Massachusetts authorities launch intensive investigation into "pay-to-play" in beer industry.

Discussion in 'Beer News' started by Todd, Nov 14, 2014.

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  1. Todd

    Todd Founder (13,254) Aug 23, 1996 Finland
    Staff Super Mod Pooh-Bah Society Trader

    For those who followed the Pretty Things goes to town on "pay to play" in Massachusetts thread, checkout these updates from Dan Adams via Twitter and the Boston Globe ...
    ABCC examining brewers, others for law violations
    [​IMG]
    Read the full-story: http://www.bostonglobe.com/business...er-industry/o4m3VbNmSVw8CdGzVXFoyJ/story.html
    Dan also tweeted that he'd try to pop into this thread (tomorrow or Saturday) to answer any questions.
     
    mynie, beergrrl, Roguer and 11 others like this.
  2. einhorn

    einhorn Savant (1,141) Nov 3, 2005 California

  3. sibhuskyx

    sibhuskyx Devotee (360) Jun 2, 2008 New Jersey

    About time.
     
  4. opwog

    opwog Initiate (0) Jun 16, 2008 Minnesota

    Now maybe we will see this type of crackdown in other states, as well.
     
    sbrock22 likes this.
  5. ivorycannon

    ivorycannon Initiate (0) Feb 21, 2013 Indiana

    Doubt it
     
    GeddyLeeRocks likes this.
  6. ONovoMexicano

    ONovoMexicano Initiate (0) Jun 14, 2012 New Mexico

    Investigations don't mean much. Let me know if/when there are some charges, changes to the system, etc.
     
    azorie, digita7693, Techichi and 6 others like this.
  7. cavedave

    cavedave Grand Pooh-Bah (4,145) Mar 12, 2009 New York
    Pooh-Bah Society Trader

    Wow there's the sound and fury, now we see if it signifies nothing, or something. Wonder if all the ghost account industry wonks from other thread will come to this one to do more spin doctoring.

    Worth noting that anything that encourages better selections for us, and an even playing field for breweries, is a good thing. To me the most instructive thing about this whole deal has been seeing the rationalizing of criminal behavior, and the painting of it all as somehow beneficial to us, by folks with vested interests in keeping the system corrupt.
     
    SamT, frazbri, ABarthol and 23 others like this.
  8. yelram4life

    yelram4life Initiate (0) Aug 10, 2005 New Hampshire

    This investigation started within a couple days of the initial tweets from Dan and the ensuing thread on BA, with ABCC officials raiding several distributors and taking computers etc. It's all so... espionagey!
     
    hudsonvalleyslim and richobrien like this.
  9. Tpain518

    Tpain518 Initiate (0) Oct 23, 2013 New York

    I am shocked,SHOCKED that this would be happening in the very honest non corrupt state of Massachusetts ha.... Nothing is going to change,if anything Pretty Things shot themselves in the foot by ruffling feathers
     
  10. GiantCogs

    GiantCogs Initiate (0) Oct 25, 2012 Massachusetts

    I doubt you'll see some epic bust, but high profile investigations like should have a chilling effect on pay-to-play activity. At least it's on the agency's radar. The Treasurer's office has commented on this and dedicated resources well after he lost the primary. There is an up and down to this. The up: The treasurer has nothing political to gain from this, so you can see his office pursuing the allegations for genuine reasons. The down: The treasurer is out of office by January, and the new one might abandon this effort. Or not. She's not expected to ruffle any feathers too quickly.
     
    BostonHops likes this.
  11. bubseymour

    bubseymour Grand Pooh-Bah (4,656) Oct 30, 2010 Maryland
    Pooh-Bah Society Trader

    Don't our congressmen wheel and deal in very similar manners on daily basis with businesses and other countries? Not that it's right, but its the model of our capitalist society.
     
  12. Chlodwig23

    Chlodwig23 Initiate (0) May 14, 2009 Massachusetts

    Please note no one has been "sanctioned" in 18 years. To my knowledge there have been complaints and investigations. They just can't find anything solid. For instance, they are given invoice for a draft line from a separate company at massively discounted rates (that may never have been paid) and thats the end of it. Without finding a written contract there is virtually nothing that they can bust someone for. This is the elusive 'proof' that never surfaces because it doesn't exist. The whole process is extremely expensive to both government and business and yields nothing. Some interpret "if you can't be busted, its not actually illegal"; the unethical cutthroat businessman's position. Clearly the only thing that can improve competition on merit out there is legislative change.
     
  13. RummyRedbeard

    RummyRedbeard Initiate (0) Mar 8, 2013 Colorado

    Is that going to be the grand finale?
     
    charlzm and RobertColianni like this.
  14. otispdriftwood

    otispdriftwood Initiate (0) Dec 9, 2011 Colorado

    Is this an investigation like the mortgage fraud investigation with slaps on the wrist to follow?
    As far as I am aware, "pay-to-play" is conducted with cash. No investigation after the fact uncovers much of anything when the dirty deed is done in cash, even if one of the participants fess up since the others deny any involvement and there's no paper trail. I would be very surprised if anything comes of this since these types of investigations are usually a knee-jerk reaction to a public outcry and only come up with short-term token solutions. But let the government spend taxpayer money on an investigation that will yield little or no fruit, even the low-hanging variety.
     
    digita7693 and ONovoMexicano like this.
  15. MNAle

    MNAle Initiate (0) Sep 6, 2011 Minnesota

    The onus for this is on the legislature, IMO, not the people in the business.
     
  16. geocool

    geocool Savant (1,209) Jun 21, 2006 Massachusetts

    I'm very pleased to see more evidence that this is going somewhere. Even if the investigation turns up nothing, we consumers are already benefiting from the effects as industry players all try to lay low for at least a little while.
     
    BostonHops likes this.
  17. thebeerbabe82

    thebeerbabe82 Initiate (0) Apr 16, 2008 Maine

    Did anyone notice that there are multiple times in this article where the author implies that the illegal activities are from the brewery-side and not the retailer/distributor side? I know that they used examples of both, but the overwhelming tone of the article is that they were investigating *breweries* for their practices. This seems very contrary to the brewery-as-victim outcry that started this mess. I hope their is additional coverage and scrutiny of the distributors to follow this.
     
    gopens44 likes this.
  18. RobertColianni

    RobertColianni Pooh-Bah (1,705) Nov 4, 2008 Pennsylvania
    Pooh-Bah Society Trader

    Don't be so sure of that. More often than not you can see the discounts on a check paid directly to the distributor or brewer for payment upon delivery. For instance, a distributor rep comes in with the hopes of moving InBev products and offers two free cases on top of a quantity discount of $2.00/case on orders of 10 cases or more. Now I got $20.00 off and two cases, plus he wants a total tap takeover for the weekend and gives incentive in the form of I buy ten sixtels at regular cost to cover twelve draft lines and he throws in two free halves. It's all on the sales receipt, but the total comes to $1695.00 instead of $1984.63. It's plain as day to the trained eye and trust me, there are trained eyes. The only question mark is how much will these players pay to get off scott free?
     
    andylipp and schachta like this.
  19. Jesse14

    Jesse14 Initiate (0) Jul 21, 2011 Massachusetts

  20. Jbrews

    Jbrews Pooh-Bah (1,800) Aug 6, 2013 New Hampshire
    Pooh-Bah Society

    Wasn't this a story a few weeks back? Maybe just slow to his the news since 98% of the public outside of BA could care less.
     
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