A Great Read on Initiative 1100 Pegs Hales Ales As a Supporter
I just read an excellent article put together by Seattle Times writer Melissa Allison. The article presents a duel look at the positions of supporters and opponents of Initiative 1100. Our blog has discussed I-1100 in the past, and if you still don’t know what it is, read these posts for more on the issue.
In any event, the article takes you on a whirlwind tour of the Initiative, what it seeks out to do, and who is on each side. For instance, did you know that Anheuser-Busch and MillerCoors have collectively donated at least $2 Million to the opposition party? Neither did we.
Mike Hale, of Hale’s Ales, a brewery between Fremont and Ballard, figures he would do well in an open market, and said the laws that I-1100 would nix are easily circumvented now.
“There are many loopholes and exceptions and shenanigans,” said Hale, who has brewed for 27 years and served on a state task force in 2006 with other industry representatives and the Liquor Control Board.
Hale’s Ales and others create products for Costco and other retailers that no one else buys — for example, beer on pallets without cardboard separations — and sell them at prices that might as well be volume discounts.
Some breweries pay consulting firms to place their beer at eye level in grocery stores, a service cheap or free to the grocers and therefore a gift in exchange for shelf space from breweries, Hale said.
“No one could enforce these silly laws,” he said. But the result is “supporting the middlemen culture [distributors], who have a guaranteed sweet spot.”
I am not sure how this fits into the big picture. Hales Ales is one of the few Washington brewers who bottles and has been selling in volume for some time. That might have an impact on their point of view.
The Guild‘s Heather McClung (Schooner Exact Brewing) made an appearance, resonating the Guild‘s position that I-1100 makes it more difficult for local brewers to sustain pricing and find shelf and bar space. Beer consumers can feel for the Guild’s position, as it certainly would be a blind-side change for brewers in Washington state.
But, its apparent that the Guild is ready for some change. Heather advised that the Guild would like to see slow and steady deregulation – as opposed to the sudden, complete deregulation in place under 1100.
In the end, the issue might come down to trusting Washington consumers to dictate the market. I think that the statement made by Ashley Bach, spokesman for the “Yes to 1100″ campaign resonates much of the sentiment of beer consumers:
“Wineries and breweries are worried about the unknown, but the wine and beer industries are very well established in Washington and consumers are among the most sophisticated in the country and will seek out good products no matter who’s selling liquor in Washington state”
Regardless of where you lean, the article presents a good look at the pluses and minuses. This Initiative might come down to the final week of campaigning. For now, its a toss up for most consumers.