franchise

Propaganda Season in the Beer Industry – Force the Distribution Lobbyists to Make Sense

Some of the distribution and retail groups – generally the ones behind the administrative proceedings that sought to challenge the tourism exception – are beginning to ramp up their efforts in the realm of incredibly easy-to-recognize propaganda. The message, as is often the case, will be without context and will focus on ignoring the realities of the situation. Hey, look over here and please don’t question what’s happening over there (let’s focus on the fact that craft beer in Florida exists but not consider how it can thrive further with a more reasonable statutory scheme that works in other parts of the country).

The rallying cry is that the three tier system works. What that means, for many, is let’s not grow. Let’s not evolve. Let’s leave things the way they are. It also means that they want people – legislators, consumers, media – to believe that this is the three […]

By |March 16th, 2015|Blog|0 Comments

Florida House, Senate Committees Discuss Malt Beverage Regulations

Committees within the Florida House and Senate began discussions regarding the regulatory scheme surrounding beer in Florida on Wednesday. It was generally a day for the legislators to discuss the basics and gain some knowledge. In the Senate, the Regulated Industries Committee heard a presentation from an attorney with the Senate. The presentation was a general overview of the three tier system, tied house laws, licensing issues (including tourism exception) and growler/container size issues. The powerpoint presentation can be viewed in the meeting packet here. The Business and Professions Subcommittee in the House heard presentations from groups including the Florida Beer Wholesalers Association, Beer Industry of Florida and the Florida Brewers Guild on the three tier system, self distribution and franchise agreements (the distributor groups said you would rue the day you mess with franchise agreements).

The Regulated Industries Committee includes Senators Latvala and Stargel.  Stargel […]

By |January 22nd, 2015|Blog|0 Comments

Steube Files Beer Bill (HB 107) in the House. Seeks Limited Self-Distribution and Franchise Reform

Representative Gregory Steube filed HB 107 yesterday. The bill follows much of the language of the bills we saw in the previous session. For example, it would allow breweries to operate taprooms without separately acquiring a retail license. In those taprooms, the proposed bill would require that at least 70 percent of the beer sold (or given) to consumers must be brewed on premises. The remainder must be brewed by the same brewery but may be brewed off-site. Breweries would continue to be able to obtain vendors licenses (up to two) to operate their taprooms as they currently do. That would include selling beer for on and off premise consumption and allow for wine and/or liquor depending upon the vendor license owned by the brewery. Any brewery that has already applied for more than two vendor’s licenses prior to 3/15/15 or which has already been issue more than two such […]

By |December 16th, 2014|Blog|0 Comments

Craft Beer: Franchise Laws Need Not Apply

Franchise laws, as applied to the  craft beer industry, have the negative potential of restricting the possibilities for growth (small brewers may avoid expanding into a test market because they will first have to tie themselves to a distributor forever) and allowing distributors to hold breweries to a relationship that is neither healthy nor profitable for either party.

Franchise laws were viewed as a necessity a few decades after Prohibition, when few breweries remained operational. Those that remained were generally doing the uninteresting: mass-producing uniformly flavored beer. However, the efficiency of these breweries came at the expense of flavor and creativity and would put many smaller breweries out of business. This led to a great deal of consolidation in the beer industry and ultimately led to the existence of several large breweries with power to influence the policies of the next tier of the distribution system, the distributors themselves. It was […]

By |June 12th, 2014|Blog|1 Comment