Texans who enjoy cracking open a can of Lone Star beer or sampling the latest craft brews are not alone. For more than 160 years, Texans have supported the state’s vibrant beer industry. Today, we are in the middle of a microbrewing renaissance that began more than 20 years ago. It all started in 1978 when former President Carter paved the way by allowing home brewers to partake in the craft without a Texas beer license. This decision has helped the industry come full circle going from local breweries to corporate conglomerates and back to microbrewing.

Although craft brewing seems like a new idea, it is how the beer industry began in Texas and many other states. During the 19th century, British immigrants made stouts, porters and ales with recipes from their native country. These ales could be brewed and enjoyed almost immediately without aging. By the 1860s, German immigrants transformed the beer culture and helped shape the industry that we know today.

Small German breweries sprang up in San Antonio, Brenham, New Braunfels and immigrant enclaves across the state, but German beers were more difficult to produce. Unlike the top-fermenting British ales, Germans preferred lagers that fermented for months in cool temperatures. For these reasons, German lagers were brewed in the winter and were stored deep underground. At William Menger’s Western Brewery in San Antonio’s Alamo Square, barrels were aged in a cellar protected by stone walls that were 3 feet thick.

During the mid-1800s, there were roughly 20 small brewers in the state, and 77 people worked in the industry. Steam engines and advances of the Industrial Revolution increased overall production but decreased the number of breweries. Some of the larger institutions, such as Menger’s, produced 1,500 barrels of beer annually. The smallest brewery sold 49 barrels a year.

By the 1870s, the industry reached an all-time high. Some 58 companies held a Houston beer license, and these brewers produced 16,000 barrels collectively. However, the industry experienced a rapid decline. Strong competition, poor products and financial issues caused smaller breweries to shut their doors. As mass production increased, beer barons needed more capital to invest in machinery that would increase production from thousands of barrels to millions.

Adolphus Busch was one businessman who embraced the new business model. He raised $400,000 to build the cutting-edge Lone Star Brewery in San Antonio. Pearl Beer was another company that used technology to produce 110,000 barrels annually. As these large corporations took over the industry, Prohibition became the new threat. Some breweries rebranded themselves, and other companies produced soft drinks and “near beer” to survive. After this era, national firms like Miller invaded the market.

Throughout most of the 20th century, per capita beer consumption increased steadily. Conglomerates bought up the few successful brands, and small brewers struggled to keep their businesses alive. The Spoetzl Brewery, which produces Shiner beer, embodies the struggle of these underdogs. When vertically integrated beer makers, bottlers and distributors ruled the market in the 1980s, Spoetzl’s production was cut in half. The company changed hands and gradually achieved success under the leadership of Carlos Alvarez. Between 1990 and 1994, the company’s production went from 36,000 barrels to 100,000 barrels. Eventually, mega-corporations like Miller and Budweiser became a victim of their own success. Now, the beer industry has gone back to its roots thanks to consumers who embrace craft brews and microbrew brands.

In 2008, Houston had just one craft beer maker, which is defined as a brewery that produces less than 75,000 barrels per year. Today, many more independent companies are requesting a Houston alcoholic beverage license to cater to consumers who seek out original craft beers and brewpubs that offer a singular product and experience.

Craft beers have been steadily increasing in popularity across the U.S. in recent years. During the first half of 2015, figures released by the Brewers Association indicate that approximately 12.2 million barrels of beer were sold and distributed by craft brewers nationwide. Production of craft beer products increased by about 13 percent during the same time period, spurred in part by the addition of 699 breweries in the U.S. since June 2014. Drinking establishments holding a Texas beer license have also seen an increase in the state’s craft brew production:

• According to the Brewers Association, 982,918 barrels of craft beer were produced by Texas breweries in 2014. Texas ranks seventh in the nation for production for these beer products.
• Texas craft beer production accounted for $2.3 billion in sales during 2012, the last year for which accurate financial figures have been compiled, and was second only to California in the dollar amount produced by the craft beer industry.
• In 2014, Texas was home to 119 craft beer breweries; nearly 50 more are either in the paperwork and licensing stages or have begun initial plans for operations in the Lone Star State later in 2015.

With the number of microbreweries steadily increasing both in Texas and across the country, craft beer is likely to be a growth industry for the foreseeable future.

What Is Craft Beer?

The Brewers Association defines craft brewers by their three defining characteristics:

• Craft breweries must be small operations that produce fewer than 60 million barrels each year.
• They must produce traditional beers created by brewing and fermentation.
• These brewers must be independent of large-scale corporations in the beer industry.

While the brewing methods may be traditional, craft brewers have produced decidedly innovative flavors and taste profiles. Typically created in small batches, these beverages enjoy enduring popularity among patrons of bars, liquor stores and other retail outlets.

The Economic Impact of Texas Breweries

A study released in July 2015 by the National Beer Wholesalers Association and the Beer Institute indicated that breweries in Texas employed roughly 124,000 people and amounted to $19 billion; this includes large-scale brewing operations along with the craft beer industry in the state. As time goes on, however, craft and local brew operations are taking an ever-larger piece of the economic pie. Industry experts attribute some of this popularity to the increased variety and premium positioning of these small-batch beers in the consumer marketplace. Craft beers are generally regarded as higher quality products and can be sold for higher prices as a result of this public perception.

At Home in Houston

The Texas Alcoholic Beverage Commission (TABC) is responsible not only for issuing Texas liquor license permits to bars and taverns throughout the state but also for overseeing and regulating breweries of all sizes. In the Houston metropolitan area, 31 establishments currently hold brewpub or brewery licenses with TABC; it is expected that more microbreweries and craft beer purveyors will follow suit in the latter half of 2015. Houston is an ideal location for these establishments thanks to its healthy economy and large urban workforce, which combine to create consumers with the financial means to enjoy custom-crafted beers in upscale and casual surroundings.

A TABC brewer’s permit is required for craft beer producers; additionally, a brewer’s self-distribution permit is necessary to sell these products through local grocers, wholesalers and retail outlets. Working with a company that specializes in Houston beer license applications and permits can ensure that all paperwork is completed correctly and submitted on time, allowing bars, pubs and breweries to manage their operations more efficiently. By enlisting a little professional help, prospective craft beer establishments can get the right start in the Houston consumer marketplace.

Some Texas bars may have been systematically shortchanging customers by serving up lower-cost drinks in place of the top shelf brand names ordered by their clientele. The Texas Alcoholic Beverage Commission (TABC) is currently investigating claims made against 21 bars throughout the state that they substituted lower-cost alcohol products for the brands actually requested by their customers and that they charged those patrons at the higher rate for the drinks in question. Investigators indicated that four bars in the Houston area were involved in this activity. Serving counterfeit drinks could lead to the revocation of the Houston alcoholic beverage license held by these establishments and may result in added fines and penalties when the TABC investigation is concluded.

Operation Bottoms Up

After receiving numerous complaints from consumers, the TABC conducted an undercover operation this spring at 68 establishments across the state of Texas. At each stop, the investigators sampled top-shelf liquors and performed tests to determine that these drinks were genuine. At 21 licensed bars, counterfeit liquor was served to the undercover officials. Administrative notices have already been filed against 14 of the offending establishments; the remaining seven are under continuing investigation for multiple violations of the terms of their Texas liquor license. If these licenses are revoked, the bars in question will likely have to shut down for good.

Advanced Technologies Made Detection Possible

Prior to the spring of 2015, TABC investigators had no definitive way to detect the quality of liquor being served to customers in Texas bars. New technologies, however, made a clear identification possible and provided the impetus for Operation Bottoms Up. It is likely that bar owners were unaware of the new technology and were caught off guard by the investigation, allowing the TABC to nab a number of offenders that might have otherwise continued to defraud the public by serving less expensive drinks in the guise of brand-name liquors.

Texas Liquor License Regulations

To obtain a liquor license in the state of Texas, businesses must agree to follow certain rules and regulations, including the following:

• Prominent placement of health warnings, liquor license permit and other signage required by Texas law
• Restrictions for dry counties and communities
• Codes regarding the sale of package liquors and the allowable areas where these beverages can be sold or consumed legally
• Prohibitions against serving alcohol to minors and requirements to check ID for age and authenticity
• Hours allowable for alcohol sales
• Restrictions on the carrying of firearms in establishments that serve alcohol
• Sale of counterfeit alcohol

Failure to observe these rules can result in fines, shutdowns and the loss of the Houston liquor license held by these companies. After the recent round of investigations by the TABC, it is likely that more bars and taverns will be taking special care to comply with all applicable regulations to protect their business interests in the current regulatory environment.

Companies that specialize in delivering expert advice and guidance for bar owners in obtaining and maintaining their liquor licenses can often provide added help in navigating the complexities of the Texas Alcoholic Beverage Code. These firms typically offer a wide range of services, including the following:

• Assistance in qualifying to accept food stamps under the Texas Assistance for Needy Families or the nationwide Supplemental Nutrition Assistance Program
• Help in applying for liquor licenses from TABC and obtaining the required signage for establishments that serve liquor in the state of Texas
• Permission to sell and redeem Lotto tickets
  Assistance with other commercial license applications and compliance issues in the Houston business community

The professional help available from these companies can ensure the smoothest possible processing for license applications in Houston and the state of Texas. By enlisting the assistance of a liquor license service, bars and other drinking establishments can avoid losing their right to serve liquor to customers and can protect their business interests more effectively.

We have received several calls from Mixed Beverage clients about the practice of allowing customers to bring their own wine into a restaurant to drink with a meal. We would like to caution you that this practice is strictly prohibited by the Texas Alcoholic Beverage Code and could jeopardize your permit as well as subject you (the permittee) to possible criminal penalties. As a reminder, no alcoholic beverages may be brought onto or taken away from a Mixed Beverage Premise with the exception of an open and unfinished bottle of wine purchased from the restaurant with a meal. This applies to both Mixed Beverage and Private Club permittees.

The TABC has announced amendments to the Texas Alcoholic Beverage Code with regard to possession of certain alcoholic beverages by permit holders for cooking purposes. The 81st Legislature has passed legislation to allow certain retailers to possess distilled spirits for cooking purposes by agency administrative rule.

Prior to June 2009, a person who sold a minor an alcoholic beverage had a defense available if the minor provided a fake Texas driver’s license or ID card that showed the minor was 21 years old. Effective June 19, 2009, the defense was extended to any photo ID issued by a state or the federal government. Also, in April 2009, Texas DPS began issuing newly designed driver’s licenses and ID cards.

Texas has changed new drivers’ licenses and identification cards and is attempting to make it easy to identify under-aged, minors. Visit our site regularly for updates to identification requirements for establishments that sell or allow the consumption of tobacco and alcoholic products.

Texans and tourists who love craft beer may soon be able to buy their favorite suds directly from the brewery if a new bill introduced by the Texas Craft Brewers Guild is passed. A similar bill was brought to the Texas Senate two years ago, but it was rejected. Texas State Senator Kevin Eltife introduced the new statute despite the previous failure to alter the laws regarding direct sales of beer to the public. Other changes to Houston beer license regulations were enacted in 2013.

The bill is intended to attract national attention to Texas craft breweries. Visitors would be permitted to purchase souvenir beer to take back to their homes across Texas and in other states. Consumers would be permitted to buy up to two cases of beer from a Texas brewery each month. It is hoped that craft beer aficionados will visit the Lone Star State and enhance its reputation as a tourist destination for beer lovers.

The legislation allows smaller breweries that produce less than 225,000 barrels of beer annually to sell directly to their most ardent supporters, which would place Texas in the forefront of states with a burgeoning craft-brew industry. This bill would afford breweries the same rights enjoyed by wineries, distilleries and out-of-state competitors according to Senator Eltife.

Legislators passed numerous changes to the Texas beer license laws during their last session. Brewpubs were granted the right to distribute their products in off-site locations. Breweries were permitted to sell beer at their production facilities for consumption on premises.

This victory for the brewmeisters was also met with a defeat. Another bill was passed that prevented them from selling the distribution rights for their craft brews to Texas beer distributors. That money has traditionally been used by breweries to beef up their production capabilities. A current lawsuit against the Texas Alcohol and Beverage Commission (TABC) seeks to have that bill’s passage reversed.

The new regulations permit breweries that have a brewpub license to sell beer on site in cans, bottles and growlers and to distribute their wares to restaurants, bars and beer stores. Breweries are ramping up their production by adding more locations to accommodate the expected increased demand.

Another bill, however, has been introduced that would severely curtail the amount of beer that breweries could self-distribute in Texas. The current limit of 40,000 barrels would be reduced to 5,000 barrels if Houston’s State Representative Senfronia Thompson’s bill becomes law. This is in direct contrast to the previous bill granting breweries that produced 125,000 barrels or less the right to self-distribute 40,000 barrels. The reasoning behind the abrupt change is unclear, but the bill is certain to affect the holders of a Houston alcoholic beverage license.

Craft breweries are seeking further rights during the current legislative session. They are asking for the right to sell beer at their production facilities for consumption off site. They are also trying to regain the ability to sell their distribution rights to Texas beer distributors.

A consumer advocacy group based in Houston called Open the Taps recently published a list of the most important modifications they are seeking this year.

• Elimination of the 24-ounce limit at beer festivals
• Take-home sales for production breweries
• Permitting direct shipments of beer from in-state and out-of-state breweries
• Growler sales at establishments with mixed beverage licenses
• Substituting the TABC labeling requirements with Federal TTB approval
• Other alterations to homebrew regulations

Texas craft beer has recently enjoyed a 44 percent increase in production by the breweries that will be most affected by the legislation. Texas breweries won 16 medals at the last Great American Beer Festival. In 2013, craft brews accounted for some $2.3 billion in sales.

You have probably seen mobile beer delivery bars all across Texas. They are the latest trend. It is much easier for a company, community, married couple or anybody throwing a large or small party to contact the owner of a mobile beer delivery bar than it is to purchase and pass out beer among their guests. If you have been considering starting your own mobile beer service, you will need a Houston beer license and a few tips to successfully get your business up and running.

Mobile beer bars range in size from elaborate camper vans to bicycle pedaled vehicles equipped with a pair of kegs. You might have a couple different size vehicles so that you can handle big events or private gatherings.

Beer drinkers are much more knowledgeable these days. Drinkers no longer are faced with the same domestic and imported brands that have always been available. Now, microbreweries are all the rage and boutique beers are at the height of popularity. Every city has its own microbrewery or brewpub, and every brewpub is looking for its niche. Some go with seasonal offerings like pumpkin beer in autumn, bock beer and stouts in the winter, light pilsners in spring and heady lagers in summer. As a beer merchant, you have to stay abreast of what is current and popular in your area.

Some mobile beer bar owners keep it simple. They sell one or two of the American standards. Others want to have a wide selection of India Pale Ales (IPAs), wheat beers, lagers, pilsners, stouts and imports from Europe, Mexico, Australia and Asia. If you plan to handle a wide assortment of beers, you need to learn which types are best served icy cold, which types are best at room temperature and how to pour the foamier beers to give just the right amount of frothy head. Some owners even sell high-gravity beer, which is over 6 percent alcohol, but to do that, you would need a Texas liquor license.

Just like running a food truck, you will be your own boss, get to go to plenty of parties and work when you feel like working. However, you have to be a strict professional to properly run a mobile beer bar. If you have a one-person operation, you need to be the bartender. It takes many hours of prep work, knowledge and start-up capital to get your business off the ground.

A Texas beer license or liquor license is not too hard to acquire. Rather than dealing with the bureaucrats yourself, you can use Houston license services to do the filing and get you the correct state license. That takes all the guesswork and drudgery out of the process. These companies know what licenses and permits are required in the cities and counties where you will be selling your beer. You might need special event passes for places that do not have their own beer license, such as a reception hall.

Once your operation is legal and functional, you need to find clients. You can advertise your services, contract with communities to provide beer for their parades, summer get-togethers or New Year’s Eve bashes. Other mobile beer delivery bars may already be operating in your area, so you will have to find your own niche. You could be competing against a local brewpub, a hometown bar or another independent contractor like yourself. The key is not to compete directly with them. You have to eke out your own territory and clientele. You could concentrate on selling beer at wedding receptions, small events or block parties.

With some hard work, research and a few connections, you can turn a good idea into a steady source of income. Do not under-pour. Do not over-serve. Charge a fair price, and your mobile beer delivery bar should profit you quite nicely.

Walmart Stores Inc. is a force to be reckoned with in the boardroom or the courtroom. Their most recent legal obstacle involves various Texas liquor license laws that prevent the company from selling hard liquor in addition to the wine and beer that its stores already stock throughout the state. On February 12, 2015, Walmart and Sam’s Club sued the Texas Alcoholic Beverage Commission (TABC) in federal court. The lawsuit challenges the constitutionality of rules that regulate package store permits.

As plaintiff, Walmart alleges that the rules violate sections of the Constitution that relate to commerce, equal protection and comity, a legal principle that requires Texas to uphold federal laws. Although Walmart would not agree to interviews with an Austin TV station, company spokesman Lorenzo Lopez did provide a written statement. He said that current laws are “counter to Texas’ belief in free enterprise and fair competition.” He added that it “limits our customer’s choice and keeps the price of spirits artificially high.” In the lawsuit, Walmart expressed similar issues by saying that the laws are “irrational, unnecessary and unfair” and “harmful to Walmart’s profits.”

To win the right to sell hard liquor in the state, Walmart must successfully change multiple aspects of the law. First, the TABC does not allow publicly traded corporations with more than 35 shareholders to sell alcoholic spirits. Second, a single company is limited to five package store permits. Walmart currently has 543 wine and beer retailer’s off-premise permits in Texas. Third, rules prevent companies from holding wine and beer permits together with package store permits. If parts of the law change, Walmart could abandon its current permits and apply for 543 new BF beer licenses and 543 new Q permits for selling wine. This option would cost the company an additional $1.3 million. If Walmart were granted package store permits, it would need to build free-standing package store outlets as well.

Walmart has also questioned long-standing loopholes that allow immediate relatives of permit holders to secure an unlimited number of additional permits. This unlimited consolidation loophole can be used legally by any Houston liquor license service. In many ways, current laws support family-owned businesses and protect small companies from competition against national retailers and big box stores. Independent liquor store owners are concerned about what will happen if these laws fall. Sam Issa, who owns a liquor store in Austin’s Allandale neighborhood, said that many family-owned businesses will shut their doors forever. He added that if business slowed, he would not be able to support the same number of employees. His workers would be forced to give up the higher pay offered by independent stores and accept minimum wage if they went to work for Walmart. Issa is also concerned that the state might open the door for everyone to sell liquor, including Walmart, Target and CVS.

This groundbreaking lawsuit is just part of Walmart’s campaign to change laws that regulate the distribution of liquor licenses. The company is also lobbying members of the legislature in a major push to secure an additional Texas alcoholic beverage license for each superstore in the state. Whether or not the suit is successful, this is a big move for the nation’s largest retail chain. Walmart currently has licenses to sell hard liquor in 25 states. However, more Walmart stores and affiliates are located in Texas than in any other part of the country. Walmart’s quest to increase profits at such a large number of stores could open new sales avenues for other national chains while forcing smaller stores to close or keep up with a level of competition that the Texas liquor industry has never seen.

Bars and restaurant owners who obtain liquor licenses for their business in the Houston area can remain competitive through a variety of economic conditions. However, in order to be successful over the long term, each type of business must first obtain the correct Houston liquor license for their specific establishment. In addition, they need to be capable of attracting repeat customers, and the best way to do this is to make sure that customers never leave the premises with a bad taste in their mouth.

Houston Liquor License

Recent investigations of certain establishments in the areas of Houston, Seattle and Cleveland demonstrate a persistent trend of bad tasting draft beer. The problem starts when patrons of the bar or restaurant detect a foul aftertaste in their beer. According to the investigators, this bad taste has to do with a biochemical reaction that occurs when the line bringing the beer from the keg to the glass gets dirty.

Although it is not common for an establishment to lose a Houston Liquor License on account of dirty lines, this possibility does exist. Patrons who value these businesses should understand the situation as much as possible before planning a strategy of how to bring the problem to the owner’s attention. Whenever possible, try to frame the complaint in a way that shows that you care about the reputation of the establishment and want to see the business succeed. Owners are more likely to be receptive to constructive criticism when it is delivered in a way that is intended to help the business.

Houston Liquor License Service

The amount of lactobacillus that can cause the sour taste necessary to provoke a negative reaction in patrons is relatively small. Lactobacillus is a bacteria found in yogurt, cider, cheese and fermented products and does not pose a health risk but does produce a sour taste. This problem is not unique to any particular area, so beer drinkers can understand the risks involved by getting accurate information about bacteria contamination. A normal response to receiving a beer that does not taste right is to ask for a replacement. This is a natural response for people who are not regular customers; however, patrons who wish to return on a regular basis may check back later to see if the problem is resolved. It is usually one draft beer line in particular that causes a problem for many different people. The beer might taste sour or moldy, and many customers will avoid the issue just to be polite.

Maintaining a Houston Beer License

Restaurant or bar owners may simply be unaware of the existence of an actual problem. They may interpret customer complaints in a variety of ways, but incident reports alone will not locate or solve any actual problems. To complicate matters, the bacteria might accumulate in several locations throughout the entire distribution line. If the keg and the parts are both clean, a problem could develop undetected in an area that cannot be cleaned unless the entire system is serviced. Patrons who wish to bring the problem to the owner’s attention should consider using a diplomatic approach to resolving this issue.

Establishments who are invested in maintaining a Houston beer license will be aware of the dangers in allowing complaints to continue. Patrons who already have a good relationship with the owners are in a unique position to be effective in resolving the situation. These customers can serve as a form of quality control by approaching the owner with awareness. Try to address the issue of cleaning the lines as a way to retain customers and maintain the good standing of the business in the community. Keep in mind that a bad taste could be caused by a variety of issues, so remain polite, and consider providing business information about of a company that specializes in cleaning beer lines.

Craft beer breweries in Texas may not be contacting a Houston liquor license service until the latest brew-ha-ha over distribution is resolved. Texas has recently enacted legislation that prevents craft breweries from collecting fees from distributors for the privilege of selling their popular craft beers throughout Texas. This law would effectively force these independent brewers to give up millions of dollars in fees to beverage distributors who have connections to politicians. Naturally, the breweries are fighting back by suing the state over the new alcohol regulations.

Actually, this is not a new law. It was passed back in 2013 and forbade brewers from accepting any compensation from distributors. The lawsuit questions the constitutionality of forcing the brewers to donate a portion of their business to the distributors. The law also curtails the variety of craft beers that consumers in Texas can purchase. The result is that many craft breweries have put plans for expanding their operations on hold. New startup breweries will likely wait until the lawsuit is decided instead of applying for their Houston alcoholic beverage license or a Texas liquor license. That will also curtail revenue the state would love to receive.

Three Texas brewers teamed up with the Institute for Justice (IJ) to challenge the law. The proprietors of Revolver Brewing, Live Oak Brewing and Peticolas Brewing Company are merely trying to protect the businesses that they built from scratch.

Prior to the law’s passing, brewers were paid by their distributors for the right to market their beers in cities across Texas. This law has created a sudden, unexpected source of profit for the distributors. What makes the situation even worse is that the distributors can sell the rights for distribution to other distributors who cover areas other than major Texas cities like Houston, Dallas or Austin. Previously, brewers used those funds from the distributors to grow their businesses.

Matt Miller, the managing attorney for the Texas office of the IJ, said that the law could be compared to forcing authors to donate the rights to their books to their publishers. He believes that it was unconstitutional to hand over the brewers’ property to other businesses that neither earned nor deserved the right to charge others to distribute craft beers.

The president of Live Oak Brewing, Chip McElroy, said that he was honored to be involved in the new trend toward craft beer. He has dedicated 18 years to building his business, but the new law forced him to pull his product from beer stores in San Antonio, Dallas-Fort Worth and areas of Texas where consumers have been able to buy Live Oak beer in the past.

Live Oak Brewing and Revolver Brewing are based in Fort Worth. The other participant in the suit, Peticolas Brewing, is in Dallas. The law has clouded their ability and desire to expand their operations. However, the property rights and economic liberties of entrepreneurs are protected by the Texas Constitution. The lawsuit is seeking to overturn the 2013 legislation so that the breweries can maintain control of their businesses.

The lawsuit is one of several included in the IJ’s so-called National Food Freedom Initiative. Its intention is to challenge laws across the United States that hinder the rights of citizens to make, sell, buy and consume foods of their own choice. The IJ has already won a free speech challenge against a law in Oregon prohibiting the advertising of raw milk. Presently, the IJ is involved in other lawsuits over the right to sell homegrown vegetables in Miami Shores, Florida, and home-baked treats in Minnesota. They are also challenging a Florida law that bars using the name “skim milk.”