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re: So how butthurt were the craft brew people about that Bud commercial?

Posted on 2/2/15 at 9:56 am to
Posted by lilsebastian
South of Nowhere North of Nothing
Member since Dec 2013
22 posts
Posted on 2/2/15 at 9:56 am to
How do the "distribution laws favor the bigger breweries"....?
Posted by LouisianaLady
Member since Mar 2009
81266 posts
Posted on 2/2/15 at 10:00 am to
quote:

How do the "distribution laws favor the bigger breweries"....?



Beer must go through a distributer to be sold. Like.. for example, Tin Roof can't call up some beer store in Kansas and sell directly to them. That store has to order beer through a distributer.

Distributers are out to make money. So they only sell beer they think will make them money. So if that distributer for that store in Kansas doesn't think Tin Roof will make him money, they aren't getting it.

This is why beer people buy beer like crazy when they leave the state.
Posted by BugAC
St. George
Member since Oct 2007
52951 posts
Posted on 2/2/15 at 10:04 am to
quote:

How do the "distribution laws favor the bigger breweries"....?


It's a bit complicated but i'll try to sum up. It is required, by law, to pay a distributor to sell your beer to a store. So if you are a small brewery, it would be advantageous to load up the pickup with some kegs and bring them to the bars. Well, tahts against the law in Louisiana, thus the macro's benefit. Macro's also bring more business to the distributors, so that small guy will have a harder time getting his beer sent out.

There is a point where a distributor becomes advantageous to a craft brewery. When logistics and cost reach a point where a distributor is more financially sound, then a craft brewer would use a distributor. But a small brewer shouldn't be forced by law, to have to use distributors.

The macro's and distributors have a close relationship. They are tied at the hip because distribution costs could discourage smaller breweries form even opening.
This post was edited on 2/2/15 at 10:06 am
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