“Licensing agreement that the beer can only be distributed in WI.”
Agreement between whom and whom? I doubt they make people sign anything like that when they buy the beer in a liquor store.
It was written poorly. The brewery is not licensed outside the state to produce beer for that state. Every state requires a brewery to get a license to brew for consumption in a particular state, and more importantly, pay the taxes for that beer. Because it's all about the money.