Wonderful_Ad_7235 t1_jdel1s5 wrote
Reply to comment by beerisgreatPA in Teamsters and distributors are trying to take away Rhode Island breweries ability to self distribute. They need our help. by beerisgreatPA
I don't even know where to start with this.
- The liquor lobby is going to defend its industry. Why would it not? No one else outside of the organization that is paid to defend the industry defends the liquor stores or distributors. That's my point.
- I did not say retailers and distributors are not making money, but you clearly don't know many retailers. Or distributors. The few boom years of covid were an anomaly, and only for some, and much of the money made did not translate into profits because of tariffs and shipping costs, as well as rising cost of labor. You think retailers make money on beer?? Hahahaha. No. I 'm pretty sure I addressed the stores skirting the rules with multiple licenses; they should not be allowed to do that, but they are because they have the cash and the connections with politicians. In no way does this help small, independent retailers, those to which I refer.
- Self distribution does not level the playing field. Generally it's been retailers who are the first and loudest cheerleaders for local brewers, it's odd to pit them against one another. But how much money do you think retailers make on Corona, Bud, Miller, etc? Those are loss-leaders. Yikes. The profits are often less than the cost to keep them cold.
- Which laws do you think have been changed in favor of *small* retailers over the last decade or so, and which laws do you think should or could be changed to benefit retailers in the future? I'm assuming you are aware that independent liquor stores have been squeezed to the brink and forced out of business in more than one state due to large corporations changing the rules in favor of themselves. One case recently went all the way to the Supreme Court, in fact, where state's rights and small business lost. Oh so ironically.
- Lastly, I don't know if retailers do or don't care about this ONE SPECIFIC BILL but the point is that retailers have faced an onslaught of bills and apparently they are supposed to sit back quietly while their livelihoods die by a thousand shallow cuts. The optimal thing would be an industry that respects each other, for the public to understand what it is that is at stake for individual *small* businesses (and therefore the neighborhoods in which they are located) and ideally, for a rising tide to lift all boats. But apparently that is not the ocean we're sailing in.
beerisgreatPA OP t1_jdenwsa wrote
Not sure how retailers became the focus of this back and forth, But first, I know more about the distributors than just about anyone other than the morans, mancinis or epstiens/rubensteins. As for the retailers, due to my intimate knowledge of the distributors, I know just about every major player in retail, and as I said, they actually don't care about this bill, some even oppose it. As for future legislation, the retailers need protecting. Keeping stop and shop etc out and defending them against the deposit/nips crap is a priority. I want to reiterate, these licenses are 100% legal and they are trying to take away these licenses that were legally obtained. No laws need to be changed for the retailers. How does self distro hurt retailers? It allows more local beer to be sold directly to them, and for better prices mind you.
This bill is about the teamsters and distributors coming for the breweries who have finally gotten to a point where they are running meaningful businesses, employing hundreds of people. They are trying to keep RI from adapting to a industry that has completely changed in the last 15 years. Basically every state has, why can't we? I don't see the breweries trying to change the amount they can sell or anything, (at least at this time) this is about selling more be TO THE RETAILERS. Honestly I think the retailers and the breweries are kinda on the same side here. Also, the teamsters are in support of the severely damaging bill for nips/bottle deposits. Retailers should be focused on that.
anywho! I am asking for this groups support in the name of craft brewers. Reach out to our reps in opposition to this bill!
Wonderful_Ad_7235 t1_jder8bh wrote
Well, I too have intimate knowledge of the industry, from basically all sides, spanning multiple decades and states. Almost every new law hurts retailers. It became about retailers when there was the obligatory "evil retailers lining their pockets" comment somewhere on this thread. Brewers have gotten many laws passed in their favor over the past few years. Good for them! I honestly mean that. Who doesn't love a vibrant brewery scene? If they grow their self-distribution side, it won't necessarily hurt retailers but it also won't sell more beer, the brewers will just keep more of the profit. At least the ones who can self-distribute. Those who are able to afford trucks, warehouses, drivers, etc...and then suddenly the playing field is no longer level. And the real question, as always, is what of the slippery slope? Again, it always leads to more losses for the retailers.
You are correct, the nips/bottle deposit bill is very damaging to retailers, as is the grocery/convenience store bill that is currently alive and seems to come up every year now, it's just potentially a different palm to grease each time.
So I guess if the grocery bill (H5415) doesn't pass this year, I'm asking for support in protecting retailers the next time it is on our doorstep. Probably 6 months from now. And to not assume that your neighbors who toil their lives away in dusty liquor stores, working long hours with few days off and fewer vacations, are somehow multimillionaires just slumming it for the fun of it.
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