Stores selling beer that isn't distributed to them...

You mentioned the thing with the non-profit in Napa. I'm in Napa, so was curious if a fellow BA'er was here.

 

Ah, no. I do work in both public policy and non-profit fundraising, so that came across my radar.

 

I'm all for it. I'm amazed with some of the "back room" finds that have mysteriously fallen from the sky and into my fridge. Its dumb laws that make no sense anyways. I can go online and order almost anything I want and have it delivered to my door step. Its not hurting anyone.

 

As with any transaction between a retailer and a wholesaler (distributor) in the three tier system, the distributor is providing wholesaler functions and services necessary by state law for the delivery of the product to Total Wine stores, for which Total Wine is making payment to the distributor.

 

So.... then you are getting the beer from a second tier, not directly from the supplier? If so, who is distributing these products to you if you are doing all the label registering, etc... and how would that distributor benefit if they don't even hold the contract/rights for distributing that brand? And what's to stop them from selling that beer anywhere they please, besides TW? Makes 0 sense.

 

New Jersey, like many other states, permits "private label" brands, exclusive to one retailer or chain of retailers (it's why there was once a ShopRite Beer, A&P Beer and Ale, Bilow Beer, etc. Ditto for existing private label wines and spirits).

For example, here's some older wording from NJ ABC regulations:

See also New Jersey Statutes - Title 33 Intoxicating Liquors - 33:1-2 License required, terms; personal use; brand registration; fees

 

Anyone in the Philly area should remember the big deal a few years ago about beers (notably Russian River) not being registered by the PA Liquor Control Board for approved sale in the state, even though it was being distributed. Some bars and distributed were raided and beer seized by the State Police. Other places pulled certain beers from their shelves until the issue was resolved.

http://www.philly.com/philly/news/p...gallons_seized_after__citizen_complaint_.html

http://articles.philly.com/2010-03-...iglio-s-beverage-beer-distributor-latest-raid

 

I know of four liquor stores that do this in the greater LA area. You have to know who to talk to and then pay inflated prices.

Personally, I'll just order online most of the time and get what I want shipped here.

 

I will review:
A. TW purchases the beer from the supplier on order (a win for supplier as I initially previously discussed), and it goes through the second tier for distribution based on prior business arrangement made between TW and the distributor, and as required by law.
B. Distributor is in business to make money, and distributor makes money in this transaction by providing wholesaler functions and services necessary by state law. That's the benefit to them. Plus, they didn't have to previously buy the beer on speculation and warehouse it in the first place. No cost of goods to them. Good deal for them.
C. TW buys plenty of beer from distributors from their regular portfolio of brands, so why would they want to upset the apple cart? (See B. above).

I presume from your profile that you are in the industry. Can you share who you are with? It may provide more insight to your line of questions.

 

Breweries CAN distribute anywhere they want. It does sometimes take registering the label with the local TTB (besides the federal registration) and normally it takes finding a distributor in the state.
The trick, is being able to supply that distribution. DFH and others, as big as they are, were unable to supply the distro in a few states, so they puled back.
As much as people want Heady Topper cross country, why would The Alchemist want to send it anywhere? If they went with a distributor, they would either not make as much money, or HT would cost more. Plus there's the cost of shipping it to wherever. They sell out at the brewery as soon as the product is packaged, they could probably increase production half again or more and still sell out.
You are right in that the benefits of the three tier are BS - maybe 75 or 100 years ago, it was a benefit (and it was, read up on it sometime; (if you haven't) I don't have time and space to go into it here.) Todays business models are protecting the distributor more than the brewery and retailer. It's not that there is no benefit to using a distro to the brewer, it takes away the cost and hassle of delivering the product to retailers on their own, but it's almost impossible for a brewery to change distro if they have problems with them.

 

Private label, yes, I understand. But not a normal brewery?

 

This is not gouging at all, overpriced and expensive yes, gouging no.

 

OK so if 15 dollars for a 4 dollar can of beer isn't gouging then what's your definition 20 no let's say 50 dollars ?

 

Yeah, but his pricesaren't worth it. 12.99 for moon Man? No thanks.

 

Seriously. Why not take an easy roadtrip to Woodman's in Kenosha and score yourself a couple cases at less than the average 'sconnie pays? And fresh Usinger encased meats and Nueske's to boot!

 

$30 for SeVIIn? Welcome to Minnesota.


Err..wait..

 

I knew a guy who did that. frankly, I was grateful.

 

What are you, a park ranger? Who gives a shit about the marmot?!

 

Well, having friends who've gotten tickets while on vacation in Utah for "transporting untaxed beer" (I forget the exact legalese), it's worth knowing about. My approach has always been to know which laws your breaking. Helps ya not get caught.

Plus, I wouldn't expect a FIB to care about Whistling Marmots anyway.

 

I wish more places would do it.