I-1100 and I-1105
The time to vote is upon us and we are suddenly fielding lots of requests for more information about Washington Sate Initiatives 1100 and 1105. We would first like to make it clear that we are NOT opposed to privatizing liquor. We are opposed to these initiatives for the ways they are trying to go about achieving that privatization.
We, along with The Brewers Association and the Washington Brewers Guild oppose Initiative 1100 (I-1100). The provisions of I-1100 would undermine small brewers’ ability to gain fair access to market and compromise the middle tier of independent beer distributors who are so vital to helping ensure consumer choice through access to a wide variety of beer. If passed, I-1100 will harm small brewery businesses, independent beer distributors and beer consumers in Washington State. The title and ballot description of the initiative 1100 is potentially misleading as it appears only to seek the privatization of retailing spirits. In addition to the privatization, the proposal repeals 39 laws resulting in the deregulation of the entire alcohol industry. 11 of the laws directly impact the brewing industry, eliminating the level playing field that exists in our marketplace today.
1100 will eliminate the level playing field that requires consistent pricing for all breweries and will legalize a Pay to Play sales system where producers and distributers are allowed to offer discounts, free products, etc. Thus shelf space will, in effect, be bought rather than earned by quality. Washington State consumers are lucky enough to currently have literally hundreds of choices of locally made, hand-crafted beers from across our state. I-1100, though, harms consumer choice by giving volume discounts to the largest companies, thereby edging out the small, neighborhood craft breweries.
We are opposed to I-1105 as well because it gives the decision making power to distributors. These initiatives support big corporations (like Costco and the distribution companies) rather than supporting the people of Washington state or the small businesses that will be affected by these changes. It is of great concern to us, as well, that these initiatives are being proposed by large corporations like Costco. For example, did you know that Costco and Wal-Mart are the main corporate sponsors behind Initiative 1100? Upon losing their court case to loosen alcohol restrictions, Costco went to the Washington state legislature. When their legislation failed to pass, they embarked upon the last remaining course of action to change law, the initiative process.
Boundary Bay Brewery believes strongly in small, local businesses and in doing what is right at the community level. We feel that it is important to vote NO on I-1100 and I-1105 to continue supporting neighborhood businesses, the wonderfully creative and thriving craft brewing industry and the right of the public to choose for ourselves rather than letting big businesses make decisions for us.
Kevin, you will not find Boundary Bay Brewery beer at Costco, but you can and will find it at many local Haggens and tons of local bars, restaurants and bottle shops. Our distribution decisions are based on the importance we place on doing business locally. Our primary concern is providing our beer to our local customers. And then, what we have in excess of that gets distributed to regional bars, bottle shops, etc. The choices we make about how and when we distribute have to do with the high demand of our beer in relation to the amount we can physically brew. We are not blaming 1100 and/or 1105 for anything. We are simply discussing how these initiatives will affect the craft brewing industry as a whole. We are not, necessarily, worried about a huge impact or change in our business itself. But that does not mean that we should not concern ourselves with how these proposed laws will affect the industry (as a whole) that we do business within.
Please describe the past or existing availability of Boundary Bay beer at Costco? (Deafening silence). In many years I’ve never seen it once at any Costco… I live in Bellingham and it’s never been at the Costco on the Guide, and almost never at Haggen’s or other local markets like Cost Cutter. If you are concerned with getting your product to customers then figure out how to make it available. Boundary Bay beer has never been readily available anywhere except directly at Boundary Bay through pints, pitchers, bladders or kegs. You make excellent premium beers, the best I’ve ever tried, but your distribution methods are terrible. Don’t blame 1100 or 1105 for your lack of business savvy on how to distribute.
As always, we welcome everyone’s opinion, Beer Lover. Thank you for commenting on our blog. It is not the quality of our product that we are concerned about in competing for customers. It is about the availability of our product to customers. If the Pay to Play system is made legal then shelf space will be BOUGHT not earned by quality. We have no doubts about the quality of our product. We do have doubts that huge corporations like Costco will concern themselves with us when large brewing companies and/or distributors can offer them huge quantity discounts and we can not. We are concerned with getting our product to customers…not about customers not wanting our product once they can purchase alcohol wherever they please.
I think what Boundary Bay Brewery is afraid of is that if I-1100 passes consumers will have many more desirable choices, and will give small brewery businesses the bird.
I-1100 creates a free and fair marketplace for alcoholic beverages, same as we have for other products. Keeping public safety laws, of course. The antiquated laws that exist for beer don’t apply to other products. Bakeries, for example, don’t have the same strange prohibitions against selling on credit or offering their best customers good deals. Nevertheless, we have many fine local craft bakeries in this state.
The message your sending to your customers is counterproductive and does more to hurt your brand than to help it.
If your product is good, then you’ll thrive in a free and fair customer-oriented marketplace. If you don’t have sufficient confidence in your own product to believe that you can compete for customers, then why should your potential customers disagree?