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  • Simple and Confusing!

    I would like to start out by saying that Alabama does not allow for Micro Breweries to self distribute nor do they allow beer tastings at a stand alone manufacturing brewery.

    I am looking for information from Micro-brewers and wholesale distributors specifically, relating their experiences regarding the holding of beer tastings at breweries in states where it is legal to do so.

    1. from a wholesalers perspective, what are the pros and cons of allowing such an activity to occur at the manufacturer/brewery?

    2. from a brewers perspective, what are the pros and cons of the same activity at your brewery?

    I guess what I am really after is information about systems / laws that work within your state.
    thanks,
    Derrell
    www.beerontheriver.com

  • #2
    Here in PA we are allowed to do it all, self-distro, tastings, in-house sales.

    The pros:

    Fantastic medium for you and your customers to come face to face, network, share stories and allow your beer drinkers to know the story behind the beer. Many people who come to see how beer is made end up tasting the beer and being able to put the process and flavors together is pivotal, especially for newbies to craft styles. I'd be pretty disappointed if I toured the brewery and couldn't taste the beer.

    In house sales, particularly growler fills, generate good revenue. Plus it wouldn't be fun if someone wanted to buy a case to go and you had to tell them no dice. Then they have to go across town to hunt after it.

    Self distribution is often helpful for breweries that are in less craft accepting areas. The one on one with the retailers is needed to help support the brand in those areas.

    Cons:

    Some smaller towns don't like the idea of beer sales in rural areas. In our area the Borough had a beef with the idea of in town sales and came up with some ridiculous fabrications to try to shoot it down, increased DUI, crime, contributing to the delinquency of minors, etc. Its good to have friends in high places.

    Larger area distro's will definitely try to get you not to sell in house. Particularly if they are picking you up for the first time. There is a fine line here though depending on how much you move at the brewery.

    Sometimes you can burn bridges by cutting out the big distros. Distribution is a whole world unto itself and I think its better left to them providing they represent your brand well.

    Comment


    • #3
      Originally posted by South County
      Here in PA we are allowed to do it all, self-distro, tastings, in-house sales.

      The pros:

      Fantastic medium for you and your customers to come face to face, network, share stories and allow your beer drinkers to know the story behind the beer. Many people who come to see how beer is made end up tasting the beer and being able to put the process and flavors together is pivotal, especially for newbies to craft styles. I'd be pretty disappointed if I toured the brewery and couldn't taste the beer.

      In house sales, particularly growler fills, generate good revenue. Plus it wouldn't be fun if someone wanted to buy a case to go and you had to tell them no dice. Then they have to go across town to hunt after it.

      Self distribution is often helpful for breweries that are in less craft accepting areas. The one on one with the retailers is needed to help support the brand in those areas.

      Cons:

      Some smaller towns don't like the idea of beer sales in rural areas. In our area the Borough had a beef with the idea of in town sales and came up with some ridiculous fabrications to try to shoot it down, increased DUI, crime, contributing to the delinquency of minors, etc. Its good to have friends in high places.

      Larger area distro's will definitely try to get you not to sell in house. Particularly if they are picking you up for the first time. There is a fine line here though depending on how much you move at the brewery.

      Sometimes you can burn bridges by cutting out the big distros. Distribution is a whole world unto itself and I think its better left to them providing they represent your brand well.

      exactly what I need man, thanks for the input.
      www.beerontheriver.com

      Comment


      • #4
        Brewery sampling

        First as you will find out there are varying degrees of rules and laws in every state that make it very complex especially as it relates to how to manage and how to utilize your own business. So you need to understand them.
        In our state Indiana it is legal for a brewery to sample in there brew pub as well as any on premise can sample up to two ounces per consumer and this relates to great experiences for the consumer. It is also legal for a consumer to sample beer in a liquor store but not in a grocery store. But the whole concept of sampling is imperative to the success of the craft brewery. consumers want to experience the taste and you cannot do that by conversation. Our requiremet as a wholesaler is that every salesperson is required to complete at least five craft samplings monthly as we believe that is the only way to bring suceess to the category.
        So the cons for us as a wholesaler is how how can you manage it. Becasue it takes people and product and neither are cheap.
        Hope that helps.
        Jim Schembre

        World Class Beverages
        Indianapolis, Indiana
        1-317-612-3105
        Jischembre@worldclassbeverages.com
        www.worldclassbeverages.com

        Comment


        • #5
          Originally posted by Todd Hicks
          Selling packaged product to customers and allowing them to have a private party, wedding, picnic would likely be acceptable. Leasing a section of the manufacturers building/property to a second party bar or restaurant liscensee would be acceptable, but would still have to make purchases through a distributor or owner would have to make purchases through the manufacturer's gift shop. Back to beer and spirits, a manufacturer could, in Alabama (most likely) sell any alcoholic products that it manufacturers and offer tastings at its gift shop. There is no restriction - specifically - prohibiting sale of beer or spirit, even though the only products - specifically - mentioned by law are vinous in nature; wine, cider, brandy, fruit based vodka. In other words, if it is not specifically forbidden, it is arguably legal.
          Ala Code 28-9-3 - Each supplier of beer licensed by the board authorizing such licensee to sell its beer within the State of Alabama shall sell its beer through wholesaler licensees of the board

          Ala Code 28-3A-6(b) - No manufacturer licensee shall sell any alcoholic beverages direct to any retailer or for consumption on the premises where sold

          The Alabama statutes permitting wineries to sell wine on premises is a special carve out for wineries.
          John Little | Auburn, Alabama
          General Counsel, Southern Farmhouse

          Comment


          • #6
            Originally posted by Todd Hicks
            Fwd:
            Hello, Beer Lovers. I think this is a fair assessment of the current laws, regulations and gray areas existing in the Alabama law. I think that the legal and financial arrangements can be structured in compliance and be manageable. It would be nice to not have to go through these contortions, but it is more important to set the actual operations in motion and establish a working legal precedent. When business develops to the point that the monopoly is impeding the business, then it will be time to fight. After all, Alabama is not the center of the Universe, and the State Monopoly enjoys a very adverse public image. The State will lose in the realm of PR.
            Cheers, Jim
            Damn it Jim, I'm a brewer, not a lawyer.
            What are you saying?

            Comment


            • #7
              Kudos to Dr. McCoy, aka Happypup, for the now timely Star Trek reference. Well said.

              However, I wanted to chime in to say that as a wholesaler, I absolutely love the opportunity that we have in Indiana for people to sample beer at the brewery. There's not much else in the way of an experience that people can have that will generate more enthusiasm and excitement about a brand than being able to sample it at the brewery and to chat with some brewery personnel or brewers. In a segment that often lacks brand loyalty, I think the experience of sampling at the local brewery gets people about as close to being brand loyal as it gets in the craft category.

              Further, I believe that the existence and ultimate success of local craft brewers has a lot to say about how an area's beer culture develops overall. For those who don't drink beer or who drink mass produced beers, I beleive that it is much easier to get them started with a local product that they can freely sample versus something from out of state. Basically, I think there's a stronger appeal to a local product that can attract new drinkers and ultimately lead to greater success in the overall craft category.

              Comment


              • #8
                Originally posted by happypup
                Damn it Jim, I'm a brewer, not a lawyer.
                What are you saying?
                I'm not sure I understand either. It seems the suggestion is to break the law. Alabama does have alot of very old (1930s) alcohol laws on the books, but the best way to advance Alabama's craft beer culture is to work to change the laws. I don't think anyone should have to jeopardize their licensure.

                Another that seriously needs change is the requirement that brewpubs be located in a building that qualifies for placement on the National Registry of Historic Places and in a county where beer was brewed for sale to the public prior to Prohibition. This is a major impediment to the growth of craft brewing in Alabama.
                John Little | Auburn, Alabama
                General Counsel, Southern Farmhouse

                Comment

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