Texas breweries win leverage on advertising in federal court ruling

Posted on January 9, 2012
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By Steve Miller | Texas Watchdog

HOUSTON ? A federal judge?has ruled that portions of the Texas Alcoholic Beverage Code that have existed for 35 years violate the First Amendment rights of smaller breweries, distributors and manufacturers.?The ruling primarily addressed the advertising and marketing restrictions placed on smaller and niche brewers.

U.S. District Judge Sam Sparks ? who said along the way that he was ?shocked and dismayed? by the state?s halfhearted attempt to defend some of the decades-old requirements ? ruled that brewers should be allowed to tell their customers where their products are sold and that brewers no longer have to define their products based on alcohol content.

Sparks specifically ruled that?Texas Alcoholic Beverage Code Section 108.O1(a)(4) places an unconstitutional restriction on free speech, in violation of the First Amendment, as well as sections of state law (Administrative Code, Title 16,?Sections 45.77,?45.79(f), 45.82(f), 45.90, and?45.110(c)(3).)

The TABC issued?a statement Friday outlining its compliance with the order.

But one paragraph in the ruling outlines the lament of aspiring brewpub owners all over the state: ??an entity engaged in the alcoholic beverage industry in Texas generally must choose a single level on which to operate, and cannot operate on either of the other two levels. Thus, for instance, a manufacturer generally cannot also act as a wholesaler or retailer.?

It?s a dictate driven by?big beer interests led with political donations from the?Wholesale Beer Distributors of Texas PAC and has caused more than a few tears to be shed in one?s ? beer.

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Tags: beer, court, federal court, Texas, Texas Watchdog, TX, TX Watchdog

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Source: http://watchdog.org/12776/texas-breweries-win-leverage-on-advertising-in-federal-court-ruling/

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