Distribution 360 – Need To Know
The Texas Supreme Court has made a ruling not to hear a challenge to a 2013 state law that prohibits brewers to sell their distribution rights to wholesalers, giving brewers in the state a major setback.
The 2013 law makes it illegal for craft brewers to get paid when they assign exclusive distribution rights for their brand. The law, pushed by Texas beer distributors, forced craft brewers to assign distribution rights for free when entering into a distribution contract. At the same time, the law leaves distributors free to sell the rights to brand they obtained from brewers at no cost.
The challenge was brought by three craft breweries Peticolas Brewing Co., Revolver Brewing and Live Oak Brewing Co. They had successfully challenged the law in 2016 until the Texas Alcoholic Beverage Commission appealed the ruling, which was then overturned in late 2017. The three breweries, along with the law firm Institute for Justice sought a decision from the state’s Supreme Court, which declined to hear it on Friday.
In a statement, the Institute for Justice said the refusal by the state’s top court to hear the case was “a blow to the economic liberty of all Texans.” The Institute for Justice statement can be seen here.
Ajax Distributing Company of Memphis has announced that they will acquire nearby BarDett Distributing. Both are MillerCoors houses.
According to an article in ClarksvilleNow.com, both companies are long-time family owned businesses. BarDett was a fourth-generation family owned wholesaler founded 142 years ago and Ajax has been family owned since 1933.
The Massachusetts Supreme Judicial Court upheld a record $2.6 million fine against beer wholesaler Craft Brewers Guild for violating anti-price discrimination statutes and commercial bribery regulations. The decision.
CBG was fined by the Massachusetts’s Alcoholic Beverages Control Commission in early 2015 for a variety of tied-house “pay-to-play” violations.
The Court rejected the CBG challenge to the validity of state tied-house regulations, and held that the regulation’s prohibition against commercial bribery falls “well within the overall purpose of [Massachusetts’] Liquor Control Act.” This court decision is another important affirmation of state-based tied-house regulations.
Harbor Distributing, a southern California wholesaler division of Reyes Beverage has acquired Central Coast Distributing, the MillerCoors distributor for San Luis Obispo and the northern area of Santa Barbara counties. Coast also carries some significant craft brands including Sierra Nevada, Boston Beer, Lagunitas and others.
Columbia Distributing, the large Pacific Northwest wholesaler, has gained more territory as it has announced it will purchase Graybeal Distributing of Pendleton, Oregon. Graybeal sells a little over 1 million cases, including the MillerCoors portfolio, Heineken and a variety of craft. This is the latest in the ongoing consolidation of the middle tier as the large wholesalers get larger through acquisitions of smaller “heritage” wholesalers.