Bitter beer battle brews in state

By John Estus
Staff Writer
State alcohol distributors are fussing about who's responsible for preventing real-life cases of bitter beer face.

The question is whether some beer distributors should have to refrigerate beer before sending it to retailers, check liquor store shelves for expired bottles and clean beer keg tap lines in bars and restaurants.


The taste is at stake if quality control isn't done right.

"It'll taste real skunky,” said Brett Robinson, president of the Oklahoma Malt Beverage Association and a lobbyist for alcohol distributors.

That was the ruse behind past popular Keystone Light television commercials — the ones that made "bitter beer face” a household term.

But it's no joke for state beer distributors who await a ruling from the Alcoholic Beverage Laws Enforcement Commission regarding who's responsible for quality control of strong beer.

Strong beer is sold in liquor stores and has a higher alcohol content than beer sold in grocery stores.

Three strong-beer distributors have asked the ABLE Commission to toss out a rule that allows strong beer manufacturers to tell them what quality control measures they should practice when dealing with their beers.

State's laws are unique
The state's quality-control requirements for low-point beer, which Robinson said makes up 90 to 95 percent of the state's beer market, are stricter than for strong beer.

Many strong-beer distributors say quality control is important in Oklahoma because liquor stores here can't refrigerate strong beer.

But other strong-beer distributors claim state law forbids beer manufacturers from requiring distributors to follow quality control guidelines that aren't required by the state.

"We don't feel like it is a quality-control issue,” said Tad Shadid, manager of Oklahoma City-based Eagle Brand Beers, one of the strong-beer distributors that petitioned ABLE. The issue is who is responsible for doing what work under our state laws and statutes, he said.

In most other states, distributors are responsible for quality control. National beer industry observers said Oklahoma is unique because it is among only five states selling low point beer, or beer containing 3.2 percent alcohol by mass.

"Beer is a perishable product. It is a product that over time does lose some of its taste and some of its characteristics and some of its flavor if it's not controlled in an appropriate way,” said Craig Purser, president of the National Beer Wholesalers Association.

Who's responsible?
Purser said everyone in the alcohol industry should be concerned with the quality of the products they sell because a bad-tasting drink that's not up to par will cause consumers to drink something else next time.

Robinson's association represents 18 state beer distributors, some who sell strong beer and some who don't. It doesn't represent the ones who petitioned ABLE.

"My guys have invested the money in refrigerated warehouses and refrigerated trucks and are used to cleaning tap lines,” and others haven't, he said.

On any given day, about half a million cases of strong and low-point beer sit stacked to the ceiling in the 100,000 square feet of refrigerated warehouse space at Premium Beers of Oklahoma in Oklahoma City.

It was about 46 degrees in the warehouse Wednesday morning while employees put together the next day's orders. Low-point beer and strong beer kegs in the warehouse's keg cooler are kept a little colder.

Shadid said while the Eagle Brands warehouse isn't refrigerated, the beers kept in the air-conditioned, 153,000 square foot room aren't exposed to too much heat because the room never gets above 75 degrees. Eagle Brands does not distribute low-point beer.

The part of the state's alcohol law that the petitioners want stricken says strong beer manufacturers can establish quality control guidelines if it is "necessary for the preservation of the product, health, or public safety and welfare.” Those guidelines include refrigeration.

ABLE commissioners heard arguments from both sides in a hearing this month. Commissioners could vote on the petition at their next meeting March 21. ABLE Director Keith Burt declined comment.

DAILY OKLAHOMAN, FEBRUARY 25th, 2008

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It's a friendlier OKCTalk!

We all want smaller government, right? So why in 2008 do we need a silly organization like ABLE? For that matter, other than a state law forbidding the sale of alcohol to minors (debatable as well), what possible governmental goal is there in this protectionist regime for liquor distributors?

As I understand it, the state of the law in Oklahoma is that there are currently three liquor wholesalers in the entire state. All liquor, beer and wine, at some point goes through their hands. They serve no real purpose. They just take a cut of the money and drive up costs.

What would be bad about allowing small wineries, beer and liquor manufacturers to sell directly to stores or consumers? Are we worried that these entities might be spiking their products with antifreeze? Do the wholesalers make sure that doesn't happen? What's the point?

In this case, we have a wonderful example of how wholesalers are fighting to give Oklahomans an inferior product. Tad Shadid actually says that refrigerating beer during transport makes no difference in the quality. I'm sorry, Tad, but in the brewing industry, it's pretty much common knowledge that you're either clueless or a liar.

We all want smaller government and fewer market controls. Just about the entire ABLE licensing and wholesaling regime makes no sense. If alcohol sellers find it is better for their business model to use a private wholesaler, fine. But why force them to? Who does that help?

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It's a friendlier OKCTalk!

This whole deal makes me all stabby.

Always does.

I may be oversimplifying...But...If I'm legally allowed to purchase beer, why in the hell am I not allowed to buy it cold unless it's (almost insignificantly) weaker and in a 7-11? What difference does it make where in the heck I buy it?

Why can't I buy it at 4 in the morning? I work shift work...My hours are different than most of the population, 4 in the morning to me is like 2 in the afternoon to most of you.

Why can't I buy good beer on a Sunday?

I can't think of a legitimate reason why I shouldn't be able to buy a chilled bottle of Chimay or a good Gewürztraminer to go with my spicy Chinese chicken on a sunny springtime Sunday afternoon.

Retarded.

The Bible says "Thou shalt not sell beer on Sundays, after 9PM or next to schools and churches even though the latter gives away sips of alcoholic beverages for free from time to time."

Swear to God.. that's in the Bible.

Somewhere towards the back.

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It's a friendlier OKCTalk!

Yeah, it's tucked in there between "thou shalt not sell cars on Sundays" and "flock to IHOP at noon".

I wonder if we are going to be the last holdout like on the tatoo issue

Many of these restrictions have little to do with "Blue Laws," although the religious zealots are easily coopted to support this crapola legal scheme. The real reason these laws exist?

1) The liquor store lobby; and
2) The wholesale liquor business lobby

Both are very squeaky wheels and both get a lot of grease. The liquor store lobby doesn't want these laws repealed because if beer was refrigerated while in transit, customers might expect it to be chilled at delivery. The equipment and electricity would cost a lot of money. They'd MUCH rather deliver a crappy product and make more money, wouldn't you?

As to the rest of the current scheme, the law as it is protects single-owner liquor stores. They don't have to compete against Wal-Mart, etc., so obviously they'd be willing to spend some real lobbying bucks to protect their market. ABLE, etc. set up a regulatory scheme which restricts commerce in a very severe way. It limits consumer choice and it doesn't do a damned thing to increase our safety... well not really, but apparently it does enough to pass rational basis.

The wholesale lobby also has a lot to lose. If they were to be able to keep their product chilled in transit, you can bet quite a few manufacturers would require this. This option not being available has kept several brands from being available in Oklahoma.

Further, as to the whole ABLE scheme, there are only three beer and liquor wholesalers in Oklahoma. Manufacturers are not allowed to sell directly to stores. The wholesale industry is protected by the state and those three wholesalers get a piece of every bottle of anything sold in the state. They keep the prices artificially high and the quality artificially low.

Supposedly, the folks up at the capitol think that's a good thing.

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It's a friendlier OKCTalk!

This whole deal is about the 3.2 guys squeezing into the strong beer side and trying to squeeze the other wholesalers out.

The 3.2 guys ( Bud, Miller/Coors ) are not for strong beer in grocery stores. They own almost every brand on grocery shelves now. They don't want to open that up and have to compete with all the brands sold in liquor stores.

The way you get strong beer to 3.2 is add water. They make more money on the 3.2 stuff.

This is all about them wanting the brokerage profits from beer sold in liquor stores.

Just another piece to the puzzle.

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It's a friendlier OKCTalk!

Both are very squeaky wheels and both get a lot of grease. The liquor store lobby doesn't want these laws repealed because if beer was refrigerated while in transit, customers might expect it to be chilled at delivery. The equipment and electricity would cost a lot of money. They'd MUCH rather deliver a crappy product and make more money, wouldn't you?

It is difficult to get a consensus on this among liquor store owners because the small stores have such limited space and most couldn't afford it. That is keeping the retailers assoc. neutral on the issue.

Large stores would put coolers in today if they could. Most see it as a good compromise to wine and strong beer in grocery stores. It would only require changing one statute where the latter would require constitutional amendments along with a long list of other laws that would have to change.

Further, as to the whole ABLE scheme, there are only three beer and liquor wholesalers in Oklahoma. Manufacturers are not allowed to sell directly to stores. The wholesale industry is protected by the state and those three wholesalers get a piece of every bottle of anything sold in the state. They keep the prices artificially high and the quality artificially low.

You are wrong on several levels and this paragraph would lead one to believe that you don't know what you're talking about on this subject.

it really sucks that I have to go to one of our surrounding states just to pick up some Fat Tire due to our jacked up liquor laws

Absolutely...Buddy brought me back a six pack of New Belgium's 2 Below and I drank only one a night to make it last...Would be very nice to have that option on the shelves

Would also be nice to be able to subscribe to a beer of the month club as well

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Dr. Spaceman: Now Jenna, medically speaking for your height your weight puts you what we call the "disgusting" range. Fortunately there are solutions. For example, crystal meth has been shown to be very effective. How important is tooth retention to you?

I appreciate your wanting to disagree with Midtowner on this, but for the edification of all of us, it might be nice if you provided us with some details on the matter.

I've always only been aware of the "big three," and their squeaky-wheel politics, so would love to be enlightened on the matter.

My guess is our current laws, and ABLE, are also having an effect on our ability to attract a premium grocery store such as a Whole Foods or Trader Joes. Granted, Tulsa has a Wild Oats, but I don't know if that model is as dependent on liquor sales as Whole Foods has become (and yes, I know there are some alcohol-free Whole Foods out there.)

Unless I am missing one, there are currently 7 wine and spirit wholesalers and each of them also has a strong beer licence. There are at least 4 more strong beer wholesalers now that the 3.2 guys have gotten in to the strong beer business.

Oklahoma is a non- franchise state and has a competitive wholesale system, all the wholesalers carry all the brands (as many as they want to, anyway) and two of the wholesalers are directly tied to the two largest retailers in the state. This gives them a say in wholesale mark-up. Oklahomas wholesale prices are very low and Byrons and Fikes have seen to that for years. Customer service to the retailers and therefore to the consumers is also very good because of the competitive nature of our wholesale laws.

In a franchise state like Texas, There are exclusive contracts on all products. There are two companys that dominate and they are the sole source for the products they carry. They decide what the price of those products are. Retail prices on Spirits and beer are about the same in Ok. and Tx., even though we pay higher taxes on those products, because of the nature of our wholesale system.

This is the biggest reason why Bud, Miller and Coors don't sale their strong beer in Oklahoma......because we won't let them have a monopoly on their products. Laws on products less than 3.2 % do allow it.

Whole Foods operates in other markets where they don't sell wine or spirits so there has to be more to it than that. Trader Joes isn't in Texas or much of the midwest or south.

I believe the biggest reason we don't see more national and large regional grocery chains in Oklahoma is because of Wal-Marts dominant position of that retail segment here.

Maybe we could get a Sprouts - they are expanding.

3rd post, hi all.

While I am on the side of getting rid of restrictive beer and wine laws, perhaps the compromise would be in allowing the liquor store to see other products, such as cups, ice, cigs, bottle openers, limes, etc., so that while they may lose a few sales to grocery stores, they can add additional business.

Now I am sure that the distributors may not like this, but perhaps the store owners themselves might.

Also, I do not claim to be an authority or an expert on any of this, just someone who likes strong beer and the ability to buy it cold. Oh, and if I want to get a generic bottle of wine at the grocery store, I like that too.