Spirits of Change
Texas’ distilleries do far more than ferment, distill, and bottle spirits. Many operate tasting rooms while juggling private and public events and Texas’ stringent regulations that govern how and when liquor can be sold from distilleries. A 2022 study revealed that Texas distilleries generate an impressive $830 million annually for the state’s economy, driven largely by tourism.
Since opening in 2015, Acre Distilling has expanded the number and types of events it offers. Owner Tony Formby recently purchased a wine and beer license to sell vino and brew craft beer to visitors next year. Although the popular tourist destination has grown steadily, largely from in-house bottle sales and liquor and cocktail sales at the distillery, 2024 saw a flattening of what had been several years of steady growth, the owner said.
Formby: “People find something they’ve never had and they want to take it home. Saturday, no problem. Sunday, because of the law, we can’t sell it to them.”
To entice new foot traffic, Formby and his team began opening on Sundays to host whiskey blending classes in the adjacent event space. Participants can sample four to five whiskies, receive blending instructions, and create their own unique blend. Each session lasts one hour and costs $25 per person with the option to bottle and private label the creation for an additional $50.
Even though customers regularly ask to purchase liquor bottles from the distillery on Sundays, Formby has to inform them that he can’t by state law.
“People find something they’ve never had and they want to take it home,” Formby said. “Saturday, no problem. Sunday, because of the law, we can’t sell it to them. This has been a contentious issue inside the liquor store community for a long time.”
The current laws that bar any sales of liquor on Sundays work well for large retail and liquor shops. As long as everyone remains closed on Sundays, they can have a day off while maintaining sales. For smaller distilleries, that one extra day of sales could add a needed stream of revenue, Formby said.
“We’re a destination/tourism kind of place” that doesn’t really compete with large retailers, Formby continued. “I’m a member of the Texas Distilled Spirits Association and the Texas Whiskey Association. We have close to 200 total members across the state. A lot of these distilleries are small and could benefit from this change.”
Distilleries had a small victory last year, thanks to the passage of Senate Bill 2284. Texas distilleries can now sell up to four 750-milliliter bottles of spirits per customer within a 30-day period, doubling the previous limit of two bottles.
Formby said the new law helps, but there are still unnecessary restrictions that he and other distillers have to contend with. He would like state laws to be revised to allow his team to deliver bottled spirits directly to bars and customers instead of having to go through distribution companies.
Formby is optimistic about prospects for the stretch of downtown once known as “Hell’s Half Acre” where he runs Acre Distilling.
Several major construction projects are underway in the south end of downtown Fort Worth, signaling significant growth and innovation. One of the most prominent is a three-phase, 3.5-acre development that will serve as the "anchor campus for a technology and innovation district." Spanning three buildings across four city blocks with greenspace, the project begins with an eight-story, $185 million Law and Education building set for completion in December 2025.
Additionally, a $701 million renovation of the Fort Worth Convention Center is set to transform the area over the next decade. Initial work focuses on back-of-house improvements, including new kitchens, loading docks, and straightening Commerce Street. Later phases will modernize the facility by removing the iconic “flying saucer” arena and expanding the center to meet future needs.
With those projects still a year or more away from fruition, Formby says through 2025 he’ll be focused on managing events, adding beer and wine to his lineup, and working with fellow distillery owners to loosen state distribution and liquor sales laws so he and nearly 200 other distilleries can continue to contribute nearly $1 billion a year in tourism revenue to local communities every year.