NC H363

Increases the small brewery barrelage threshold from 25,000 to 100,000 barrels per year for breweries to self-distribute malt beverages and obtain wholesale permits to unaffiliated retailers.

Allows breweries operating under the expanded threshold to sell at up to three additional retail locations beyond the brewery itself, with requirement to offer competitive products at off-site locations.

Establishes that when a small brewery terminates self-distribution rights to a wholesaler, the brewery must pay the wholesaler fair market value for the distribution rights.

Clarifies that any Alcoholic Beverage Control Commission exemptions allowing breweries to exceed the three additional retail location limit will prohibit that brewery's malt beverages from being sold by the affected retailer.

Reaffirms North Carolina's support for the three-tier beer distribution system and franchise laws while recognizing the growth of craft breweries and the need to support mid-sized independent breweries as a distinct category.