Governor Newsom signs AB 2174 into law, giving California craft breweries better access to public and private events

California’s thriving craft beer industry just gained a major boost, thanks to new legislation signed into law by Governor Gavin Newsom. Assembly Bill 2174 (Aguiar-Curry), now officially part of state law, will allow craft breweries to sell their beer at public and private events through the use of a Beer Caterer’s Permit. This will significantly expand opportunities for small beer manufacturers across the state. This new law, set to go into effect on January 1, 2025, is expected to provide a much-needed growth opportunity for California’s craft breweries. It will also certainly enhance the relationship between brewers and their local communities.

What does AB 2174 mean for California craft breweries?

Starting in 2025, breweries holding a Type 01 or Type 23 license can apply for a Beer Caterer’s Permit, granting them the ability to sell their beer at various events held off their licensed premises. These events can range from street fairs and civic gatherings to private parties and sporting events — anywhere in California approved by the Department of Alcoholic Beverage Control (ABC). With this permit, craft breweries can sell up to 124 gallons of beer at each event, for a maximum of 36 events per calendar year.

This law provides an enormous opportunity for small breweries to expand their market presence and sales without the need for a separate physical location at each event. It allows them to bring their brews directly to consumers, enhancing community engagement while giving more flexibility to sell beer in non-traditional venues. Here are some thoughts from the California Craft Brewers Association:

“We commend Governor Gavin Newsom, Assembly Majority Leader Aguiar-Curry, and the Legislature for their unanimous approval of this important bill,” stated Lori Ajax, Executive Director of the California Craft Brewers Association (CCBA). “This legislation recognizes the essential role that craft brewers play in California’s hospitality industry, highlighting their value as small businesses and contributors to their local communities.”

Strengthening community connections

The passage of AB 2174 underscores the importance of small businesses, like independent craft breweries, in fostering local economic growth and community ties. By enabling brewers to sell at local events, the law allows these small businesses to further integrate into community activities, from local festivals to private celebrations.

For many small brewers, these off-site sales could prove invaluable. While taprooms and tasting rooms offer regular revenue, the opportunity to showcase their products at community events creates new pathways for brand recognition and customer engagement. At these events, brewers can interact directly with consumers, introduce new beers, and build a loyal fan base — beyond their immediate geographical footprint.

Key provisions of AB 2174

• Beer Caterer’s Permit: Allows licensed beer manufacturers to sell up to 124 gallons of beer at an event for consumption.
• Event Limits: Breweries can participate in up to 36 events per year with this permit, making it ideal for regular community engagement.
• Annual Fee: The permit comes with an annual fee of $275 and is transferable as part of a brewery’s license.
• Record-Keeping: Breweries must maintain records of their sales under the Beer Caterer’s Permit for at least three years.
• ABC Oversight: The Department of Alcoholic Beverage Control must approve each event, ensuring compliance with existing alcohol laws.
• Learn more info right here….

Tips for selling craft beer at public events

As California’s craft breweries prepare to take advantage of AB 2174, here are some quick tips for maximizing profits and success when selling at public events:

1. Know your audience: Tailor your beer selection to the type of event you’re attending. A lively street fair may call for light, easy-drinking options, while a private event might be the perfect venue to introduce a special release or barrel-aged brew.
2. Leverage merchandising: Increase revenue by offering branded merchandise like T-shirts, glassware, and growlers. These items not only provide an additional income stream but also help boost brand recognition long after the event is over.
3. Engage directly with customers: Make sure to have knowledgeable staff on hand to talk about your brewing process, flavor profiles and what makes your beer unique. This personal connection can build a lasting customer base.
4. Offer promotions: Create special event-only promotions such as discounts for bulk purchases or limited-time offers on new beers. This encourages customers to make purchases on the spot and drives interest.
5. Ensure compliance: Always stay updated on the local laws and ensure all paperwork, permits and licenses are in order well before the event to avoid complications.

With AB 2174 set to unlock new avenues for craft beer sales, California’s breweries can look forward to engaging with more customers, expanding their reach and deepening their roots in local communities. Craft beer lovers across the state will soon be able to enjoy their favorite brews in more places than ever before. Cheers to that.