Craft beer cheaper without 3 tier system?

Which free market can you point to as an example of it working to the benefit of the consumer?

Lets see some data.

 

This is a very interesting thread to say the least. It does seem to me that many BA's seem to think craft beer is overpriced. It is not, if you think SNPA should not cost $2.00 a 6 pack more than Budweiser you should change your drinking habits. Craft beer as we know it in the USA could not exist without the 3 Tier system.

 

Has the lack of a mandated three tier system (?) prevented craft beer from being distributed in the UK? In Mexico ?

 

The craft beer scene in Mexico has been repressed for decades, but is getting better now.

Link: http://www.sandiegomagazine.com/San-Diego-Magazine/March-2013/The-Dark-Side/

 

I dont know what was already said and i know nothing about economics and taxes and what not but i would think craft wouldn't be less $ because quality ingredients (which cost more) plus things like coffee, barrels etc which cost more than bmc beer ingredients like corn and rice.

 

Rice used in brewing often costs as much or more than Barley and can be used to make excellent craft beer, for example the Flying Fish Exit 16 which includes both Wild Rice and Rice in its recipe.

 

But do you see the irony? In two states (NJ and NY) the price is cheaper than in the home state of PA. And in two states quite some distance away (VA and MA) the price is the same. If this does not demonstrate to you that the PA laws/regulations are screwed up then nothing will to you.

 

Flying Fish is 30 minutes from me. ill have to check that beer out. Somebody told me it that beer smelled like armpits so ive avoided it.

 

Outstanding! Another blatent, patently false generalization from the Halls of Beer Elitism. [credit; DunkelFester]

 

im not an elitist i genuinely thought rice was cheap (in price) thanks for the advocacy. You can just as easily inform me that rice is the same cost as barley but instead im berated because you didnt understand what i meant

 

Armpits??? Well, I suppose it take all kinds.

Here's a link to my reactions to the beer, you might check that and a few others out before you try it. (IIRC it's in the 12oz bottle Exit series variety pack if that interests you at all.)

http://www.beeradvocate.com/beer/profile/339/56716/?ba=drtth

 

Well actually I don't see the irony when I can sometimes find spirits, wines and beers for less money in PA than in neighboring states. E.g., my 4 pack of Duvel Triple Hop this past year was purchased in PA for less (including state tax in the total) than I would have paid out of pocket had I driven to Delaware and gotten it at Total Wine.

 

I'll put it to you like this. If Exit 16 was brewed in tiny amounts in the mountains of Vermont it would be in top 10 of the best beers list.

 

First...let's get off on the right foot. I never used the word elitist. What I said was that it was, "Another blatant, patently false generalization"...because that is what it was. I do not feel it is my job to attempt to educate you; but I feel a responsibility to my fellow posters to point out certain truths.

...and since I'm being totally honest here, your post was #85 in this thread. Would it really have been that hard to read what was already posted? Honestly, if you did the required reading, you might understand the entire situation a whole lot better.

[/rant w/o apology]

 

You left out "from the halls of beer elitism" and my point being is i was not blatantly stating false information because of a personal opinion. I stated that because i was ignorant to the cost of rice vs barley (because i dont care). So i dont see there being truth stated since im not craft elitist. We are all adults you dont "need" to educate me im saying there is no need for the negativity especially since you are most likely twice my age. Have a nice day now.

 

I'm not arguing in favor of our current laws, I just don't know how drastic the effect of grocery store sales would be. I don't think convenience stores/gas stations would help consumers at all - as they would charge "convenience" pricing - just like a bag of chips is more expensive at Wawa than at a grocery store.

@dennis3951 pointed out another factor about included taxes or not. Based on what I could find on state websites, it appears both NJ and NY charge sales tax on beer purchases, and PA does not. So $9.99 plus 7% tax in NJ is $10.68, and 9.99 plus 4% is $10.38.

I also did more comparison between the PA and NY Wegman's prices. For 6 packs of Yuengling, the price is the same. And while all of the national beers are cheaper in NY, most local breweries are indeed cheaper in PA, like Dogfish Head, Victory, Troegs, etc.

There may also be some supply/demand pricing or some other factor going on too, because the % increase in prices at the PA store is not consistent across all beers, it varies wildly.

 

Sigh... To all who think craft beer in [insert your state, city, county, store, bar, brewer here] is priced on a cost+ basis... you are mistaken.

 

If the 3-tier system was no longer mandatory one would not see a breakdown of the distribution system, as some here claim. If the current distribution was the most beneficial to a brewery then the brewery would keep it. If the brewery was able to find a better distribution system then they could employ that.

 

Right. Because free markets haven't produced lower prices and better goods in many countries and industries across the globe. ????? History is ripe with examples of the advent of free markets stirring innovation, increasing options, and lowering prices.

 

But the challenge with what you're saying is that it creates an environment where somebody gets screwed in a big way. If the 3-tier system as it is today ends, then what happens to the massive investments that distributors have made into the brands in their portfolio?

If we assume (for the sake of protecting those investments) that current distributors can keep breweries to their existing agreements, we create a two tier system of distribution. Some breweries are stuck with "old way" distribution agreements while any new brewery (or brewery expanding into new territory) is now free to enter into agreements which were illegal before. This has extremely concerning potential to create an extremely uneven playing field.