“If the cap remains in place, OMB will be forced to continue to shrink our territory to regulate our growth,” said Jocelyn Ruark, marketing director for OMB.
Ford echoed a similar sentiment.
“NoDa has grown at a rate of 75-100% annually for the past three years, but that will drop to about 30% growth this year in part due to the concerns of this law,” he said.
Limiting growth to avoid the cap is the only option for these breweries, which want to retain control of their product. While NoDa has grown at a rate of 75-100% annually for the past three years, it will drop to about 30% growth this year “in part due to the concerns of this law,” Ford noted.
States with the most established and the most successful craft breweries have little or no restrictions on self-distribution, Ford added. Breweries that exceed the cap and are required to find a wholesaler might also result in layoffs.
“Exceeding the cap would also require us to fire our in-house distribution employees, forfeit almost 30% of our revenue and margin to the distributor, and – due to franchise law – relinquish ownership of our OMB brand,” Marrino said.