Legislator moves to hamstring craft brewers

[copperfiend]

The whole thing is disgusting.

[mbwright]

Well, then the solution is to require every distributor to to distribute every beer made in Florida ( if greater than 1 bottle), including home brew.  If they don't carry all of them, then the distributors should be prohibited from selling any buy beer of any kind. This would apply to Tri-Eagle, and others that only distribute one makers beer, sucha Bud, Miller, etc.

I'm so glad they working on legitimate issue here in Tallahassee.

Scott should be ashamed for allowing one business to bully another.  So much for competition, and an equal playing field for business.  I'm surprised they don't just require the breweries to use Nestle's water, or something like that.

[Intuition Ale Works]

Dear Forum-

Senate Bill 1714 is up for a vote this Monday at 1pm in front of the Rules Committee.

This is an incredibly bad bill that "allows" us to fill the industry standard half gallon growler but punishes us for that "privilege".

It punishes us by requiring us to sell, to our distributor, and buy back,from our distributor, all cans and bottles of beer that we sell out of our taproom.

The best part is we will have to pay them a mark up and the bottles/cans never leave our brewery.

It is nothing more than a state sponsored shakedown and legislation designed to give even more protection to the the beer wholesalers of this state.

If you give a sh*t about small business please email the members of the committee and ask them to oppose SB 1714

Senator Lizbeth Benacquisto
benacquisto.lizbeth.web@flsenate.gov

Senator Miguel Diaz de la Portilla
portilla.miguel.web@flsenate.gov

Senator Bill Galvano
galvano.bill.web@ flsenate.gov

Senator Andy Gardiner
gardiner.andy.web@ flsenate.gov

Senator Jack Latvala
latvala.jack.web@ flsenate.gov

Senator Tom Lee
lee.tom.web@ flsenate.gov

Senator Gwen Margolis
margolis.gwen.web@ flsenate.gov

Senator Bill Montford
montford.bill.web@ flsenate.gov

Senator Joe Negron
negron.joe.web@ flsenate.gov

Senator Garrett Richter
richter.garrett.web@ flsenate.gov

Senator Jeremy Ring
ring.jeremy.web@ flsenate.gov

Senator David Simmons
simmons.david.web@ flsenate.gov

Senator Eleanor Sobel
sobel.eleanor.web@ flsenate.gov

[acme54321]

Where is the like button?

[Intuition Ale Works]

Another great article about  Senate Bill 1714 and how bad it is for our industry.


BY BRENDAN FARRINGTON
ASSOCIATED PRESS
SANTA ROSA BEACH, Fla. -- The fight between craft brewers and the distributors of Budweiser over the legalization of half-gallon beer containers has gotten so bitter that it is even being likened to extortion.

The issue seems simple enough: Florida allows breweries to fill quart and gallon containers — called growlers — at their tap rooms, but the half-gallon size that's the industry standard in 47 other states remains illegal. Brewers, their customers and some lawmakers think the state should just get rid of the restriction that many call silly. But the politically powerful Anheuser-Busch InBev distributors have a powerful ally in Senate President Don Gaetz as they try to force craft breweries to give up some of their profit.

The latest idea is to force breweries to buy their own beer from distributors at a markup before they can sell cans and bottles to brewery visitors — the beer, in most cases, wouldn't even leave the premises or be handled by the distributors. Now, the brewers don't have to use a middleman.

"It's like paying protection money" to the mob, said Sen. Jack Latvala, R-Clearwater, who supports allowing half-gallon growlers with no strings attached.

Gaetz has in recent weeks been playing both sides — telling beer lovers who have complained about the proposed legislation that he helped a craft brewery in his district get started, but is still supporting the bill (SB 1714) that takes profits from craft brewers and hands them to distributors. The bill will likely be considered before the session closes May 2.

"When he says that he supports Grayton Beer Company or he supports small independent breweries — he has never supported me in one thing," said Jamey Price, the brewery owner Gaetz has boasted about helping. "He's either evil or he's dumb."

Price's brewery opened under a business plan that included sales through distributors to restaurants and stores, a tasting room where brewery visitors can buy draft beer and take-home containers, and a small production brew pub that would be supplemented by beer made at the main brewery.

"We can crumple that business plan up and throw it out the window," said Price, standing at his Santa Rosa Beach brewery. "If this was in effect in 2010, more than likely we wouldn't have gotten into this business."

Anheuser-Busch InBev distributors, who handle Budweiser, are trying to protect the three-tier system of alcohol distribution the federal government set up after Prohibition ended in the 1930s. It basically ensures that alcoholic beverages are passed through a distributor to get to retailers. Exceptions have been made for purchases where products are produced, like buying wine at a winery or rum at a distillery.

Mitch Rubin, a lobbyist representing Anheuser-Busch InBev distributors, said he's OK with draft beer and growler sales at breweries, but not bottles, cans or kegs. He hasn't supported bills that simply legalize half-gallon growlers.

MillerCoors distributors do support legalizing half-gallon growlers with no strings attached. Other regulatory concerns should be addressed separately, said Eric Criss, their lobbyist.

Another change the bill makes would force brewers to sell their beer to distributors and buy it back at a markup if they want to sell it at another location. That means a company like Cigar City Brewing in Tampa would no longer be able to directly transport beer from its main brewery to a separate brew pub that has a smaller brewing capacity.

Cigar City Brewing, which Joey Redner started with two employees in 2009, has grown to 115 employees, including the brew pub. Redner says he wouldn't have succeeded without a tap room, where customers buy draft beer and take-home containers.

Small startup breweries can't make a profit just based on sales through distributors, said Redner. For at least two years Cigar City was spending more to make beer than distributors were paying for it.

"Every time I sent a case out the door, I lost money. It was offset by the fact that I could sell that beer in draft on premise and in six-packs on premise at a higher margin than to a distributor," he said.

Craft brewing is one of Florida's fastest growing industries. There were six craft breweries in 2007 and there will be nearly 80 by the end of this year.

"We're supposed to be about jobs and economic development," Latvala said, adding that distributors are making money off the growth. "They're just being greedy."

Read more here: http://www.miamiherald.com/2014/04/19/4068504/bill-could-slow-florida-craft.html#storylink=cpy

[FSBA]

Here's the problem:

In Duval County there are 6 House and 1 Senate seat on the ballot this year. The Senator and 5 of the Representatives are incumbents up for reelection. None of these have a challenger so all they have to do is file paperwork in June to return to office.

Sen Aaron Bean (R) has received $3,500 from beverage distributors, and $1,000 from A-B. Unopposed incumbent.

Rep Janet H. Adkins (R-11) has received no money from beverage distributors. Unopposed incumbent.

Rep Lake G. Ray III (R-12) has received $1,000 from Beer Distributors Committee for Good Government, and $1,000 from a distributor. Unopposed incumbent.

Rep Reginald N. Fullwood (D-13) has received no money from beverage distributors. Unopposed incumbent.

Rep Mia L. Jones (D-14) has received no money from beverage distributors. Unopposed incumbent.

Jay Fant (R) (Dist 15) has received $1,000 from Beer Distributors Committee for Good Government. Opposed in primary.

Paul M. Renner (R) (Dist 15) has received $1,000 from a beverage distributor. Opposed in primary.

Rep Charles W. McBurney Jr. (R-16) has received no money from beverage distributors. Unopposed incumbent.

[JeffreyS]

I will send the email hopefully it isn't too late to get them to read it ahead of tomorrow's rules committee.

[spuwho]

Liquor biz and politics is a bit of a racket I am afraid.

I remember when Illinois distillers tried to make it illegal for a distributor to terminate or break a contract. Apparently they were unhappy at how distributors would walk away from distillers at will if there was any kind of an issue. It flopped.

Also I recall that there was an issue about economic development for the Chicago black community when the stadium funding proposals were bouncing around. Mysteriously, Jesse Jackson's son received an exclusive Budweiser distributorship and the questions of economic disparity in the black community went away.

Every time a vitner in California tries to push for internet wine sales, a zillion states AG's get up in arms because it will cause disruption to the liquor tax collection racket in each state, states and municipalities that are extremely reliant on taxes from booze sales to prop up their budgets.

"Regulation" of booze sales is no longer about post-prohibition control, its about tax revenue pure and simple. Anytime a distributor sees a threat to them, they run to their lobby and scream.

[mbwright]

The distributors do more harm than good.  Not much reason for them to exist.

[mbwright]

The bill keeps moving forward.

[mtraininjax]

The latest idea is to force breweries to buy their own beer from distributors at a markup before they can sell cans and bottles to brewery visitors — the beer, in most cases, wouldn't even leave the premises or be handled by the distributors. Now, the brewers don't have to use a middleman.

This is the meat of the argument, the AB distributors don't want the craft brewers to be able to sell the cans and kegs direct without going through them. The growlers are just a distraction.

Imagine if Amazon needed a distributor to sell products to you and me, distributors are like the old dying dinosaur businesses that are in need of elimination.

[urbanlibertarian]

The system we have was put in place after prohibition ended to keep organized crime out of the alcohol business.  Prohibition put organized crime into the alcohol business.  IMO mobsters would never have been able to compete with businessmen if they had simply ended prohibition and allowed a free alcohol market.  Consumers shouldn't have to suffer now because of dumb 80 year old laws.

[finehoe]

...mobsters would never have been able to compete with businessmen...

Except that they're often one and the same.

[urbanlibertarian]

...mobsters would never have been able to compete with businessmen...

Except that they're often one and the same.

I know that many see a moral equivalency between campaign contributions and bribery but what do businessmen do that equates to violence and murder?  Most businesses succeed by pleasing their customers better than the competition does.  A few persuade government to give them a competitive advantage through regulation, tax policy, licensing, etc.  Even those crony capitalists don't use violence like mobsters do.

[Traveller]

The bill passed the Senate today 30-10.  Of local note, both Audrey Gibson and Aaron Bean voted against the bill, while John Thrasher and Rob Bradley voted in favor of it.

Now onto the House...