Beer News - Big Brewer Battles - InBev versus Illinois Craft Brewers

Most craft beer fans at some point or another have thought of the large domestic breweries as the “bad guys.” It’s easy to do. Large breweries have economies of scale which create some serious competitive advantages in the beer market. They have the brand recognition and marketing budgets to back it up, as well. All in all, craft beer has to work exponentially harder to make their place in their market.

It’s been getting easier for the little guy, though. Craft beer brewers are finding that their customers are more educated about beer than they have been in years, and the number of people who shop specifically for craft beer seems to rise every year. Overall, the craft beer market has grown steadily since the early 90’s (at least), and things look good for the craft brewing industry.

The big boys aren’t taking it lying down, though. Recently in Illinois there have been some shouts for help from small brewers who are afraid that they are now an endangered species (See the article here).

Historically, Illinois brewers have held a distinct advantage over brewers in other states due to a law on the books which requires out-of-state brewers to use in-state distributors to get their beers to market. This gives craft brewers in Illinois a competitive advantage over out-of-state brewers in reduced costs and red tape.

A-B Inbev is lobbying to change that. What’s interesting about this dispute is that both sides claim to be trying to level the playing field. Illinois brewers feel they would be at a distinct disadvantage to A-B InBev and other out-of-state brewers should the law be removed. InBev feels it and its fellow out-of-staters are at a disadvantage because they have additional costs and red tape that domestic brewers don’t have.

So, who’s right? Are the small brewers being stepped on, or should they be required to compete at the same level as out-of-state brewers? Keep in mind, this law is probably affecting out-of-state craft brewers, as well. It’s possible that a brewery such as Lagunitas or Mother’s Brewing Company might decide not to distribute to Illinois simply because it’s more expensive. On the other side, shouldn’t that just be considered a cost of doing business there?

The image at the top of this article is from the Save The Craft movement, started by Guys Drinking Beer, an organization in Chicago who live and love beer.

Sound off in the comments and let me know what you think.