Three Tier System Gone Wrong

Discussion in 'South Atlantic' started by lysergicdream, Oct 6, 2014.

Thread Status:
Not open for further replies.
  1. lysergicdream

    lysergicdream Pundit (877) May 13, 2010 Colorado

    tkdchampxi likes this.
  2. BBThunderbolt

    BBThunderbolt Grand High Pooh-Bah (7,846) Sep 24, 2007 Kiribati
    Pooh-Bah Trader

    It's just business. The people in Georgia need to let their legislators know they want the laws changed.
     
  3. LambicPentameter

    LambicPentameter Initiate (0) Aug 29, 2012 Nebraska

    This seems like a failure of the terrible ownership at Quality Wine and Spirits more than a failure of the three tier system.

    Quality isn't operating in good faith, and I have a feeling if Clown Shoes wanted to pursue legal action (and the cost that comes with it), they would have a good chance of being successful.
     
    tkdchampxi likes this.
  4. Retroman40

    Retroman40 Savant (1,098) Dec 7, 2013 Florida

    As much as I hate to say it this sounds like something for the lawyers to resolve. It almost sounds like if the guy I contract for the season to cut my lawn decides to get out of the mowing business but feels he can sell the "rights" to another landscaping operation with me having no input.
     
  5. lysergicdream

    lysergicdream Pundit (877) May 13, 2010 Colorado

    the failure lies in the inability of Clown Shoes to take their business elsewhere without the consent of the distributor. Any other business out there if you dissolve a working relationship, you are free to pursue other avenues to market (with the exception of some industries where non-compete clauses are standard practice). it boggles my mind that a company can in effect refuse to distribute their product and they are powerless to find another partner until the ineffective company chooses to release them
     
  6. ASak10

    ASak10 Initiate (0) Jan 2, 2014 Colorado

    Is that the fault of the three tier system, or is that the fault of the contract that was signed between the two parties? I have no clue, but if they chose to sign a contract with such a clause, they only have themselves to blame.
     
  7. lysergicdream

    lysergicdream Pundit (877) May 13, 2010 Colorado

    it is law in many states that once a distributor has your distribution rights, the "own" the rights and can sell them or otherwise transfer them with little to no input from the brewery. i understand the historical necessity for consumer protection and the move from the tied house system but the level of influence exerted by the distribution segment is out of control.
     
    TomClem likes this.
  8. ClownShoesDreams

    ClownShoesDreams Initiate (0) Dec 11, 2008 Massachusetts

    Georgia law and the three tier system largely protects the wholesalers. We will have to go to court if Quality refuse to let us free, but our contract should help when/if we get to that point, as they are required to demonstrate a reasonable effort to develop and sell our brand.
     
    manaox2, VinceMig, jshusc and 4 others like this.
  9. ASak10

    ASak10 Initiate (0) Jan 2, 2014 Colorado

    Thank you for the explanation, that makes sense. Good luck to you guys, I'm certainly rooting for you!
     
    ClownShoesDreams likes this.
  10. weaverr

    weaverr Zealot (729) Jun 10, 2008 California

    Best of luck to you. A few shops in the Macon area had made me aware of this situation, which was pretty surprising because your products are widely available here. Hope to see you back on the shelves and on tap soon.
     
  11. GeorgiaKiwi

    GeorgiaKiwi Initiate (0) Dec 7, 2007 Georgia

    I will never buy another product distributed by "Quality".
     
  12. ClownShoesDreams

    ClownShoesDreams Initiate (0) Dec 11, 2008 Massachusetts

    This developed quickly. We only heard about this on September 8th. Product was last shipped to GA about two months ago.
     
  13. evilcatfish

    evilcatfish Pooh-Bah (2,116) May 11, 2012 Missouri
    Pooh-Bah Trader

    I'm curious what other beers Quality distributed and if they pulled the same thing with them?
     
  14. ClownShoesDreams

    ClownShoesDreams Initiate (0) Dec 11, 2008 Massachusetts

    Ours was the largest of four small brands. Not sure where the other folks are at.

    On a separate note: Nice handle. Be on the lookout one day for a beer called Evil Crawfish.
     
    Brew_Bro and TomClem like this.
  15. tkdchampxi

    tkdchampxi Pooh-Bah (2,473) Oct 19, 2010 New Jersey
    Pooh-Bah

    I'm an attorney and, although I don't know Georgia contracts law or the terms of Clown Shoes' contract with Quality, it sounds like they may have a cause of action for breach of contract. There are obviously a lot of variables, and I only have the one side of the story (Clown Shoes' side, as posted on their blog).

    In any case, this is pretty sad for both Clown Shoes and Georgia BAs.
     
  16. evilcatfish

    evilcatfish Pooh-Bah (2,116) May 11, 2012 Missouri
    Pooh-Bah Trader

    Thanks. I'll have to keep an eye out for that one though I wish you guys distributed in Missouri! What style will it be?
     
  17. weaverr

    weaverr Zealot (729) Jun 10, 2008 California

    The link has been removed from their site, but the page is still up: http://www.qwine.com/craftbeerlinks.htm#beer

    If you don't want to click through, Quality carried the following brands: Brash, Carolina Brewery, Chattanooga, Clown Shoes, Ipswich, Nimbus, Red Rock, Sprecher (including sodas), White Birch, Brasserie Almaza, Birra Menabrea, Jack's Hard Cider and Foggy Ridge Hard Cider
     
  18. DawgPhan

    DawgPhan Initiate (0) Mar 23, 2012 Georgia

    nice google-fu.

    so nothing crazy on the list. Seems like Quality was purchased by another company last year. bummer for clownshoes since their stuff was generally easily available in GA.
     
  19. Immortale25

    Immortale25 Grand Pooh-Bah (3,775) May 13, 2011 North Carolina
    Pooh-Bah Trader

    @ClownShoesDreams Will Clown Shoes beers still be available at Total Wine & More stores in Georgia (assuming that you guys are still a part of their Brewery Direct program)?
     
  20. ClownShoesDreams

    ClownShoesDreams Initiate (0) Dec 11, 2008 Massachusetts

    No. But Quality reached out. We are in the process of discussing options. Hopefully there will be a happy ending here.
     
    Brew_Bro and lysergicdream like this.
Thread Status:
Not open for further replies.