Distributors tell committee they support small-brewery options but say 5,000-barrel self-distribution cap in H672 is too high

Members of the Government Operations & Military Affairs committee heard industry testimony on an omnibus alcohol bill Wednesday as wholesale distributors described their role and urged careful drafting of a proposed self-distribution exemption.

Ryan Chaffin, director of operations at Farrell Distributing, told the committee wholesalers ensure product traceability, run large fleets and warehouse operations across Vermont, and provide services to retail partners and smaller manufacturers. He said distributors help manage recalls and staff training and argued those functions protect consumers and support a diverse retail marketplace.

“Free tastings and pricing are one thing,” Chaffin said; “we do think 5,000 barrels is excessive.” He added that decisions to carry a brand depend on portfolio fit, margins, quality control and marketing support, not a single production cutoff.

Nick Sherman of Leonine Public Affairs, who said he represents the Vermont Wholesale Beverage Association (VWBA), introduced broader industry context and framed wholesalers as partners for Vermont breweries while acknowledging consolidation in the distribution sector.

Committee members pressed witnesses about operational scale. Chaffin described roughly 70 trailers on his company's lot, about 30–40 active tractor-trailer routes depending on season, and a statewide workforce including warehouse staff, drivers and sales representatives.

Several legislators said the 5,000-barrel threshold in H672 may be above the production capacity of many craft brewers. One member referenced earlier testimony that suggested much lower production figures are typical for small Vermont breweries and asked whether a lower threshold (for example, 1,000 barrels) might be more realistic.

The committee did not vote on H672 but flagged it for further testimony and refinement. Members also asked that draft language explicitly state whether the exemption applies only to eligible brewers who are not already under contract with a distributor.

The committee will continue discussion and hear additional testimony on H672 before making a final decision on whether to include it in the omnibus package.