Welcome to the Louisville Restaurants Forum, a civil place for the intelligent discussion of the local restaurant scene and just about any other topic related to food and drink in and around Louisville.

Kentucky Beer Battle

User avatar
User

Ray Griffith

{ RANK }

Foodie

Posts

436

Joined

Sat Jun 26, 2010 10:39 pm

Location

Highlands

Kentucky Beer Battle

by Ray Griffith » Tue Jan 13, 2015 9:30 pm

User avatar
User

Jeff Cavanaugh

{ RANK }

Foodie

Posts

1008

Joined

Fri Feb 11, 2011 11:49 am

Re: Kentucky Beer Battle

by Jeff Cavanaugh » Wed Jan 14, 2015 9:50 am

Stumbo's bill "represents unnecessary government intervention in the free market and places restrictions on competition in the distribution tier," Anheuser-Busch of Louisville sales and marketing director Damon Williams said in a statement.


Oh, that's rich. There are few markets less free and fewer industries more subject to government intervention than alcohol!
User avatar
User

Robin Garr

{ RANK }

Forum host

Posts

22984

Joined

Tue Feb 27, 2007 2:38 pm

Location

Crescent Hill

Re: Kentucky Beer Battle

by Robin Garr » Wed Jan 14, 2015 12:14 pm

There's something else going on here, and the media may be missing it: The wine and liquor wholesale lobby, which has deep pockets and knows how to use them, is virulently opposed to any attack on the three-tier system, a weird artifact of prohibition in the US that enriches the wine and liquor distribution industry beyond imagining.

That has to be in play here ... but I'll bet that money comes into play and that ultimately the three-tier system remains intact in Kentucky.
User avatar
User

Jeff Cavanaugh

{ RANK }

Foodie

Posts

1008

Joined

Fri Feb 11, 2011 11:49 am

Re: Kentucky Beer Battle

by Jeff Cavanaugh » Wed Jan 14, 2015 12:48 pm

Yes, and the article says the three-tier system exists to reduce over-production and -consumption, so either the reporter's in their pockets too, or they've been snowed.
User avatar
User

Mark R.

{ RANK }

Foodie

Posts

4369

Joined

Mon Apr 09, 2007 12:02 pm

Location

Anchorage, KY

Re: Kentucky Beer Battle

by Mark R. » Wed Jan 14, 2015 1:28 pm

Jeff Cavanaugh wrote:Yes, and the article says the three-tier system exists to reduce over-production and -consumption, so either the reporter's in their pockets too, or they've been snowed.

Well If You Consider Controlling the Market and Prices of products the three-tier system does well at that by ensuring that more people get a cut of the pie! It also controls what products get into the market because without a distributor a product doesn't get into the market!
Written using Dragon NaturallySpeaking

"Life is short. Drink the good wine first"
User avatar
User

Adriel Gray

{ RANK }

Foodie

Posts

411

Joined

Fri Aug 31, 2012 2:53 pm

Location

Louisville Slugger

Re: Kentucky Beer Battle

by Adriel Gray » Wed Jan 14, 2015 1:59 pm

This whole thing is so gross. Both sides (State and Busch) are fighting each other in kabuki theater fashion to control this potential revenue stream. Ultimately the only one boned here are those with less capitol and less control i.e. consumers and small brewers. If the state wins Busch will then move to buy up small breweries as it has been doing, and the state licensing fees and beverage taxes will increase. If Busch wins it will just edge the small brewers out of the market by limiting distribution, and the state licensing fees and beverage taxes will increase. It's a win win.
User avatar
User

Robin Garr

{ RANK }

Forum host

Posts

22984

Joined

Tue Feb 27, 2007 2:38 pm

Location

Crescent Hill

Re: Kentucky Beer Battle

by Robin Garr » Wed Jan 14, 2015 2:40 pm

Jeff Cavanaugh wrote:either the reporter's in their pockets too, or they've been snowed.

I'm pretty sure the snow factor is in play here. Reporters are generalists. It's pretty easy for an expert at the game to snow them, because they just don't know the fine details of every issue.
no avatar
User

Eric Hall

{ RANK }

Foodie

Posts

160

Joined

Mon Jan 16, 2012 2:23 pm

Re: Kentucky Beer Battle

by Eric Hall » Wed Jan 14, 2015 3:50 pm

Jeff Cavanaugh wrote:Yes, and the article says the three-tier system exists to reduce over-production and -consumption, so either the reporter's in their pockets too, or they've been snowed.


The three tier system exists to maximize the amount of tax revenue brought in. Collecting taxes (and auditing records) is much easier when they only have to deal with 25 distributors.

The totally free market will never exist with alcohol. (does it really exist with anything?)

A large amount of tax revenue is created the way it is now. Any threat to that stream will be met with strong opposition in Frankfort. Politicians dont mind rooting around in our pockets but they hate when the people do the same to theirs
User avatar
User

Deb Hall

{ RANK }

Foodie

Posts

4169

Joined

Sun Mar 04, 2007 4:46 pm

Location

Highlands , Louisville

Re: Kentucky Beer Battle

by Deb Hall » Wed Jan 14, 2015 6:48 pm

The three tier system gets really crazy for liquor sales at our many bourbon distilleries. :roll: I don't know if it's different for wineries, but for distillery visitor centers, their liquor license requires them to buy their liquor from distributors to sell at their own gift shops. (!) Thus, for example, a bourbon company in Bardstown has to sell their cases to Southern Wine & Spirits in Louisville who then sells it (back) to the visitor center in Bardstown - 500 feet from where it was manufactured. Not that the distributor industry lobby and taxes had any influence on anything.... :shock:

Deb
no avatar
User

Eric Hall

{ RANK }

Foodie

Posts

160

Joined

Mon Jan 16, 2012 2:23 pm

Re: Kentucky Beer Battle

by Eric Hall » Wed Jan 14, 2015 9:35 pm

i think a paper trail is kept but I don't think the bottles actually leave the premises. Southern is still responsible for the wholesale tax.

In the case of the Evan Williams experience in Louisville, distributors are used to ship the bottles from bardstown to Louisville.

Same applies to microbreweries selling packaged beers on site. They have to transmit to the distributor what was sold. Distributor still responsible for tax.
User avatar
User

Deb Hall

{ RANK }

Foodie

Posts

4169

Joined

Sun Mar 04, 2007 4:46 pm

Location

Highlands , Louisville

Re: Kentucky Beer Battle

by Deb Hall » Wed Jan 14, 2015 9:47 pm

Eric,
I worked on the Heaven Hill Bourbon Heritage Center in Bardstown for 5 years, and you are right, a paper trail suffices. My point was that the whole thing is ridiculous- the Visitor Centers could pay the tax themselves- no distributor mark-up should be required for providing paperwork... :roll:
Deb
no avatar
User

Eric Hall

{ RANK }

Foodie

Posts

160

Joined

Mon Jan 16, 2012 2:23 pm

Re: Kentucky Beer Battle

by Eric Hall » Wed Jan 14, 2015 10:10 pm

Deb Hall wrote:Eric,
I worked on the Heaven Hill Bourbon Heritage Center in Bardstown for 5 years, and you are right, a paper trail suffices. My point was that the whole thing is ridiculous- the Visitor Centers could pay the tax themselves- no distributor mark-up should be required for providing paperwork... :roll:
Deb


I think that was part of negotiations when the state allowed distilleries to sell retail "souvenir" bottles.

The current bourbon craze has allowed HH and others to turn those gift shops from marketing expenses into profit centers.

Who is online

Users browsing this forum: Google [Bot] and 30 guests

Powered by phpBB ® | phpBB3 Style by KomiDesign
cron