License to Self Distribute

Discussion in 'Beer Talk' started by supercodes, Apr 24, 2014.

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  1. supercodes

    supercodes Initiate (0) Jun 23, 2013 Maine

    So I was thinking today about how great it is for small breweries, particularly new start ups, to be able to distribute their beer themselves. It must be a daunting prospect to have to negotiate with a huge wholesaler, in order to have your small brew house get distributed to a few shops down the street. I then found the below link, and if it's accurate, it's distressing to think that so many states have the potential for a great craft beer explosion, only to be stifled by archaic laws maintaining strict adherence to the three tier system. I don't really know if this is the case or not, as I haven't done a ton of research, but it's interesting to think about how much more growth the U.S. could be having in craft beer if so many states didn't have these laws in place. What does everyone think?

    http://www.brewersassociation.org/pages/government-affairs/self-distribution-laws
     
    nsheehan likes this.
  2. checktherhyme

    checktherhyme Savant (1,036) Apr 8, 2008 Washington

    We can self distribute in Washington...we also have more breweries than almost anyone else.
     
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  3. nkelley77

    nkelley77 Initiate (0) Nov 20, 2013 Massachusetts

    Mass can self distribute also. Element, Mayflower, BBC, and Night Shift all distribute if not more. I know Cisco did for a while
     
  4. domnalbrecc

    domnalbrecc Zealot (574) Jan 31, 2012 Pennsylvania

    Pennsylvania is, for once, fairly cool. They allow self-distribution for breweries producing under a certain number of barrels per year; which really does enable some growth.
     
  5. tozerm

    tozerm Initiate (0) Jul 1, 2005 Washington

    If it's legal, self-distribution works great... up to a certain point. Once the brewery starts trying to haul beer to licensed customers in far flung areas, the profitability is gone. Self-distribution is really only viable within a relatively small geographic region around the brewery. Employees to sell the beer cost money, trucks to transport the beer cost money, employees to deliver the beer cost money.... having a wholesaler pick beer up from your brewery to take to their warehouse and sell... costs virtually nothing.
     
    Norica likes this.
  6. Jimbobebop

    Jimbobebop Initiate (0) Jun 12, 2013 Illinois

    Pipeworks in Chicago does. Reading your link they may not be able for much longer. Guessing they are hitting the limit they can sell per year sooner than later. Which sucks because I'm sure the ability to cut the middles man allows them to save money which in turns allows them to experiment and take the hits that come with making beers like Pastrami On Rye.
     
  7. jageraholic

    jageraholic Pooh-Bah (1,632) Sep 16, 2009 Massachusetts
    Pooh-Bah Trader

    Thats exactly what Florida Craft brewers are fighting for right now. The lawmakers are trying to pass a law that will force the brewers to use distributors to sell at their own establishments. Makes no sense.
     
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