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re: Forcing Breweries to Use a Distributor

Posted on 3/12/14 at 2:14 pm to
Posted by upgrayedd
Lifting at Tobin's house
Member since Mar 2013
135211 posts
Posted on 3/12/14 at 2:14 pm to
There was a really good documentary on Netflix about this a while back. I think it featured the Dogfish Head owner.
Posted by BamaFan89
T-Town
Member since Dec 2009
19297 posts
Posted on 3/12/14 at 2:32 pm to
quote:

Lol at bama...their state excise tax is $18.23 per 80 proof gallon. The highest in the SEC
Crony capitalism isn't amusing for those living under it.
Posted by Bunsbert Montcroff
Phoenix AZ / Boise ID
Member since Jan 2008
5523 posts
Posted on 3/12/14 at 3:19 pm to
quote:

There was a really good documentary on Netflix about this a while back. I think it featured the Dogfish Head owner.

i think it was called beer wars.

agreed - great documentary.
Posted by GumboPot
Member since Mar 2009
119458 posts
Posted on 3/12/14 at 3:24 pm to
FYI, here are the state excise tax maps.

Beer:


Wine:


Spirits:
Posted by tiderider
Member since Nov 2012
7703 posts
Posted on 3/12/14 at 3:48 pm to
^guess the south ain't all that 'conservative' ...
Posted by Scruffy
Kansas City
Member since Jul 2011
72393 posts
Posted on 3/12/14 at 3:56 pm to
It's the same reason florists have to be licensed in LA.

bullshite reasons.
Posted by AUCE05
Member since Dec 2009
42582 posts
Posted on 3/12/14 at 4:00 pm to
Republicans gonna republican.
Posted by Y.A. Tittle
Member since Sep 2003
101965 posts
Posted on 3/12/14 at 4:01 pm to
quote:

Republicans gonna republican.


LOL at the notion that this shite is in any way connected to specific political parties.
Posted by HubbaBubba
F_uck Joe Biden, TX
Member since Oct 2010
45960 posts
Posted on 3/12/14 at 6:31 pm to
quote:

What distributor do you work for?
That's funny. I work out of my housed and my company refuses to go into distribution.

Maybe I just understand business costs and processes better than you do.
Posted by WizardSleeve
Louisiana
Member since Sep 2011
1805 posts
Posted on 3/12/14 at 7:13 pm to
I heard recently that all of the beer bought by consumers in lousiana is sold through 18 families
This post was edited on 4/12/17 at 9:55 pm
Posted by Tigah in the ATL
Atlanta
Member since Feb 2005
27539 posts
Posted on 3/12/14 at 7:28 pm to
The people passing these laws are the ones conservatives want to trust to elect senators.
Posted by TigerRad
Columbia, SC
Member since Jan 2007
5354 posts
Posted on 3/12/14 at 8:01 pm to
Its crony capitalism and big corporate protectionism at its worst. Its held over from prohibition days.

Watch Beer Wars - it is very informative.

Miller, Anheuser Busch (and to a lesser extent Coors) control virtually all the shelf space in the country. They are in cahoots with the distributors and the big grocery chains. It is extremely difficult for an independent brewer to get their product to market. And it is illegal for them to sell it themselves.

That just aint American.
Posted by BlownderLSU
Houston, TX
Member since Jun 2010
371 posts
Posted on 3/12/14 at 8:16 pm to
quote:

Posted by kingbob on 3/12 at 1:12 pm to ragincajun03 because then they wouldn't be able to get kick backs from the Mocklers.


Tell me more? My understanding from breweries over here is that it's a family thing. Eventually people realize there's a ceiling because you aren't one of the "godfathers" children and leave.
Posted by Y.A. Tittle
Member since Sep 2003
101965 posts
Posted on 3/12/14 at 8:24 pm to
quote:

Maybe I just understand business costs and processes better than you do.


You mean ones that require state statutory enforcement to keep in place as is?
Posted by HubbaBubba
F_uck Joe Biden, TX
Member since Oct 2010
45960 posts
Posted on 3/13/14 at 2:56 pm to
quote:

You mean ones that require state statutory enforcement to keep in place as is?
No, I understand what a distributor offers and what they don't offer and I also understand the costs, benefits and risks associated with going it alone. Has nothing to do with any support of distribution. In fact, dimwit, if you had read my posts, I advocated for anyone to be able to go to market however they choose. Has nothing to do with a state's regulatory propensities to protect certain businesses, which is completely wrong in some instances and absolutely imperative in others. For example, I would think you'd want flight training schools to be licensed and regulated, yes? Some make sense and others don't, but since government is used to regulating, they don't always necessarily use good sense in doing so.
Posted by Y.A. Tittle
Member since Sep 2003
101965 posts
Posted on 3/13/14 at 2:59 pm to
Jesus, man, sweet bump. I see I meant, dimwit, eh?

At no point, have I argued there may not be a valid reason to use a distribution system in any number of situation. I just don't think one can justify it being legally mandated.

If a distribution system makes sense from a business perspective, then there's no reason to legislate someone who wants to operate outside it.
This post was edited on 3/13/14 at 3:02 pm
Posted by ForeLSU
The Corner of Sanity and Madness
Member since Sep 2003
41525 posts
Posted on 3/13/14 at 3:00 pm to
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.


if those beers break down, who's going to be there to service them?
Posted by Bunk Moreland
Member since Dec 2010
54301 posts
Posted on 3/13/14 at 3:00 pm to
The unofficial grandaddy of the microbrews in Michigan, Bell's, had a beef with Chicago distributors for a couple of years and was kept out of the market by the mafia there because of this nonsense.

I toured a couple breweries in Chicago in December. One of them had to jump through a bunch of hoops just to be able to sell their own product at the brewery. The guy giving the tour said the good news is that many of these antiquated laws are going to way of the dinosaur, leading to the micro brewery and distillery boom.
Posted by Jax-Tiger
Port Saint Lucie, FL
Member since Jan 2005
24922 posts
Posted on 3/13/14 at 4:50 pm to
In Oregon, there are a number of breweries that sell only to the consumers. There are some that self-distribute to bottle shops and bars, and their are others that follow use the traditional distributors.

I think they could repeal the law and not much would change. You might see an uptick in small, local brewpubs that make the beer that they sell on the premise, but most brewers using the distributors now will probably continue to do so.

It really isn't very economical to self distribute. I know Ale Apothecary and Block 15 (two of my favorite breweries) self-distribute, but I can't imagine that they would continue to do so if they expand their production at all...
This post was edited on 3/13/14 at 4:51 pm
Posted by Captain Ron
Location: Ted's
Member since Dec 2012
4340 posts
Posted on 3/13/14 at 4:57 pm to
quote:

It's the good ole boy network.


Yup. It's the same here.

The original Abita Brewery, now the brew pub, still has a working brewery where they can brew their own beer. However, for them to sell it to customers, they have to sell it to a distributor and then buy it back.
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