What Sam said this very day.

In today’s Craft Business Daily, none other than Brewers Association Chairman Sam Calagione came out in support of the much maligned three-tier distribution system:

Panel member Sam Calagione defined the birth of craft slightly differently – with the legalization of home brewing, and those guys turning pro. But Sam did say that the alternatives to 3-tier could effectively kill craft. “I feel it’s really important for the small brewery to have access to market. Oftentimes that means self-distribution. But that model is difficult to take around the country… it’s a starting point. But look at the pressures if there was no 3-tier; look at that Costco scenario. Frankly if that model took effect, I really think it would be game over for craft. ” For example, “Walmart had a similar situation, where you just have one player delivering beer with 1% margin on top it, and retailers selling it for 1% margin on top of that, until it obliterated all competition.”

THE CRAFT ACCESS TO MARKET CONUNDRUM. Sam’s big concern, as with many craft brewers, in a nutshell: “99% of Dogfish Head beer sold from coast to coast in 26 states goes through independent distributors. At Dogfish, we believe state laws should support independent distribution, and that [they are] not smothered by undue influence or ownership or control by the largest brewers, so we can ensure access to market for all brewers.”

This entry was posted in Brewers, Brewers Association, News, Other Voices. Bookmark the permalink.