I’m not going to spend alot of time dissecting this documentary more than it already has been on BA and many other blogs out there. It was informative, somewhat entertaining, and at times a bit awkward during the live Q&A segments. But here are my main takeaways:
- The three tier system is the craft industry’s biggest enemy, not BudMillerCoors. The big guys have learned to exploit the system, but if it were more of a free market, the beer landscape in America would certainly shift.
- Macro and microbrewers have vastly different objectives as business entities. In my opinion, it’s wasted energy to get pissed off with BudMillerCoors because they are more interested in creating shareholder value as opposed to quality product.
- BudMillerCoors are successful in what they do because most American consumers don’t incentivize them to do anything different. The indifference or inability of the consumer to stop for a second and think about what’s truly in their beer is the macrobrewers greatest advantage. Vote with your wallets if you truly care about your beer.
- You’d have to be insane or a glutton for hardship to start a brewery.
- Ben Stein is a fucking weirdo.
- I’d like to have a beer with Sam and Greg.
- Drink local. Drink micro.
April 17, 2009 at 10:04 am
Can you explain the three tier system?
April 17, 2009 at 10:08 am
Brian, I added a link in the post, it’s basically the way beer is distributed from the brewer, through a distributor, and ultimately to the retail outlet.
April 17, 2009 at 10:27 am
The three tier system. This is when the movie crapped out on us so I couldn’t follow along very well. My question is, what is the reason for this besides cornering the market?
April 17, 2009 at 10:39 am
Or is the enemy the consumer public.
Your second and third bullets are dead on.
But I would add, it is not just thinking about what is in the product but the ramifications of companies that have to answer to a quarterly call on their publically traded company.
The catch 22 of capitalism which I wholly support and believe in more than any other system, but the need for instant gratification via essentially short term legalized gambling takes the focus away from producing anything but a proper dividend.
April 17, 2009 at 10:45 am
Well, you kind of hit on it Stu. The original intent of the three tier system was to prevent any major supplier (for example, Anheuser Busch) from dominating the market and engaging in anti-competitive practices by adding a middle man (distributor) who insulated the supplier from the retailer.
But over time, the system has in effect allowed just that thing to happen. The problem lies in that 80% of the beer market in the U.S. is currently controlled by two companies. So if you’re a distributor, and 80% of your revenue is tied to two companies, who do you think you’re going to pay favor to when it comes to making space on your delivery trucks, and optimally facing beer on store shelves? The two biggest companies in the industry, or the nearly 1,500 micro and regional breweries out there eeking their way through the world? The three tier system limits consumer option, and artificially inflates the price of alcoholic beverages.
The combined political contribution last year from BudMillerCoors was bigger than guns and tobacco combined (something like $4.5 million). As long as politicians have a stake in the game, there’s no hope that this system will change any time soon.
April 17, 2009 at 10:53 am
Exactly. Almost damned if you do damned if you don’t. But in the end I think it should be the choice of the brewer and the consumer. I am not free market preacher by any means but this system is stifling to the current upswing in micro brewing. There is only one solution, we as beer geeks must continue what we are doing to help spread the word.
April 17, 2009 at 11:07 am
I think in the end, it all boils down to consumer choice. If America began buying local product from local breweries, BudMillerCoors would cease to exist as they currently do today. In fact, they might actually start triple-hopping their beers with more than stems and twigs.
However, the reality is, if everyone in America went out today to their local liquor store or brewpub and drank craft beer, there would be a massive shortfall in production. Capacity within the craft industry can not currently meet overall market demand. But that’s OK, I’m happy that the little guys have slowly and methodically been grabbing market share with each subsequent year.
April 17, 2009 at 11:15 am
Patrick – good points. In addition to the existing system, I think the consumer public clearly plays a key role, maybe the biggest role.
And I agree on the financial drivers for the macro brewers…as Sam and Greg pointed out, their intention is to make good beer and let the market follow. BudMillerCoors takes the market first through marketing/advertising, and follows with a bland product.
April 21, 2009 at 9:26 am
Getting excited for Darklord day Aaron? =)
April 21, 2009 at 10:30 am
Can’t wait! I’ve been dealing with a nasty cold the past couple weeks, but I have a feeling Dark Lord will kick it out of my system!