What is Furthermore Beer?
As a brewer by trade, I have always consider my business to be a brewing company even though we started out lean and mean without an actual brewing facility--we use Sand Creek Brewing Company's equipment to get the job done. As it happens, the Federal Government says that if a business does not own stainless steel, then it cannot be a brewer. Instead, it must sell its product as a wholesaler. So, Furthermore Beer holds a wholesalers permit that allows us to buy our beer from our contracted producer, and then resell it to retailers or distributors as we see fit. We began doing so by self distributing our product until such a time that it was clear that more capable, established distributors could do a far better job at hauling beer around the state. Unfortunately, one aspect of Motion 414 will force the DOR to penalize Furthermore Beer to the tune of $10,000 anually if we do not have 25 or more retail customers. Well, recognizing the strength of the established second tier, we gave up all of our retail accounts and now only have 5 distributors in WI to whom we sell beer. One option we do have is to sever ties with one or more retailers and take back the retail accounts. Aside from this running counter to the spirit of the motion--to help wholesalers maintain their place in the flow of product, we would have to buy back the territorial rights at a cost greater than the DOR fine.
Furthermore has been very grateful for the relationships it has established with its distributors, from helping us see the market through their eyes to offering their backs to actually move the beer. They have allowed us to grow in sales, and to crash on their couches. My concern with Motion 414 is not the degree to which it strengthens their position in the market, but the degree to which it could push me out.
