InBev vs. Illinois

[Clanchief]

Interesting things happening in Illinois today:

http://www.suntimes.com/business/13...ith-state-officials-could-come-to-a-head.html

New craft brew laws here could actually seriously hurt InBev or it could cripple craft brewing distribution here. I'll see if the commission has something available to watch or listen to the proceedings this afternoon.

 

[rico567]

InBev is just trying another maneuver within the tired old corrupt three-tier beer distribution system in Illinois that's been chugging along since Prohibition. The issue here is actually a fairly trivial one of conflict of interest.....although there's little doubt that InBev calculates to turn their partial ownership to their advantage in getting more market share from Miller/Coors. The problem of the bigs is one of inelastic demand, with craft beer nibbling around the edges of the market.

The truth is that the entire system should be swept away or reformed, but like so many other things in Illinois (no, I am NOT going there......), it's been around too long, and the graft runs way too deep. As a resident of the state, I just hope that it doesn't take actual state insolvency to promote some sensible reform.

 

[Airplanedoc]

The truth is that the entire system should be swept away or reformed, but like so many other things in Illinois (no, I am NOT going there......), it's been around too long, and the graft runs way too deep. As a resident of the state, I just hope that it doesn't take actual state insolvency to promote some sensible reform.

I agree, but i'm not holding my breath either

 

[Clanchief]

I completely agree that the three-tier system we have is crap. Even though I don't live in the city anymore, I understand how much King Rahm is more interested in keeping the status quo, just like King Daly was.

 

[pentachris]

"...beer Goliath’s such as Anheuser Busch..."

Really?!?

It's no wonder apostrophes are misused so often; even the newspapers can't get it right.

 

[glenn514]

My signature line says it all. I hope and pray the housing market will rebound soon so I can sell my home in Illinois and move OUT!

glenn514

 

[IrregularPulse]

What are you guys worried about? It says right at the end, no matter the decision, you'll still be able to get plenty of Budweiser.

“There’s zero chance of a Budweiser shortage,” liquor commission lawyer Ivan Fernandez said. “We’re not looking to hurt anyone, including the consumer.”

 

[VTDuffman]

I'm confused, isn't the State of Illinois doing the correct thing here? All they did was codify into law the original intent of the three-tier system (creating the layer of separation between the manufacturer and the retailers). The Three-Tier system gets mucked and corrupt once you start letting manufacturers own the distributors. The two solutions are complete abolishment of the Three-Tier system (which I think is a federal issue, not a state one - that I support) or what Ill. is trying to do here and not let manufacturers have ownership stakes in the distributors.

The people fighting to keep the Status Quo are AB/InBev themselves. AB/InBev and MillerCoors spend *a lot* of money on the federal level and down lobbying to keep things exactly the way they are because it's a plum gig for them.

 

[Wynne-R]

A hearing is set for June 20th in Chicago to allow AB InBev to make its case to retain its 30-percent stake in City Beverage.

This citation brings AB InBev’s quest to own a distributor in Illinois full circle, but not in the direction the brewing giant was hoping.

Two years ago AB InBev and WEDCO tried to buy up the remaining stake in City Beverage. The move was blocked by the Illinois Liquor Control Commission. AB InBev then sued in federal court citing discrimination because in-state brewers are allowed to self-distribute their beer but an out-of-state distributor is not. A judge agreed, but instead of opening up self-distribution to everyone he said no one should be able self-distribute. The judge stayed his ruling to allow the Illinois legislature to try and work out a compromise, which they did in SB 754. That bill was signed in to law last summer and spells out barrel limits for brewers who want to self-distribute.

The new law left one question unanswered though; is AB InBev’s minority stake in City Beverage akin to self-distribution? And, if so, is AB InBev breaking the law? It looks like the ILCC has answered those questions.

http://www.guysdrinkingbeer.com/beer-politics-ilcc-to-ab-inbev-get-out-of-the-il-distribution-game/

Wow! Imagine Illinois politics being convoluted and labyrinthine. Apparently a humongous corporation headquartered on Wacker Dr (Chicago, very downtown) has more juice than one from sort of friendly rival St Louis.