Night Shift Launches Distributorship!

Doesn't really make this any bigger of a change.

 

Night Shift nor their distributor are union, how will this affect them in any way specifically?

 

I don't know the market very well, can anyone chime in on the distribution argument for having these 'iron-clad agreements'?

Are there some huge over-head costs I'm not thinking of that would require government protection?

Off the top of my head I'm thinking trucks, warehouses, and sales people right? I realize those can be significant costs. Surely there must be some way that brewers can hold their distributors accountable correct?

Seems like very much smallish companies (breweries) having limited leverage with larger companies (distributors), but yet protection has always gone to the larger companies. Surely I'm missing some nuance right?

 

One of the main arguments I've seen is that it's unfair to the distributor spending time/money building a brand when the brewery can jump to another distributor at any moment. Saying there is no incentive to keep a brand, with that reasoning, exposes how one-sided these contracts must be.

The complaint seems really exaggerated as if a brewery is going to go running every time they don't see their beers flying off the shelf. Eventually, no distributor will want to represent you with that reputation so there is some responsibility there. I'm sure there is some type of agreement so breweries can't just jump off at any point for no reason. I don't think I'd enter a deal like this without some kind of protection for both sides.

 

Distributors are responsible for a lot of the marketing and brand building in local markets. The protections are--at least nominally--to protect the distributor's marketing investments in the brand. Similar protections exist in areas of franchise law, where a franchisee's investment in a franchise brand is protected to some extent (it's hard for a brand to "fire" a franchisee).

To me, the question is "why can't this be addressed with private contracts?" In the franchise arena, it's probably because the the large difference in power and legal sophistication that often exists between a brand and a franchisee. In the beer/distro arena, it's to protect distros against a BMC pulling out of a distro and killing them.

It seems to me like a good solution might be to limit those protections only to brands at risk of torpedoing a distributor. So maybe limit these protections to brands that make up > 5 - 10% of sales at a given distro?

 

I think originally the laws were designed to work the other way, to prevent larger breweries from dictating too much to distributors and using the threat of their leaving to make them do whatever they wanted. From my understanding, the three tier system was created largely to prevent vertical integration by larger breweries.

 

Is this why I'm starting to see Night Shift in NY, couldn't be happier.

 

Picked up several of your beers while on vacation in Mass this summer. Surprised to start seeing it here. Keep it coming!

 

Please distribute to Wegmans in Burlington. Thanks!

 

Since there isn't a general Night Shift thread right now I'm going to go off topic and say that I absolutely love the Zwickelbier and hope you continue canning it in the future.

And the new website is pretty great too.

 

Wegmans in Westwood too???

 

Hey @masterob8,

How many barrels do you guys plan to brew this year?

Did you know you can self-distribute in NH if you're under 15,000 barrels?

At least, that's my reading of:
" V. A holder of a beverage vendor license who represents a manufacturer who manufactures 15,000 barrels or less during its licensing period, as shown by its monthly brewer's reports and tax payments filed with the U.S. Department of the Treasury, Alcohol and Tobacco Tax and Trade Bureau may elect to distribute the beverages manufactured by it directly to New Hampshire retail licensees or to distribute its beverages pursuant to RSA 180, provided that total in-state direct retail sales do not exceed 5,000 barrels. "

http://www.gencourt.state.nh.us/rsa/html/XIII/178/178-15.htm

 

Has anyone heard any rumblings about other breweries distributing through Night Shift Distribution? I thought this was part of the original press release but haven't heard anything since.

 

Please distribute to NH.....we need someone to help step up our distro game. Also, spread this along to 12% and Shelton bro's....

 

Sarene is here in CT. as well.... Would LOVE to see Nightshift available here in the future!