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Started By
Message
LA HB 291: Brewer Self-Distribution
Posted on 3/31/21 at 8:41 am
Posted on 3/31/21 at 8:41 am
quote:
HB 291 Original 2021 Regular Session Robert Owen
Abstract: Allows brewers to self-distribute their product.
Proposed law defines brewing facility as a retail establishment where beer and other malt
beverages are brewed and sold at retail for consumption on or off the licensed premises.
Proposed law defines self-distribution as any brewer who operates a brewing facility entirely
located in the state of Louisiana distributing products brewed at that brewing facility to
certain permit holders.
Proposed law provides requirements for self-distribution.
Present law provides a fee schedule for those engaged in the business of dealing in malt
beverages or beverages of low alcoholic content.
Proposed law retains present law and additionally provides that brewers engaged in selfdistribution shall pay a $1,000 permit fee.
(Amends R.S. 26:241(15); Adds R.S. 26:241(27) and (28), 242, and 271(A)(7))
LINK
Could the craft breweries in Louisiana finally be allowed the option to self-distribute to retailers?
9
Posted on 3/31/21 at 9:00 am to ragincajun03
This would be a huge step forward for local breweries.
Posted on 3/31/21 at 9:08 am to ragincajun03
Let's ride
Posted on 3/31/21 at 9:09 am to ragincajun03
I'm sure Schilling has been diligently greasing the right hands at their hospitality room in an effort to torpedo this.
Posted on 3/31/21 at 9:14 am to Baers Foot
No doubt.
Posted on 3/31/21 at 9:16 am to ragincajun03
This is kind of the law I've been wishing would happen.
No reason for someone who has a brewery in state to have to go through a distributor. That's just extra markup on small breweries that make their product more expensive than the large scale breweries.
No reason for someone who has a brewery in state to have to go through a distributor. That's just extra markup on small breweries that make their product more expensive than the large scale breweries.
Posted on 3/31/21 at 9:23 am to ragincajun03
It makes all the sense in the world.
The distributors are going to crush it easily with their deep pockets.
The distributors are going to crush it easily with their deep pockets.
Posted on 3/31/21 at 9:32 am to LSUBoo
quote:
The distributors are going to crush it easily with their deep pockets.
Will be interesting to see if it survives committee, because then it would go to the House floor for a full, public vote that's easy for the average joe to look up.
Posted on 3/31/21 at 9:47 am to ragincajun03
quote:It will either not make it out, or they will adjust the fee schedule so that using a distributor will be more affordable.
Will be interesting to see if it survives committee, because then it would go to the House floor for a full, public vote that's easy for the average joe to look up.
Posted on 3/31/21 at 9:49 am to ragincajun03
Distributors are actually ok with this. Allows them to dump a lot of small local brands that take up time with very little return.
Posted on 3/31/21 at 11:10 am to firejohnbrady
quote:
Distributors are actually ok with this. Allows them to dump a lot of small local brands that take up time with very little return.
Then why did they lobby hard to defeat it last time?
Posted on 3/31/21 at 11:47 am to ragincajun03
It's a step in the right direction, but it stipulates that you can only do this if you brew less than 3000 barrels a year, and even then you are only allowed to self distribute 1500 of the 3000 barrels. Those are fairly small numbers. For example, a quick google shows Tin Roof has capacity for 9000 barrels. Rally Cap is at 3000-3500 annual barrels. Lobbyists for distributors doing work. 
Posted on 3/31/21 at 12:31 pm to BottomlandBrew
Ahh...see I don't know how much breweries in Louisiana typically brew.
So what you're saying is MIGHT qualify for self-distribution, but in reality if they can just sell more than the low allowance set in the bill straight from their brewery, then it does no good to attempt to self-distribute.
Also interesting, and maybe it's just coincidental because of the language of existing statutes, and cites "gallons" in the limitation of breweries that qualify as a way to probably get legislators and the general public to think it's a HUGE number, but in reality, it's not.
ETA: Couple what you've explained with an above poster claiming that the distribution lobby supports this bill, and if he's accurate, it actually makes sense.
The distributors can now claim they are no longer fighting self-distribution like a mafia gang protecting its turf, because they can point to supporting this bill which, from your post, really seems extremely minor and hardly a needle-mover.
So what you're saying is MIGHT qualify for self-distribution, but in reality if they can just sell more than the low allowance set in the bill straight from their brewery, then it does no good to attempt to self-distribute.
Also interesting, and maybe it's just coincidental because of the language of existing statutes, and cites "gallons" in the limitation of breweries that qualify as a way to probably get legislators and the general public to think it's a HUGE number, but in reality, it's not.
ETA: Couple what you've explained with an above poster claiming that the distribution lobby supports this bill, and if he's accurate, it actually makes sense.
The distributors can now claim they are no longer fighting self-distribution like a mafia gang protecting its turf, because they can point to supporting this bill which, from your post, really seems extremely minor and hardly a needle-mover.
This post was edited on 3/31/21 at 12:35 pm
Posted on 3/31/21 at 12:48 pm to ragincajun03
Anyone know how the local breweries feel about it?
Edit: Is this a foot-in-the-door type bill with hopes of increasing the amount that local breweries can self-distribute?
Edit: Is this a foot-in-the-door type bill with hopes of increasing the amount that local breweries can self-distribute?
This post was edited on 3/31/21 at 12:54 pm
Posted on 3/31/21 at 12:51 pm to ragincajun03
quote:
The distributors can now claim they are no longer fighting self-distribution like a mafia gang protecting its turf, because they can point to supporting this bill which, from your post, really seems extremely minor and hardly a needle-mover.
1500 gallons / 31 gal/barrel = 48 barrels/ 12 months/year = 4 barrels per month or 124 gallons/month on average can be distributed.
4 barrels = 8 large kegs, 16 ea - 1/4 barrel slim kegs, or 24 - 5 gallon kegs PER MONTH.
The $1000 permit to self distribute isn't even worth it. Another shite bill from politicians. I loathe politicians so much.
Posted on 3/31/21 at 1:15 pm to BugAC
Just for clarification, the bill says 93,000 gallons, so 3000 barrels.
But yes, this is a move by distributors to throw up their hands and say "Well look, we did something, so don't blame me." This is a tactic that has been used in numerous states. It's just finally getting to LA.
But yes, this is a move by distributors to throw up their hands and say "Well look, we did something, so don't blame me." This is a tactic that has been used in numerous states. It's just finally getting to LA.
Posted on 3/31/21 at 1:19 pm to BottomlandBrew
quote:
Just for clarification, the bill says 93,000 gallons, so 3000 barrels.
My mistake. I knew i messed something up.
So they can distribute 250 kegs 1/2 barrel kegs/month. That's better than 8, lol.
This post was edited on 3/31/21 at 1:23 pm
Posted on 3/31/21 at 1:42 pm to LSUBoo
quote:
It's a step in the right direction, but it stipulates that you can only do this if you brew less than 3000 barrels a year, and even then you are only allowed to self distribute 1500 of the 3000 barrels. Those are fairly small numbers. For example, a quick google shows Tin Roof has capacity for 9000 barrels. Rally Cap is at 3000-3500 annual barrels. Lobbyists for distributors doing work.
This is correct. It allows small breweries like Rally Cap or a Bayou Teche to self distribute while keeping the bigger breweries like Abita and Parish with distributors. In all honesty the Abita's of the world do not want to self distribute anyways as they understand the investment they would have to make in refrigerated trucks, line cleaners, etc. Small local breweries get the ability to self distribute and large distributors get to cut skus from their warehouse. This was sort of a wink wink deal that this would pass pre Covid.
Posted on 3/31/21 at 2:03 pm to firejohnbrady
quote:
In all honesty the Abita's of the world do not want to self distribute anyways
For sure. Distributors are still vital to the industry and lots of breweries would still use them. It's the principle of the matter, though. There shouldn't be a law on it in the first place. The whole point of the three-tier setup was to fix the issue with tied houses, but in reality tied houses exist today, so the law is pointless. Manufacturers and consumers pay higher prices without the law's intended consumer protection intentions.
PS - I realize this sort of thing isn't unique to the brewing world. It's still stupid.
Posted on 3/31/21 at 2:07 pm to mchias1
quote:Not to mention, the distributor does not need to push your product. It is a complete joke and ripe for bribery and under the table connections. It is a major barrier to new breweries that aren't "politically" connected.
No reason for someone who has a brewery in state to have to go through a distributor. That's just extra markup on small breweries that make their product more expensive than the large scale breweries.
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