-The Craft Beer Blacklist-

it explains the fishy taste I get from their beers...

 

I can't speak to the reliability of these pieces of information, but I think they are worth perusing given the nature of your discussion.

http://www.newser.com/story/142953/flailing-anheuser-busch-tries-new-beers-intimidation.html

http://www.boston.com/ae/specials/culturedesk/2011/03/anthony_bourdain_discovery_kil.html

http://www.huffingtonpost.com/2013/02/01/budweiser-corona-deal_n_2599341.html

 

No doubt everyone's in this to make money. Despite my desire to support the smaller business, I don't think for a single second that they don't want profits first and foremost. However, there's a lot of grey area when it comes to how you get those profits. If a ABinbev is going to go to a bar and offer that bar a free cooler in exchange for them bouncing the Jack's Abby tap of the rotation in favor of a Shock Top tap, I'm not ok with that. That's a pursuit of profit I'm not down with (even if it's totally legal in the realm of capitalism, it's not for me). Additionally we see many small brewers (John Kimminch for example) who say they don't want to expand into every market. He has spoken about letting profits get to his employees and giving them more time off when they are doing better money-wise (as opposed to just saying, "Let's expand to the west coast now and all work our asses off"). That's the pursuit of profit I like to support. So yeah, they're all in it for the $, but how you get that buck makes a difference to me. And if you get it in a way that doesn't meet my standards then I will do everything I can to avoid purchasing your products.

 

Well, that's a rational view. However, the blind denunciation of anything that smells close to corporate is what I am talking about. I think that most people really have no idea about the business structure of many of the breweries/companies, and don't realize the complexity involved. I have been drinking Unibroue for a long time. I don't believe the quality has gone down since Sapporo bought them. I will continue to enjoy them without inhibition. The points you make are valid and well taken, as I agree. However, sometimes, "let's expand and all work our asses off" is good for everyone, employer, employee and consumer.Not all growth is bad and that's part of my point. A rational person like yourself must understand, yes?...Cheers......

 

For better or worse-- I only see the list growing and growing over the next several years. Consolidation and brand acquisition are the name of the game right now for macros in hope of keeping market share. Craft will be a very blurry line for a tumultuous and foreseeable future.

 

Unfortunately the WSJ article is behind a paywall. But here are the money quotes:

"But this year Budweiser's got a plan, president of North American operations Luiz Edmond tells the Wall Street Journal: It's going to produce more beers, while leaning on distributors not to carry the competition. "

"At the same time, Bud has urged 500 wholesalers to distribute fewer rival beers, warning that it will act against those who don't. An unapologetic Edmond says wholesalers must pick sides, and show "loyalty" to InBev."

 

Because in your example, the only support of local interests is at the retail level. If the product was also created or manufactured locally, you would have that benefit on top of the retail benefit. So more of the wages, taxes, profits, etc stay local.

In the beer world, if I buy a growler or sixpack of beer at a local brewery or brewpub, all of the money stays local. In other scenarios, the money is spread over the 3 Tier system and wherever they are located.

 

So, free markets being what they are, AB distributors can kick a brewer who sells a few cases a month out or they can kick AB out. Which are they going to keep? Alternatively, if AB houses kick a bunch of great/popular crafts to the curb, I'd move there and start a craft distributor and make out like a bandit. I fail to see the problem here. Also, if one of these AB distributors is willing to drop brands without a fight, how much actual effort do you think they have been putting in to promoting them? No real loss for anybody here...

 

This guy gets it.

 

Agreed. Growth can definitely be a good thing. When growth is hurting employees or communities, I draw the line. Sounds like you may as well.

 

Yes. For me that is where the line must be drawn for a fair, vibrant and sustainable economy, for beer as well as other things...but especially things like beer...

 

The distribution system is NOT a free market, and "I'd move there and start a craft distributor" is not something you can just do. There are SIGNIFICANT barriers to entry, most of them put there by AB.

Sadly, no, he doesn't. It would be great if it actually worked that way, but it doesn't.

 

I suppose we just have different definitions of hurting the community, which is understandable.

 

While good to know, I say drink what you like. It's just beer.
And if you drink the crappy stuff, that just leaves more good stuff for me.

 

It actually does work that way. Feel free to actually make a case for why you're right instead of a statement that reads like "nuh-uh bro, you're wrong". Let's say AB distributors kick every craft brand out of their distribution. First off, it would be the best day Miller distributors ever had as they scoop up all the profitable crafts. Let's say Miller does the same thing and (gasp) gets all of their distributors to kick all craft out of their house. Now, crafts have nowhere to go! ZOMG! It's the end of craft!

Or...in every major city in Ohio, there's at least one independent craft beer distributor who would love the opportunity to pick up the profitable brands that the AB/Miller distributors dropped. But, let's ignore that fact and go into what it takes to open a craft distributor. In the great state of Ohio, you need to find a warehouse, lease some trucks, hire some guys and then send a check for $3,225 (give or take) to the state for your wholesaling permit. I'd start that business tomorrow if the AB distributor in Cincinnati (Heidelberg) dropped all of their craft brands (including Sam Adams, Sierra Nevada, 21st Amendment, Shiner, Rogue and many more).

I'd be interested in hearing more about these "significant barriers to entry" that AB has put in place. Do I have to submit my liquor license application to AB? No. Is AB the only guys who sell trucks? Oh, wait, they don't sell trucks at all. Do I have to go to St. Louis and pray under the arch in the direction of Adolphus Busch's grave? Apparently whatever SIGNIFICANT barrier to entry you claim exist has been gotten around by several other business people, so I'm starting to think they are only in your imagination...

 

these threads are great for all of the awful analogies.

 

Possibly, but I believe that free, vibrant and sustainable is open to much interpretation. For me it means sustainable environmentally as well as providing employees a good living wage while still being able to make money and grow. Free, meaning that no unnecessary restrictions are placed on doing business unless they hurt the community, other businesses or employees or the environment ( for instance, some protection of small breweries to use names that may mean something in their limited distribution area, without having a larger brewery declare that you can't use the word "the", with exceptions , of course, as trademarks do mean protection in a lot of cases ) and vibrant, meaning good, honest fun, maybe even collaborative competition. How do we differ?...

 

In PA, the equivalent are "Importing Distributors", and they are capped by county. So you can't open a new one if the maximum already exists.

From http://www.lcb.state.pa.us/PLCB/Licensees/FAQs/index.htm

"There is also a restriction on the number of distributor and/or importing distributor licenses that may be issued in any county. No new distributor or importing distributor license may be granted in any county where the combined number of distributor and importing distributor licenses exceeds one (1) license for each thirty thousand (30,000) inhabitants of the county in which the license is to be issued, provided that a combined total of five (5) such licenses may be granted in any county."

 

Probably more then half of the brewery owners would love to be brought out by the big boys. In many cases, it is why they started the business in the first place.

 

and many times those small businesses sucked. You have to have childlike mind if you think all small businesses are good and all big businesses are bad. A few years ago, using this mind frame, I decided to overpay for a vacuum at a local mom and pop vacuum store. I had some issue with it and brought it back and the pop (in this case) gave me a hard time and said I had to go through the manufacturer. Meanwhile I could have thrown up in the the empty box and Walmart, or any big store would have taken in back without a question. And I had a small local business that we lost because all the locals with their "buy local" bumper stickers patronized the big boys.