Started By
Message

re: LA HB 291: Brewer Self-Distribution

Posted on 3/31/21 at 2:08 pm to
Posted by Salmon
I helped draft the email
Member since Feb 2008
85367 posts
Posted on 3/31/21 at 2:08 pm to
these are the type of things that I struggle to believe we still need to propose

imagine a business being able to distribute its own product

crazy shite
Posted by TigerTatorTots
The Safeshore
Member since Jul 2009
82042 posts
Posted on 3/31/21 at 2:11 pm to
Welcome to Louisiana where only the "connected" can make it
Posted by firejohnbrady
Chocolate City
Member since Dec 2007
863 posts
Posted on 3/31/21 at 3:15 pm to
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.


It is honestly more about the pressure AB and MC put on their distribution networks. The antiquated laws give all the advantage to the distributors so they can "control" how hard/little they push brands they acquire. If a local brand catches fire and replaces that AB/MC tap handle or shelf space, you better believe distributors get hammered for it.

While many local breweries complain that their distributors aren't pushing them as hard as they should, in actuality most shouldn't be distributing more than 50 miles outside of their brewery. The space in too competitive at this point. If you are a small brewery it is extremely difficult gain legitimate tap handle or shelf space distribution. Good luck competing against the 50th new Seltzer that is getting cut into a grocery store cold box.

I do think this is a step in the right direction but there is a very long way to go in making it a true competitive landscape.
Posted by ragincajun03
Member since Nov 2007
27336 posts
Posted on 3/31/21 at 5:36 pm to
quote:

While many local breweries complain that their distributors aren't pushing them as hard as they should, in actuality most shouldn't be distributing more than 50 miles outside of their brewery.


So Gnarly Barley shouldn’t be available in Lafayette and Shreveport? Bayou Teche shouldn’t be available in New Orleans and Lake Charles?
Posted by hubertcumberdale
Member since Nov 2009
6803 posts
Posted on 3/31/21 at 5:56 pm to
quote:

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.


Thats fine and all, but where I am confused is why dont they just let the market regulate itself? If its too expensive for bigger breweries to distribute, then they will go through a group like MB. Why is there a law prohibiting breweries from selling their own beer? Who is this really benefitting? People that have hands in the pocket of the politicians, like MB I would assume?
Posted by firejohnbrady
Chocolate City
Member since Dec 2007
863 posts
Posted on 4/1/21 at 1:02 am to
quote:

So Gnarly Barley shouldn’t be available in Lafayette and Shreveport? Bayou Teche shouldn’t be available in New Orleans and Lake Charles?


Gnarly Barley hasn't been available in certain markets because they can’t produce enough beer to keep up with the demand. That’s a great problem to have, most local breweries aren’t in demand like Gnarly is.

Bayou Teche is one of the local breweries fighting for self distribution, I think they are smart enough to realize they can make more money just distributing in a 30-50 mile radius especially if they aren’t destroying their margin by selling to a distributor. I’m not saying they shouldn’t be available in New Orleans but I don’t think they or the distributor are making much money in New Orleans, especially post Covid when the On Premise shutdowns have killed local brewery tap handles.
Posted by firejohnbrady
Chocolate City
Member since Dec 2007
863 posts
Posted on 4/1/21 at 1:13 am to
quote:

Thats fine and all, but where I am confused is why dont they just let the market regulate itself?


They are the #28 brewery in the US. They had a tough 2020 but their business model is still very profitable to their stakeholders. Their distributors play a large part in their success.

quote:

Why is there a law prohibiting breweries from selling their own beer? Who is this really benefitting? People that have hands in the pocket of the politicians, like MB I would assume?


You have laws dating back to prohibition with lobbying groups right behind the River Boat Pilots and the Gaming industry....

Posted by KamaCausey_LSU
Member since Apr 2013
17050 posts
Posted on 4/1/21 at 9:36 am to
quote:

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.

I wonder if Abita could spin off a new "brewery" to self distribute small batch beers under the barrel threshold.
Posted by hubertcumberdale
Member since Nov 2009
6803 posts
Posted on 4/1/21 at 9:56 am to
quote:

I wonder if Abita could spin off a new "brewery" to self distribute small batch beers under the barrel threshold.


This is a good point, why not create a new entity for every batch of beer you brew?
Posted by LSUFanHouston
NOLA
Member since Jul 2009
40196 posts
Posted on 4/1/21 at 1:21 pm to
Love this.

0 percent chance the conservatives in the LA Legislature will pass this.
first pageprev pagePage 2 of 2Next pagelast page
refresh

Back to top
logoFollow TigerDroppings for LSU Football News
Follow us on X, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookXInstagram