The definition of “beer” got a little broader in California, thanks to the passage of Assembly Bill 205 (AB 205), which was signed into law by Governor Gavin Newsom on July 9, 2019.
AB 205, introduced by Assemblymember Tom Daly (D-Anaheim), expands the definition of “beer” under California’s Alcohol Beverage Control Act (California Business & Professions Code Section 23006) by allowing beer to be produced using honey, fruit, fruit juice, fruit concentrate, herbs, spices and other food materials as adjuncts in fermentation.
Under the prior law, beer was strictly defined as a grain-derived beverage – “any alcoholic beverage obtained by the fermentation of any infusion or decoction of barley, malt, hops or any other similar product, or any combination thereof in water.” Accordingly, the prior definition of “beer” required a wine license in order to use fruit in the fermentation process.
However, California’s old definition of “beer” was out of step with federal regulations adopted in 2006 by the Department of the Treasury and its Alcohol and Tobacco Tax and Trade Bureau, which allow the use of honey, fruit, fruit juice, fruit concentrate, herbs, spices and other food materials as adjuncts in fermenting beer. And while AB 205 is largely seen as bringing California’s definition in line with federal regulations, Assemblymember Daly’s office explained that AB 205 “modifies the definition of beer in a way that will allow California breweries to expand their market, satisfying the consumer’s desire for more varied and unique styles of beer.”
The new definition is likely to have swift impact. California has more craft breweries than any other state, with more than 980 craft breweries as of January 2019, per the California Craft Brewers Association trade association. Conkle, Kremer & Engel attorneys counsel clients in the craft brewery industry.