The Center Square) – Illinois lawmakers are considering legislation to support the craft distillery industry, but several lobbying groups stand opposed.
State Sen. Celina Villanueva, D-Chicago, filed Senate Bill 1618, which would create a distillery shipper’s license, a class 3 craft distiller license and a spirits showcase permit.
“The provisions in this bill will enable direct-to-consumer shipping, allow for expanded self-distribution and modernize outdated regulations that have put Illinois distillers at a competitive disadvantage compared to other states,” Villanueva said at a Liquor Control Committee hearing Tuesday.
According to the Illinois Craft Distillers Association, while 47 states allow for the direct shipment of wine from winemakers to consumers, only 11 states allow distillers to ship their products directly to consumers. Illinois is not among the 11.
Carrie Cole, owner of Take Flight Spirits in Skokie, urged lawmakers to support the measure.
“We’re in an impossible situation right now. We’re too small to be of interest to distributors, but we need their help in order to grow. Letting us self-distribute a small amount of our product would help us become more attractive to potential distributors and prove that there is a demand for our product in the market,” Cole explained.
Illinois Retail Merchants Association Vice President Alec Laird spoke in opposition to the direct-to-consumer part of the bill.
“So there is a disadvantage for local retailers. Distillers selling directly-to-consumers undercut retail prices, making it difficult for local stores to compete,” Laird said.
Laird said his comments were based on direct-to-consumer measures that are already in place for wine producers.
Lobbyist Heather Wier Vaught joined Laird in opposition to SB 1618. Wier Vaught previously served as chief counsel to former Illinois House Speaker Michael Madigan, D-Chicago.
Legislators and witnesses at Tuesday’s hearing also discussed Senate Bill 2230, proposed by state Sen. Steve McClure, R-Springfield, which would allow retailers to temporarily store alcohol at another licensed location.
Curt Wooters, owner of Rosie & Irl’s Smokehouse Saloon in Findlay, said he bought land across the street from his establishment to store alcohol, but Illinois law bans him from transporting it.
“Well, I got in trouble for that, because I was storing my alcohol on a separate location. I got a thousand-dollar fine. I’m like, I’m just a small business trying to make it,” Wooters said.
Rick Haymaker, legal counsel for the Illinois Liquor Control Commission, opposed SB 2230 and said it was precedent-setting.
“What this does is effectively authorize the off-premises warehousing of alcohol for retail liquor licenses,” Haymaker said.
Haymaker said the commission would be happy to work with Wooters and the local commission to find a solution.
Kevin Bessler contributed to this story.
