Craft beer cheaper without 3 tier system?

I have already expressed my opinion on why often times prices are higher in PA is due to lack of competition. I truly believe that if every supermarket could sell beer in their regular aisles (like many other states permit) the prices would be lower due to increased competition among retailers. You would buy your beer at Supermarket X vs. Supermarket Y since it is on sale in the circular (discounted for volume sales).

I have no doubt that folks could cite some examples where they have purchased a particular beer that was priced lower at a PA retailer vs. Total Wine & More (in DE and/or NJ) but IMO those are exceptions vs. the rule.

I have written both of my legislators to support the reform of PA alcohol laws. I would encourage you to do the same. Only if the legislators come to the opinion that their constituents should be listened to vs. the lobbyists (e.g., lobbyists of the State Store employee union and the MBDAPA) will true alcohol reform be accomplished in PA.

Cheers!

 

All of this conversation corroborates my contention that the US is like 50 countries. There are lots of similar laws, state to state, but also some wild variations. Just thinking of all of the governmental groups around the country involved in overseeing ABC laws, distribution, taxation becomes a bit mind boggling. This is a huge country peopled by all kinds of varying cultural traditions, heritage, and political leanings (which often change). I once had dealings with a nice Bavarian gentleman who decided to scrap the notion of distributing to the US because it was too big a pain for his small operation.....He was the one that told me that the US is like 50 countries!

 

And think about all of the professions that want to keep it this way: lawyers, lobbyists, accountants, ...

Cheers!

P.S. Sort of reminds me of an old Warren Zevon song: Send lawyers, guns and money.

 

It could be worse. You could live in Tennessee with their outrageous excise taxes or Oklahoma where there is a fourth tier.

 

1%?
AB InBev is BIG man. Like out of this world big. Comparing these two companies only tells us that they really have nothing in common except the end product. And even then...

AB InBev 458,800,000 hectoliters 2014
SN 922,353 hectoliters 2010

It's more like SN is 0.2% of the production of AB InBev.
Jim Koch once remarked that AB disposed of more beer in a year than BBC produced. He was not being facetious.

 

That's their global production, I was referring to just US. The closest number I could find was 121 million hectoliters for "North America".

But agreed - even the largest "craft" brewer is still not in the same order of magnitude.

 

Sierra Nevada has just 2 breweries in the US, AB-InBev has 12 spread throughout the country cutting transportation costs. I have read in the past that no place in the USA is more than miles 500 from a AB-InBev plant. That may not be true but the point is makes is.

 

You've left out the fundamental cause (all the rest are just side effects). Something called "States Rights" which most state legislatures are willing to defend to the death. (Indeed the Civil War was fought in large part over this issue. ) But it has been thus since the several states gained independence from Britain.

 

Yeah, he was right. Lots of ways like 50 countries. (Something which many US based BAs and our European BAs often don't seem to fully appreciate.)

 

It's a big country alright but the Bavarian Gentleman could distribute to just a few states or even just 1 large state. No need to go to all 50 states.

 

He had been working on a deal with a big national chain, located in most states. I was interested in his specialty beers, which are outstanding.

 

I will answer both of your questions yes. Your premise that the agreement would include a penalty is not the whole story. I am sure that penalty would be dependent on them actually doing what they are supposed to. I know I would not sign a contract that only penalizes me without the other party being required to do what they say. I would imagine the agreement would include requirements for both side. I would feel better if both sides feet are held to the fire.

 

It is my understanding that Furst Wallerstein solely sells through Total Wine & More. Something like that might be the best option for the Bavarian brewery that you know.

Cheers!