The Politics of Beer, Brewers and Distributors

A recent article in the Wall Street Journal brought up the subject of beer laws in this country, and how they can work for or against you, depending on where you sit in the beer circle of life. Larry Bell, owner of Bell’s Brewing, had yanked his beer from the Chicago market this past fall. The reasons behind this were simple: Bell’s beers, well-known and appreciated craft styles, were being distributed by a distributor who also distributed mass-market beers. Bell did not feel his beers were getting the representation and promotion they deserved and he elected to simply leave.

Because of Illinois State Law, he could not switch distributors. Federal and state laws have been enacted to protect the distributors from just such an event. The people of Chicago, who know a thing or two about beer, were naturally disappointed that Bell’s Two-Hearted Ale and Oberon would no longer be available. This month, however, Bell’s beer returns under the guise of Kalamazoo Royal Amber Ale, a new recipe distributed by two new distributors.

Bell expects to be sued by his former distributor, but is making the move nonetheless. This move is not about money, it’s more about span of control. Craft brewers get the short end of the stick when it comes to distribution of their product. These antiquated laws which date back to Prohibition do nothing to protect the brewer’s interest and investment. Bell is making a stand and it will be quite interesting to see how this fight continues.

Read more about Bell’s stand here.

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