Commercial Law
Nov. 16, 2013
Carving out a craft brew exception
When craft brewers begin negotiating distribution agreements, they quickly discover that the system is designed to protect distributors. By Barry Kurtz and Bryan H. Clements
Pursuant to the 21st Amendment to the U.S. Constitution, states have primary authority to regulate the distribution of alcoholic beverages and rely on the three-tier system to regulate the distribution of beer. Under the three-tier system, brewers produce beer and sell it to distributors; distributors, in turn, sell the product to retailers (retail stores, taverns, etc.), who sell it to consumers.
When craft brewers ...
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