Gov. Gordon Signs Long-Negotiated Compromise Between Craft Brewers and Beer Distributors into Law

Clink! The Brewers Association is very pleased with Governor Mark Gordon's signature on Senate File 0079, a long-negotiated compromise between craft brewers and beer distributors, into law.

The bill allows brewers producing less than 25,000 barrels per year—whether located in Wyoming or another state—to terminate contracts with their wholesaler without cause, removing a requirement for lengthy and costly litigation between the parties.

Instead, the bill creates a 45-day window and a “good faith estimate” fair market value payment to the wholesaler. If the wholesaler and brewer disagree on the amount, the final compensation due will be established by binding arbitration.

It took a year of negotiations between wholesalers and brewers, but last week, Senate File 79 cleared its final legislative hurdle, passing 60 to 0 (two excused) on the third reading from the House floor. It then moved to Governor Gordon’s desk for his signature, which he signed on Thursday.

“Passing a bill like this with little opposition is proof positive of two things,” said Michelle Forster, Executive Director of the Wyoming Craft Brewers Guild. “The enormous amount of energy and commitment from the Wyoming beer industry and the fact that it simply needed to be done. Lawmakers saw the need for a statutory change that supports a healthy marketplace for Wyoming’s small beer producers, and they exercised their legislative power to make it happen.”

“From coast to coast, states are taking a hard look at how their beer franchise laws impact small brewers, and I’m very happy to see Wyoming leading the way with SF 79,” said Sam DeWitt, state government affairs director, Brewers Association. “Bills like SF 79 will help level the playing field and give small brewers a voice in how their beer is bought and sold.”