North Carolina ups self-distribution cap, tweaks contract termination rules

North Carolina is expanding the amount of beer craft breweries can self-distribute while creating a new classification for mid-sized independent breweries that sell less than 100,000 bbls annually. The bill was viewed as a solid compromise between breweries and distributors across the state.

The Craft Beer Distribution and Modernization Act, officially signed into law by Governor Roy Cooper, bumps the numbers like so:

• Breweries that produce up to 100,000 bbls annually can sell up to 50,000 bbls on their own. Anything sold via distribution over that amount would require a wholesaler.

Previously, breweries were limited to selling 25,000 bbls of beer on their own.

Another crucial element of this bill is how it alters the state’s franchise law for smaller breweries. Breweries under the 25,000-bbls mark will no longer need to show good cause in order to terminate a distribution agreement. They just need to provide five day’s notice and pay fair market value.