Beer and the Three Tier System – Craft Beer 102

What if we passed a law that made it illegal for Apple to sell the iPhone directly to you? That’s exactly what’s happened with craft beer.

Certain people have built their business model around these regulations and certain people have incurred a lot of costs as a result of these regulations.

So if I’m a beer distributor, I’ve built my entire business around the idea that brewers have to sell their beer through me. If we deregulate the industry and no longer make it mandatory that brewers sell through me as a distributor, I lose my beer distribution business. So I have a financial interest in seeing that these regulations remain in place because I’ll ultimately lose long-term if they don’t stay, no matter what the consequences would be for the consumers.

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