Thoughts on Mandatory 3 Tier System?

[Grannyknot]

Lobbyists for distributors in my state are trying to get lawmakers to close loopholes in the 3 Tier System. Currently, it is mandatory for brewers to use distributors, unless you are a brewery within the state, which allows you to self distribute within the county of production, but no further without a licensed state distributor touching it.

I'm trying to decide if a mandatory 3 tier system is a good thing in the state or not, but pretty much all I can find are Op-Ed pieces written by owners of distributors. They all seem to paint this picture where a giant beer conglomerate comes in, self distributes their own products, and pushes all the other competition out of the way.

I know of several states, where it is an option to use the 3 tier system, but not mandatory, so if a brewer has the impetus, they can self distribute within the state.

Seems to me there would be some obvious benefits to giving brewers the options and freedom to self distribute. Sole control of their marketing, short shelf life beer management, and keeping costs down by not paying for outsourced sales & distribution.
What does everyone think?

 

[WayFrae]

I don't really know the specifics but it seems to me like many small breweries would benefit from using a distributor since the distribution aspect of the business is basically a completely different business altogether. The brewery would have to hire their own distribution team of drivers, sales reps, someone to clean the lines (I believe distributors usually clean all the beer lines.), and I'm sure there are even more people that are needed to distribute beer. I feel like most smallish breweries would rather just have a distributor do all of that for them.

 

[Grannyknot]

I don't really know the specifics but it seems to me like many small breweries would benefit from using a distributor since the distribution aspect of the business is basically a completely different business altogether. The brewery would have to hire their own distribution team of drivers, sales reps, someone to clean the lines (I believe distributors usually clean all the beer lines.), and I'm sure there are even more people that are needed to distribute beer. I feel like most smallish breweries would rather just have a distributor do all of that for them.

I completely understand what a distributor can offer to a brewery, I'm just curious if making it a mandatory requirement is a good thing....ie taking the option away.

 

[WayFrae]

I completely understand what a distributor can offer to a brewery, I'm just curious if making it a mandatory requirement is a good thing....ie taking the option away.

I feel like more options are definitely better. I love being able to go to the brewery to buy beer rather than having to go to a state run liquor store here in Utah. I feel like making anything mandatory (when it works just fine without it being mandatory) is a bad idea.

 

[brettwasbtd]

3-tier would be welcome in my county... Currently 4 tier: brewery > distributor > county (controls all alcohol) > retailer

 

[Grannyknot]

Looks like Kentucky's HB168 passed, creating a mandatory 3 tier system in the state.
Tennessee not far behind in ending the ability for a brewer to be able to distribute in their home county.

I can't believe that people are unable to see between the lines that these mandatory 3 tier systems are only benefiting the distributors.

 

[madscientist451]

Government involvement in alcohol "control" is all about money being funneled back to politicians through campaign contributions and "lobbying" campaigns. This kind of corruption used to be what the news media lived on. It takes a lot of digging and legwork to find the hidden payments. Now all we get is a steady stream of celebrity gossip, talking points produced by political hacks and whatever "news of the day" becomes popular. Sorry for the rant, but the three tier system is there to stifle a free market, screw consumers, and provide profits and kickbacks to the established players.
Its too bad the right to brew and sell alcohol wasn't put in the bill of rights by our founding fathers.

 

[Grannyknot]

Government involvement in alcohol "control" is all about money being funneled back to politicians through campaign contributions and "lobbying" campaigns. This kind of corruption used to be what the news media lived on. It takes a lot of digging and legwork to find the hidden payments. Now all we get is a steady stream of celebrity gossip, talking points produced by political hacks and whatever "news of the day" becomes popular. Sorry for the rant, but the three tier system is there to stifle a free market, screw consumers, and provide profits and kickbacks to the established players.
Its too bad the right to brew and sell alcohol wasn't put in the bill of rights by our founding fathers.

I agree.
Beer distributors do a lot of good things for small breweries looking to easily get their product out on the market, but in the end, they are a completely separate industry from craft beer. They are basically logistics & a small amount of marketing in some cases. They operate out of warehouses where short shelf life beers like hop forward IPAs wind up sitting in unconditioned space collecting dust, because the distributor doesn't know a thing about first in first out inventory controls. Some are in charge of stocking the shelves at retailers, which is rarely done in a proper manner.

Brewers need to be able to have the choice to self distribute.
Creating a mandatory 3 tier system is just government taking the easy way out of preventing the big bad wolf AB-Inbev from taking over, which I guess I should be thankful that they even consider doing in the first place.