The following testimony was submitted by the Grassroot Institute of Hawaii on Feb. 10, 2026, for consideration by the Senate Committees on Commerce and Consumer Protection and Energy and Intergovernmental Affairs.
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Feb. 10, 2026, 10 a.m.
Hawaii State Capitol
Conference Room 229 and Videoconference
To: Senate Committee on Commerce and Consumer Protection
Sen. Jarrett Keohokalole, Chair
Sen. Carol Fukunaga, Vice Chair
Senate Committee on Energy and Intergovernmental Affairs
Sen. Glen Wakai, Chair
Sen. Stanley Chang, Vice Chair
From: Grassroot Institute of Hawaii
Ted Kefalas, Director of Strategic Campaigns
TESTIMONY IN SUPPORT OF SB2911 — RELATING TO INTOXICATING LIQUOR
Aloha Chairs, Vice Chairs and other members of the Committees,
The Grassroot Institute of Hawaii supports SB2911, which would allow the direct shipment of beer and distilled spirits by certain licensees.
This bill represents a praiseworthy attempt to help local businesses by allowing certain brewers and distilleries to expand into direct-to-consumer sales. The bill contains safeguards against shipment to minors and nonpayment of taxes, which addresses the concerns often raised in opposition to direct sales of alcohol. Moreover, Hawaii already allows direct shipments of wine, creating an arbitrary and unfair distinction between wineries, breweries and distilleries.
Allowing for direct sales will give Hawaii businesses the opportunity to reach new customers and grow their business. Hawaii has been consistently ranked as one of the worst states in which to do business by outlets as varied as CNBC, Forbes and the Tax Foundation.[1] If legislators want to improve the state’s business climate, they should embrace opportunities to remove burdensome regulations on local industries.
Thank you for the opportunity to testify.
Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
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[1] “Hawai’i’s General Economic Competitiveness and Business Climate,” Hawaii Department of Business, Economic Development & Tourism Research, Research and Economic Analysis Division, May 2025, p.5.
