Whitsett — Red Oak Brewery says its production is growing in double digits, but state regulation will stop it in its tracks.

The brewery sells its four beers, including a seasonal variety, directly to restaurants, bars, and stores. State law allows a licensed brewery to sell no more than 25,000 barrels of beer annually before it must turn all its distribution over to a wholesaler.

Red Oak says it doesn’t trust a wholesaler to properly handle its beer.

Wholesalers typically derive the vast majority of their business from one of the major beer brands: Budweiser, Coors, or Miller. They aren’t responsive to small breweries, Red Oak’s owner Bill Sherrill says.