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H 672

An act relating to distribution of malt beverages by licensed manufacturers

2025-2026 Regular Session Introduced by Lucy Boyden

Vermont bill permits licensed malt beverage manufacturers to directly distribute products to retailers, bypassing wholesale distributors.

Read first time and referred to the Committee on Government Operations and Military Affairs
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Bill Summary · H 672

Legislative bill overview

H 672 allows licensed malt beverage manufacturers in Vermont to directly distribute their products to retailers, rather than being required to use wholesale distributors as intermediaries. The bill streamlines the supply chain for in-state craft breweries and similar producers by permitting manufacturer-to-retailer sales.

Why is this important

This change directly affects Vermont's craft beverage industry by reducing distribution costs and allowing smaller manufacturers to compete more effectively with larger producers who can absorb distributor markups. It also impacts state alcohol regulation and tax collection, as direct distribution creates different tracking and compliance mechanisms than traditional three-tier distribution systems.

Potential points of contention

  • Distributor industry opposition: Wholesale beer distributors may oppose losing market share and revenue from manufacturer-direct sales, potentially arguing the change undermines their business model
  • Tax and regulatory compliance: Direct distribution requires different tracking systems for excise taxes and age-verification; regulators may need clarification on enforcement mechanisms
  • Out-of-state producer parity: If only Vermont manufacturers can self-distribute, it may create competitive advantages or disadvantages versus products from other states, raising interstate commerce questions

Compiled from official sources — confirm details with the bill’s official record.

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