PA Act 39 - effects on Breweries

Discussion in 'New England' started by jmdrpi, Aug 15, 2016.

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  1. jmdrpi

    jmdrpi Grand High Pooh-Bah (8,989) Dec 11, 2008 Pennsylvania
    BA4LYFE Society Pooh-Bah

    This article summarizes the effects of the recent updates to the PA liquor laws that will have an effect on how PA beer breweries operate.
    http://billypenn.com/2016/08/13/6-ways-pas-new-liquor-modernization-law-affects-brewers/

    I've already seen a couple of local breweries announce that they will now start serving some locally made spirits and wines. Which personally is a big plus since my wife doesn't drink beer - this will probably equal more brewery visits for me.
     
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  2. JackHorzempa

    JackHorzempa Grand Pooh-Bah (3,375) Dec 15, 2005 Pennsylvania
    Society Pooh-Bah

    I am personally not too thrilled with this aspect of the law: "Grocery store wine sales mean increased competition for shelf space." At my local beer retailers there is already insufficient shelf space, If beer has to compete with wine that would stink.:slight_frown:

    Cheers!
     
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  3. zekeman17

    zekeman17 Pooh-Bah (2,082) Feb 14, 2010 Pennsylvania
    Pooh-Bah Trader

    Got tomatoes, plums, a cantaloupe and Crowlers of F&M beer at the Ambler Farmers Market on Saturday morning. That's a plus in my book.
     
  4. Ranbot

    Ranbot Pooh-Bah (2,463) Nov 27, 2006 Pennsylvania
    Pooh-Bah

    It's a good step in the right direction to normalizing PA's silly alcohol laws. I am surprised there's nothing in the law for distributors or state wine and spirit stores though, because this is mostly going to cut into their sales. I think these changes towards a more free and open market are where things need to go in the long-run, but they should loosen up restrictions on the distributors and liquor stores too so that they can all compete on relatively level field.
     
  5. JackHorzempa

    JackHorzempa Grand Pooh-Bah (3,375) Dec 15, 2005 Pennsylvania
    Society Pooh-Bah

  6. kevINSIGHT

    kevINSIGHT Initiate (0) Nov 29, 2015 Pennsylvania

    I think the biggest impact is wine in more grocery stores. It doesn't change the game for beer distributors. The other odd beer rules won't change without some serious time passing. The top tier distributors have a lot of control and a lot invested. Unfortunately, any further changes on the beer side will allow more time for those top distributors to change their game before the doors are opened for competition to their exclusive deals with brewers. Hopefully local distributors aren't squeezed out by large grocery stores that are taking over with their ability to sell 6-packs. You lose the expertise of the beer distributor staff when self-serve grocery stores get first pick on inventory. Craft beer popularity in Pennsylvania is driven by the local distributor, not the grocery store or the drive-thru.
     
  7. Ranbot

    Ranbot Pooh-Bah (2,463) Nov 27, 2006 Pennsylvania
    Pooh-Bah

    I agreed these changes hits the wine & spirits shops hardest. However distributors might feel a little loss from brewers to selling direct at farmers markets, festivals, and pop-up beer gardens. From the article:

    "...Breweries can now apply for two new types of permits. The first allows them to sell growlers or six-packs of beer at festivals (up to 192 ounces), and they can also either sell or give away four-ounce sample pours. It costs $30 per day of use and can be used up to 100 times a year.

    My interpretation makes me think we could do something very similar to how all the pop up beer gardens are operating,” says Olson. “I think it is gonna be pretty awesome to see some brewery-led beer gardens showing up...”


    I think the claim that craft beer popularity is driven by the local distributor puts the cart before the horse. In my opinion the consumer drives craft beer popularity in PA, not the distributors. Further there's nothing inherently better or worse about the local distributors vs the grocer vs bar/restaurant bottle shop. It's all business and there will be good ones and bad ones. I have no ill will towards distributors. I would just prefer that the law allow all businesses competing in PA's alcohol markets to compete fairly with each other. I thought it was great when distributors were allowed to sell 12-packs. Why not let the distributors sell wine/spirits? Why can't a distributor fill a growler? Or host a pop-up beer garden? Why can't a wine and spirit shop be allowed to stock beer? This new law is great for grocers, brewers, and distillers and I support it, but why maintain unnecessary shackles on distributors and wine and spirits stores?
     
  8. pinyin

    pinyin Savant (1,119) Sep 19, 2013 New York

    It's been my experience over the years that distributors know much less about the products they are selling than some of the grocery store clerks. Or at least the ones who specifically work in the beer cafes. And a large majority of these distributors also hold new beer, and sell outdated beer. A more competitive marketplace will make them update their distribution practices and market knowledge. Or at least hire field reps that do, like Union in NY does.

    At least with larger chains like Wegman's each store and can use anywhere from 8-12 different distributors, forcing distributors to remain honest and supply competitive and fresh product. That is a win for the consumer imo..
     
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  9. jmdrpi

    jmdrpi Grand High Pooh-Bah (8,989) Dec 11, 2008 Pennsylvania
    BA4LYFE Society Pooh-Bah

    I'm not sure I agree with that.

    Every time I'm at a beer distributor, 4 out of 5 customers are buying a 30 pack of cheap AAL.

    Most of the shoppers at Wegmans, Whole Foods, Weis, are buying a six pack of craft beer.
     
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  10. JackHorzempa

    JackHorzempa Grand Pooh-Bah (3,375) Dec 15, 2005 Pennsylvania
    Society Pooh-Bah

    That is exactly my observation as well.

    Cheers!
     
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  11. zeuiax

    zeuiax Zealot (673) May 1, 2016 New York

    He is talking about distributors and not beer depots. Philly enjoys such a great beer scene is because of distributors and not because of grocery stores or beer depots.
     
  12. JackHorzempa

    JackHorzempa Grand Pooh-Bah (3,375) Dec 15, 2005 Pennsylvania
    Society Pooh-Bah

    What is a "beer depot"?:confused:

    Cheers!
     
  13. zeuiax

    zeuiax Zealot (673) May 1, 2016 New York

    In and around Philly they have beer depots where they sell beers in 24pk only. For less than 24 pk you have to go to convenience store/bottle store/bars where they will charge you arm a leg....
     
  14. JackHorzempa

    JackHorzempa Grand Pooh-Bah (3,375) Dec 15, 2005 Pennsylvania
    Society Pooh-Bah

    I have lived in PA my whole life and those stores have always been called beer distributors. This is the first time I have ever seen the term "beer depot".

    Beer distributors can now sell 12-packs in addition to selling beer by the case (24 pack).

    Cheers!
     
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  15. zeuiax

    zeuiax Zealot (673) May 1, 2016 New York

    We might be talking the same thing. For example Bella Vista is the biggest distributor in Philly. They have a beer dipot/outlet and they also distribute kegs to bars (including Hill Farmstead). Then there are few other depots where they only sell beers at their store but do not distribute at all.

    That 12 pk rule must be new. I moved out of Philly last year.
     
  16. JackHorzempa

    JackHorzempa Grand Pooh-Bah (3,375) Dec 15, 2005 Pennsylvania
    Society Pooh-Bah

    Bella Vista owns two licenses. They have a license to operate as a Wholesale Distributor (i.e., sell beer to retailers). They also have a license to operate as a Retail Beer Distributor (i.e., sell beer to end customers). Another business that owns both types of licenses is Shangys in Emmaus, PA. Most businesses only own one license so they are solely a Wholesale Distributor or solely a Retail Beer Distributor.
    Yup, the PLCB 're-interpreted' the existing laws last year and made the determination that a self-contained 12-pack was compliant to the existing laws.

    Cheers!
     
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  17. jmdrpi

    jmdrpi Grand High Pooh-Bah (8,989) Dec 11, 2008 Pennsylvania
    BA4LYFE Society Pooh-Bah

    Same here. Most of the ones around SEPA are usually named "<insert town name> Beverage", but the generic term I have always heard used is "beer distributor".
     
  18. GenericForumName

    GenericForumName Initiate (0) Oct 31, 2013 Pennsylvania


    Any retail distributor(d license) can use any wholesaler(ID license) that has the rights for a given brand in a given area. These are decided not only by county but also by geographic areas . For instance, cross one highway then a different distributor may own the rights to a brand than the distributor you use.

    Source: I wasted a large chunk of life selling beer.
     
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