Beer makers, distributors at odds
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Supporters of the beer distribution industry passed out leaflets outside the Hooker Entrance of the State House on Wednesday.
Backers of the beer distribution industry are in opposition to legislation that would free up brewers to change who brings their products to market.
Under a 1971 law, once a brewer has worked with a distributor for half a year that distributor gains indefinite distribution rights for that product. The law bars breweries from ending their deal with a distributor except for specific reasons.
A Rep. Alice Peisch bill (H 245) seeks to give breweries more freedom to change distributors, something the distribution industry claims will sever the partnership that successfully delivers beer to consumers.
"The craft beer industry's success is the result of a partnership - the brewer who creates the unique taste, and the distributor who cultivates and markets the brand," reads the flyer handed out outside the State House. It says, "The Beer Distributor invests a tremendous amount of money, time and energy and, just like the brewery, takes a serious financial risk when building a brand of beer - but it's a partnership that works because the risk is split evenly."
On its website the Beer Distributors of Massachusetts said it expects the Senate to consider a "similar proposal" to Peisch's bill when it debates an economic development bill (S 2423) on Thursday. Amendments to the bill are due Wednesday at 2 p.m.
Supporters of the proposal say it will allow brewers to find a distributor that best meets their needs.
"Under the current law, we are locked in forever. Not my life, not my children's life, not my grandchildren's life, under the current law we are locked in for all eternity," Boston Beer Company co-founder and chairman Jim Koch said in September.
According to the beer distributors, craft breweries in Massachusetts are experiencing significant growth in sales and craft brews comprise more than 15 percent of total beer sales volume in Massachusetts, more than double the national average.
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