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    Crafty Win

    A small victory for beermakers: TABC labeling regs declared unconstitutional byfederal judge

    Caroline Gallay
    Dec 20, 2011 | 11:51 am
    • Photo via Jester King/Facebook
    • Photo via JesterKingBrewery.com

    A small but significant victory was had for craft beermakers and drinkers Monday when a federal judge ruled (partially) in favor of Austin's Jester King Brewery in a lawsuit against the Texas Alcoholic Beverage Commission.

    Jester King filed a motion for summary judgement in Federal court in October over what it deemed to be violations of both its First and 14th Amendment rights.

    Its First Amendment right to free speech, Jester King argued (along with two co-plaintiffs — a distribution company and an Austin restaurant) was violated by the TABC's oft-criticized demand that any beer stronger than 4 percent be labeled as ale and anything with less than 4 percent alcohol by weight be labeled beer. The celebrated craft brewery argued that misusing technical terms as shorthand for alcoholic strength ignored hundreds of years of beer-making tradition and, in effect, misrepresented its brews and brewing processes to the public.

    The argument that breweries should be allowed to sell their beer straight to the public was rejected, however.

    Jester King also claimed its 14th Amendment right to equal protection is obstructed by Texas' three-tier system, which mandates that breweries (which produce beer on-site and distribute it to consumers) may not sell their wares on site while brewpubs (which produce and sell on-site) may not distribute it to consumers.

    (Texas wineries, in contrast, can sell their wine on-site and distribute.)

    The lawsuit, the full text of which can be read here, also challenges the TABC prohibition against making public where a brewery's beer is sold and the requirement that foreign breweries attempting to sell in Texas obtain separate licenses (and often re-label their brews to fit Texas standards).

    The final judgment, handed down Monday by U.S. District Judge Sam Sparks, declares several sections of TABC code to be unconstitutional with regard to free speech, particularly the area of code that addresses advertising regulations and labeling laws.

    The argument that breweries should be allowed to sell their beer straight to the public (which failed in the last legislative session, as well) was rejected, however.

    What's all this mean for consumers? Firstly, that portions of the alcoholic beverage and administrative code are unconstitutional, and thus immediately invalid.

    Jester King can continue litigating if they choose, although Jester King's Ron Extract tells CultureMap he's not sure whether the brewery will continue litigation on the points that were not decided in the brewery's favor. (An open letter with the craft brewery's reaction to the judgment is available on the Jester King blog.)

    If Sparks (whose special brand of honorable judge-ly humor is sprinkled throughout the judgment and gathered here in a special "greatest hits" courtesy of Freetail's Scott Metzger) has his way, the TABC can no longer prohibit breweries from telling customers or advertising where people can buy their favorite brand of brews; the TABC can no longer jack around with "beer" and "ale" labels based solely on alcoholic content; and the TABC can't keep Texas breweries from broadcasting how strong their brews are.

    Organizations like Open the Taps who are jostling for change can also take heart in Spark's observation that "The State of Texas is lucky the burden of proof was on [the Plaintiffs] for many of its claims, or else the Alcoholic Beverage Code might have fared even worse than it has.”

    The full judgment (in which Sparks also compares the now-defunct beer/ale labeling law to a decree that bats should be called "milk") can be read online here.

    Tell us: What do you think of the judgment? Do you hope Jester King and company keep fighting the good fight?

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    a fresh start

    Award-winning Houston cocktail bar diverts to new home in Montrose

    Eric Sandler
    Jun 12, 2025 | 5:00 pm
    Diversion cocktail bar Montrose
    Photo by Manoah Rodriguez
    The Vilanova Ritual is prepared tableside in a teapot.

    An award-winning Houston cocktail bar has found a new home. Diversión will reopen Thursday, June 19 in Montrose’s food-focused Harlow District development.

    Located at 1226 W Clay Street, Diversión Montrose will occupy one of the two houses that comprise Emma Jane, the European-inspired teahouse that opened last year. It replaces the original location of Diversión that opened in early 2021 in Spring Branch. Both Diversión’s original location and Degust, its companion tasting menu restaurant, quietly closed last year.

    Known for its polished service and elaborate cocktails, Esquire magazine named Diversión’s original iteration to its list of the Best New Bar in America for 2022. That ethos has been “refreshed” to be “a more intimate and playful setting,” according to press materials.

    Patrons will find a new cocktail menu that includes drinks such as the Operation: ‘White Flame’ (vodka, dry vermouth, Earl Grey, and caviar); the Sand Dollar Beach, an on-trend mini martini; and the Vilanova Ritual, which is prepared for two people in one of Emma Jane’s signature tea pots. Food options include Korean fried chicken, a Japanese-style mushroom salad (sunomono), and caviar service with crème fraiche dip, soy caramel, and crepes.

    While the original Diversión required a special trip to Spring Branch, the new one could be one stop on an evening in the Harlow District. Located on the property that served as the home to treasured Italian restaurants Nino's, Vincent's, and Grappino di Nino, the development now includes upscale Italian restaurant La Griglia, premier sushi spot Katami, and lively patio bar Verde Garden.

    Diversión will be open Tuesday-Sunday from 5 pm-1 am.


    Diversion cocktail bar Montrose
      

    Photo by Manoah Rodriguez

    The Vilanova Ritual is prepared tableside in a teapot.

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