All Group Buy Participants - NCM Price Change

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Heard grumblings a few months ago local homebrew shop found out about the group buys and was not happy. My bet is the homebrew shops looked more into the issue and probably banned together to pressure them to stop these buys as it was hurting their bottom line big time.

I know Keystone Homebrew Supply was an open opponent of group buys in the Philadelphia area. I'm sure there are others that were less vocal publicly, but that dude didnt have a problem with telling the whole world about how much group buys were hurting his business.
 
I found this one for cooperatives, as well: http://www.sba.gov/content/cooperative

I wonder if one could be formed using a service like LegalZoom or Rocket Lawyer, with one of us just filling out the forms and submitting them, without the need for a full-blown lawyer.

Very possible. You can probably order an MD co-op kit from them.

It is truly amazing what privileges a business licence can get you, and so easily.
Present yourself as a business wanting to do, well, business, and you find all sorts of doors open automatically.
 
i dont understand NCM business model here. In my situation is simple, i have limited founds for homebrewing, lets say i can spend $1000/year (disclaimer in case my wife is reading this, honey i would never spend so much money on beer, this is just an example) and 70% of this goes in to ingredients. Out of $700 ingredients i spent $400 on group buy purchases (base malt mostly) that goes directly to NCM and $300 for spec malts, fining agents, caps, yeasts ect from LHBS, so far its nice and simple but then NCM decide to remove group buy option from the market and force me to spend all $700 at LHBS. I pay 2x more for base malts so i buy half of what i did before and this means that NCM sells half of the grain to me for half of the price (instead of $400 directly from me NCM gets $200 from LHBS the other $200 is store the markup). Am i missing something or they just giving $200 to the store for nothing in this example??
 
i dont understand NCM business model here. In my situation is simple, i have limited founds for homebrewing, lets say i can spend $1000/year (disclaimer in case my wife is reading this, honey i would never spend so much money on beer, this is just an example) and 70% of this goes in to ingredients. Out of $700 ingredients i spent $400 on group buy purchases (base malt mostly) that goes directly to NCM and $300 for spec malts, fining agents, caps, yeasts ect from LHBS, so far its nice and simple but then NCM decide to remove group buy option from the market and force me to spend all $700 at LHBS. I pay 2x more for base malts so i buy half of what i did before and this means that NCM sells half of the grain to me for half of the price (instead of $400 directly from me NCM gets $200 from LHBS the other $200 is store the markup). Am i missing something or they just giving $200 to the store for nothing in this example??
most of us will order the same amount and be pissed off... but still order the same ammount.

the problem is, they have NO competition.
 
Here in NorCal, it was my experience that the local malt supplier (I think it was Country Malt but it has been over 1 year +) would not sell to homebrewers or our bulk buys.
When I called to ask why, they said it was to not cut out the homebrew store market. The rep would only sell to me upon proof of a federal brewer's license or brick/mortar LHBS biz license with address.
 
Here in NorCal, it was my experience that the local malt supplier (I think it was Country Malt but it had been a year +) will not sell to homebrewers or bulk buys.
When I called to ask why, they said it was to not cut out the homebrew store market. The rep would only sell to me upon proof of a federal brewer's license or brick/mortar LHBS biz license with address

Our local country malt is out of Hayward and I too was under the impression that they do not sell to home brewers group buy or not
 
Yes that is the one, in Hayward.
I now recall the rep said no "new" homebrew group buys, and so they are now screwing over those grandfathered in with these new rules.
 
In all honesty I signed contracts with a partner to open our own LHBS today! Local retail price from more beer is 35 bucks a sack. We will prolly match that price which is very little markup on wholesale costs. I feel for you guys that must pay 70+ for base grain
 
It will be in la verne, close to the la fairplex. We're buying the inventory and website of an lhbs that closed in jan. we will also reopen the storefront in its current location under a different name. As soon as we close I will post all details, hopefully you can make it down for a brew day
 
Open a LHBS, get the business licence, make the busness a non for profit, run it as a COOP and screw them, just like theyre suppose to do in the medical marijuana industry in Cali and the west coast.

Option 2 is class action, This appears to me to be some type of rackettering going on by price fixing the barley market. Us Americans are the first to scream bloody murder when the Japanese were doing it and to this day when the Chinese are still doing it. Is there a grain Mafia?

Option 3 is to buy a farm and grow your own barley and hops (outside the country) and import the product at cost. I have the hookups in several countries.

I have to beleive with all the people on this board there has to be a solution here. I am not the smartest cookie in the jar here, but no matter what I am all in!!
 
Option 2 is class action, This appears to me to be some type of rackettering going on by price fixing the barley market. Us Americans are the first to scream bloody murder when the Japanese were doing it and to this day when the Chinese are still doing it. Is there a grain Mafia?QUOTE]

I dont think its price fixing to refuse business to a group when you find that doing so is good for your business. That is clearly the calculation that they have made.

Clearly the retail demand is high for grain and increasing. No doubt wholesale demand is also increasing with all the new micros poping up all over. If you can make the same sales money but restrict the distribution, that savings will go straight to the bottom line.

I agree that this problem will require bigger and "outside the box" thinking. What about a national co-op? Millions of dollars in grain purchaced from overseas farms and shipped to 2 or three strategically placed domestic wharehouses. Then distributed directally to HBT group buys (or others) who have signed co-op membership agreements.

That ought to get the attention of NCM!:pipe:
 
SHHHHHHHH! They're probably here now, watching us! :drunk:

But for real, I enjoy seeing so many getting involved in brainstorming a resolution for us. I don't have any more to offer than what has previously been mentioned, but I'm all for participating with whatever option is best.

THANKS ALL!
 
I hope they are watching us ;) - perhaps it will drive them to a change. But reality just kicked in (they will follow the money). As it has already been said, until we stop buying from them all together (via bulk buy, LHBS, whatever), they will not be interested in changing. They would need to feel the pain in their revenue. I am not sure it is possible for us to inflict that.

At least a solution has not presented itself at this point.
 
Back in the day (1994-1997), I was buying directly from Canada Malting in Montreal. I had set-up a cash account (payed by check actually) and I had a business license in "micro-brewery consulting". They were pretty intrigued by it, but since I was meeting their minimum purchase of half-a-ton (20 bags) they were happy to oblige. Pick up was a bit unconventional, as I'd go there with a work van and they were set-up with a loading dock, and my order would come palletized. I'd simply open the back of the van and muscle the 20+ bags into the van, while the Labbat's and Molson's tractor trailers would get filled from the top, and weighed going in and going out.

(and just to humor us all, a 25kg bag of Canada 2-row was $18 at my price) :D

I think that NCM has been getting a lot of pressure from HBS's and has decided to back off the group buys. Whether that's good or bad is a different story. If their prices are similar to HBS's, in all likeliness, the purchases will shift back towards HBS's (as it's easier/simpler) and will leave NCM with the same level of profit.

MC
 
Back in the day (1994-1997), I was buying directly from Canada Malting in Montreal. I had set-up a cash account (payed by check actually) and I had a business license in "micro-brewery consulting". They were pretty intrigued by it, but since I was meeting their minimum purchase of half-a-ton (20 bags) they were happy to oblige. Pick up was a bit unconventional, as I'd go there with a work van and they were set-up with a loading dock, and my order would come palletized. I'd simply open the back of the van and muscle the 20+ bags into the van, while the Labbat's and Molson's tractor trailers would get filled from the top, and weighed going in and going out.

(and just to humor us all, a 25kg bag of Canada 2-row was $18 at my price) :D

I think that NCM has been getting a lot of pressure from HBS's and has decided to back off the group buys. Whether that's good or bad is a different story. If their prices are similar to HBS's, in all likeliness, the purchases will shift back towards HBS's (as it's easier/simpler) and will leave NCM with the same level of profit.

MC

I agree with much of what you are saying.

Another thing that played a role was some people were starting to "accidentally" buy too much, then resell on HBT or locally. I personally discouraged this behavior whenever I encountered it (not sure if I posted this to this thread or not - sorry for the repeat if I did). We strictly did not mark up or resell in our buys. However activity like that would for sure push a company to restrict policies.

Overall it could have been all or none of those things. It could be that NCM just saw they had cornered the market, now it was time to raise the price.

It has been a good run with the grain. I am happy I could participate in it while it was around. I know for me if I am paying LHBS prices, I will brew at least 50% less. Perhaps that is a good thing too. i had a feeling our luck with this would run out soon. At least my participation helped me "pay off" my killer brewing system. Even if I brew less Iwill be doing so on a hell of a system that I would not have built if I couldn't have gotten the grain so cheap.
 
I hope they are watching us ;) - perhaps it will drive them to a change. But reality just kicked in (they will follow the money). As it has already been said, until we stop buying from them all together (via bulk buy, LHBS, whatever), they will not be interested in changing. They would need to feel the pain in their revenue. I am not sure it is possible for us to inflict that.

At least a solution has not presented itself at this point.

I would also hope that they are listening in and would frankly be surprised if they wern't. NCM clearly has the numbers on this and has made the calculation that not enough competition exists to impact their business. We the home brewer are very likely going to bend over on this. -FOR NOW! But, I would suggest that the ones who run these group buys ought to get to gether and compile their data on just how much money is flowing through these group buys. It might just make real sense to grab the bull by the horns and make some real competition. I am serious about this and would be willing to help work for a solution.
 
Ugh, this sucks. I love my LHBS, but it's cheaper for me to buy 10# bags from half way across the country then to buy sacks of CM 2 Row from them.
 
Assuming Home-Brew stores are the root of the issue. I still would not buy from a Maryland home-home-brew store to begin with.

1. Its still over an hour drive for me.
2. There bulk grain cost more then having the grain actually shipped to me by Midwest, more-beer, and fiftypoundsack :confused: If you want my business you at least have to beat somebody shipping to me.

I am not saying anybody is price fixing, but if you literally cost me more to pick up grain then I can have it shipped to my door, you really cant complain. You need to figure out how to beat that online retailer. If you cant and selling it at that price is a loss, perhaps gain should not be on your for sale list.
 
So let's say hypothetically someone were to have an LLC with tax numbers and all set up. Feasible they would sell to them at the wholesale price?

What criteria would be needed for such a thing to take place?
 
So let's say hypothetically someone were to have an LLC with tax numbers and all set up. Feasible they would sell to them at the wholesale price?

What criteria would be needed for such a thing to take place?

You should contact NCM to get the details (or another supplier). I know in the past they said they will not set up commercial accounts unless your TIN is for a brewing related business. Not really sure what that means. But I assume that it means you would need your LLC to be something specific to brewing.

You could ask them to send you the application for a new commercial account and see what they are specifically looking for to set one up. I would give as little information as possible without coming across as odd.
 
So let's say hypothetically someone were to have an LLC with tax numbers and all set up. Feasible they would sell to them at the wholesale price?

What criteria would be needed for such a thing to take place?

From the wholsesalers i have talked to you must have a physical storefront for retail homebrew supplies. Some require advertisements for the business or yellow page listing along with you business license number. Like blichmann even ask for invoices from other reputable homebrew wholesalers before you can setup an acct
 
From the wholsesalers i have talked to you must have a physical storefront for retail homebrew supplies. Some require advertisements for the business or yellow page listing along with you business license number. Like blichmann even ask for invoices from other reputable homebrew wholesalers before you can setup an acct

That is going a little over the top but it's their right to select their business.
 
So let's say hypothetically someone were to have an LLC with tax numbers and all set up. Feasible they would sell to them at the wholesale price?

What criteria would be needed for such a thing to take place?

That's exactly what I did in April of last year. I have an old LLC and TIN that's not being used anymore and I set up an account with that. Told CMG I was a brewery and they didn't ask twice. My account is setup as cash so I pay when I order. A credit account required 2 business references. I just requested an updated price list so I'll let you know what they send me.
 
That's exactly what I did in April of last year. I have an old LLC and TIN that's not being used anymore and I set up an account with that. Told CMG I was a brewery and they didn't ask twice. My account is setup as cash so I pay when I order. A credit account required 2 business references. I just requested an updated price list so I'll let you know what they send me.

I wonder how much scrutiny they will have going forward. But that sounds promising.
 
A potential work around would be to setup a random sole proprietorship and get a TIN. Setup an account with CMG and say your a new brewery. If they ask for TTB stuff just say your in the process of filling out paperwork but want to get started on test batches. When I filled out my application they didn't question me at all. The process was really simple and fast. I created the account and ordered within a week. I was dealing with CMG in Illinois so another office might be different.
 
From the wholsesalers i have talked to you must have a physical storefront for retail homebrew supplies. Some require advertisements for the business or yellow page listing along with you business license number. Like blichmann even ask for invoices from other reputable homebrew wholesalers before you can setup an acct
this has me worried that getting a TIN and setting up a coop for the purpose of group buys again isn't going to work. in the end they have chosen to only sell to homebrew supply shops and breweries, and we can't directly force them to sell to us - TIN or not.

is there NO other company out there other than NCM that sells malt?!?

EDIT: based on NCM's website, Briess might be the only product we could get from another supplier:
"As the exclusive North American importers and distributors of Canada Malting, Great Western Malting, Bairds Malt, Best Malz, Thomas Fawcett & Sons and Malteries Franco-Belges we are able to provide you with a wide range of bagged and bulk malts from North America, Europe and the UK. We are also a proud distributor for Briess Malting & Ingredients Co. malts.
(...)
Homebrewers, please be sure to ask for our products at your local homebrew supply store or your preferred on-line store."
http://www.countrymaltgroup.com/
 
That's exactly what I did in April of last year. I have an old LLC and TIN that's not being used anymore and I set up an account with that. Told CMG I was a brewery and they didn't ask twice. My account is setup as cash so I pay when I order. A credit account required 2 business references. I just requested an updated price list so I'll let you know what they send me.
Well, the reason I ask is me and my partner have an LLC set up for our potential brewery we're trying to get going. We don't have a building yet, but we're working on it. The reason im asking is, do they only sell to homebrew stores? Or are they also selling to breweries? If they're not, which distributors are?
 
When I filled out my application they didn't question me at all.

right, but this was before they became all exclusive in who they'll sell to, so it makes sense that they didn't bother checking too much. now that selling direct is such a no-no i would expect them to be more diligent in vetting new customers.
 
right, but this was before they became all exclusive in who they'll sell to, so it makes sense that they didn't bother checking too much. now that selling direct is such a no-no i would expect them to be more diligent in vetting new customers.

When I applied they wouldn't create new account for home brewers. They would still sell to home brewers who had a grandfathered account, but not setup a new one. It seems like the only thing that changed from this time last year is the prices the grandfathered home brewer accounts are getting. I'm sure this depends on which office you talk to and who you talk to.
 
grandfathered Id say is code for get lost. If there were someone like that I am sure they would be on the board and have have an account where groupbuys would be available.
 
The key distinction is if you have a commercial account or a home brewer account that was grandfathered in. The commercial account is still ok. However the home brewer account is only allowed the new pricing.

We have guys up and down the eastern sea board that have gotten this message. I would be shocked if they are only enforcing this by office, but that is possible.

grandfathered Id say is code for get lost.
that is pretty much the message I am seeing too. They are making an active decision to make us buy through LHBS. Briess in particular with that high pricing. For christ sakes briess is a US based company and foreign malt companies are selling grain to us after shipping across the pond for cheaper.

I strongly dislike Briess, and avoid their products for the above reasons. I have dodged them ever since they tried to cut us HBers out of the bulk grain buys prior to this Refusing to sell to us.
 
I wasn't saying the pricing was being enforced office by office. I was saying the amount of due diligence for new brewery accounts might be different office by office. Judging from kosmokramer's link, CMG now needs a Brewer's Notice to setup an account. This wasn't needed when I setup my account. Hopefully they don't come back and ask me for one. I don't really see a work around for the new pricing besides switching suppliers. The pricing for CM-2ROW went from $29.15 a sack to $39.49. After shipping that's about what I pay at the LHBS. Sucks.
 
kosmo, good link to have.

As a reminder to all I posted a bunch of relevant links to post one of this thread. I will keep the links there so you can click back and get the meat of what you are looking for in one place.

jww9618 - hopefully you are safe for now. I think they want to get rid of most HBers but won't be able to get them all.


the TTB thing is the knife to the throat
 
I really don't understand the point of this all, they're selling a ton of product to brewers, what difference does it make where or how we brew it. The only thing i can think is that homebrew shops somewhere leaned on them and told them they're losing profit by selling to us. I mean i want to support out LHBS as much as the next guy, but why does malt have to go through 20 different hands.
 
Has anyone dealt with http://www.gwkent.com/ before? I found them on the distributers list off the briess website. If you add more then a couple hundred pounds onto your online order they have a common frieght truck option. May be more economical? I know their selection is **** compared to CMG, but its better then nothing right?
 
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