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Forcing Breweries to Use a Distributor
Posted on 3/12/14 at 1:11 pm
Posted on 3/12/14 at 1:11 pm
This article, where Stone Brewing is weighing in on a proposed bill in Alabama, was originally posted on Food Board, but I think would make a good Poli Board discussion on our alcohol distribution laws.
LINK
Can someone give a legit argument why a brewery should not be allowed to sell all of their product directly to the consumer if they so please. I believe right now in LA, they can sell up to 10 percent direct.
Why shouldn't they be allowed to sell 100 percent straight out of their own taproom or store if they wish?
LINK
Can someone give a legit argument why a brewery should not be allowed to sell all of their product directly to the consumer if they so please. I believe right now in LA, they can sell up to 10 percent direct.
Why shouldn't they be allowed to sell 100 percent straight out of their own taproom or store if they wish?
24
Posted on 3/12/14 at 1:12 pm to ragincajun03
It's the good ole boy network.
Just like the laws that force car makers to sell through dealerships as opposed to having their own showrooms and selling directly.
Just like the laws that force car makers to sell through dealerships as opposed to having their own showrooms and selling directly.
This post was edited on 3/12/14 at 1:13 pm
Posted on 3/12/14 at 1:12 pm to ragincajun03
because then they wouldn't be able to get kick backs from the Mocklers.
Posted on 3/12/14 at 1:14 pm to ragincajun03
follow the money
Posted on 3/12/14 at 1:14 pm to ragincajun03
quote:
Can someone give a legit argument why a brewery should not be allowed to sell all of their product directly to the consumer if they so please.
no, i can't immediately think of any compelling reason
Posted on 3/12/14 at 1:15 pm to SG_Geaux
quote:
It's the good ole boy network.
Sort of. Most of the established wine/liquor distributors in the state, have their roots in prohibition bootlegging operations.
Posted on 3/12/14 at 1:17 pm to BobBoucher
quote:
follow the money
this applies to pretty much every law.
Posted on 3/12/14 at 1:20 pm to ragincajun03
Because Jessah needs all the shakedown opportunities he can get.
The Rev-uh-rund Jesse "The Shakedown King (of beers)" Jackson
The Rev-uh-rund Jesse "The Shakedown King (of beers)" Jackson
Posted on 3/12/14 at 1:27 pm to MMauler
With the facilitation of information via the internet, I think we are reaching a point of a global awakening to the evils and universal corruption and cronyism of governments.
This is example #2348085
This is example #2348085
Posted on 3/12/14 at 1:35 pm to Y.A. Tittle
No reason except costs. If a brewery wants to hire sales and staff all those trucks and pay the fees associated with shelf space, then they should be able to go for it. A distributor, though, already has the investment in those costs and pays the sales staff to negotiate shelf space and the drivers to deliver and in some cases, deliver and refresh the shelves. There is an enormous cost associated with going it alone, but by all means, go for it. I don't support helmet laws either. People should be allowed to slam their heads into a brick wall or concrete pavement if they choose to.
Posted on 3/12/14 at 1:36 pm to ragincajun03
No good reason.
The deep pockets of the distributors in La will NEVER allow things to change. They have a sweet little gig here.
The deep pockets of the distributors in La will NEVER allow things to change. They have a sweet little gig here.
Posted on 3/12/14 at 1:37 pm to PuntBamaPunt
quote:
follow the money
this applies to pretty much every law.
exactly. and people think capitalism is dying at the hands of regulation.
Posted on 3/12/14 at 1:38 pm to HubbaBubba
quote:
No reason except costs. If a brewery wants to hire sales and staff all those trucks and pay the fees associated with shelf space, then they should be able to go for it. A distributor, though, already has the investment in those costs and pays the sales staff to negotiate shelf space and the drivers to deliver and in some cases, deliver and refresh the shelves. There is an enormous cost associated with going it alone, but by all means, go for it. I don't support helmet laws either. People should be allowed to slam their heads into a brick wall or concrete pavement if they choose to.
LOL
What distributor do you work for?
How does chewing gum and canned corn get into stores?
Posted on 3/12/14 at 1:39 pm to CherryGarciaMan
quote:
With the facilitation of information via the internet, I think we are reaching a point of a global awakening to the evils and universal corruption and cronyism of governments.
yes, but i think there is a less sinister reason for some of this. institutions developed in a time when we didn't have that sort of connectivity. this connectivity that makes distribution unecessary has changed everything. originally these laws, iirc, were there to protect consumers when there wasn't free flow of information and the same ability to choose like we have today
i think it's an example of the evils of government failing to adapt and the protectionism of current industry (again, failing to adapt and protection of the present-day issues)
Posted on 3/12/14 at 1:46 pm to ragincajun03
quote:
Can someone give a legit argument why a brewery should not be allowed to sell all of their product directly to the consumer if they so please.
No.
Posted on 3/12/14 at 1:47 pm to BobBoucher
quote:
follow the money
Right.
I don't know what the laws are for breweries but for distilleries all states have a three tiered system except for Washington state. Washington's state excise tax is $35..22 per 80 proof gallon. Wyoming and New Hampshire do not have state excise taxes on spirits. The federal government gets $13.50 per 80 proof gallon.
The tax markup goes like this:
Distiller pays $13.50 per 80 proof gallon to the federal government.
Distributor pays state excise tax per 80 proof gallon based on each state's excise tax rate.
Retailer pays sales tax per unit.
It's essentially a value added tax.
In the case of Washington state you could be paying over $10 in taxes per 5th of distilled spirit. In the case of New Hampshire and Wyoming you're paying $2.7 + sales tax per 5th of spirit.
Posted on 3/12/14 at 1:47 pm to HubbaBubba
I get that. But they shouldn't be forced to.
If a brewery has a small operation and only wants to sell out of their own facilities, they should be able to.
If a brewery has a small operation and only wants to sell out of their own facilities, they should be able to.
Posted on 3/12/14 at 1:49 pm to ragincajun03
Furthermore, in order to become a distributor you need to have a physical building and maintain a minimum inventory, usually $50,000 worth on hand.
Typical protectionism.
Typical protectionism.
Posted on 3/12/14 at 1:53 pm to HubbaBubba
quote:
a brewery wants to hire sales and staff all those trucks and pay the fees associated with shelf space, then they should be able to go for it. A distributor, though, already has the investment in those costs and pays the sales staff to negotiate shelf space and the drivers to deliver and in some cases, deliver and refresh the shelves. There is an enormous cost associated with going it alone, but by all means, go for it. I don't support helmet laws either. People should be allowed to slam their heads into a brick wall or concrete pavement if they choose to.
This is also true. In Washington where the tree tiered system is NOT law but breweries, wineries and distillers still follow the three tiered model. Most alcoholic beverage makers would rather focus on their craft and third party out distribution.
With that said, there still should be a choice.
Posted on 3/12/14 at 1:59 pm to ragincajun03
quote:
proposed bill in Alabama,
Lol at bama...their state excise tax is $18.23 per 80 proof gallon. The highest in the SEC. That's why guys from bama head down to La. and load up on booze at Dorginac's at $10,000-$20,000 a pop and haul it back to bama.
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