New ANBL Licensing Rules - Hurting Small Startup Breweries!

[cagiva650]

I just realized that this probably has more to do with the fact that NBLC will start selling growlers themselves!

Ya, but who wants a growler of Canadian?

[RobD]

Really, how are planning to do that?

I have *no* idea how the ANBL will do it, but I've seen it done successfully a few different ways in the US:

1. I saw un-refrigerated full growlers for sale in different stores around Oregon. The one that stood out to me had growlers from Base Camp and Rogue. I can't speak to how well they held up over time, as I couldn't bring myself to buy one. They were definitely filled off site though. With that said, they were likely fine. About a month ago, I found an un-refrigerated growler of RIS in my basement that had been filled from a tap over a year ago, and the beer still tasted fine (actually awesome).

2. In Buffalo, a booze store I went into (Consumer Beverages) had a self-serve growler station. People could fill their own growler, or buy one there (they had a bunch at different price points). See: http://www.consumersbeverages.com/whats ... ml?store=5" onclick="window.open(this.href);return false;
I remember in a survey about a year ago, the NSLC has asked people if they would use a self-serve station in their stores. It would be similar to the self-serve wine section at the Bayer's Lake store.

[BobbyOK]

Really, how are planning to do that?

With plenty of sarcasm?

I still think this is the big brewery/big business mindset. If we force people to start bigger, invest more upfront, etc., then more new startups will survive. Except they don't see that this will kill off many startups before they start. Whether it's intentional to keep out competition, or just misguided, it all stems from misjudging the market. They either don't believe New Brunswick will ever be like Vermont or Oregon, or they don't want it to be to protect Moosehead and Molson jobs in Saint John and Moncton. Or they aren't even aware of Vermont and Oregon. 6+ Craft breweries in those states for very 100K drinking age population. Fewer than 2 craft brewers per the same population in NB. Tons of growth potential and they'll choke it off entirely with a single policy.

[jason.loxton]

I am on the list to get NSLC surveys. I've answered at least one (and more than that, I think) that have specifically asked about whether I would buy growlers at their stores, so it is clearly something NS is considering too.

[mcgster]

Hahaha no one wants to buy a growler of Canadian, i can turn on any tap at home and fill a growler with that

Actually i think this was pushed for by PH and Picaroons because i heard that the fredericton NBLC will be filling picaroons growlers and PH in moncton.

[canuck]

A few of us craft breweries were contacted today asking if we'd like to participate in their growler pilot program.

[mcgster]

Shane what do you think? Personally I'd love to fill up a growler of your ipa at the liquor store. I think that it would be a great way to test another distribution model for your product.


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[CorneliusAlphonse]

Having growler sales at the LC would be cool, but they are just using it as a way to be middlemen and grab more cash. It will result in more expensive growlers, and protectionist rules like this bullshit to prevent breweries from selling their own product.

[dean2k]

Growlers at brick and mortar ANBL outlets are a smoke screen as long as this arbitrary 100hl rule is putting the screws to nano upstarts. ANBL is mandated to generate tax revenue and drive traffic to their stores so folks pick up other "category" products on impulse. Don't see how having growlers their stores would benefit the little guy trying to sell growlers at their own location, like the Tatamagouche/Big Axe model

[Jimmy]

A few of us craft breweries were contacted today asking if we'd like to participate in their growler pilot program.

That's some bullshit.

[cagiva650]

I am glad to see more exposure for this story. The more people that are aware of this bureaucratic nonsense the better.

http://www.cbc.ca/news/canada/new-bruns ... -1.2717759

[mcgster]

A few of us craft breweries were contacted today asking if we'd like to participate in their growler pilot program.

That's some bullshit.

I don't think its BS, especially for someone in Shane's position.

Currently for me to support Shane's brewery, which i like to do whenever i can, i have to go to a bar, pay their markup and drink my beer there. I would definitely fill up my growler at NBLC so i can sit home on a tuesday night and drink a beer thats made in my home town.

[CorneliusAlphonse]

A few of us craft breweries were contacted today asking if we'd like to participate in their growler pilot program.

That's some bullshit.

I don't think its BS, especially for someone in Shane's position.

Currently for me to support Shane's brewery, which i like to do whenever i can, i have to go to a bar, pay their markup and drink my beer there. I would definitely fill up my growler at NBLC so i can sit home on a tuesday night and drink a beer thats made in my home town.

They will definitely be charging their own markup, sorry, "distribution sales and marketing costs". And the ANBL introducing their own growler program while severely limiting the ability of micro/nano breweries to sell their own growlers means they're really striving to get a monopoly on growler sales. End result is it's worse for small breweries, and therefore worse for consumers.

[mcgster]

I have no doubt they will be taking their cut, it will be substantially less than i am paying now.

I am not arguing that their rule is a good thing. I do know that there does have to be some regulation on the new breweries coming into the market just like any other food product. Why they decided this was the way they would enforce regulations is beyond me and it is definitely a strange way to do it.

However, i fail to see how selling growlers at NBLC is a bad thing for small breweries. It increases the distribution available for those that already sell growlers, and provides a new means of distribution for those who don't sell growlers. NBLC has several locations in Saint John, if the pilot project is successful and they roll out this to every store that is a huge advantage to small breweries.

So separate the new regulations imposed and the pilot project is a good thing all around.

[Jimmy]

I don't think its BS, especially for someone in Shane's position.

Currently for me to support Shane's brewery, which i like to do whenever i can, i have to go to a bar, pay their markup and drink my beer there. I would definitely fill up my growler at NBLC so i can sit home on a tuesday night and drink a beer thats made in my home town.

They will definitely be charging their own markup, sorry, "distribution sales and marketing costs". And the ANBL introducing their own growler program while severely limiting the ability of micro/nano breweries to sell their own growlers means they're really striving to get a monopoly on growler sales. End result is it's worse for small breweries, and therefore worse for consumers.

I agree with this.

But..my reasoning for saying that it's bullshit is because they all of a sudden change the rules which are directly tied to growler sales, and then announce that they will be doing growler sales from their own stores.

[dean2k]

The logistics and potential problems for selling fresh product at nblc Stores in growlers sounds like a recipe for disaster.

[mr x]

Let's see some pricing, to breweries and to consumers....

[gm-]

Could be good for some breweries (Like Hammond River), that don't normally do growlers. Interested in seeing the pricing, and also how they plan to do it. Will they have taps in selected stores where they can fill a growler? Or is it all going to be pre-filled?

[mcgster]

Could be good for some breweries (Like Hammond River), that don't normally do growlers. Interested in seeing the pricing, and also how they plan to do it. Will they have taps in selected stores where they can fill a growler? Or is it all going to be pre-filled?

When i asked about I was told that the pilot project would consist of three stores (SJ/Fred/Moncton) and each would have growler filling stations. Not sure how its going to work but it sounds like they fill it for you.

We will have to wait and see!

[mr x]

And what about growlers and branding?

[chalmers]

We have an update on the blog for people who want to read more from Harriman and Biggar. AWOL brewery went to the CBC and let them know it had them going back to the drawing board about their future, too.
http://acbeerblog.ca" onclick="window.open(this.href);return false;

Growlers from their own storefront is the best ROI for breweries, I believe. If the ANBL is getting into growlers at their stores, either the breweries are making less, or the consumer is paying more, or both. Neither is great.

For small breweries with sales forecasts in the tens of hectolitres per year, due to system size and resource (human and financial) limits, this will have them struggling to keep up with demand from other retailers (ANBL) immediately, putting even more strain on a new business.

[benwedge]

I do know that there does have to be some regulation on the new breweries coming into the market just like any other food product.

Food is regulated in a way that is essentially "there must be X hand-washing stations per square foot, the bathroom can't be attached to the kitchen, one person on-site must have food safety training, and the food must be served immediately or stored below a given temperature." There is no fudge factor such as taste. There is no requirement to sell one piece of food, let alone hold a large number of services before becoming licenced. Let me be clear: the way food is regulated anyone can open tomorrow as long as you follow the safety manual. This minimum-sales regulation is not at all analogous. If the purpose is for public health then the requirement would be about how to clean the brewery and properly operate the facility.

[RossBee]

I hate to tell you guys with all the pie in the sky ideal of what NBLC is doing. Cottage wineries pay 30% off the top of any sales you are planning to do when selling through their stores, 40% on liqour. So,a $10 bottle of wine yields $7 at the gate, you pay the shipping and bottle deposit. Craft beer is similar, I haven't looked into the numbers yet. Monopolized sales through NBLC severly limits start up of craft brewers. Those of you who say its a good thing as far as exposure,distribution, marketing and any other bullshit, give 30% of your pay check to charity and move on, helloooo!!!

[mcgster]

Margin is only one way to measure the impact of a policy and negating increased distribution and saying it's a wash is a joke. I acknowledge that margins will change. Simply repeating that is missing the point. Distribution is a huge barrier in any business and perhaps no where more so than selling craft beer. Increased distribution can vastly outweigh a change in margin for a business. Whether you think this may or may not be the case with this policy is subjective and it would vary brewery to brewery.


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[jeffsmith]

That may be true, but I've yet to see a small (nano) brewery that has trouble unloading more product than they can make in their own locality. The bonus of wider distribution would be of more benefit to a much larger operation, I would assume.