Fifty beer distributor leaders representing 15 wholesalers statewide spent Thursday morning at the Virginia General Assembly to advocate for a series of bills that support the three tier system, grow craft breweries, create jobs, and protect public safety.

After walking through light snowfall or opting to hitch a ride from the Richmond Marriott to legislators in the Pocahontas Building a few blocks away, distributors met directly with nearly 75 legislators or their aides and discussed three particular bills, along with an additional piece of workforce legislation.

The Virginia Beer Wholesalers Association’s three priority bills have received bipartisan support as they wind their way through the legislative process.

Better signage, placement of “Crossover” products

Matt Kemick of Premium’s Chesbay Distributing in Hampton Roads, along with Katherine Hines, Jordan Lee and Greg White of Hoffman Beverage Co. of Virginia Beach, during their meeting with Virginia House Minority Leader Don L. Scott Jr. (D-Portsmouth).

Wholesalers are taking the lead to reduce consumer confusion and protect public safety in response to a growing number of “Crossover” products — alcoholic drinks from brands consumers view as non-alcoholic. This includes, among other drinks, Hard Mtn Dew and a new alcoholic variant of Lipton Iced Tea.

If enacted, House Bill 1979 and Senate Bill 809 would require all alcoholic products to be clearly labeled as such in store displays, and would prohibit a crossover product from being placed near its non-alcoholic counterpart.

“We see one of our roles as helping protect public safety,” Katherine Hines, president of Hoffman Beverage Co., told House Minority Leader Don L. Scott Jr. (D-Portsmouth). “Having a regulated system makes sure that all consumers in Virginia are getting a safe product that has been carefully and consistently controlled.”

The legislation is opposed by major grocery chains and some convenience store groups, but supported by retail groups and consumer advocates.

Supporting craft beer breweries

The middle tier is also pushing House Bill 2258, which will help craft breweries grow by giving them more flexibility to sell their product to retailers.

The bill would establish the Virginia Beer Distribution Co. and allow any state brewery to distribute up to 500 barrels per year to retailers. Modeled after the Virginia Wine Distribution Co., this new division of the Virginia Department of Agriculture and Consumer Services (VDACS) respects existing franchise territories and closes an existing loophole that allows for a brewer’s spouse to hold a wholesale license. Its Board is chaired by VDACS Commissioners, as well as two beer wholesalers and two brewery reps.

The bill from Del. Roxann Robinson (R-Chesterfield) reflects the compromise negotiated last year between the VBWA and Virginia Craft Brewers Guild.

In addition to the legislation, the Robinson bill will need state funding to go into effect.

Beer distributors for second chances

Distributors advocated for House Bill 1730 from Elizabeth Bennett-Parker (D-Alexandria), which would allow an ABC license holder to hire someone previously convicted of a felony two years after completion of their term — without seeking a waiver from ABC, as is currently required.

Danny Flad of Blue Ridge Beverage, Mark Bennett and Jason Testerman of Virginia Eagle Distributing, and Aden Short of P.A. Short Distributing Co. meet with Del. Jason Ballard, R-Giles.

Daniel Flad, key account and operations manager with Blue Ridge Beverage, told Del. Jason Ballard, R-Giles, that the bill can help employers with an ABC license in a tight labor market, especially in filling warehouse jobs that can serve as a great second chance for someone with a criminal history.

Aden Short, vice president and craft brand manager at Roanoke-based P.A. Short Distributing Co., said the bill makes it easier for a beer distributor to help someone become a productive member of society, and puts the onus on the employer, not the government, to make the hire.

Consolidating workforce programs

Virginia beer wholesalers have also joined a coalition supporting House Bill 2195 and Senate Bill 1470, which would consolidate Virginia’s fragmented and siloed workforce development programs — currently spread across 13 agencies and six secretariats — under a single umbrella. Advocates, including a number of industry associations and chambers of commerce, say the legislation will help the state improve the delivery of its workforce development services, up-skill and re-skill job-seekers, and prepare people for jobs of today and tomorrow.

For distributors, the bill could fill the shortage of CDL drivers and add more mechanics in high-paying jobs.

Al Christian, vice president of government affairs at Premium Distributors of Virginia, told Del. David Bulova (D-Fairfax) that the bills will help people who don’t have a college degree find high-paying work with benefits. “Let’s continue to invest in those programs and fund them and keep that pipeline going so that we can keep Virginians working,” Christian said.