Florida Weighs Bill That Would Crush Craft Brewers

[LynneSin]

Florida Weighs Bill That Would Crush Craft Brewers

http://www.huffingtonpost.com/2014/04/03/florida-craft-brewers-bill_n_5082112.html?utm_hp_ref=business

The law would force craft brewers to sell their bottled and canned beer directly to a distributor. If they want to sell it in their own tap rooms, they would then have to buy it back at what is typically a 30-40 percent mark-up without the bottles or cans ever leaving the brewery, according to Joshua Aubuchon, a lawyer and lobbyist for the Florida Brewers Guild.

The rule would not apply to draft beer.

"That to me looks like racketeering," Aubuchon told Reuters.

My guess is a couple of big-money distributers are offering the big bucks to a few law-makers in order for the distributors to make more profits on craft beers. To me that's nothing more than penalizing small businesses since most Craft Brew makers are small businesses. Only in Florida!

[DesMoinesDem]

1. Not only in Florida. Sounds just like the laws car dealerships have gotten passed.

[NightWatcher]

2. Anheiser Busch owns a state legislator and he keeps pushing bills going after the crafters

They've gone after growler sales, distribution. Rep. Ray Wesley Rodrigues receives donations from AB and 3 big distributors and he's the one who keeps pushing this shit.

http://www.intuitionaleworks.com Is a great local brewer in Jax, Fl who is fighting this garbage and telling the good word.

[GeorgeGist]

5. I heard that 'Busch' sound ...

as I was reading the OP.

[fbc]

14. yeah, A-B inBev owns Florida

[warrior1]

3. how can that even be fucking legal to do

dog I hate republicans, shit. FUCKERS

[LynneSin]

7. Update - it was a republican who created the bill AND received over $5000 in donations from...

beer distributors.

[Yo_Mama_Been_Loggin]

13. It probably isn't

This and similar bills like the one proposed in Ohio to restrict Tesla sales shows the Republican free enterprise stance is a load of bullshit.

[Erose999]

4. Thats our current law in GA. You can't buy beer from a brewery. They can give you a few 6oz "sample"

pours as part of a tour and thats it. Our lawmakers are finally realizing what microbrews mean for tourism dollars and they're loosening up on some of the regulations, but the distributors are a powerful lobby. Probably the most powerful lobby in state politics, actually. They have their grubby tentacles in everything too, even the education system.

[KamaAina]

6. The craft brewers need to stand their ground!

[mn9driver]

8. These laws were very common right after Prohibition was repealed.

It's very strange to hear of a state moving back to them, especially with the craft beer movement being what it is today.

The original purpose of these
laws was to prevent a single entity from gaining control of all three aspects of alcohol sales: Manufacture, Distribution, Retail sales. Companies in one area were not allowed to have anything to do with the others. Over the years, these separate interests have become very powerful and entrenched in the places where this system is still in place.

It sounds like the Florida distributor lobby has bought itself a few legislators.

[underpants]

12. Owning a beer distributor is like printing money

They have tons of cash and, as you say, they are using it to squash these non competitors.

[LynneSin]

9. Here's who sponsered the House version of the bill and how much money he got from Lobbyists

I know what Craft Breweries are - they are small businesses and great businesses for the state. Here in Delaware, Dogfish Head Brewery of Milton, DE is a must-stop destination for those visitng our beaches.

So this is the douchebag that wants to squash small business owners in Florida with this bill that would prevent Craft Brewers from selling their products directly from where they were made. To sell the product they would have to pay a distributer a 30-40% mark-up even if the beer in question NEVER ACTUALLY LEFT THE BREWERY.

http://nightlycitizen.com/2014/03/13/brewery-killer-ray-rodrigues-new-beer-contributors/

Since the story was released about H.B. 1329, the craft brewery killing bill that has many local breweries upset, a new month of contributions has been reported by Ray Rodrigues to the Florida Secretary of State Division of Elections.

$2000: from Pepin Thomas, and Pepin Thomas Distributing, listed February 1, 2014.
$500: from Coastal Beverage, listed February 24, 2014.
$500: from Gold Coast Beverage Distributors o February 26, 2014.
$500: from Florida Beer Wholesalers Good Government on February 27,2014.
Rodrigues had previously received at least $1500, as listed in a previous article.

The Pepin Thomas contribution appears to be from the owner ($1000) and the company ($1000) on the same day.

I hate math but I figure $5000 bucks so far, that I’m aware of. Plus, another $500 from a linked source (AT&T, same lobbyist, Ron Book, but possibly unrelated

[phantom power]

11. Not only are they for sale, they sell out cheap

[AnneD]

17. I noticed that too......

considering the amount of money at stake, ya think the distributors would have given more.

[City Lights]

36. Self delete.

[superpatriotman]

10. $5000 to buy a Congresscritter and make others miserable

Sounds like a crowd sourcing opportunity on DU to me!

[sharp_stick]

15. That's the way it is here in CT

you can buy growlers (64oz jugs) of draft from the breweries but you have to buy the bottles/cans/kegs from a liquor or grocery store.

I always thought it was a stupid rule but then again CT just started allowing the sale of liquor on Sunday's last year.

[LynneSin]

16. For a small state you just lose money

Because in small states most people are about an hour or less from another state where the laws are more favorable. That's why DE finally got rid of their Sunday sales bans. Most people just went to Maryland if they needed beer so that meant we lost tax dollars to them. Made no sense.

[sharp_stick]

18. I know, it was just dumb

you cross the border into MA or NY, take the first exit and there were liquor stores galore.

[LynneSin]

19. The 2nd largest liquor store in the country is right over the border of PA here in DE

PA has probably the worst liquor laws in the country with their wretched state store system owned by the government. First exist heading south on 95 is Total Wine off Naaman's road. It's like the Wal-mart of Liquor stores - the place is absolutely huge. And the parking lot is always jammed with cars from PA stopping by for their cheap liquor and their tax free shopping.

And no - no toll boths between PA and DE.

[Turbineguy]

20. That's why I'm thinking of switching to the republican party

I can buy my own politician cheap.

[Firebrand Gary]

21. Good luck with that Florida, hahaha!

I find it curious that elected officials believe their constituents are so ignorant, the truth is that most people are much wiser than politicians give them credit for.

The all out war on small business is revealing exactly what the "old guard" wishes not to. The small businesses, start ups wether it be an incredible innovative car company (Tesla) or a small independent brewery, they view them as a threat and are willing to sabotage their businesses in any way they can.

Even republican voters are begin to understand that when the GOP talks about "business" they are not referring to small business. They don't believe in small business, they only believe in big business and will crush, sabotage, steal, run-over the little gal/guy at every chance they get.

[mindwalker_i]

22. Can't wait until global climae change drowns that place

[Ahpook]

34. Fuck That

The jerks will move and stink it up as well I used to live in Daytona and love the state, but the politicians and creepy popo turned me off.

[mindwalker_i]

37. Build a fence around the place

and tell them to get Jesus to save them.

[Dustlawyer]

23. There could not have been any "Quid Pro Quo" between the distributers and the Florida politicians

because Justice Roberts says that it's all good! The beer distributors are just speaking LOUDLY WITH THEIR MONEY!

[Enthusiast]

26. Exactly. They speak with a megaphone.

While craft brewers are making a whisper.

[onethatcares]

24. I'm wondering what Joe Redners take on this is

his son just opened up a brewery and Joe is an outspoken advocate of everything we hold dear, and he made his money the old fashioned way.

[Enthusiast]

25. This is another insane law proposed by the state of Florida.

I believe you have it right. It's the big money distributors. I wouldn't be surprised if it passed. Cubic dollars.

[Enthusiast]

27. This is a good illustration

of the damage money does influencing legislation. More citizens are going to be getting clued up over stuff like this.

[Thor_MN]

28. How much does it cost to set up a distributor business that doesn't have any trucks/employees/etc?

Hell, if I lived in Florida, I'd set up a business that craft brewers could sell to and I'd sell it right back for a case or two now and then.

[phantom power]

32. generally, getting a distributor's license is very difficult

The distributors already wield huge influence, just by who they decide to carry, and how much. The distributor model is already a major inhibitor to new brewers, and heavily favors the "big five"

[mwooldri]

29. What's the barrier to stop a co-op craft beer distributior?

If some silly regulation says that the beer a craft brewer brews has to be sold by a distributor... why can't they own the distributor and keep that 30-40% mark up? Nothing says the distributor has to be an existing one....

[bluestate10]

42. Bang!!! We have a winner. The best way to beat bastards is to beat them at their

own game.

[JoeyT]

44. Except when a bunch of assholes decide to start

pushing protectionism and rent seeking laws, they're not going to stop at just one. I'd be willing to bet it's so hard to become a distributor that it'd be more trouble than just paying them the rent they're after. That's how it usually works.

[Recursion]

46. The licensing process. Same issue with cab medallions

Schemes like this usually have a fixed number of licenses which is jealously protected from increase by current license holders.

[chrisa]

47. Knowing how this works, it has to be a certain type of distributor (one that only works with big

corporations). That way the distributor charges outrageous fees, competition is stifled, and the lobbyists are happy that their paid shills performed for them.

[Spitfire of ATJ]

30. So much for Buzz Beer.

[blkmusclmachine]

31. FloriDUH

[SamKnause]

33. Free Market Capitalism my ass !!!!

This country is one big circle jerk of corruption, intimidation, greed, back door deals, bribes, scams, scandals, payoffs,and insider trading.

[bluestate10]

41. You are essentially right. But a small person or company can

establish a business and grow as long as that person or company knows the back door levers to pull, this usually involves finding an insider or a person with access to an insider. The dynamic happens in all economic systems, not just capitalism. Meritocracy and having good ideas are not enough, sadly.

[kmlisle]

35. Hope this does not pass! We have Swamphead Brewery here in Gainesville FL

They can sell in certain sized growlers and were lobbying for a different size - I think a 64 oz. Their beer is really excellent and they are growing by leaps and bounds. I am not normally a beer fan but their Long Nose and Stump Knocker beers are excellent. You can go over to their warehouse and drink their "samples" and it is really jumping over there in the evenings.

Nothing like crushing the competition with pay for play.

[raven mad]

38. My sweet "adopted" daughter tweeted me about this.

She works for a craft brewer there. I've formally invited her to come on up and try Silver Gulch Breweries here! Seriously, when the billionaires own everything, they can do as they damn well please. Still, I'd like to have a few gathered on Attu for spring break - without anything except a single match..... (there's no wood).

[JCMach1]

39. Owning a small business in Florida, you quickly learn that 'Business Friendly'

only refers to big corporations...

[bluestate10]

40. When it comes to alcohol, the only difference between a moonshiner and

the government is that the moonshiner doesn't make the rules.

[BronxBoy]

43. Wow....

They love the free market until the free market interferes with their product. Then it's let's see how we can restrain the free trade we crow so loudly about

[chrisa]

45. Republicans are to a free market like Big Brother was to a free society in "1984."

"Free market!" is a Republican newspeak word for doing the exact opposite. A free market to them is one where there's a small collection of huge conglomerates that pass wealth around among the wealthiest of society. These are the "gated community" Republicans that don't care what happens outside their rich community's walls. They despise small business, and even use the government to crush it. In their opinion, the government should only serve the rich, while actively working to oppress the poor so that they may never share any of the wealth.

This is another law that has no use, but lobbyists have thrown their weight around. It's funny, because they didn't even give a valid reason for this - it's obvious what's happening and they don't care if anyone knows.