The California craft beer industry just received a significant update, thanks to the recent signing of AB 2174 (Aguiar-Curry) into law by Governor Gavin Newsom. Sponsored by the California Craft Brewers Association, this new law introduces changes that could impact the business environment for craft brewers across the state. Whether you’re a small brewery or just interested in the craft beer scene, it’s important to understand how this law affects you—and what it could mean for Core Cans and our customers.

Key Changes in AB 2174

AB 2174 introduces adjustments to licensing fees and regulations, as well as the introduction of a Beer Caterer’s Permit for beer manufacturers. Here's what you need to know:

1. Beer Caterer’s Permit

The biggest news for craft brewers is the introduction of the Beer Caterer’s Permit (Section 23399.01). This new permit allows beer manufacturers to sell up to 124 gallons of beer at events like conventions, sporting events, trade exhibits, picnics, and community gatherings across the state. For breweries, this opens up opportunities to expand into new markets by selling directly to consumers at a wider variety of events.

• Who Can Apply? Breweries holding a Type 23 Small Beer Manufacturer license can apply for this permit.
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• Event Limits: Licensees can receive authorization for up to 36 events per calendar year.
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• Event Authorization: Each event must be approved by the Department of Alcoholic Beverage Control (ABC), and local law enforcement must also consent to the sale of beer.

This new catering permit is great news for our customers in the craft brewing industry. More events and venues to sell beer mean more opportunities for breweries to grow, which could increase their demand for aluminum cans and eco-friendly packaging, like the ones we provide.

2. License Fee Updates

AB 2174 also includes adjustments to license fees, including annual renewal fees, which will impact breweries and other alcohol license holders. For small beer manufacturers (Type 23 licensees), the fee is set at $380 per year.

• Stability for Small Brewers: These fee adjustments are limited by the California Consumer Price Index (CPI), ensuring that any increases remain manageable. The annual fees are structured to remain predictable, which could help smaller breweries budget effectively.

For breweries working with Core Cans, this fee consistency allows for better financial planning, helping them to allocate more resources toward growing their business and, potentially, increasing their order volumes for cans and packaging materials.

Why This Matters for Core Cans Customers

At Core Cans, we see AB 2174 as a positive development for the craft brewing industry. Here’s why:

• Increased Growth Opportunities for Brewers: With the new Beer Caterer’s Permit, breweries can now expand their reach to consumers at special events, opening up a new channel for sales. This means craft brewers can explore new avenues for growing their business, which in turn could lead to greater demand for our cans and packaging solutions.
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• More Stability for Small Brewers: Fee increases are tied to inflation and capped by the CPI, which should help breweries avoid sudden spikes in operational costs. This means smaller brewers can continue to thrive, keeping the craft beer community vibrant and diverse.
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• Supporting Craft Brewer Expansion: Core Cans is proud to work with small and independent brewers who are at the heart of California’s craft beer scene. We believe that AB 2174 will help these brewers find new ways to reach their audience and succeed.
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What’s Next?

While AB 2174 brings good news to the craft brewing community, it’s important for breweries to stay informed about the law’s changes. By planning ahead for license renewals and taking advantage of the Beer Caterer’s Permit, breweries can make the most of these new opportunities.

At Core Cans, we’re here to support craft brewers with high-quality aluminum cans and eco-friendly packaging. As the industry continues to grow, we’re committed to providing the materials brewers need to thrive in an increasingly competitive market.

Have questions about how this new law might impact your business? Get in touch with Core Cans today to learn more about how we can help you meet your packaging needs as you navigate these exciting changes in the craft brewing industry.