Economic experts warn that the impending merger between beer giants Budweiser and Miller may have a significant impact on the fate of craft breweries in Texas and across the nation. The precise nature of that impact, however, is a matter of some discussion among those closest to the issue. Some believe that the merger could have a positive effect on craft breweries by increasing the cachet of these flavorful beers in the consumer marketplace. Others predict that the increased financial resources available to the merged companies will allow them to market their products more effectively, cutting into the sales and revenues for craft breweries. For brewpubs currently operating with a Houston beer license, keeping an eye on this developing news story can ensure the highest level of proactive response to the market changes ahead.

The Biggest Beer Merger Ever

The purchase of SABMiller by Anheuser-Busch represents the largest single acquisition in the history of the beer industry. Anheuser-Busch offered well over $107 billion for Miller in a deal that is still being examined by federal lawmakers. Concerns have been raised that this merger will in effect create a near-monopoly in the beer industry. It is estimated that one out of every three beers sold in the U.S. will be produced by the company resulting from the merger of Budweiser and Miller.

Statistics and Rankings

Sales figures for 2015 indicate that the Bud Light, Coors Light, Miller Lite, Budweiser and Michelob domestic beer brands continue to dominate the U.S. marketplace:

• Bud Light brings in approximately $2.0 billion annually as the top-ranked in sales for the U.S. marketplace.
• Coors Light pulls in $1.0 billion in sales each year.
• Miller Lite ranks third at $862.6 million in annual sales.
• Budweiser rakes in $718.7 million for Anheuser-Busch per year.
• Finally, Michelob Ultra Light is ranked fifth in annual sales at $428.2 million.

Despite the different branding approaches and names attached to these beers, two companies are responsible for all five of the top-selling beers for 2015:

• SABMiller produces both Coors Light and Miller Lite.
• Anheuser-Busch manufactures Michelob, Budweiser and Bud Light.

The proposed merger will not include Coors; instead, Molson Coors intends to buy out the controlling interest currently held by SABMiller and to operate independently from both companies. Nonetheless, the combined economic force of these two brewery powerhouses is likely to impact the craft beer industry in a number of ways.

Craft Beer on the Rise

In 2014, craft beer producers maintained an 11 percent share of the overall marketplace and accounted for $19.6 billion in sales overall. The nature of craft brewing, however, means that those sales and profits were divided among numerous small companies. The Texas Alcoholic Beverage Commission (TABC) is responsible for issuing licenses to brewpubs, craft breweries and other enterprises that produce or sell alcohol to consumers. Current figures indicate that approximately 156 brewpubs and breweries currently hold a TABC license to produce beer in the Lone Star State.

Potentially Damaging Effects

Some smaller breweries fear that the proposed merger between Miller and Anheuser-Busch will have a chilling effect on their ability to obtain aluminum cans, glass bottles and raw materials with which to produce their brews. The power wielded by the new mega-corporation could significantly reduce the ability of craft brewers to compete for supplies and market space. Worse yet, both Anheuser-Busch and Miller have histories of purchasing craft breweries and continuing to sell their products without relabeling or indicating their ownership position to consumers.

For brewpubs and craft breweries, maintaining a valid Houston alcoholic beverage license can limit issues with regulatory agencies and other state authorities. Adopting a proactive approach to current supply chains can also ensure that operations can continue without interruption even if this mega-merger goes through.

On September 14, 2015, Deep Ellum Brewery took legal action against the Texas Alcohol Beverage Commission (TABC) in an effort to overturn what the company describes as an archaic law that unfairly limits its ability to compete with brewpubs, distilleries and wineries in the state. Many of the laws governing the sale of alcoholic beverages in the Lone Star State were enacted during Prohibition and have not been seriously revisited since that time. In 2013, the increasing popularity of craft beer led to reduced restrictions on its sale for on-site sales and consumption at microbreweries and brewpubs; however, more must be done to even the playing field for all companies with a current TABC license.

Unequal Treatment of Businesses

The law prohibiting breweries from selling their products for off-site consumption is particularly unfair because other businesses are not constrained by these regulations. For instance, wineries and distilleries can sell their products on-site for carryout and consumption elsewhere. This difference in how businesses are treated under TABC regulations can have a significant effect on the profitability of craft breweries in the competitive marketplace. The lawsuit filed by Deep Ellum Brewery is intended to even the playing field for breweries and to provide added options for consumers in the state of Texas.

Other Legal Challenges to TABC

Earlier this year, Wal-Mart filed suit against the TABC to overturn legislation that prevents the mega-corporation from selling alcohol. TABC regulations prevent public companies from selling hard alcohol of any kind and limit private companies to ownership of five or less liquor stores unless the permits for additional stores are purchased from a blood relative. If this lawsuit is successful, Wal-Mart could soon enter the retail alcohol market in Texas, presenting even more competition for breweries that cannot even offer carryout sales for their current customers.

Big Corporations Still Calling the Tune

The 2013 legislation that offered a small measure of relief for beleaguered craft beer producers was orchestrated in part by Rick Donley, the president of the Beer Alliance of Texas. While his efforts did provide some much-needed breathing room for small-scale craft breweries, the adjustments fell far short of the changes needed to ensure profitability and public access to the products of small craft brewers. Donley has advised a wait-and-see attitude for craft breweries interested in pursuing further reforms and changes to bring Texas law into the 21st century. Many brewers, however, feel that they have waited long enough for their chance to compete on a level playing field with other businesses in the Texas alcoholic beverage industry.

Fast Growth Fuels Friction

One obstacle to TABC reform is the pressure from other elements of the industry to retain the status quo. Craft beer producers have seen an enormous increase in popularity over the past decade. These added sales are due in large part to increased consumer awareness of the quality and variety of products available through these small-scale breweries. Larger companies and distributors have a real stake in preventing craft breweries from making further inroads into their markets and have brought pressure to bear on regulators to stop any further expansion of opportunities in this fast-growing sector of the industry.

Depending on the outcome of both the Deep Ellum and the Wal-Mart lawsuits, craft breweries may see significant changes in the next few years. Acquiring and maintaining a Houston beer license can be the key to taking advantage of the potential new opportunities in the take-out alcohol marketplace. Additionally, a Houston liquor license can allow these businesses to operate under current laws and to serve customers who wish to consume beverages on-site during their visit. By staying on the right side of the law and working to improve the regulatory environment for their operations, craft breweries can continue to achieve growth and profitability in the Houston marketplace.

The Texas dance hall is an iconic part of the Lone Star State’s history and has been around for more than 140 years. Most of the classic dance halls in this area were built by Czechoslovakian and German immigrants as meeting places for these cultural groups. By attending community events at these locations, immigrants could share their traditions with each other and with their children through music, dancing and other cultural activities. These hard-working families also enjoyed the chance to relax and blow off some steam after a long week on their farms and ranches. Today, many of these historic dance halls still stand and maintain a current Texas alcoholic beverage license, allowing them to continue to serve their communities and clientele.

Humble Beginnings

Many of the original Texas dance halls did not serve hard liquor to their customers, who were expected to provide the alcohol themselves. Instead, these venues offered mixers that could be combined with alcohol to create mixed drinks on site. For those dance halls that did serve alcoholic beverages, beer was the most commonly offered drink. Singing and dancing were generally the focus of the evening; instrumental performances were also popular attractions in these community centers. Many groups who later performed at music festivals in Texas got their start in these local dance hall environments. The earliest Texas dance halls were built by German settlers; Czechoslovakian immigrants typically held their dances in private homes until the early 1900s, when widespread building projects were funded by fraternal organizations dedicated to supporting the Czech way of life.

Modernization and Assimilation

As more Texas residents left behind the farming and ranching life for the allure of jobs in the big city, dance halls became less representative of individual cultures and more reflective of the spirit of the Lone Star State as a whole. While ethnic music and dancing were still practiced in these venues, dance halls began to embrace a wider range of cultural traditions. As the separations between ethnicities in the dance hall environment became less pronounced, interactions between those of different social classes, racial backgrounds and life experiences allowed greater exposure to a wide range of traditional songs and instrumental techniques. The blending of various musical styles led naturally into the development of entirely new styles of music that included Texas swing, conjunto, Tejano and honky tonk. By combining the rhythms and folk melodies common among the immigrant populations of this area with new sounds, dance halls continued to have a major impact on the cultural traditions of Texas residents.

A Link to the Historic Past

Houston, Texas saloons and dance halls typically serve up live country music and plenty of room on the dance floor along with plenty of cold brew at the bar and a current Houston beer license. According to Texas Dance Hall Preservation. Inc., the number of currently active dance halls in Texas has fallen from more than 1,000 during their heyday to a few hundred currently in business. However, Texas dance halls have recently enjoyed a revival in popularity driven by their historic importance and their unique appeal. Many of these venues maintain a family-friendly atmosphere in keeping with their traditional role as community gathering spots for residents of the Lone Star State.

Although many of the original dance halls have fallen into disrepair or have been abandoned due to the expense of maintaining them, Houston establishments continue to carry on the traditions of the dance hall for new generations of patrons. For these modern descendants of these traditional venues, obtaining and maintaining a Houston liquor license can ensure that patrons can quench their thirst after a rousing round of the Texas two-step. Working with a professional firm can streamline the liquor license application process and can ensure that dance hall owners stay on the right side of all Texas regulations when making a little history of their own.

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.

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.

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.