Brewpub as a Retailer: Reasonableness of the Georgia Department of Revenue’s Characterization

Abstract

Currently, the Georgia Department of Revenue views a brewpub licensee as a retailer (as opposed to a manufacturer). As such, under the DOR’s current position, a person with an ownership interest in a GA brewpub licensee may not also have an interest in a GA brewery licensee. In this paper, I analyze the history of brewpubs, e.g., whether the brewpub concept came about as a result of breweries wanting to offer restaurant-like services or, alternatively, because restaurants wanted to brew beer. I analyze whether the DOR’s current position makes sense in the context of (state and federal) brewpub statutes, legislative history, regulation, and policy concerns. I consider historical tied-house concerns and whether such concerns are present when an individual has an ownership interest in both a brewpub licensee and a brewery licensee. In conclusion, although there is some merit in the DOR’s current position, I find that other options are fairer.

Keywords: alcohol law, brewpub, georgia