House Bill 2189, which is currently before the Kansas legislature, would allow breweries to sell beer directly to retailers, public venues, and caterers. Currently, Kansas breweries must sell their product directly to distributors and the distributors, in turn, sell the product to retailers. This is fairly standard in states that maintain a traditional three their system of distribution.
However, carving out exceptions to the three tier system to allow certain self-distribution rights is becoming more common as states realize many of the laws that govern the relationship between breweries, distributors, and retailers are dated.
House Bill 2189 would also increase the annual manufacturing cap from 30,000 barrels per year to 60,000 barrels per year. Kansas is bordered by two states with thriving beer industries and higher production caps. In addition, Colorado franchise laws allow limited self-distribution.
Throughout the United States, alcohol law modernization is becoming a hotly debated topic as tension grows between the manufacturing segment of the industry and the distribution segment of the industry.