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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 1:20 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 1:36 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 1:46 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 1:49 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 1:59 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.
Posted on 3/12/14 at 2:14 pm to ragincajun03
There was a really good documentary on Netflix about this a while back. I think it featured the Dogfish Head owner.
Posted on 3/12/14 at 3:56 pm to ragincajun03
It's the same reason florists have to be licensed in LA.
bullshite reasons.
bullshite reasons.
Posted on 3/12/14 at 4:00 pm to ragincajun03
Republicans gonna republican.
Posted on 3/12/14 at 7:13 pm to ragincajun03
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 on 3/12/14 at 7:28 pm to ragincajun03
The people passing these laws are the ones conservatives want to trust to elect senators.
Posted on 3/12/14 at 8:01 pm to ragincajun03
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.
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 on 3/13/14 at 3:00 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.
if those beers break down, who's going to be there to service them?
Posted on 3/13/14 at 3:00 pm to ragincajun03
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.
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 on 7/31/14 at 11:59 am to ragincajun03
I meant to post in this thread, but i was banned at the time.
I believe small breweries should be allowed to self distribute up to a point. Once you become large enough i believe distributors are preferred, and warranted.
I've read up on articles on it. The problem with allowing all breweries to self distribute is that the larger breweries, can again, corner the market. Right now, the big 3 own most distributors, so they get preference of store placement. If you take away that distributor, the big 3 then own the supermarkets. You think the shelfing for craft beer is overlooked now, just wait, when the Big 3 can sell their beer to the supermarkets for dirt cheap, and provide incentives.
There should be a cap, kind of like the definition of craft vs. macro brewery, to determine who is allowed to self distribute.
All in all, once a craft brewer gets large enough, they will prefer a distributor. But for small upcoming breweries, require a distributor is more damaging. Being able to ship a few kegs in the back of your pickup around town is ideal for the smaller brewer. But once you get to shipping statewide, using a distributor outweighs shipping costs and logistics.
I believe small breweries should be allowed to self distribute up to a point. Once you become large enough i believe distributors are preferred, and warranted.
I've read up on articles on it. The problem with allowing all breweries to self distribute is that the larger breweries, can again, corner the market. Right now, the big 3 own most distributors, so they get preference of store placement. If you take away that distributor, the big 3 then own the supermarkets. You think the shelfing for craft beer is overlooked now, just wait, when the Big 3 can sell their beer to the supermarkets for dirt cheap, and provide incentives.
There should be a cap, kind of like the definition of craft vs. macro brewery, to determine who is allowed to self distribute.
All in all, once a craft brewer gets large enough, they will prefer a distributor. But for small upcoming breweries, require a distributor is more damaging. Being able to ship a few kegs in the back of your pickup around town is ideal for the smaller brewer. But once you get to shipping statewide, using a distributor outweighs shipping costs and logistics.
Posted on 7/31/14 at 12:01 pm to ragincajun03
quote:
Why shouldn't they be allowed to sell 100 percent straight out of their own taproom or store if they wish?
They should. There is no good argument against breweries selling products directly. These laws are awful.
/thread
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