Another stab at liquor law reform

[Cats Cats Cats]

This is the Walmart/QT initiative.  Liquor stores hate it because they don't get to sell non-alcoholic items and they don't want anybody but them selling wine.

[cannon_fodder]

There was some horse trading on the last (and ongoing attempt). With liquor stores getting the right to add refrigeration and other markets getting the right to wine and strong beer. Some liquor store owners were against it: why give up a monopoly when in return you have to add capital investment for a marginal return? Of course some others in the state are simply against change in alcohol laws because Jesus.

Anyway, this newest attempt is some big retail players saying "screw it, we'll just do it our way."

[dbacksfan 2.0]

Will Scott Pruitt have time to review this while he is working on the case with Nebraska to sue Colorado over legalized pot?

[Townsend]

Will Scott Pruitt have time to review this while he is working on the case with Nebraska to sue Colorado over legalized pot?

If someone promises to add to the Pruitt for Governor coffers, yes.

[Conan71]

AB-InBev isn’t happy.  Neither are the package retailers, though I can’t see any way this would cause package retailers to close.

Bill that would allow cold, strong beer sales outside liquor stores passes in Senate panel

OKLAHOMA CITY — A Senate panel on Wednesday passed a measure that could lead to a public vote on allowing grocery and convenience stores to sell wine and cold, strong beer.

But the measure was not without controversy.

The Senate Rules Committee passed Senate Joint Resolution 68 by a vote of 12-3 with heavy lobbying for and against the measure.

The measure prompted Anheuser-Busch to take out television and print advertisements saying the measure would cost jobs.

“The bill is intended to be about modernization of alcohol laws,” said Eric James, senior director of sales and marketing for Anheuser-Busch Sales of Oklahoma. “It now includes a provision that kicks our distributorships out of state.”

Meanwhile, Bryan Kerr, president of the Retail Liquor Association of Oklahoma, said the measure will shut down dozens of package stores.

Sen. Clark Jolley, R-Edmond, said the measure was a culmination of years of work.

He said Oklahoma consumers are demanding changes in the state’s liquor laws.

Barbara Hoberock 405-528-2465

http://www.tulsaworld.com/news/government/bill-that-would-allow-cold-strong-beer-sales-outside-liquor/article_61484baf-2fdb-5606-becc-9e010c7cf0d5.html

[swake]

AB-InBev isn’t happy.  Neither are the package retailers, though I can’t see any way this would cause package retailers to close.
http://www.tulsaworld.com/news/government/bill-that-would-allow-cold-strong-beer-sales-outside-liquor/article_61484baf-2fdb-5606-becc-9e010c7cf0d5.html

This is where a bone needs to be tossed to each interest group. Let Bud and company into the liquor stores with refrigeration, allow wine and strong beer to be sold outside of liquor stores. Let liquor stores have more reasonable hours and be open on Sunday.

[dbacksfan 2.0]

Sounds like AB can't be pleased with anything, and is threatening to take their ball and go home.

http://www.tulsaworld.com/business/retail/beer-battle-brews-between-beer-distributors-of-oklahoma-and-anheuser/article_452df96e-e50e-5f87-8518-825cb02f2e2d.html

[Conan71]

It’s not just Oklahoma.  Rather than re-tool and make a superior product, AB InBev is attempting to control the market via lobbying, purchasing SABMiller and smaller brewers, purchasing distributorships, and essentially blackmailing their distributors into not carrying product from larger craft brewers. 

Now that there are many good beer variety choices rather than the 20 or 30 different brands of American pilsner beer most of us on TNF grew up with, AB simply is not keeping up with the times.  No matter how much their local distributor pushes Bud Light or Bud, I will keep brewing and drinking real craft beer (Shock Top doesn’t qualify).  If AB was making a product people wanted, their market share would not be dwindling in their flagship brands.

http://consumerist.com/2015/12/10/anheuser-busch-distributor-incentive-program-raises-more-concerns-of-a-stifled-craft-beer-market/

The new plan is being unveiled while the company seeks Justice Department approval of its approximate $108 billion takeover of SABMiller PLC. To avoid antitrust problems, AB InBev already agreed to sell SABMiller’s stake in U.S.-based MillerCoors LLC to Molson Coors Brewing Co. AB InBev Chief Executive Carlos Brito is scheduled to discuss the merger’s impact on consumers and craft brewers Tuesday before a Senate judiciary subcommittee on antitrust.

That acquisition and other AB InBev moves have stirred up competition concerns. The California Attorney General and Justice Department are investigating AB InBev’s recent acquisition of two California distributors to determine if those acquisitions make it harder for craft brewers to get beer on shelves, The Wall Street Journal previously reported. The brewer also came under fire last month from Senators Angus King (I., Maine) and Jeff Merkley (D., Ore.) who wrote the Justice Department, urging it to ensure AB InBev doesn’t “squeeze out America’s craft brewing industry” and “constrain beer distribution.”

Craft brewers fear AB InBev’s new incentive program could do just that. They say the program encourages AB InBev distributors around the country to drop competing brewers and discourages them from stocking new brewers. They added it could make it impossible to get distribution from some of the nation’s strongest distributors.

The U.S. has a three-tier distribution system in which brewers must sell beer to distributors who then sell it to retailers. The bulk of the nation’s beer distribution is handled by distributors with agreements to sell either AB InBev or MillerCoors beers, according to the National Beer Wholesalers Association.

AB InBev told its distributor network that they could qualify for the incentive program if craft brewers they carry produce less than 15,000 barrels or sell beer only in one state. But Lagunitas Brewing Co. founder Tony Magee said the cap could curb distributors’ motivation to increase craft-beer sales because rising demand could push production beyond the 15,000-barrel threshold.

“It’s a very Machiavellian lever they’re pulling,” said Mr. Magee, who recently sold a 50% stake in his company to Heineken NV.

Mr. Melo said the program is voluntary and nothing “prevents distribution of other brands.” He said distributors could sell 93% of “small craft brewers’ products” and be eligible for rewards. Most of the 4,000-plus craft brewers produce less than 15,000 barrels.

http://www.wsj.com/articles/craft-brewers-take-issue-with-ab-inbev-distribution-plan-1449227668

In some markets, they swooped in and purchased local distributorships right before new laws went into affect which prevent brewers from owning distributorships.

http://www.law360.com/articles/442608/ab-inbev-scoops-up-beer-distributor-ahead-of-new-law

In other words, they are engaging in douchebaggery to try and remain in control of a market where their main product is falling out of favor with consumers.

[RecycleMichael]

These guys have an ad running on local news broadcasts...maybe somebody can post it...

http://www.oklovesbudlight.com/

[dbacksfan 2.0]

It’s not just Oklahoma.  Rather than re-tool and make a superior product, AB InBev is attempting to control the market via lobbying, purchasing SABMiller and smaller brewers, purchasing distributorships, and essentially blackmailing their distributors into not carrying product from larger craft brewers. 

Now that there are many good beer variety choices rather than the 20 or 30 different brands of American pilsner beer most of us on TNF grew up with, AB simply is not keeping up with the times.  No matter how much their local distributor pushes Bud Light or Bud, I will keep brewing and drinking real craft beer (Shock Top doesn’t qualify).  If AB was making a product people wanted, their market share would not be dwindling in their flagship brands.

http://consumerist.com/2015/12/10/anheuser-busch-distributor-incentive-program-raises-more-concerns-of-a-stifled-craft-beer-market/

http://www.wsj.com/articles/craft-brewers-take-issue-with-ab-inbev-distribution-plan-1449227668

In some markets, they swooped in and purchased local distributorships right before new laws went into affect which prevent brewers from owning distributorships.

http://www.law360.com/articles/442608/ab-inbev-scoops-up-beer-distributor-ahead-of-new-law

In other words, they are engaging in douchebaggery to try and remain in control of a market where their main product is falling out of favor with consumers.

So if I understand this, it's sweep in and rearrange the deck chairs in your favor and squeeze out the micro brew/regional brew and say that "Join us or be eliminated" and crush the craft brew industry that's beating you at your own game. Explains why I had a blonde moment and bought some Budweiser and from the first sip went "WHAT THE HELL AM I THINKING?"

[Conan71]

So if I understand this, it's sweep in and rearrange the deck chairs in your favor and squeeze out the micro brew/regional brew and say that "Join us or be eliminated" and crush the craft brew industry that's beating you at your own game. Explains why I had a blonde moment and bought some Budweiser and from the first sip went "WHAT THE HELL AM I THINKING?"

Bingo!

[cannon_fodder]

The ad I heard this morning said to call and complain to the OK Congressman who is sponsoring the bill to sell in gas stations/grocery stores. No ta quote but essentially...

"Call and tell him you like Budweiser, and you support the jobs it brings to Oklahoma. If this bill isn't destroyed, we will totally leave Oklahoma and you won't have any beer."

NPR did a story on it, apparently they really hate the fact that the new law would require them to have a distributor. AB would then lose the profit and control that having their own distributor brings.  If the news report is right, they sell some 50% of all beer sold in Oklahoma, and Oklahoma consumes 2.5 million barrels, that means AB sells something like 1.25 Million Barrels of beer in Oklahoma.

Most of it in 12 OZ cans. Which is something like 400,000,000 cans. At 50 cents a pop... $200,000,000 in sales. Obviously a lot of dirty math there, bubt lets halve that number to $100mil... I doubt they walk away from that kind of sales volume.

[AquaMan]

Why do we require a separate distributor in OK? Why can't they be integrated? Is it just our state weirdness or is there some bonafide reasoning there?

[dbacksfan 2.0]

IIRC, mind you this was before all the takeovers and buyouts of US brewers, Coors had a distributor near 11th and Sheridan east of the old Hope Lumber Co., Miller had theirs out in an industrial park near Pine & Hwy 169, and wasn't Budweiser near Apache and Harvard?

[Conan71]

Why do we require a separate distributor in OK? Why can't they be integrated? Is it just our state weirdness or is there some bonafide reasoning there?

I imagine it’s because someone willing to grease plenty of legislators makes tons of money off of it.  Our whole liquor and beer system is reminiscent of a Corleone Family enterprise...*COUGH*