beerisgreatPA

beerisgreatPA OP t1_jdenwsa wrote

Not sure how retailers became the focus of this back and forth, But first, I know more about the distributors than just about anyone other than the morans, mancinis or epstiens/rubensteins. As for the retailers, due to my intimate knowledge of the distributors, I know just about every major player in retail, and as I said, they actually don't care about this bill, some even oppose it. As for future legislation, the retailers need protecting. Keeping stop and shop etc out and defending them against the deposit/nips crap is a priority. I want to reiterate, these licenses are 100% legal and they are trying to take away these licenses that were legally obtained. No laws need to be changed for the retailers. How does self distro hurt retailers? It allows more local beer to be sold directly to them, and for better prices mind you.

This bill is about the teamsters and distributors coming for the breweries who have finally gotten to a point where they are running meaningful businesses, employing hundreds of people. They are trying to keep RI from adapting to a industry that has completely changed in the last 15 years. Basically every state has, why can't we? I don't see the breweries trying to change the amount they can sell or anything, (at least at this time) this is about selling more be TO THE RETAILERS. Honestly I think the retailers and the breweries are kinda on the same side here. Also, the teamsters are in support of the severely damaging bill for nips/bottle deposits. Retailers should be focused on that.

anywho! I am asking for this groups support in the name of craft brewers. Reach out to our reps in opposition to this bill!

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beerisgreatPA OP t1_jdedec5 wrote

I dont even know where to start with this.

  1. Lets lead with the distributors and retailers not being defended. Liquor lobby is only overmatched by the teamsters. They are constantly blocking stuff left and right. Centrex basically IS the distributors. Those three Distributors M&M Horizon and RID are somewhere in the range of 75% of all distributed alc in the state, and when you look at just beer its in the 90s, all of which is delivered by the teamsters through centrex. A couple thousand cases a year in craft beer is a literal drop in the ocean.
  2. As far as retailers and distributors not making money. There are for sure some liquor stores not making much, those stores though are A. not selling much craft beer and B. usually being suffocated by another larger conglomerate of stores. The other stores are making TONS of money especially in the last 3 years. SPEAKING of loop holes and licenses, How is it that the haxtons, Guptas, heritage and several other retailers, can skirt the rules and get several licenses through family buying? The distributors are also making LOADS of money and two of the three big ones have distributors in multiple states, all of which (except RI) have self distribution and it doesn't seem to be making a dent in thier bottom lines
  3. leveling the playing field. That is exactly what self distribution does. It allows breweries to sell 15 barrels of beer a quarter and get healthy margins for them. Meanwhile the distributors and retailers are still selling 2 or 3 times that of corona, bud, miller etc a day.
  4. Retailers grew far far far more 2019-2023 than any other segment of the industry.
  5. Lastly, the retailers really don't care about this at all, it allows them to sell more local product. Which is one reason why they are not mentioned here. They are however VERY afraid of the teamsters since they were protesting in front of their stores when they took deliveries last year from MS walker. they are more concerned with stop and shop and nip legislation.
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beerisgreatPA OP t1_jddtknh wrote

It doesn’t work that way unfortunately. Small breweries get buried in large distribution companies. They cannot compete with the huge incentive programs large companies use to motivate sales forces. If there are 10 Draft lines or 30 openings in a cooler door and you have 75-100 brands. The little guys is lost in the shuffle.

Edit: spelling

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beerisgreatPA OP t1_jddstfp wrote

That is not accurate. Brewers have to apply for a completely separate license. The distro license is 4 grand a year. Also, I think it needs to be reiterated. This is and has been 100% legal. The DBR is also against this. And what treehouse was able to do is a perfect example of how Rhode Island breweries are disadvantaged compared to their piers in Ct and MA.

Both of those states a brewery license allows for distro. They can also sell wine and unlimited cases to customers.

I don’t see distributors failing there, And tree house doesn’t even distribute fyi.

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beerisgreatPA OP t1_jdd4m0j wrote

I mean they proposed the bill. Testified with the distributor lobbyist in favor of it. No issue with them before that, bill goes away, no issue with them again. Its a direct attack on the brewing industry and its viability and the jobs and livelihoods of hundreds of Rhode island residents.

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beerisgreatPA OP t1_jdd0ni2 wrote

This is not an attack at the teamsters as an organization. That being said, this is a move not to protect jobs this is them trying to keep the status quo. these distro operations are TEENY TINY compared to the three big distributors, who btw are in on this with them, again not to protect jobs.

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This is about an industry (craft Beer) that is growing faster in Rhode Island than the national average and is hiring people left and right to keep up.

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beerisgreatPA OP t1_jdcbz20 wrote

Titled barn, Linesider, 12 guns, vigilante, ragged island and moniker all have wholesale licenses. Going with a traditional distributor eliminates 2/3rds of a breweries margin. If this were to pass these breweries would be crippled, not to mention they would fire their entire wholesale teams.

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beerisgreatPA t1_jdak7kf wrote

As an fyi to everyone. This is NOT run by nightshift. It’s a bar staffed and run by the company level-99. Night shift fired basically their entire production staff and moved their entire brewing operation to jacks abbey. Rhode Island does not need a mass brewery advertising a fake taproom. This is only going to hurt RI breweries.

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