Comments on: When The Kool-Aid Is 5% ABV

By: J.R. Ebbitt

J.R. Ebbitt — Sat, 18 Oct 2008 12:28:30 +0000

The fact that John McCain has acquired much of his financial backing from his wife’s interest in a beer distributor is no different than other politicians financial backing from other industries. McCains’s money is legally gained as opposed to the Kennedy’s money being derived from illegal bootlegging during the failed prohibitiion attempt last century.

People that perceive the 2nd tier of the American 3 tier system is just adding cost to the system and not value need to understand what the distributor does. The most important value we provide is a buffer between the retailer and the brewer. Do you really think it would be beneficial for Costco to purchase directly from the brewer. They will negotiate the best price from one supplier and create “Costco Brands” on beer like they do liquor and wine.

The wholesaler also collects tax in an orderly fashion for the state they service. This service provides many dollars to each individual state based on the work of the wholesaler. The wholesaler also provides jobs to the community that pay well above the average in the majority of the communties. This is probably not the case in the DC area where everybody is working for the government at inflated salaries.

I could go on and on about the values of the 3 tier system and the value the wholesaler provides in the second tier, but as this is a specialty beer oriented blog I would like to point out the value of the wholesaler to this growing segment of the business. Without the wholesaler network the expansion of craft beer will most likely not occur. Having visited the Craft Brewers Conference in San Diego earlier this year I talked with many aspiring brewers who planned to brew “the best IPA in the country”. I asked them what is their plan to go to market and they said people will find me, because I make “the countries best IPA”. Trust me without a wholesaler providing some push on the local level most craft brands will not find a big following.

Smaller craft brewers who believe the wholesalers to be a necessary evil need to visit with wholesaler who share the vision and passion of this burgeoning segment. World Class Beverages is a great network that is putting together like minded wholesalers across the country. Or talk with the people at Stone Brewery who provided distirbution for their brands and additional craft brands in their market. These people can elaborate the wholesaler support of this segment of the industry.

By: Don

Don — Sat, 18 Oct 2008 04:45:42 +0000

Love reading your blog – but getting into politics just makes for antagonism (hope I spelled that correctly). Eventually someone calls someone else an idiot. Let’s not make this great site a forum for political discussion. I respectfully suggest we stick to talking about beer and related topics.

By: Jobo

Jobo — Fri, 17 Oct 2008 19:09:38 +0000

Now that AB is owned by InterBev, is it really relevant? A Belgian-Brazilian Corporation is no different than an American entity. All I kow is that no AB product will ever touch my lips – regardless of the politcal connection which is tenuous given the fact that Mrs. McCain’s family business (created from scratch by her father) is a distributorship.

By: Gail

Gail — Fri, 17 Oct 2008 16:08:31 +0000

Thanks for exploring how these things fit together, Jay. While while good people work everywhere, questioning issues and money is pretty much what Democracy is supposed to look like. Especially for journalists.

Beer people do need to be thoughtful and respectful looking at these things, so we can talk about deep and abiding issues (over diverse and excellent libations) to address real problems. I get a little nervous about some discussions that lead to craft beer/corporate beer political divide analogies because for one thing, more people of various political persuasions are out there happily drinking a Bud. But that’s not what you are doing, and you’re not insulting those who disagree… so thanks for the insight.

By: Jim Randell

Jim Randell — Fri, 17 Oct 2008 06:30:24 +0000

Jay
The intrusion of politics into the world of worts is wholly unwelcome, though, of course, it’s your blog and your right to do so. Has it ocurred to you that businesses are, at their root, people? And so the connection of business’ interests and people interests is not do separate as you maintain? The simple dichotomy you propose is, alas, far too simplistic to support the many words you devote to its explication. Let’s have a safe, beery haven from the feckless, foolish of silly political diatribes!

By: Dave

Dave — Fri, 17 Oct 2008 00:10:12 +0000

The three tier system… Can’t live with ‘em, can’t live without ‘em. The ying and the yang. The reason for, and the answer to, all of life’s (beer’s) problems.

To answer the question, Of course you should worry about putting someone in the White House with ties to AB. But what about someone with ties to the likes of Home Depot? Home Depot is the AB of the construction supply world, they put my uncle out of business in Buffalo.

Go down the list of contributors to any politician and you’re sure to shake you head in disgust. Call me jaded but I think there all in someone’s back pocket.

That said, I’m still with you on this one, Jay.