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re: Baton Rouge craft beer brewers want ability to sell directly to stores
Posted on 3/19/18 at 3:59 pm to TH03
Posted on 3/19/18 at 3:59 pm to TH03
quote:
Revolver and Deep Ellum have both grown 50% in the last couple years.
With really small breweries, the problem is two fold. The brewery struggles to make enough beer to meet the demands of the distributor, and the distributor doesn't want to frick with the brewery if they don't make very much beer.
If the brewery wants the distributor to pick up 6 kegs of beer for distribution, the distributor is going to laugh.
0
Posted on 3/19/18 at 4:13 pm to TH03
Yea I think Deep Ellum was right around 40k barrels produced last year. Maybe a little more. I looked up a bunch a while back.
I think part of their growth was due to selling a majority share to an out of state group a year or so back.
I think the ability to self distribute helps micro and nano breweries more than those the size of Deep Ellum. At some point, your target is sustained rapid growth and self distro becomes impractical for achieving that. Like many have said, a distributor isn't going to give the same attention to those 5k barrel producers as the 50k producers.
Though I will say I've heard as much good things from both brewers and retailers in Houston as not so good when it comes to the service of distributors.
I think part of their growth was due to selling a majority share to an out of state group a year or so back.
I think the ability to self distribute helps micro and nano breweries more than those the size of Deep Ellum. At some point, your target is sustained rapid growth and self distro becomes impractical for achieving that. Like many have said, a distributor isn't going to give the same attention to those 5k barrel producers as the 50k producers.
Though I will say I've heard as much good things from both brewers and retailers in Houston as not so good when it comes to the service of distributors.
Posted on 3/19/18 at 4:47 pm to GRTiger
quote:
At some point, your target is sustained rapid growth and self distro becomes impractical for achieving that.
Unless some people are just happy being the "neighborhood" brewer
Posted on 3/19/18 at 4:52 pm to t00f
one other issue for the brewers & the distributors that hasn't been mentioned is that beer is a perishable item. at times it's difficult for brewers/dist's/retailers to get product to the shelf causing limited days to sell. Also, it was mentioned that the pie (state beer sales) has shrunk - it also gets sliced up more every month with new brand entries that also leads to heavier shelf life.
Posted on 3/19/18 at 4:54 pm to livnthehighlife
Another reason for direct sales.
Posted on 3/19/18 at 4:59 pm to GRTiger
quote:
I think part of their growth was due to selling a majority share to an out of state group a year or so back.
Yeah to a group out of Chicago.
Posted on 3/19/18 at 5:03 pm to fightin tigers
Right. And those guys will likely never hit the limits I'm talking about.
I'm talking about Texas law and how it's at least somewhat reasonable (ignoring my belief that there shouldn't be limits), especially compared to LA. I think those smaller breweries that a) have no interest in competing with the players paying the lobbyists/legislators thst fight changes to the law; and b) aren't likely to get the service or terms bigger guys get, should be able to self distribute.
I'm talking about Texas law and how it's at least somewhat reasonable (ignoring my belief that there shouldn't be limits), especially compared to LA. I think those smaller breweries that a) have no interest in competing with the players paying the lobbyists/legislators thst fight changes to the law; and b) aren't likely to get the service or terms bigger guys get, should be able to self distribute.
Posted on 3/19/18 at 10:56 pm to t00f
There may be pros and cons to a brewer using a distributor.
But it is insane that they MUST use a distributor.
But it is insane that they MUST use a distributor.
Posted on 3/20/18 at 8:12 am to LSUFanHouston
Question. Can you buy a keg directly from a brewery or does that violate distribution laws as well?
Posted on 3/20/18 at 9:01 am 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.
then frick'em. The three-tier system has outlived it's purpose and should be abolished.
Posted on 3/20/18 at 9:03 am to GRTiger
quote:
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.
Here is a kicker for Texas though... The production Oskar Blues has at it's facilities in Colorado and North Carolina also count towards it's total. And once a brewery reaches the limit they have to buy beer from the distributor to sell in their own fricking taproom.
Posted on 3/20/18 at 9:09 am to GRTiger
quote:
'm talking about Texas law and how it's at least somewhat reasonable (ignoring my belief that there shouldn't be limits), especially compared to LA.
Texas is going to wrong way. HB 3287, passed this past session, is a huge step in the wrong direction for craft beer in this state.
Posted on 3/20/18 at 9:14 am to LSUFanHouston
quote:
But it is insane that they MUST use a distributor.
This is what the entire topic comes down to for me, the fact that breweries are forced into these agreements. They are the only ones that are, wineries and distilleries don't have these restrictions. The only reason that these requirements still exist is because of the amount of money used to buy politician votes.
Posted on 3/20/18 at 10:32 am to KamaCausey_LSU
According to their website, Parish sells kegs direct, so I assume it's legal in LA. But I would guess this would count towards their 10 percent?
Posted on 3/20/18 at 10:33 am to LoneStarTiger
Yeah the distributor power is so different in wine/spirits than beer. It's a whole different world for us.
Posted on 3/20/18 at 10:36 am to LoneStarTiger
quote:
Texas is going to wrong way. HB 3287, passed this past session, is a huge step in the wrong direction for craft beer in this state.
Yep. The limits are still reasonable NOW, but that bill passing was a bad sign.
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