Ohio breweries struggle with rising costs and legal restrictions

Ohio's craft beer scene has grown significantly in recent years, with an 831 percent increase in breweries from 2011 to 2023. However, local breweries face numerous challenges, including rising costs, changes in consumer preferences, and the long-term effects of a state law from 1974. This law, known as the Ohio Beverage Franchise Law, complicates contracts between breweries and wholesale distributors. Nick Moeller, the founder of Moeller Brew Barn, is working to end a distribution contract but claims the law is unfair. Under this law, breweries can only exit contracts if they can prove "just cause" or if one of the parties goes bankrupt. Moeller expressed frustration about how the law benefits distributors but puts small breweries at a disadvantage. He believes the law creates an environment that favors larger distributors, making it hard for small businesses to succeed. Others, like Andrew Wehri and Butch Brinkman of 1820 BrewWerks, prefer to self-distribute their beer to avoid problems with contracts. The Ohio Craft Brewers Association is advocating for a revision of the law. They are pushing for a new bill, Senate Bill 23, which would allow smaller breweries to exit contracts more easily. The Executive Director of the association said the current contracts do not work well for small breweries. Economic difficulties have also affected local breweries. Outskirts Brew Co. & Dive and Tailspin Brewing have closed recently due to ingredient shortages and rising costs. After reopening from the pandemic, both faced challenges that ultimately led to their closures. Despite these struggles, the craft beer industry in Ohio remains vibrant, with over 57 breweries generating substantial jobs and tax revenue. Local leaders hope that potential legal changes and improvements in the economy will help boost the industry again.