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Bill backs

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  • Bill backs

    Hello all,

    This will probably only pertain to California distribution laws, so if you know any please help. With growth, we are getting bigger and bigger billbacks from our distributors. Overall percentage is actually dropping as we grow and add more quality processes, but it's still a concern. Half of our billbacks are leaky or bad seal microstar kegs, but some are our fault. They get to the customer, and the distributor says it was foamy, cloudy, etc. They then charge us 50% for the keg. Am I correct that we should only be billed for the destruction of the beer not 50% of the keg price? I understand that if a wholesaler finds a half empty keg in their warehouse, we'll pay for that but once it gets to retail it is their issue. I'm just trying to understand the billbacks from retail locations.


    Peter Cronin
    Senior Quality Analyst
    AleSmith Brewing Company