Senate Bill 9, or SB 9, is a vital overhaul to the laws governing alcohol in Alaska. One hundred twenty parties have been working for over ten years. The changes made in SB 9, which benefit existing breweries through expanded operating hours and the ability to host four live events each year, are directly at the expense of. SB 9 will effectively end the establishment of new breweries and tasting rooms in Alaska.
About five years ago, our team launched Grace Ridge Brewing in Homer. We are thrilled to be an integral part of Homer for residents and tourists. We contribute to our community by being welcoming, helping local nonprofits through our fundraising tips and tips, displaying regional art, and assisting with a weekly run or walk and knitting groups. We also serve great beer, and the craft beer drinkers are happy to come to us again and again.
The year before, we invested $1.3 million into a brand new building as we wanted to as a part of our community. We’ve worked long and built an enduring business within the existing limits of the brewery. Breweries that are new and established, wineries, distilleries, and other distilleries help other artists, businesses, nonprofits, and a variety of suppliers, which leads to higher profits for the local and state economies.
I’m requesting the Legislature to maintain the current limits on population for distilleries, wineries, and breweries to ensure that other businesses have similar opportunities as we did to start a small-scale business. SB 9 eliminates this opportunity away.
Currently, there can be one licensed alcohol manufacturing-with-tasting room business for every 3,000 people in a city or borough. If we take 2024 as the population count, Homer, a town of 6,264, has three licenses in use and two currently in use. For Fairbanks 29,330, ten appointments are available, but only three are now in use. For Juneau 31785, there are eleven total licenses, and only three are currently in use. In Soldotna and Kodiak, with 5,468 and 4,815 respectively, there are two licenses available with only one permission currently in use. If SB 9 is passed with the one-per-12,000 limit on population, which is the case, these communities, along with Sitka, Wasilla, and Ketchikan, will be unable to obtain any other taproom licenses to be available. This policy decision is likely to lead the way to local-only monopolies.
The bill does not place any caps for beer production but does not remove licenses in taprooms. The bill’s sponsor says SB 9 offers “amazing opportunities” for the future of brewing companies. Opportunities are already in place. Twelve breweries have bought licenses for a Beverage Dispensary License with a Brew Pub license, and eight Breweries have Restaurant Eating Place Licenses. These licenses also allow establishments not to be limited to the daily limit of 36-ounces per person limit, sell only products made at the site, and have limited hours of operation and taproom activities limitations.
Alaska Breweries in Alaska make great beer. The current laws have permitted the expansion of this $330 million a year industry. The legislation will limit further growth within the brewery model, and also, their products are offered in their taproom. These spaces are gathering spaces that residents and tourists alike enjoy. This bill is immense harm to the small communities of Alaska. Breweries with taprooms invest in their communities, provide permanent jobs throughout the year and pay local taxes. They welcome families and offer the chance to start small-scale businesses in that community.
Alaska entrepreneurs should be allowed to establish an entirely new brewery. Alaskans who are beer lovers should be able to profit from competition between Breweries, which includes new breweries in competition with the established brewery.
