NOTE TO CRAFT BEER SUPPORTERS

:

THANK YOU for all your support in helping us push the Stone Bill through the SC
legislature. Below you will see the email Anheuser-Busch is sending all the SC
State Senators.

You can help us fight back by visiting www.scbeerjobs.com.

They have all the money but we have the grassroots. The bill is now in
conference committee where just SIX legislators will decide it’s fate. We need
you to flood their inboxes with emails.

Visit www.scbeerjobs.com

Thank you!!!

____________________________________________________________________________

The email you came here to read:


From: amanda@mdanielassoc.com [mailto:amanda@mdanielassoc.com] Sent: Thursday, May
15, 2014 10:24 AM
Cc: wanda@mdanielassoc.com; Mike Daniel

Subject: H.3512: Please Non-concur with House Amendments

Senator:

Mike Daniel, Wanda, and I wanted to touch base regarding H.3512, which was

amended in the House yesterday and will be in the Senate this morning for

concurrence or nonoccurrence. While our client, Anheuser-Busch, has no

problem with the original bill regarding the use of coupons in liquor

stores, they do have some serious concerns about one of the amendments added

by the House which is intended to make SC a more amenable environment for

craft brewers, in particular Stone Brewing Company. A-B is certainly not

opposed to brewpubs being in the state, we are completely supportive of

economic development initiatives, and we stand ready to work on a compromise

plan that will address everyone's needs. However, the particular language



in this amendment and the manner in which the law would be changed would be

detrimental to the current three tier system for alcohol distribution.

Therefore, Anheuser-Busch's primary concern is that this amendment erodes

the current system that works so well. We have been asked to share the

following information to provide more background on our client's concerns.

Thank you so very much for your consideration, Senator. We respectfully ask

that you non-concur and refer the bill to a conference committee so that we

have a chance to be heard in a committee setting before the General Assembly

takes action. * This amendment erodes the current three tier system for alcohol

distribution. It picks "winners and losers" in the beer marketplace by

singling out a specific entity to which this law would grant a competitive

advantage over other brewers, distributors, and even retailers. There are

specific regulations and requirements that all brewers, wholesalers, and

retailers must comply with under the three tier system. We are happy to

provide you with more specifics regarding these items, but for now, the most

important thing to note is that each step of the system is heavily regulated

and carving out one group the way this amendment proposes to do will create

an uneven playing field and give some brewers a competitive advantage over

others. Anheuser-Busch's belief is that everyone should play by the same

rules. * The increase in the amount/definition is a primary concern for us

because there are already special laws for brewpubs which exempt them from

certain requirements, and in the case of this amendment, it is of particular

concern because it is taken in conjunction with the other items included in

or omitted from this amendment. For example, there are no limits on the

amount of beer that may be sold for off-premise consumption. In addition,



kegs, bottles, and cans would now be able to be sold to wholesalers with no

limit.



* Also, while we understand there is the issue of potential jobs to think about, we are not sure
how a brewpub producing 500,000 barrels a year will employ the 400 people folks seem to be
claiming is the case. At Anheuser-Busch's Williamsburg brewery, they produce 8.5 million
barrels of beer per year. While this is far more than the five hundred thousand

allowed for brewpubs in the proposed amendment, A-B's Williamsburg brewery

only employs 72 salaried employees. If you include all of the part time

employees in the count, the total number of employees is still only around

250. Again, that's 250 total employees to produce 8.5 million barrels per year. We cannot
imagine how 500,000 barrels per year will employ more than

400 people as claimed. * Anheuser-Busch is an advocate for beer period! The expansion of
their industry is good for everyone. As stated above, A-B is certainly not opposed to brewpubs
being in the state and they are completely supportive of economic development initiatives.
However, this language is a radical change to current law and should not be considered until all
stakeholders have a chance to weigh in n the issue. Passing this language via a last minute
amendment is just not good public policy.

Amanda K. Wuenscher

MIKE DANIEL & ASSOCIATES, PA

GOVERNMENT AND PUBLIC AFFAIRS

1122 Lady Street, Suite 705

Columbia, South Carolina 29201

Office: 803.461.0400

Fax: 803.461.0399

Cell: 803.707.5466

mikedanielandassociates.com