5 replies to this topic

[SchwanzBrewer]

Well, if Governor Voldemort signs the bill FL will have legal 64oz growlers.

 

The good...

 

-The law will give 64 oz growlers

-Tasting rooms are protected and are not subject to any "ambiguity" about tourism exemptions.

-Craft distilleries can sell more bottles at their facilities.

 

Good-ish I guess

 

-Distributors and vendors can hold tastings now (yippee!)

 

The bad...

 

-Breweries are limited to 8 sub facilities with tasting rooms (this was included because the distributors are worried that ABinBev will put mini breweries all over fl with homebrew systems and then distribute beer to them from a mega facility locking distributors out of the loop - totally unfounded. ABInBev would have done this in another state that doesn't have three tier).

 

-Breweries can transfer beer to the sub facilities up to the amount that the sub facility brews. So A brewery can have a brewpub and send beer from it's brewery to the pub up to the amount of beer that the brewpub produces. So if you brew 500bbl at a brew pub you can send 500bbl to the pub from your main facility. Idiotic part of the law that is completely arbitrary.

 

The whole thing ####ing stinks. It really pisses me off that a group can basically get their way because they have money. Nevermind the voters. The craft beer geeks came out in droves in support of the breweries and had thousands of emails and letters to senators and congressmen, but this is the shit we get. Arbitrary limitation.

 

The worst part about it is that we're forced to do business with the same assholes that are keeping us from having a fair deal under the law. It's ####ing disgusting.

[armagh]

The good...

 

-The law will give 64 oz growlers

-Tasting rooms are protected and are not subject to any "ambiguity" about tourism exemptions.

-Craft distilleries can sell more bottles at their facilities.

 

Last year you were enraged that this did not get through.  This year it did now you're pissed all over again. I know a number of the players in this drama personally and they all say the same thing: If the craft brewers are serious, they'll put together a pot of money, hire a good legislative strategist (for a change) and start chipping away at what they don't like.  If they can get their shit together, they'd win in a landslide, but as it stands, they're inexperienced and a bit naive.  If they want their business model to prevail, they're going to have to put in the work.

[SchwanzBrewer]

The good...

 

-The law will give 64 oz growlers

-Tasting rooms are protected and are not subject to any "ambiguity" about tourism exemptions.

-Craft distilleries can sell more bottles at their facilities.

 

Last year you were enraged that this did not get through.  This year it did now you're pissed all over again. I know a number of the players in this drama personally and they all say the same thing: If the craft brewers are serious, they'll put together a pot of money, hire a good legislative strategist (for a change) and start chipping away at what they don't like.  If they can get their shit together, they'd win in a landslide, but as it stands, they're inexperienced and a bit naive.  If they want their business model to prevail, they're going to have to put in the work.

 

We have a, one, uno, singular lobbyist that works for the fl brewers guild. We raised over 40k this year to try to help fight the lawsuit that the retail association and distributors filed against the state. It's a drop in an ocean. ABInbevs lobbying fund for the beer wholesalers is the largest in the nation of ANY lobby group. Bigger than guns and drugs put together (well last stats I saw anyway). So it's a HUGE struggle. The only we have going for us is a very vocal minority.

 

FL beer is a 14.5 billion dollar business. ABInBev has like a 70%+ share. Craft beer has about a 5% share. Local FL craft is likely only 15% - 20% of that. Roughly 100 craft breweries or will be near that this year, most producing under 1000 bbl. It's all we can do to scrape together enough money to sustain and build our businesses. It's like batman vs superman. Fl craft is batman and he doesn't have any kryptonite. We might as well be shooting at him with a nerf gun. 

 

So when I see fl craft brewers being taken advantage of in the legislature it pisses me off. Last years bill was abominable. It was 1 line long and the wholesalers association turned it into a 15 page turd that was essentially legalizing racketeering. This year we have a little win. We have growlers, for most part we can do business the way we want and have been doing, but we have arbitrary restrictions on that business. Maybe when fl craft beer approaches the 10% mark we'll start to have enough money to fight this and chip away at the law. It's a huge mountain to climb though.

 

For me it was never about the growler. It's about being able to do business fairly and having a chance at success. It was blatantly clear to us that there are always going to be forces that want us to fail. Until we have serious money to throw at this, we'll be at a disadvantage.

[SchwanzBrewer]

httpss://scontent-mia.xx.fbcdn.net/hphotos-xpf1/t31.0-8/11174265_10206870299979034_8339949444359348608_o.jpg

 

And this is what we're up against. In summary, JDubs is a Bradenton, FL brewery. They are distributed by JJTaylor (Miller/Coors distributor). Gold Coast is an ABInBev outfit and they've cut JDubs business by over 50% in their territory. Now, this is not entirely JJTaylors fault. JDubs beer hasn't been stellar. That is a huge problem. They only way to keep your taps is to make top quality beer. That means spending money on the brewery. JDubs has been in business of a bit over a year. If his beer doesn't improve and his taps keep dwindling he won't survive. That's one less contributor to the fight.

 

Another thing to look at is that if his distributor decides to stop selling the beer/working the accounts there is absolutely nothing JDubs can do. We are three tier and you are worse than married to your distributor. You can get out of a marriage. You have to sue to end the relationship and then only if there exact circumstances laid out in the law. Also you end up having to buy back all your beer and the rights to your beer. It's basically like being in bed with mob. The only way you stop paying protection is to die. So even if JDubs starts making the best beer in the world, his distributor can sit on it and #### the whole thing up without any sort of consequences. 

 

So these things weigh heavily on my mind as I try and go into this business. I'm well aware of some of the pitfalls and I'm going to try and navigate them as best I can. I don't know everything, but that is important too.

Edited by SchwanzBrewer, 29 April 2015 - 02:42 PM.

[armagh]

I hear you and I get it.  Understand I've lived in this town for 30 years and prior to living here, I covered the Legislature.  All I'm saying is that there's a way to get things done and it is rarely, if ever, accomplished over night.  FWIW, I am personal friends with a number of distributer sales reps and every one of them believes the three-tier distribution system has, at best, ten years left before they're looking for another line of work.  It is a system that is sustainable only through legislative life support and if the craft beer movement could get itself together, it could be a nail in the coffin.

[SchwanzBrewer]

I hear you and I get it.  Understand I've lived in this town for 30 years and prior to living here, I covered the Legislature.  All I'm saying is that there's a way to get things done and it is rarely, if ever, accomplished over night.  FWIW, I am personal friends with a number of distributer sales reps and every one of them believes the three-tier distribution system has, at best, ten years left before they're looking for another line of work.  It is a system that is sustainable only through legislative life support and if the craft beer movement could get itself together, it could be a nail in the coffin.

 

Are you in FL?

 

If a psychic told me three tier would be gone in FL in 10 years I'd say I had a better shot at winning the lottery. FL is the epitome of a good old boy state. Even if three tier went away you can't stop using distributors. Distribution is a nightmare for a small company. What may happen is ABInBev/Miller Coors may buy up it's distributors, but then only management is going to suffer. I think this is happening out in Oregon and Washington. It's a problem because ABInBev is controlling the market.

 

Would I like self distribution? Yup. But, that doesn't change the logistical problems you'll face.

 

One of the state reps had limited self distribution on the bill that was passed when he introduced it. It got struck from the bill almost immediately. It makes sense from the current laws standpoint for both distributors and breweries. Small breweries don't know what they are really capable of for at least a year or two and there will be a lot of kinks to work out. If they get into business with a distributor that isn't good right away then they stuck for life basically. If they can't make good enough beer then the distributor is stuck holding the bag. So it would be good for both sides to let small breweries grow naturally and work out their own kinks and develop their own client base before signing a deal with a distributor. Seems like a no brainer, but that was like executing a child to the legislature apparently.