California brewery production capabilities expanding

The California Craft Brewers Association (CCBA) today applauded Governor Gavin Newsom and the State Legislature’s approval of a new law to their proposal to allow all licensed brewers in the state the ability to produce beer, cider and perry simultaneously on the premises of their existing breweries.

The forthcoming law, known as Senate Bill 788 and authored by State Senator Angelique Ashby of Sacramento County, will benefit smaller breweries that produce less than 60,000 barrels of beer annually, known as Type 23 licensees. Until SB 788 takes effect on January 1, 2024, smaller craft breweries that operate under a Type 23 license have been required to obtain a separate winegrower’s license to produce fermented fruit beverages like cider or perry.

Obtaining that winegrower’s license and making the necessary capital investments to modify the brewer’s production facility to essentially include a separate winery has been an expensive and time-consuming endeavor, often taking upwards of six months to a year.

“As Californians in every town, city, and neighborhood have embraced craft breweries as a favorite place to gather, relax and enjoy locally made craft beer, SB 788 will allow these cherished small businesses the flexibility to provide even more options and opportunities to grow,” said CCBA Board Chair Laurie Porter. “We’re very grateful to Governor Newsom, Senator Ashby and the Legislature for their unanimous approval of SB 788, which values the role craft brewers play in our state’s hospitality industry and recognizes their ongoing commitment to their responsible and safe production of the world’s best craft beverages.”

California’s SB 788 bill will allow craft brewers in the state to expand the variety of beverages they produce at their existing facilities. Previously, only large brewers with a Type 1 license and annual production of over 60,00 barrels were permitted to manufacture beer, cider and perry under the same roof.

SB 788 levels the playing field for small brewers, which have a significant $9.03 billion impact on California’s economy. More than 54,000 workers are employed at California’s 1,100 craft breweries and 95 percent of Californians live within 10 minutes of a craft brewery.

“Now that SB 788 is signed, more than 1,000 craft breweries in California will be able to produce cider and perry under their current licenses,” said Ashby. “This will provide support for small businesses—helping cut through red tape, saving money and time, and letting them produce beverages consumers enjoy.” 

SB 788 passed the State Assembly on July 3 by a 69-0 vote after clearing the State Senate on April 13 by a 36-0 margin. Governor Newsom signed SB 788 into law on July 21.