I am looking to get some feedback on exploring a venture in the beer industry. I live in Cleveland Ohio, a self-distribution state. Recently, I have noticed some well funded small breweries started driving around vehicles to self-distribute beer and with the 3-tier system as it is, it become very obvious why this is attractive alternative. However, I can't imagine that a brewer would be excited about having another business process to manage and learn. In most cases the capital just isn't there to self-distribute. It is amazing to me the level of passion you guys have to over come these steep learning and financial hurdles.
A value proposition I am currently testing is to offer breweries a logistics service that would off load the shipping side of self-distribution, handing the scheduling/picking up/delivering/tracking/communication/cold storage to retailers & restaurants while realizing a 50% - 60% savings over using a distributor for logistics. Additionally, they could avoid selling their distribution rights from the get go. The service would target small breweries (500- 2500 BBL/yr).
I am looking to gauge the interest level among brewers on this service.
I am looking into the legal side of this as well (working on finding a qualified lawyer that knows the industry). There is company already doing this called Local Libations in Texas which share some of the same delivery/distribution laws (for example: Both require COD, Fintech supported in both states).
MI on the other hand has explicitly stated in their self-distribution law that: "The beer is sold and delivered by an employee of the qualified micro brewer, not an agent, and is transported and delivered utilizing a vehicle owned by the qualified micro brewer, not by a third party delivery service." Ohio as well as others do not state such limitation. Also If have legal incite please reference your finding so I have something to go on.
Cheers!
Justin
A value proposition I am currently testing is to offer breweries a logistics service that would off load the shipping side of self-distribution, handing the scheduling/picking up/delivering/tracking/communication/cold storage to retailers & restaurants while realizing a 50% - 60% savings over using a distributor for logistics. Additionally, they could avoid selling their distribution rights from the get go. The service would target small breweries (500- 2500 BBL/yr).
I am looking to gauge the interest level among brewers on this service.
I am looking into the legal side of this as well (working on finding a qualified lawyer that knows the industry). There is company already doing this called Local Libations in Texas which share some of the same delivery/distribution laws (for example: Both require COD, Fintech supported in both states).
MI on the other hand has explicitly stated in their self-distribution law that: "The beer is sold and delivered by an employee of the qualified micro brewer, not an agent, and is transported and delivered utilizing a vehicle owned by the qualified micro brewer, not by a third party delivery service." Ohio as well as others do not state such limitation. Also If have legal incite please reference your finding so I have something to go on.
Cheers!
Justin
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