What determines where breweries distribute?

I work for a distributor. There are tens of things that go in where a brewery distributes. Population, competition, distributors market (city or statewide) the almighty $, logistics, states alcohol laws.

 

Corruption, the mafia, etc.

 

I'll check on Delaware and New York, but tax can really make a difference. Maybe not huge.

 

Hmmmmmmm

 

Lots of good info in this thread - hope I can add some worthwhile insight as well -

Disto's will also look at their portfolio and seek out breweries that can bring something to them that they don't have. For example, distro does not have a true west coast brewery, so they seek out just that. Keep in mind that if by now they do not have SN,Stone, Lahgooneeetuz, FW, etc., than they are rolling the dice on a fairly unknown (to their area). What really bites is that (at least in VA) once a distro has rights to that brewery, that's it. So if said west coast brewery goes under appreciated, you'll see it dry up and no one else can step in and revitalize it. This is where I became fairly bothered by the business side of craft beer distribution. Big distro houses need to make money, I get that. But they seek out breweries for business decisions and (I'll stop short of saying "take advantage of") involve upstart craft brewers that haven't a clue how to market or successfully distribute their beer in a story of greatness, only to see their beers squeezed out because they aren't a "darling" local or they simply aren't set up to keep up with the volume that the distro needs to properly launch and sustain. After a lackluster launch or follow up, they then just kind of go by the wayside, failing to ride the wave of that initial launch. Just is what it is. That's one reason why I am an advocate of creating laws that allow breweries to self distribute without paying through the nose to do so. Should be as easy as buy a truck, deliver to customers, collect money, brew more beer. This would allow the brewer to control it's own destiny. Some may fall on their face for poor marketing or execution, but the majority would likely create a vicious following within their smaller local area instead of being forced into regions while underserving their own local areas.