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  • distribution of collaboration beer

    So another local brewery and I are looking to do our first collaboration beer. I'm trying to find some specific information about how to pull this off. The main issue focuses around distribution of the finished product. My brewery has the capacity to actually produce the beer. However, I am a self-distributing brewery with a limited distribution area at this time. The other brewery doesn't have the room to make the beer, but has a better distribution channel.

    So how could this work (if at all)? Can the beer be "transferred" somehow from one brewery to another? Is there some other way to skin this cat so that the TTB is kosher with it?

    Thanks in advance....
    Scott LaFollette
    Fifty West Brewing Company
    Cincinnati, Ohio

  • #2
    Can you sell the finished beer to the other brewery? Because if you can sell it to them, they might be able to mark the beer as "beer received" on their TTB forms and then they can sell it to their wholesalers. I'm sure you can figure out a way to invoice the other brewery in a way that compensates you for their half of the cost of the production plus the amount you would receive for selling your half of the finished product. In other words, split the costs and the sales of the finished product right down the middle, invoice the other brewery for that amount and then they can collect the full invoice from their wholesaler. Am I making sense?

    Another option might be to arrange a temporary distribution agreement with the other brewery's wholesaler. One that limits the agreement only to that particular product or for a certain time limit. That might also be a kind of "foot-in-the-door" for you with that wholesaler if and when you get to the point where self-distribution becomes a burden.
    Mike Hiller, Head Brewer
    Strangeways Brewing
    2277-A Dabney Road
    Richmond, VA 23230
    804-303-4336
    www.strangewaysbrewing.com

    Comment


    • #3
      Originally posted by tsewong73
      Can you sell the finished beer to the other brewery? Because if you can sell it to them, they might be able to mark the beer as "beer received" on their TTB forms and then they can sell it to their wholesalers. I'm sure you can figure out a way to invoice the other brewery in a way that compensates you for their half of the cost of the production plus the amount you would receive for selling your half of the finished product. In other words, split the costs and the sales of the finished product right down the middle, invoice the other brewery for that amount and then they can collect the full invoice from their wholesaler. Am I making sense?
      This is sorta what I was thinking, but I'm not sure how best to handle it with the TTB. I am going to give them a call but wanted to ask here first to see if anybody had done something similar.

      Originally posted by tsewong73
      Another option might be to arrange a temporary distribution agreement with the other brewery's wholesaler. One that limits the agreement only to that particular product or for a certain time limit. That might also be a kind of "foot-in-the-door" for you with that wholesaler if and when you get to the point where self-distribution becomes a burden.
      We thought about this as well, but the unique situation we have is that we are on the border between two states so we would have to make this arrangement with two different distributors which complicates things even further. I'm not too worried about getting a foot in the door at the distributor at this time..
      Scott LaFollette
      Fifty West Brewing Company
      Cincinnati, Ohio

      Comment


      • #4
        I would think that the "cleanest" solution is to have the producing brewery sell the product to the other brewery.

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        • #5
          If you're worried about the interstate thing, I would think that the other brewery could arrange the sale of the beer to their wholesaler and you could simply deliver it directly to that distributor from your brewery. Unless Ohio requires you to sell to a wholesaler in order to export the beer from the state, that should work fine.
          Mike Hiller, Head Brewer
          Strangeways Brewing
          2277-A Dabney Road
          Richmond, VA 23230
          804-303-4336
          www.strangewaysbrewing.com

          Comment


          • #6
            Generally, the brewery that the collab. was brewed in owns the beer. When you do the return, the other brewery reaps the benefit. Much easier than trying to figure who owes who and other logistics.

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            • #7
              Thanks for all the responses. I believe we have figured it out now....

              Thanks again..
              Scott LaFollette
              Fifty West Brewing Company
              Cincinnati, Ohio

              Comment

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