Wisconsins war on small brewers

[ugonow]

-----"Tucked into Wisconsin Gov. Scott Walker’s (R) much-discussed budget was a little-noticed provision to overhaul the state’s regulation of the beer industry. In a state long associated with beer, the provision will make it much more difficult for the Wisconsin’s burgeoning craft breweries to operate and expand their business by barring them from selling directly to restaurants and liquor stores, and preventing them from selling their own product onsite.

The new provision treats craft brewers — the 60 of whom make up just 5 percent of the beer market in Wisconsin — like corporate mega-brewers, forcing them to use a wholesale distributor to market their product. Under the provision, it would be illegal, for instance, for a small brewer located near a restaurant to walk next door to deliver a case of beer. They’ll have to hire a middle man to do it instead.

But more noteworthy than the provision itself is how it was enacted. The provision was quietly slipped in the massive budget legislation without any consultation from independent craft brewers, who are justifiably outraged by it. One group that clearly did have input, however, is one of the world’s largest beer makers — MillerCoors:

Chicago-based MillerCoors, which operates a brewery and eastern division headquarters in Milwaukee, supports the proposal because it shares concerns with wholesale distributors about the possibility of Anheuser-Busch buying wholesalers throughout the country, said company spokesman James Wright.

Joining MillerCoors in support of the provision are industry associations that have an interest in preserving the current business of beer distributors, including the industry’s lobby, the Wisconsin Beer Distribution Association. But craft brewers see the provision as “a power grab” by MillerCoors that is targeted at them. OpenMarket.org reports:

Craft brewers say that MillerCoors is pulling a fast-one on the states legislature by selling this as a bill that would protect small beer from the brewing behemoth [Anheuser-Busch] InBev’s plan to monopolize the Wisconsin wholesale market. Craft brewers say that this is clearly not InBev’s intent, as they have passed up opportunities to purchase wholesalers in the state no less than 16 times since 2008. They say the real competition that MillerCoors is trying to protect itself against is the growing craft beer market. The restrictions the measure places on any wholesaler wishing to start-up in Wisconsin seem to support the craft brewers’ claims.

The provision is a classic bit of rent-seeking from MillerCoors, who appear to be seeking to preserve their current market share with the power of the state government.

But why would Walker — who calls small businesses the “backbone of our economy” and has postured himself as their champion — side with a foreign-owned mega-corporation over locally owned small brewers? It may have to do with the fact that MillerCoors, which is joint venture with foreign-owned SABMiller, donated $22,675 to his campaign. "

[Savoir Faire-Demogague in NJ]

60 breweries who comprise 5% of the beer market in a single state, do not sound much like a big employer.
Going through wholesale distributors seems pretty standard.
What is fairly popular in NYC is a plethora of brew pub restaurants.

[deziloooooo]

The point is..to stifle competition, to limit innovation , doesn't seem to be one of the positives of a State IMHO.

I am from a small state, live in Fla now but still in tune with what is happening in the State and know there are some real fine small brewieries in the state, they employe local people, whether 15,25, 30..they are providing work and unique product.

Heres a few of them, I am glad my old State is not as narrow minded as this large one.

foodplusbeer.blogspot.com/2011/04/new-england-brewing-company.html

www.hookerbeer.com/

I have done the tour of Hooker beer, right up the street of the home I raised my two kids in...took over a empty building..is doing well, beer is great..in many of local taverns and restaurant , increasing in size, and employment, how is that bad...

actually their different products, many of them, makes Bud taste like.. you got it.

[Deleted]

Do you have a link I can look at, Ugo? Thx.

[billisonboard]

Jun 11, 2011 13:53:58 GMT -5 @krickitt said:

Do you have a link I can look at, Ugo? Thx.

here is the link: (WHOOPS) thinkprogress.org/economy/2011/06/10/239780/wisconsin-craft-beer/

[ugonow]

OOps.... thanks bils. Hey, could this be spun into a Walker giving a handout to unions thingee?

[AgeOfEnlightenmentSCP]

Jun 11, 2011 11:10:27 GMT -5 Savoir Faire-Demogague in NJ said:

60 breweries who comprise 5% of the beer market in a single state, do not sound much like a big employer.
Going through wholesale distributors seems pretty standard.
What is fairly popular in NYC is a plethora of brew pub restaurants.

This is actually pretty labor friendly. The forced wholesaler middleman rule keep the Teamsters driving the product.

I am saddened by more, and more regulation. If anything the whole industry-- big brewers and all-- should be turned loose.