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re: Baton Rouge craft beer brewers want ability to sell directly to stores
Posted on 3/19/18 at 1:53 pm to BMoney
Posted on 3/19/18 at 1:53 pm to BMoney
quote:
Yes. And some of the even smaller breweries who want to get their beer in peoples' hands, can't, because the distributors don't want to deal with the really small brewers. So, it's a catch 22.
Here is the biggest issue that is very unfair to distributors. In LA you have a state that has been steadily declining in beer volume for the past 5+ years. At a retail level there hasn't been this big growth of space in coolers. The influx of craft breweries, and now huge growth in local breweries, has forced distributors to squeeze more brands and products in a space that is the same it was 5+ years ago.
At some point distributors have to make a business decision on what brands they choose to spend their time and money on. They are now managing more SKUS than ever and are selling less beer. I don't think any distributor would willingly pass up on a brewery that has a sizable market demand and growth potential.
2
Posted on 3/19/18 at 1:56 pm to firejohnbrady
Well if breweries could self-distribute, would that not help ease the burden the distributors have of all these accounts?
Posted on 3/19/18 at 2:00 pm to TH03
which distributor are you with, baw?
Posted on 3/19/18 at 2:02 pm to ragincajun03
quote:
Well if breweries could self-distribute, would that not help ease the burden the distributors have of all these accounts?
Yes, of course it would, but it would also mean less product they get their cut on.
I know one of the main reasons breweries are doing so many brewery-only small releases is that distributors don't want to mess with small amounts of a product that can't even be doled out among all their accounts. If Mockler can only get, say, 20 kegs of a beer or one pallet of cans, is that even worth their time?
Posted on 3/19/18 at 2:04 pm to TH03
quote:
Maybe I underestimate how bad LA is. How do parish, GR, etc distribute? They have to tag on with a distributor for that little product?
They all have two options, sell direct through the taproom, or sell to a distributor. And you can only sell up to 10% through the taproom, unless it's 100% like Courtyard or Old Rail.
So yeah, Parish and Tin Roof, which are two of the bigger ones in the state, have to sell their product to a distributor. Even if The Chimes at LSU is selling a Tin Roof beer made just a mile or so away it goes through Mockler first.
Posted on 3/19/18 at 2:05 pm to Rouge
quote:
a more unified payment to legislation is only way to make that happen
All campaign contribution from big beer will stop for any political person that sees this through. That money will go directly to their opponents for the next election.
THAT is how all of this works
No politician is going to lay on the sword over beer
And in what the hell does that have to do with changing regulation and allowing smaller breweries to sell to retail directly Red?
Who's talking about big beer? You think Scott is writing checks to Walt Lege?
Most larger breweries need distribution unless there is a ROI in buying your own trucks.
I did like the rant though, nice job.
Posted on 3/19/18 at 2:29 pm to ragincajun03
quote:
Well if breweries could self-distribute, would that not help ease the burden the distributors have of all these accounts?
Well then that cuts out the use of a distributor which means they don't make any money. So no, breweries being able to self distribute does not benefit a distributors. It instead creates more competition for them.
Posted on 3/19/18 at 2:37 pm to firejohnbrady
There are places where breweries have done very well once they are allowed to self distribute. I can think of some breweries in Austin and Charlotte that have been very strategic and built strictly in a small radius. I personally don't think that this model makes sense for LA because we are not a very populous state with very dense population centers. Also the demand for local craft beer is nowhere as big as most people think it is.
Posted on 3/19/18 at 2:40 pm to firejohnbrady
quote:stop letting good beers shelf turd in your warehouses, and perhaps i will start having more concern for the plight of the distributor
very unfair to distributors
Posted on 3/19/18 at 2:41 pm to firejohnbrady
quote:
Well then that cuts out the use of a distributor which means they don't make any money. So no, breweries being able to self distribute does not benefit a distributors. It instead creates more competition for them.
Yet 35 other states allow some sort of self distribution. I imagine the distributors there are still making plenty of money.
There's a point a brewery reaches when self distribution is no longer viable and it makes more sense to use a distributor. Limited self distribution would benefit everyone in the entire supply chain. It allows the brewery to grow and become established without burdening the distributor with yet another small account that may not even be profitable. Once the brewery becomes big enought to be in need of distribution, the distributor can take on an established brand that will be profitable.
But good luck getting a distributor to buy into that.
Posted on 3/19/18 at 2:42 pm to LSUBoo
quote:
Nah, plenty of states out there allow breweries to self-distribute in some fashion.
Colorado is one of them and it was a big reason that much of the craft beer "revolution" began here. Changing that law would be huge for La. craft breweries but they're going to get a big fight from big beer.
Posted on 3/19/18 at 2:54 pm to BMoney
quote:
But good luck getting a distributor to buy into that.
Bingo.
We can weigh the pros and cons of self distribution, but at the end of the day the laws on the books are extremely beneficial to the distributor in this state. It would take years in the court room for anything to change and the distributors across the state are much better funded and much more organized.
This post was edited on 3/19/18 at 2:56 pm
Posted on 3/19/18 at 2:57 pm to MountainTiger
Massachusetts also passed a law allowing breweries to self distribute last year.
Posted on 3/19/18 at 2:59 pm to BMoney
quote:
There's a point a brewery reaches when self distribution is no longer viable and it makes more sense to use a distributor.
Current laws don't allow the brewery to reach that point where a distributor is needed, right? If breweries like Courtyard could distribute, they would generate more demand for their beers.
Posted on 3/19/18 at 3:08 pm to Jax-Tiger
quote:
Current laws don't allow the brewery to reach that point where a distributor is needed, right? If breweries like Courtyard could distribute, they would generate more demand for their beers.
Yeah, Courtyard could generate a lot more demand if they could self-distribute. I've heard they are looking for a space to start a production brewery... I'm guessing it will have to be a separate legal entity and license from the current brewpub though... not sure how that will work.
And I imagine the current brewpub will have to buy the production beer from a distributor under current laws.
Posted on 3/19/18 at 3:10 pm to TH03
I don't like the limits in principle, but in Texas, the limits are really high. You can self distribute over 650 skinny kegs a day, every day of the year. That's more than almost every craft brewery produces annually. I'm pretty sure only Gambrinus/Spoetzel (ie Shiner) produces more than the production limits for self distro.
Posted on 3/19/18 at 3:24 pm to Packer
quote:
Link to the database where you can look at each state's self distribution laws for anybody that is interested
Louisiana: Self Distribute: No.
Oregon: Self Distribute: Yes. Beer must be in sealed container.
Posted on 3/19/18 at 3:35 pm to LSUBoo
quote:
I've heard they are looking for a space to start a production brewery...
That was before Trump's aluminum tariff
Posted on 3/19/18 at 3:42 pm to GRTiger
Revolver and Deep Ellum have both grown 50% in the last couple years. They're obviously already distributed though, with revolver being owned by Miller Coors now.
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