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Ohio Beer ABV Limit Could Be A Snag In Stone Brewing Deal

It could be later this year before the city of Columbus knows if it will be home to the east coast location of one of the country’s largest craft brewing companies – and the hundreds of jobs that come with it. Stone Brewing Company’s decision, in part, depends on whether state lawmakers change a current limit on alcohol content in beer. A growing craft California-based Stone Brewing Co. touts itself as the tenth largest craft brewery in the country. Founded in the mid-90s, the brewery has steadily grown with annual revenue increasing by more than 14,000 percent to $135 million, last year. Now, Stone Brewing wants a base on the east coast. And it’s considering Columbus. Drink Up Columbus Editor Cheryl Harrison said winning the bid would be a boon for the city’s beer market. “There’s an immediate economic impact of job creation," she said. "A $60 million facility they’re looking to bring into the area, it would definitely elevate central Ohio as a craft beer destination.” Known for its bold beers and novel names for them – the Arrogant Bastard Ale, for example – Stone Brewing has popular special releases, some with high alcohol-by-volume - or ABV – content. At 13.5 percent ABV, the w00tstout 2.0, released this summer, is described as a “sipper.” 00000178-6a24-ddab-a97a-6a3cd6af0003Ohio laws and regulation But you can’t buy it in Ohio. That’s because its alcohol content exceeds the state’s cap. State law prohibits beer companies from brewing, distributing or selling beer with ABV above 12 percent. Harrison said that could be a sticking point for Stone. “They want to open a brewery on the east coast so that they don’t have to ship any beer from California to the east coast," Harrison said. "Some of the beers that they produce, not most of them, and not their biggest sellers, but some of the beers they produce they would not be able to produce in Ohio right now.”

Lawmakers looking to make a change “I think we are losing quite a bit of business opportunity," Ohio Rep. Dan Ramos said. “This is really an economic driver. And these regulations that we have in Ohio make us an outlier.”

Ramos is trying, for a second time, to increase the state’s beer ABV cap. House Bill 391, or the “beer bill,” if enacted, would raise it to 21 percent. “There are over 40 states who don’t have these kinds of limitations on beer in their state, including four of the ones who border us," Ramos said. "So we are putting ourselves at an economic disadvantage.” Virginia is one of those states with no ABV cap. Two cities in Virginia - Norfolk and Richmond - are competing against Columbus for the east coast operation. Economic impact00000178-6a24-ddab-a97a-6a3cd6b10000 Stone Brewing expects to invest up to $60 million in its east coast brewery which will include a restaurant and retail area. The company anticipates 375 jobs would be created over 5 years. Columbus retail analyst Chris Boring said Ohio will miss out on economic development opportunities if the “beer bill” isn’t passed. Boring said jobs don’t stop at the brewery. “They need sales managers. They need quality control technicians," Boring said. "They need financial people to do their books. They need mechanics, a whole variety of different jobs that people might not normally think of. It’s not just the person that’s serving you the beer.” Stone Brewing Co. declined to be interviewed for this story. But in an email, the company wrote, “While the “Beer Bill” certainly levels the playing field among the various sites, it is just one of the many factors being considered in our decision process.” But in a letter to Representative Ramos, Stone co-founder and CEO Greg Koch noted the company would create beers exceeding 14 percent ABV if the right recipe came along. Koch wrote “The support of craft breweries in Ohio via appropriate legislation is definitely part of our decision criteria.” Cause for concern Critics of the so-called “beer bill” worry it could lead to an increase in drunk driving. One serving of high ABV beer is the equivalent of two, or in some cases three, traditional beers. But Ramos said that shouldn’t make a difference. “We sell things that are over 12 percent. Most mixed drinks are over 12 percent. Wine is...usually around 12 – 15 [percent ABV.] So we sell that already in Ohio," Ramos said. Stone Brewing Co. was set to announce its selection of the east coast brewery location by mid-October. But last week, it announced it was delaying its decision indefinitely due to “a lot of moving parts.”