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The big alcohol companies force distbutors to carry certain products, or even not carry comepetitors products. An example: you want to keep selling a macro lik

by barake 9y ago

The big alcohol companies force distbutors to carry certain products, or even not carry comepetitors products. An example: you want to keep selling a macro like Bud or scopes that makes up 40% of your revenue ? Drop that local brewery, we have a “craft” IPA to sub out. They get the revenue the same, you get the illusion of choice, and the new company gets to pound sand.

yock 9y ago
Many states have laws forcing producers of alcoholic beverages to use distributors in the first place. It's state law that creates the bottleneck which allows the big players to monopolize the market in the first place.
- barake 9y ago
  This would be a problem even with direct distribution. Just replace distributor with retailer. Here in Kentucky, AB Inbev owned a distributor and was quietly playing these games. After some shenanigans, KY adjusted the three tier rules to prevent breweries owning distributors, even if they’re from out of state. FWIW the three tier system is dumb and should go away. But removing it doesn’t automatically level the playing field.
  - rockostrich 9y ago
    > This would be a problem even with direct distribution. Just replace distributor with retailer. This is false. Breweries that make great beer have no problem selling out of their beer when they only sell packaged beer at the brewery. Examples include Tree House, Trillium, Hill Farmstead, Other Half, LIC Beer Project, Interboro, Night Shift (who actually own a distribution company now, but they sell out of new releases at the brewery within a day or 2), Monkish, Cellarmaker, the Veil, and many more in pretty much any major city that you can think of. Hell, Boston and New York have a half dozen each and new breweries are still popping up that are selling out of beer without distributing. I agree that the 3 tier system is stupid, but breweries have proven over the past decade that they can scale up to 10k+ barrels per year without distributing a single thing.
    - barake 9y ago
      Sorry I wasn’t clear, only talking about retail distribution, not direct package sales. No question plenty of breweries have found a way to be successful outside of normal retail. But they should be able to distribute, without large multinationals strong arming retailers in to not carrying competitors products. Absolutely agree that many breweries have been successful not distributing
      - rockostrich 9y ago
        No worries, I wasn't sure if that's what you might have meant. Night Shift near Boston actually started their own distribution company which has helped a ton of local breweries get their beer out of saturated areas and into new markets where they might do better. Right now it's mostly them distributing New England beer to Chicago and a few other areas in the NE and then picking up beer from Pipeworks in Chicago and bringing it back to distribute up here.
  - yock 9y ago
    > FWIW the three tier system is dumb and should go away. But removing it doesn’t automatically level the playing field. I didn't mean to imply that it would. Laws regarding the distribution of alcohol are just a small piece of the puzzle.
TheTruestKyle 9y ago
You also also run into a problem when AB-InBev is trying to buy certain hop farms. South African hops are pretty much entirely owned by big beer now and are controlling who can use their hops.

by barake 9y ago

yock 9y ago

Many states have laws forcing producers of alcoholic beverages to use distributors in the first place. It's state law that creates the bottleneck which allows the big players to monopolize the market in the first place.

barake 9y ago
This would be a problem even with direct distribution. Just replace distributor with retailer. Here in Kentucky, AB Inbev owned a distributor and was quietly playing these games. After some shenanigans, KY adjusted the three tier rules to prevent breweries owning distributors, even if they’re from out of state. FWIW the three tier system is dumb and should go away. But removing it doesn’t automatically level the playing field.
- rockostrich 9y ago
  > This would be a problem even with direct distribution. Just replace distributor with retailer. This is false. Breweries that make great beer have no problem selling out of their beer when they only sell packaged beer at the brewery. Examples include Tree House, Trillium, Hill Farmstead, Other Half, LIC Beer Project, Interboro, Night Shift (who actually own a distribution company now, but they sell out of new releases at the brewery within a day or 2), Monkish, Cellarmaker, the Veil, and many more in pretty much any major city that you can think of. Hell, Boston and New York have a half dozen each and new breweries are still popping up that are selling out of beer without distributing. I agree that the 3 tier system is stupid, but breweries have proven over the past decade that they can scale up to 10k+ barrels per year without distributing a single thing.
  - barake 9y ago
    Sorry I wasn’t clear, only talking about retail distribution, not direct package sales. No question plenty of breweries have found a way to be successful outside of normal retail. But they should be able to distribute, without large multinationals strong arming retailers in to not carrying competitors products. Absolutely agree that many breweries have been successful not distributing
    - rockostrich 9y ago
      No worries, I wasn't sure if that's what you might have meant. Night Shift near Boston actually started their own distribution company which has helped a ton of local breweries get their beer out of saturated areas and into new markets where they might do better. Right now it's mostly them distributing New England beer to Chicago and a few other areas in the NE and then picking up beer from Pipeworks in Chicago and bringing it back to distribute up here.
- yock 9y ago
  > FWIW the three tier system is dumb and should go away. But removing it doesn’t automatically level the playing field. I didn't mean to imply that it would. Laws regarding the distribution of alcohol are just a small piece of the puzzle.

TheTruestKyle 9y ago

You also also run into a problem when AB-InBev is trying to buy certain hop farms. South African hops are pretty much entirely owned by big beer now and are controlling who can use their hops.