New Brewery/Wholesaler Law (Motion 414)
I wanted to repost this explanation of why the Motion 414 in the Budget Bill is causing so much anger among the state’s craft breweries. Its from O’so Brewing, an excellent Microbrewery from Plover (near Stevens Point). They have been one of the breweries taking the lead on this issue. Here it is:
We thought it would be appropriate to share with all of you planning on attending the rally in Madison this evening the way Marc has interpreted the Motion 414, thus far. Here is information that you should be informed of for your voices to be heard in a way that everyone will seem to know more facts.
This motion was opposed by Senator Grothman (R) and Senator Jauch (D) before it passed. Please thank them for their bravery to stand with small business. This is not a partisan issue; it is a government control issue.
- Why is this a budget issue? Why is this not being discussed in depth before something this far reaching is put into law? Wisconsin has a rich history of beer making and we would like to make sure that Wisconsin breweries are given the opportunity to continue this legacy. Wisconsin breweries are a job creation engine for Wisconsin and an appreciable amount of revenue is generated from every tier. Lets not possibly jeopardize that.
- This motion was sold to the legislators by Miller/Coors and the Wisconsin Beer Distributors Association on the premise that it would protect Wisconsin from a hostile AB/InBev take over of many current Wisconsin wholesalers. This is simply a farce. Since InBev took over AB, they have had 16 opportunities to buy wholesalers and have passed 16 times. Here is the real truth….Miller/Coors and the WBDA are threatened by the growth that is happening in the craft beer industry. Craft is the only segment of beer that is growing, and it is growing by double digits. Wholesalers also fear that breweries will band together and begin to distribute their own beers. This fear stems from some wholesalers not embracing craft beer because they don’t understand it enough to sell it properly. The days of order taking is over…they actually have to become educated sales people.
- The legislators think they are helping small breweries because of what they have been fed by Miller/Coors and the WBDA. Please let them hear our side. We as brewers know what is best for us, not the government.
- If a brewery currently owns a business that is separate from the brewery, and that business holds a class A or B liquor license, then that license will not be valid once this legislation goes through. This seriously devalues a business and restructures its business model.
- The Department of Revenue will issue brewers a permit that will allow brewers under 300,000 bbls of production to buy and sell retail and wholesale, any beer produced in Wisconsin. It does not outline how much this permit may cost or what type of laws it will create to assure that these rights are intact. This area is very grey and should be spelled out in much more detail before the budget goes to vote.
- The DOR will create a job to oversee and enforce the new laws they will create. The work that this job will encompass is already covered by somebody at the municipal level. This is a job with lucrative pay (73K yr 1, 87K yr 2) and does nothing to support the idea of smaller government.
- Wholesalers will no longer have the right to invest in breweries in Wisconsin. Wholesalers already have a vested interest in a brand when they decide to build that brand, why not let them become more vested. This partnership can be a valuable asset in building capital for a fast growing brewery.
- Current draft of this motion allows for many grandfather clauses for wholesalers but not for breweries.
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[...] craft brewers in Wisconsin say they, and their ever increasing presence in the beer market, is the true target of the proposal.While the text of the measure has not been made available to the public yet, the proposal would [...]
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[...] The biggest backer of the bill is SABMiller, or as it is known in the US, MillerCoors. They have been pushing the measure, they say, in order to protect the vitality of Wisconsin beer in the face of a hostile invasion from their main national competitor, AB InBev, aka Anheuser-Busch. InBev has reportedly begun a nationwide campaign to purchase distributors in many states, something that MillerCoors says threatens all other brewers’ ability to get their beers in bars and on shelves. That’s the line that MillerCoors is peddling, but craft brewers in Wisconsin say they, and their ever increasing presence in the beer market, is the true target of the proposal. [...]
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[...] 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 [...]
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[...] 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 [...]
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[...] war against craft brewers? According to a group of highly vocal small brewers in Wisconsin, a piece of legislation backed by the mega-brewer MillerCoors and approved last week [...]
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[...] Walker unequivocally be waging fight opposite qualification brewers? According to a organisation of highly outspoken tiny brewers in Wisconsin, a square of legislation corroborated by a mega-brewer MillerCoors and authorized [...]
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[...] limiting them to a single retail license. Eat Wisconsin has an informative post here. Posted: June 14th, 2011 Categories: Uncategorized Tags: Comments: No Comments. Write a comment [...]
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[...] to me is the state of our craft beer industry. Here’s a little post to help bring some clarity to the subject. And here’s a little humor and a handy guide for beer [...]
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[...] 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 [...]
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[...] I’m coming late to the party on this one–except that the party may not be that fun for much longer. Motion 414, another one of the little surprises in the Wisconsin budget bill, would affect the extent to which small craft brewers can continue to distribute their beer–which I can assure you is excellent stuff, speaking as a native Wisconsinite–by limiting them to a single retail license.Eat Wisconsin has an informative post here. [...]
There’s been much discussion about this around our house lately — and I’m happy to say that we’re finally reaching some understanding of what it means. I still think MillerCoors needs to step away from this issue and let the craft brewers speak for themselves.
http://www.change.org/petitions/support-wisconsin-craft-brewers
Support Wisconsin Craft Brewers!!!
Big companies can line the pockets of politicians, small companies can’t. I support craft breweries, not only because they make a delicious product, but because it is the right thing to do! Keep up the good fight!
This is more HILARIOUS whining by the craft brewers . The craft brewers enjoy the low cost state tax exemptions. You have 5% of the market. Maybe you don;t dan’t want your big tax exemption?
Doesn’t the motion 414 prevent Miller-Coors and Budweiser from owning distributorships and thereby giving them more control over pricing?
This is just bad news for the small brewers of Wisconsin. I hate beer from major companies like Miller or Coors. I’m a microbrew guy where more care and time goes into each and every bottle.
I hope we don’t stranglehold this industry which is one of the historical cornerstones of Wisconsin’s history.
Long live the small brewers!
Thats unfortunate for the wisc brewers. I dont like the big corporate breweries. I hope they can find a solution!