taprooms

Why Some Breweries Avoid Distributors

For a start-up brewery, Denver is a challenging market. The area is not only awash in breweries, but demand has driven up the price of cans. This has caused some small breweries to adopt a different business model: bypass packaging altogether, and sell fresh beer only to the immediate neighborhood. Breweries that adopt this model avoid the expense of buying a canning or bottling line, hiring sales personnel, and hiring a distributor. And they have the option to package if market conditions change.

Breweries that sell directly to customers enjoy a greater return on investment. They have more freedom to experiment with beer styles, and brewery owners contend that their product is fresher than the packaged variety. Many have won a devoted following in their neighborhoods. Small breweries have even created their own beer festival, called Festivaus. It attracts more than 60 Denver breweries, and a crowd of over 2,000 attendees.

In two decades, Denver’s craft brewing industry has come full circle. In 1994, when Great Divide Brewing Company opened, it faced stiff competition from four nearby brewpubs; and, at the time, a brewery that opened a taproom was expected to operate it as a restaurant. Instead, Great Divide packaged its beer and didn’t open a taproom for 13 years.

Florida Craft Brewers Win Some, Lose Some

Legislation dealing with the brewing industry is inching closer to passage in the Florida legislature. It will ease some restrictions on Florida’s craft breweries but, at the same time, will impose new ones.

It explicitly allows breweries to have on-premises taprooms. Some in the industry contended that the “tourism exemption” under which taprooms operated wasn’t intended to cover small breweries. In addition, the it legalizes beer sales in 64-ounce growlers. On the other hand, the legislation limits the amount of beer breweries can move among breweries, and caps the number of taprooms at eight per brewery.

Josh Aubuchon, the head of the Florida Brewers Guild, says the legislation is “not perfect but pretty darn good.” He points out that no brewery is even close to the taproom limit. However, some breweries are afraid that the restrictions could be tightened by future legislatures. They’re also disappointed that lawmakers haven’t address other restrictions, including the ban on self-distribuition and franchise laws that favor distributors.

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