Small Brewers, Big Victory: Kansas’s Path to Beer Distribution Reform
When Sean Willcott unwrapped a home brew kit in 2012, he never imagined it would be the beginning of his journey to owning a business, becoming an activist, and eventually being elected to the state legislature.
Until this year, only 2% of beer sold in Kansas was produced in the state. That had nothing to do with supply or demand. In fact, craft brewers fought relentlessly to get their products to market and consumers often preferred their brews. The problem was an alcohol distribution system set up to favor large commercial producers and keep newcomers out.
In 2024, Americans for Prosperity-Kansas (AFP-KS) drafted and successfully passed HB 2124, giving brewers expanded ability to bypass distributor middlemen and sell their products directly to retailers.
Seans Willcott: From Home Brewer to Industry Leader
What started as a fun hobby for Sean, making brews in his garage, turned into a passion for creating carefully curated flavors that rivaled any beer on the market.
In an effort to hone his craft and potentially scale a future business, Sean took a job in St. Louis with Anheuser-Busch to learn from an industry giant. Three years later, he returned home to Kansas and purchased a building in downtown Holton that would become his brewery.
After six years of hard work perfecting his brews and building his dream space, Sean finally opened his business, only to be hit with Kansas’ bureaucratic three-tier alcohol distribution and sales system.
In a normal system, a brewer would sell their product directly to a retailer. In Kansas, thanks to the “three-tier system” brewers were forbidden from directly selling to customers, instead having to rely on a middleman distributor to get their product in stores or venues.
Distributors gravitated toward commercial beer producers, like Anheuser-Busch, because they provided a consistent supply and were more profitable in bulk. Meanwhile, craft brewers like Sean had higher operating costs, therefore more expensive products and smaller batches, making it less profitable for distributors to push their brews.
Moreover, each brewer was assigned a distributor based on their location. If the brewer didn’t get along with the distributor or felt short-changed by them, there was no recourse. Distributors had the power to decide which brewers were to thrive and which ones would go under.
Sean sought out advice from members of the Kansas Craft Brewers Guild (KCBG), an association made up of brewers and business owners, and soon discovered his experience was far from unique.
Most microbreweries were suffering under the same broken system that gave distributors the power to manipulate and constrain the market, despite vocal customer demand for the craft products. Sean came to the realization that no one was coming to save small brewers and if he wanted a fair system, he would have to be the driving force for change.
Americans for Prosperity Reforms Kansas Alcohol Distribution Laws
AFP-KS was an avid critic of the three-tier system. They knew it was killing small businesses, so they partnered with Sean to tear it down. They began by drafting new legislation (HB 2124) that would grant brewers the right to sell their own products directly to retailers and alleviate the reliance on distributors.
The team mapped out key decision-makers and recruited Sean and members of the KCBG to testify and speak to legislators about the bureaucratic hurdles killing their industry. This partnership was a first for the state, as the KCBG had never entered a policy battle since its inception.
Meanwhile, AFP-KS launched “Let the Good Times Brew,” a grassroots campaign to educate and raise awareness around the issue by hosting events, speaking with hundreds of Kansas residents, and connecting citizens with their legislators.
Alarmed by AFP-KS’ skillful strategies and innovative tactics, distributors and Big Alcohol players attempted to tighten their grip on the industry and control over the market, but to no avail. AFP’s bill – HB 2124 – passed the legislature in April 2024, establishing microbrewers’ rights to self-distribute their product and bypass distributors on up to 1,000 barrels of product. AFP-KS achieved a huge win for small businesses across the state, but they continue to work behind the scenes to eliminate the cap on self-distributed barrels.
After getting a taste for meaningful change and learning to navigate the system, Sean now represents House District 62 in Kansas where he plans to continue partnering with AFP-KS on policy that untaps Kansas’ potential.
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