The Brewers Association thanks the White Home, Treasury Department, the Department of Justice, and the Federal Trade Commission for their work on this report; and we appreciate the acknowledgment that despite growing varieties of craft brewers, beer stays a greatly focused industry, which positions competitors obstacles to craft makers and customers. We applaud the Treasury Department’s suggestions on how to enhance competition in the beverage alcohol industry, a number of which line up with the Makers Association’s submitted comments (Comment Letter One, Comment Letter Two).
Upon an initial evaluation of the Treasury’s Competition in the Markets for Beer, White Wine, and Spirits report, we are grateful to see that the report recognizes that some laws, even those originally developed for a pro-competitive purpose, have hindered the development and competitiveness of craft manufacturers.
Second, we see much to like in its conclusions and applaud the report’s focus on the Federal Alcohol Administration Act’s trade practice arrangements and the ongoing need to combat practices like slotting costs and prejudiced conduct. Last but not least, we appreciate the report’s recognition that some laws have ended up being out-of-date which brand-new guidelines might better serve public health and foster competition.
While there remains considerable work to be done at the federal and state level to translate these suggestions into better market conditions, tips such as a re-examination of state franchise laws, greater direct-to-consumer access, updating trade practice policies with an eye towards exclusionary practices, and thinking about the result of small maker acquisitions on distribution all stand to enhance the ability of little firms to go into and effectively complete in drink alcohol markets. The Makers Association remains committed to ensuring a level playing field exists for small and independent brewers and looks forward to providing feedback to federal and state lawmakers on these recommendations and how they can be equated into a safe, competitive, and modern-day drink alcohol market.