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> Many states require brewers to use distributors to sell their product, and once AB InBev buys a distributor, craft companies say they find that they can't dis
by coffeecheque 11y ago
> Many states require brewers to use distributors to sell their product, and once AB InBev buys a distributor, craft companies say they find that they can't distribute their beer as easily and sales growth stalls
That seems like the problem here. Why can't brewers sell direct?
Like Telsla sales channels - what is it about the US and middle men?
- adventured 11y agoWhy would you think there's anything special about the US and middle men?
- nrb 11y agoThe three-tier system was created after the end of prohibition to provide a single point for the control and taxation of alcoholic beverages by the states, the wholesalers (distributors). It also protected the smaller suppliers (breweries) from the bigger ones by requiring that wholesalers be independent from the suppliers, who are independent from the retailers. However, when you're as big as InBevAB, you essentially own any wholesaler you deal with, since your sales will account for such an overwhelming share of their overall sales. Many craft breweries can get around this three-tier system by operating their own brewpubs, where they produce and sell their product on the same premises. I feel like the three-tier system has probably outlived its use and is likely more harmful than beneficial.
- vpeters25 11y agoBefore prohibition, big brewers owned most of the bars and you could only buy their brand. Ken Burn's "prohibition" documentary explains how a single brand of beer owned all the bars for several blocks in a city. State legislatures had this in mind and adopted the 3 tier system barring producers from controlling distribution and/or owning the bars.