Getting Sick of Distributors

[Vaureywwc]

So I am a hospitality manager at a local breweries Ale House. We are now changing pace to become a bottle shop, the first in our City, and going to be adding an additional 2-3 taps on top of our ten from our brewery. We plan to have 1200 different bottles in less than two years, the demand is here!

I've been meeting with distributors (King and Odom) with our business manager (he is not a beer guy, unfortunately) and they keep telling me about the "BEERS I NEED ON TAP" unfortunately I don't generally want the crap they are trying to sell me. We're in the great Pacific Northwest, so we have access to breweries and they are trying to sell me on Ninkasi and other breweries which I generally feel are boring. Not bad, just boring since I can go to every bar in town and get a total domination or a Men's Room.

Anyone have any good ideas? I'm thinking about contacting breweries and buying wholesale directly.

That is my mindless rambling and drunken mumbling for the evening.

Anyone have any good ideas?

 

[thatjonguy]

Watch out for franchise laws, this will most likely prevent you from purchasing direct. Not to mention the three-tier laws in effect in most state.

If your target does not have a distro agreement with a distributor covering your geography; it may be possible.

Probrewer.com or the BA fourms would a better place to ask. Your legal counsel should have an idea if this is possible if they any good at their job in the alcohol industry.

 

[duboman]

You need to look at the distribution agreement you currently have, it may be impossible for you to do what your are wanting to do or it may be possible, really comes down to the laws in your state.

A review of the agreement with an attorney would be a good start!


Sent from the Commune

 

[Rivenin]

Oregon is a self distribute state, just FYI for the other posters.

I think it's feasable... but i'd just tell the distributors what i want and tell them to shove it if they don't want to sell it.
They need your business.. not the other way around what kinda breweries do you have your way?? I know there are a few by walla walla, but not terribly sure whats in the la grande area... i'm fairly sure there are a few smaller micro/nanos that would love your business

 

[Vaureywwc]

Luckily Washington doesn't have the three-tier system. Unfortunately many businesses act like they have to use it. I'll try to go through ProBrewer I guess. Thanks though! We haven't made any agreements with any of the distributors for our Ale House yet.

We want Micro/nanos. We have the client-base for good beer (new) beer. People here love to try new stuff. That's what we're aiming for.

I've made the comment, that I'd drive to the
Willamette valley from the Walla Walla Valley just to acquire good beer, I'd do the same to Seattle and Spokane and where-ever I needed to go! Hahah

 

[thatjonguy]

The agreements I was referencing is if a brewer chose to use a distributor in your area, they may be subject to franchise laws and unable to sell to you directly since they have agreed their products will be sold by that distributor in your area, if such agreement exists.

In my limited experience, I know some that attempted to buy a keg from another distributor directly as the local one was not carrying the brand he wanted. But due to geographical contract sales limitations he was unable, even if he picked the product up himself.

Exemptions to the three tier system usually have some limitations. I would locate the applicable law for your jurisdiction and do some reading.

Best bet is calling the breweries you want and talking to their sales/logistics people and explain. They should know if it can happen or not.

 

[Vaureywwc]

The agreements I was referencing is if a brewer chose to use a distributor in your area, they may be subject to franchise laws and unable to sell to you directly since they have agreed their products will be sold by that distributor in your area, if such agreement exists.

In my limited experience, I know some that attempted to buy a keg from another distributor directly as the local one was not carrying the brand he wanted. But due to geographical contract sales limitations he was unable, even if he picked the product up himself.

Exemptions to the three tier system usually have some limitations. I would locate the applicable law for your jurisdiction and do some reading.

Best bet is calling the breweries you want and talking to their sales/logistics people and explain. They should know if it can happen or not.

Yeah, luckily enough we can avoid that three-tier system here in Washington. Unfortunately we are in the void for most of the major breweries. We're looking at options for importing beer from Oregon/California through perhaps a shell company. But we have so many options, and so many hurdles.

 

[thatjonguy]

Let us know what happens, for future reference.

 

[Mongrel]

Your work is in Walla Walla?

I'd say you need Barley Brown's from Baker City on tap.

 

[Grannyknot]

I'm not a fan of distrubutors either.
I suppose they help small businesses who don't want to mess with logistics or marketing, but in the states that require everything to pass through the hands of a distributor, it just seems like a complete racket.

 

[Vaureywwc]

Your work is in Walla Walla?

I'd say you need Barley Brown's from Baker City on tap.

Working on importing into WA now. Trying to make it all fit.

 

[Vaureywwc]

Working on importing into WA now. Trying to make it all fit.

Well I have a update. We are working with five distributors now. They (after talks with some higher ups) understand our needs and have given us inventory lists and catalogs for ordering. (Granted it took four weeks for some of them).

I am also setup to travel throughout the Northwest to bring in beer. According to my guy, I can import from Oregon directly no special license required, and WA we do not follow the three-tier system per-say as long as no one is in an agreement that says otherwise. It took a few weeks of telling distributors that they have a product, but bugging them paid off.

Pretty excited for our new setup and looks like some great beer will be coming to the area that has never been seen before!

 

[Mindsculptor]

I'm not sure what your distributors are like in the Northwest, but be prepared to order something and not get it. Not only that, but be prepared to not know until the guy is there and hands you his manifest with known shortages. For whatever reason distributors just don't seem to take craft brewing as seriously as they do BMC types.

Capital Beer Distribution in Austin is really, really bad about that, to use a first-hand example.

 

[Vaureywwc]

I'm not sure what your distributors are like in the Northwest, but be prepared to order something and not get it. Not only that, but be prepared to not know until the guy is there and hands you his manifest with known shortages. For whatever reason distributors just don't seem to take craft brewing as seriously as they do BMC types.

Capital Beer Distribution in Austin is really, really bad about that, to use a first-hand example.

UPDATE:

So patience won. We now have four distributors who bring us beer, our main distributor however doesn't really provide much unfortunately. We're at 121 bottles and counting. We order anywhere from 10-40 new cases a week and only actually get 0-5.

Still a work in progress, but now that it's been a month. They are actually doing a great job.

(Granted they were supposed to drop off a delivery yesterday and never showed up):cross:

 

[Vaureywwc]

UPDATE:

So patience won. We now have four distributors who bring us beer, our main distributor however doesn't really provide much unfortunately. We're at 121 bottles and counting. We order anywhere from 10-40 new cases a week and only actually get 0-5.

Still a work in progress, but now that it's been a month. They are actually doing a great job.

(Granted they were supposed to drop off a delivery yesterday and never showed up):cross:

We'll also be getting the license to import from other states soon. Then we can bring in fun stuff from Terminal Gravity, Barley Browns, and many many others close by.