cider up to 2 share of $$ in supers.

Boston Beer volume still up 27% in foodstores last 4 weeks thru Dec 1, not much off its sizzling 30% clip yr-to-date. Sierra Nevada up 7% for 4 weeks, 8% YTD. NBB slowed to 2.7% growth last 4 weeks, compared to 10.8% YTD. CBA also up 7%, compared to 11% YTD. Deschutes right on its YTD trend, +11%. And Lagunitas "slowed" from 80% yr-to-date pace to a mere 69%.  

Craft brewery bills passed last yr in Tex have provided a "boost" to an already hot craft beer scene in Houston as craft "continues to cast a wider net across age and socioeconomic groups," reported Houston Business Journal. Saint Arnold Brewing is projected to sell up to 59,000 bbls by end of yr. Meanwhile, "all cylinders are flying" at local Karbach Brewing Co, said brewmaster Eric Warner, who left Flying Dog in Colo to join team. He said Karbach anticipates brewing 18,000 bbls this yr. Retailers in Houston area are putting full support behind craft too. "Both locations" of Flying Saucer Draught Emporium have "phased out mass-produced beers" entirely to focus on craft, noted report.

Out in Calif, Petaluma Hills Brewing Co, which has been well received by locals, has hit big snag in form of paperwork and has been temporarily shut down by city for failing to get proper permits, reported Petaluma360.com. Shutdown "came just days after" Petaluma Hills announced fellow Petaluma brewer HenHouse Brewing Co planned on leasing production equipment to more than double their output to 2,000 bbls annually. Turns out Petaluma Hills has technically been operating illegally since it started brewing in Sept. City was aware and assisting in getting all the safety and water permits in order, but after announcement that it was leasing out space, city decided "we can't just turn away from the safety and water issues" any longer, said Lt. Mike Cook. "I got ahead of myself," said owner JJ Jay.

Penrose Brewing Co will be next brewery to open up in Chicagoland "by beginning of 2014," reported Chicago Tribune. "Two former Goose Island employees," Eric Hobbs and Tom Korder, nailed down a 14K square-foot location in Geneva, IL that will produce "about 3,000 barrels" per yr with their 40-barrel brewhouse, to start. Recall CBN reported Penrose got OK to build from Geneva aldermen this past Jun. They've already "inked a deal with Windy City Distributing to place bottled Penrose beers in Binny's and SavWay stores, across eight Chicagoland counties by the spring, and on tap at dozens of locations throughout Chicagoland," noted paper.  

There is "no reason for less than double-digit growth anytime soon" for the craft beer category, Nielsen sr veep Danny Brager told Brewbound conference after reviewing both on and off-premise trends. In all outlets data, craft beer $$ sales were up 21.3% for 52 wks thru Nov 9, with avg price of $33.05/case, an increase of 1.7% vs yr ago as Danny noted it's higher priced beers driving growth while premium and below premium $ sales dipped 1.5% and 2.8% respectively. Ciders flying too: +93.9% with avg price of $34.80, tho that price on ciders is down 2.8% from yr ago. The "high end" of craft is contributing the most to segment growth based on Nielsen data. Tier 1 craft prices at avg $10.57 per 6-pk accounted for 35% of craft growth, while craft going for $9.24 avg contributed to 31% of growth for 52 wks thru Oct 12. Craft priced at $7.54 was just 9% of segment growth. Consumers are proving they are "willing and able" to spend lots on craft as brands, noted Danny.

Asking consumers why they buy a craft beer, Nielsen found "it's all about experimentation," with 50% giving that as primary reason they buy 'em. That jumps to 70% among millennial age group. The next most popular reason among 46% of all beer drinkers was they found craft simply "tastes better" while 40% said it was because of seasonal offerings. Among all beer drinkers, craft is still primarily purchased in grocery stores, 65% vs 24% at a bar and just 10% at c-stores. Millennial drinkers were slightly more likely to purchase craft at liquor stores. Currently there are approx 600,000 retail accts selling beer in US, and that's been growing 3% annually past 6-7 yrs, noted Danny, which should obviously provide more retail opportunities for craft. Looking at different retail channels, craft has ground to make up in c-stores, drug stores and value/club locations. Craft accts for 17% of beer $ in food stores, 24% in liquor stores but just 4% in c-stores, 7% in drug and 8% in value/club. The avg # of craft items available is just 6 at c-stores and drug stores vs 196 items at liquor and 63 at food stores.  

Brew Hub is likely to announce 2 new breweries "simultaneously" by the Craft Brewer Conference this April, said Brew Hub CEO Tim Schoen at yesterday's Brewbound conference, following news of its first partnerships earlier in day. Brew Hub production in Fla will start at +40,000 bbls, as reported in yesterday's CBN, yet co plans on adding "another 30,000 bbls in phase two…and that might be by the end of next year," Tim told St Louis Dispatch. Brew Hub will announce "more partners (brewers) down the road" for that additional volume.

"Missouri and St. Louis in particular is of high interest and strategic value," as well as unnamed mid-Atlantic/northeast location for new breweries, Tim told St Lou paper in interview out today. "Those are going to be our No 2 and 3 breweries," and Brew Hub likely to "do both at the same time," sez Tim. Biggest challenge with new locations is getting the "custom-made" equipment "in the queue," since there's a "12-month lead time" for equipment orders. "Architectural work is already done. This is all going to be replicated market to market," sez Tim.

Tim's interest in craft originally sparked in the 90s while he was in charge of innovations at AB, he told paper. "I proposed that my group secede from (A-B), and I had a whole plan, moving over to a whole separate building:" "I still to this day say that if we would have done it, there would be a different landscape out there, at least for my former employer," sez Tim.

Tim made bold prediction that it is "achievable" for craft to double by 2020 at Brewbound Conference. Right now craft segment is about 7 share, 14+ mil bbls of total beer segment. Contract-brewed craft is 12-15% of that, according to Tim. Brew Hub looks to play big role in contributing what he estimates to be an additional +2 mil bbls of contract-brewed craft in that time.

Brewbound Q&A Joey Redner of Cigar City joined in on the Q&A, listing "the 3 P's" - "proximity, possibility and Paul (Farnsworth, head brewer of Brew Hub)," as main reasons for partnering with Brew Hub. "When they brought Paul in that really increased the comfort level a lot." Another appeal was that he can now focus more of his time on brewing and mktg, without having to focus as much on operations. "I don't like operating plants or building breweries," tho that was 30% of his time over the last handful of yrs, he estimated. He also reiterated his hesitance to fall into too much debt as Cigar City starts process to grow "beyond regional," as a factor in partnership with Brew Hub. We'll be able to "grow into the demand for the first time," noted Joey.

Asked how Brew Hub assures its partners that quality of beer will not suffer, Joey chimed in saying he's more concerned about quality of beer brewed being better rather than worse than what Cigar City makes. "They have better equipment, and with Paul running the thing, they have knowledge that we've had to learn on the fly," added Joey. They're "building equipment out to accommodate the whacky stuff that guys like us at Cigar City" do.

Asked about risk of contract brewing for Cigar City, Joey felt there's "not much I can do about" certain % of customers that don't like the idea of Cigar City brews coming from somewhere else than the Cigar City brewery, sez Joey. "We can make our beer, and we can make it repeatable with the Lakeland brewery; it's effectively in the same area, we're using the same water." "I truly believe we could take our beer to Montana and make good beer" as long as we have the right ingredients, he added. "The liquid is the final arbiter."  

Target margins vary and "each distributor might tell you something different, but for craft we like to work at 28, north of 28 if we can." That's how distrib Joe Cotroneo sr veep of big Ariz distrib Crescent Crown answered question about his margin targets at Brewbound conference yesterday. "Obviously, we will negotiate and discuss with you guys on what your needs are and we'll work together on what's fair. But generally speaking, about 28 is what our mark is." Modern distribs "absolutely" view themselves as brand builders these days, said Joe, and distribs "can make a huge difference" in brand's or brewer's success. But brand building is "shared" responsibility, he stressed. "We love it when you guys have people in our market that are working or better yet live there and cultivating the account base along with us. That's fantastic," tho not absolutely necessary. Importantly, "your aspirations need to match what you're willing to do." Brewers who invest in mkts will get more attention, Joe acknowledged. "If you're there and throwing your wallet on the table, you're going to get your distributor to act in kind. We love to hear about investment coming to the market. We're always there willing to match that and meet up and develop plans to further the brands."

But "no magic number" when it comes to that investment, Joe noted, "just that we would expect your resources to match your ambition. So if you come to us and say 'I want to be 10,000 cases per month inside of 6 months and I haven't sold any beer in your market yet,' then we've got some work to do. And we're probably going to need some significant investment to break through to achieve that." Tho Crescent Crown may not have precise figure in mind, "you have to have a well thought out plan. You have to have a strategy." Given huge number of skus at Crescent Crown and constant battle for retail shelf space, "it's getting harder to break through…. The plan doesn't have to be ridiculously funded, but it's got to be well thought out." Again, there's shared responsibility to develop, communicate strategy between brewers and distribs. "That's the only way it works, when you're sitting down planning together," including annual planning, "check-in meetings," etc. Does Crescent Crown try to keep equal mix of local, regional and natl brands or focus on larger craft brands? "Both," answered Joe. "We think about our portfolio, we think about what's in it, each of the brands, each of the suppliers separately. So, yes to all that. We love big brands. Big brands that scale are good for us. But we also like small brands that fill niches. We like it all."

Asked about hot topic of franchise laws, Joe reminded that such laws not limited to beer and most require good cause for brewer to make a change. "I think sometimes" brewers "don't want to do the extra work to find the cause, so they just want to be exempt from it. It seems to me that we do a lot of different exceptions for smaller industries and start ups and I think that's okay." Ariz law "is fair and reasonable," said Joe. "It says 'you can leave, but you have to have cause and it has to be compensated.' I think that's fair…. and rational." But it's up to each state to make its own laws, he added. Joe didn't want to "wade into" issue of volume caps, carve outs being discussed in Mass, elsewhere.

CBN missed most of Joe's opening remarks, but near end he said: "We know what the sweet spot is in this business," and it's craft. "Without craft last 6 years we wouldn't have any growth. We're blessed to have growth. We'll grow another half-mil cases this year." So Crescent Crown "fortunate to be with many of you in the room here" and recognizes it's a "privilege to sell your beers, not a right."