Local Craft Distilleries Challenge IL Law To Expand Retail Opportunities

SKOKIE, IL — Facing outdated state laws and limitations on local craft distilleries, business owners are backing a bill that could allow them to self-distribute and expand retail opportunities.

Senate Bill 1618, introduced by Sen. Celina Villanueva in February, would amend the Illinois Liquor Control Act of 1934, which regulates the manufacture, distribution and sale of alcohol within the Prairie State. The bill would create a distillery shipper's license, a spirits showcase permit and a class 3 craft distiller license.

For the owner of Take Flight Spirits in Skokie, Carrie Cole, SB1618 could help her local business grow larger than it ever has.

"The bill would have a huge impact on us, because it would allow us to increase our production and also allow us to self distribute. We're anticipating that we could increase our production by 10 times and double our head count in our tasting room," Cole told Patch.

In the three years that Take Flight has been operating, Cole said she's been forced to forego selling her product at retail locations and popular local festivals like Skokie's Backlot Bash every August. Though there is a beer tent at the festival, Cole said her specific permit prevents her from selling any spirits.

With Cole's class two license, she is allowed to have full retail privileges in her space, as well as offer beer and wine that she doesn't make in her tasting room. What that takes away from her is her ability to self-distribute to other bars and restaurants around the neighborhood.

"I've got now a handful of local restaurants that would like to sell our spirits and use them in their bar programs, but I don't have a way to get my spirits to them legally," Cole said. "We currently use distributors to bring in the beer and wine and liqueurs that we use in our bar program. But we are so small and so far, none of them have been willing to take us on to sell our spirits."

For owner of Whiskey Acres Distilling Co. in Dekalb Nick Nagele, who also serves as Vice President for the Illinois Craft Distillers Association, the current law directly impacts his customers.

Approximately 20,000 visitors come to Whiskey Acres annually from all over the country and around the world, Nagele said. Many visitors fly into the Chicago area for the weekend and ask to have their spirits shipped back home.

"We have to say no because of the state law. The state and my business are missing out on what I would call 'goodwill marketing' of these folks being able to go home, share a bottle, share our story and continue to drive interest," Nagele told Patch.

Opponents of the bill say it could put local retailers at a disadvantage, with distillers selling directly-to-customers undercutting retail prices and adding competition. According to Illinois Retail Merchants Association Vice President Alec Laird, wine producers face these issues with current direct-to-consumer measures in their industry.

However according to Nagele, SB1618 would only create new avenues for revenue and not cannibalize what is currently in existence.

"Our intention of this is not to erode our relationship with distributors," Nagele said. "We recognize that their role in the industry is important and integral, and we're not trying to eliminate their role."

As of yet, lawmakers have not made a decision on the bill, but new developments could happen in the coming weeks.