Avoiding Sour Grapes and Bitter Hops: How Wisconsin Laws Can Nurture the Local Wineries and Breweries that Drive Regional Economies

Abstract

The purpose of this study is to explore how Wisconsin laws and regulations affect local wineries and breweries. In particular, this research examines how these laws impact local economies via the multiplier effect, a phenomenon in which money spent by local patrons and tourists creates jobs and drives consumption. This research also explores how these local businesses navigate the laws that govern them. Since a lot of the laws affecting these businesses were originally created following prohibition in 1933 -- when alcohol production was virtually synonymous with large volume breweries -- the operation of small local breweries and wineries often do not fit well within the historic context of existing legislation. The methodology used to conduct this study was one-on-one interviews with local winery and brewery owners in Central Wisconsin. To this end, we collected first hand perspectives on what it is like operating a small business under these laws and how they are affected both positively and negatively. Overall, Wisconsin laws could do more to drive local economics in the beer and wine sector, thereby contributing to the economic success of local communities.