How Cut Throat is Craft Beer

Distribution is extremely cutthroat. But the actual breweries themselves are, for the most part, much more community and scene oriented.

 

This is pretty common practice in the beer biz. Most distributor reps rely heavily on incentives and bonuses for their pay. Although $300 is fairly steep for a bounty. Typically reps get $100 for a new draft line (must sell 3 kegs to qualify) and $150 for taking down a competitive draft line.

 

Welcome to the world of a being a sales rep.

 

I think it was a few weeks ago that someone posted some comments from Greg Koch about the "pay to play" practice. Personally, I think it's standard business practice and brings aggressive marketing to the forefront. At the end of the day, a brewery is a business, and we are the consumers. Yes, we all love beer, and the brewers certainly enjoy their products; but they have to put bread on the table, which means selling a product. In today's market, the only way to sell consistently is to be persistent and aggressive in giving your product retail space. Not to play devil's advocate, but I encourage healthy competition in any kind of business, so long as it doesn't undermine any legalities or ethics. (Although I'm sure that happens anyway.)

 

Isn't that illegal? Or is that only a state-by-state thing?

 

As a previous post has pointed out, it's not the craft breweries, it's the distributorships. And from what I read and have been led to believe, the macro brewers also put pressure on the distributors, and since shit flows downstream just like water, it eventually effects the only segment of the market that is growing by its merits, craft beer.

 

I actually read this as being a defense of Cutthroat (a porter from Odell) being considered craft beer.
My first thought was "if Odell isn't craft - who the hell is?"

 

My sister owns a bar, they have 2 6 tap coolers. They purchased a third cooler used and it had only one tap handle on it. There was a distributor rep there the day it was delivered and installed. He realized that the cooler could fit 3 kegs and offered to put 2 new heads and lines in the cooler at no cost. All my sister had to do was buy 2 kegs per new tap within 30 days. SHE SAID DOOOO EEEEEET! Saved her a couple of hundred bucks and after a few months she could put whatever the hell she wanted.

 

I am sure there are a number of craft breweries that are very cut throat.

 

Not nearly as cut throat as most other industries. People are seeing increased issues between brewers and thinking things are getting bad, its nothing. Try working in construction.

 

Small businesses need to stick together. In the bar that I am opening, I will never allow something as scumbaggish as this to happen. I am going to tap the beers that I feel deserve to be shared with the world, not paid to be there.

 

I hope you can stick to your principles. Good luck.

 

That's for now. Report back when she has bought and gone through those 2 kegs. The rep will not be going away quietly, I guarantee.

 

This was back in September November, they put the Shock top pumpkin and the End of the world on she sold it for $2 a pint until it was gone then put Abita and CCB on. Guy hasnt said shit. He got his money.

 

Yes, this.

 

What the OP is talking about isn't quite "pay to play", the distributors are not paying bars or stores to carry their brands, but simply offering a cash incentive to their sales people for getting their brands into bars. Legal, ethical, and probably pretty common.

 

That they do not. As good-natured and helpful as some can be, they are always around selling something new. I have dealt with them for a long time. You help them out when you can - when it interests your business - but sometimes, even oftentimes - you have to just say "No thanks".

 

I'm surprised to say the least. Good going.

 

Illegal for a business to give a bonus to an employee (who probably already works on a commission basis) who gains a new customer or new business? It's not a payoff/bribe to the bar.

How will you know? I doubt the rep is going to tell you he's getting that bonus, and otherwise that's what ALL sales people do - try to sell you their beers. In the case of keg sales, obviously a rep is going to try to get one of his beers on one of your handles and, few place having "empty" taps sitting there, they've got to knock someone else brand off to get that sale.