Giant Breweries Get Laws Passed In Wisconsin To Make Life Hard For Small Breweries [Updated]
from the small-businesses-are-the-backbone dept
Wisconsin governor Scott Walker has presented himself as a very "business-friendly" governor in his first year in office and has specifically claimed that he's a supporter of small businesses as the "backbone" of the state's economy. But reports are suggesting that he's happy to support legislation that helps big companies at the expense of small companies. We've already covered the attempt, via AT&T, to kill Wiscnet (which only a very last minute reprieve saved). And now DoggyDork points us to the news of a new law that requires all beer makers, including tiny craft shops, to only sell beer through big middle men. That is, a small craft beer maker can't go to the restaurant down the street and sell its beer. Instead, it has to find a big distributor to sell for it. The article notes that the big beer companies, like MillerCoors, love this bill. But the small guys hate it, because it'll effectively kill off whatever sales they had. The cynical suggest that this is an attempt by the likes of MillerCoors to limit competition from these upstart competitors. Update: There's an informative, if incredibly insult-filled, comment, claiming that the story at ThinkProgress, our original link, is misreporting the details of this bill. That comment suggests that this bill is not quite as bad as they made it sound (and, of course, accuses us of being all sorts of evil for claiming otherwise). Update 2: And... a separate response suggests the explanation in that comment in the first update might not be accurate at all. Good debate going on in the comments.
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Filed Under: beer, regulations, wisconsin
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Like butta...
Within a few years the dairy industry found a need to change the way they made butter to better compete with margarine. But they couldn't because the law that they had crafted locked them in.
I wonder if the craft beers will find a way to use the new law to put the big boys at a disadvantage. Maybe we should check back in 10 years and see how this works out.
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All about taxes
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Re: All about taxes
> that the brewer gets taxed, the middleman and the restaurant.
The how come that doesn't apply to all products, just beer? If I'm making clocks, I can sell directly to retailers and somehow the taxes get paid. Why is beer so different?
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Re: Re: All about taxes
Check out Beer Wars if you have not done so yet.
http://www.hulu.com/watch/235712/beer-wars
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The First Broken System
If you want to get an idea of how the internet would look like if it were more regulated, look at how beer is sold and you'll get an idea - that is if you can make sense of 50 different laws.
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Hrm...
As I understand it, because of Federal taxes, microbreweries already have sell and then buy back their brew so that the feds get their taxes. But I could be wrong.
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Even playing field
ALL means ALL Mike, seems to me like a even playing field, one that does not favor either the big company or the small one, nor does it make it any harder for the small brewer to sell to a shop than a large one.
But mike, you manage to twist this using some form of warped logic.
Alchohol is also a 'controlled substance' and a "food product" therefore there are specific requirements for it's distribution and sale.
The 'middlemen' are the controlling authority for the product, they are the ones liable for providing product to business that are not allowed to have that product.
To sell grog, you need a license, that is to ensure that you do no sell a substandard product, that you meet standards and you comply with the law.
Ie, you dont sell to under age people ect.
I would have thought that the fact that this forces an even playing field, and in no way restricts small or micro companies to produce product, when they do they are required to abide by the exact same laws and statutes as does the bigger manufacturers.
Mike, do you really have that little of a clue of what is going on ?
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Re: Even playing field
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Re: Even playing field
Obviously that statement is subjective, but so is:
"that this forces an even playing field, and in no way restricts small or micro companies to produce product"
I think we all have read about how laws have unintended consequences from this blog, even the 'fair' laws. This will be one to see how it plays out. And also, I don't know you're intention, but alcohol is not a 'controlled substance' in the strict sense. [ https://secure.wikimedia.org/wikipedia/en/wiki/Controlled_Substances_Act ]
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Re: Even playing field
And what happens when one of the giant brewing companies says to the distributer "If you do business with Big Mike Brewing, we'll pull our account."? Is it still a level playing field when the small brewers can't find a distributer willing to handle their product?
Also, where's your assessment of how much more this is going to cost the small businesses and what percentage of profits they'll lose compared to the giant corporations?
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Re: Even playing field
HA! Standards are one thing the mass producers like MillerCoors and Anheuser Busch/InBev can't keep up with.
I'll stack up the beers from Leinenkugel (Chippewa Falls, WI) against any from those big breweries any day.
If laws like this came to Texas, and my local breweries (Freetail Brewing, Blue Star Brewery, Ranger Creek, etc.) couldn't sell directly to places like the Flying Saucer, or Gabriel's or Spec's, it would be nearly impossible for me to get those beers at a reasonable price (Ranger Creek's La Bestia Aimable is already about $12 for a 750ml bottle, but it is quite good.)
Darryl, as always, is completely missing the mark and has no clue as to what's really going on.
Don't mess with my craft brewers, because the alternative is mass produced swill.
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Re: Re: Even playing field
http://www.sabmiller.com/index.asp?pageid=316
(They make you "sign in" by entering your birth date before you can view some pages that have photos of beer bottles. How silly.)
Minnesota just passed a law going the other way. Small breweries are now allowed to sell their own beer on the premises if they wish.
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Re: Re: Re: Even playing field
Kinda like InBev getting so damn big it swallowed up Anheuser Busch. I don't drink Bud or Bud Light, but I think Widmer Brothers is part of Anheuser Busch and they make good beers, oh well.
Maybe I'll look for brews from MN down here in TX. Anyone in MN want to send me some samples?
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Re: Re: Even playing field
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Re: Even playing field
what happens when the big middleman distributor tells the small brewery "your one truckload of beer a week is too small a shipment to be worth our time. Come back when you can ship five or six truckloads a day"
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Re: Even playing field
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Beer Wars Movie
Website here: http://beerwarsmovie.com/
Trailer here: http://www.youtube.com/watch?v=uY-Bg5Odi0M
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From the Milwaukee Journal-Sentinel:
"The legislation, approved Tuesday night by the Legislature’s Joint Finance Committee, is designed to stop Anheuser-Busch from buying wholesale distributors, say its supporters, including a beer wholesalers lobbying group. Opponents say those fears are exaggerated, with craft brewers saying the legislation would hamper their growth prospects.
Most of the nation’s beer is sold by brewers to independent wholesalers, which earn a profit by reselling the beer to supermarkets, taverns and other retailers. That three-tier system has operated since Prohibition’s repeal, and was created to prevent brewers from forming monopolies making, distributing and selling beer – which existed before Prohibition. …
The proposal endorsed by the Joint Finance Committee is needed to avoid a similar court challenge in Wisconsin, and to prevent Anheuser-Busch from buying distributors, says Tim Roby, spokesman for the Wisconsin Beer Distributors Association. The proposal also is supported by MillerCoors LLC, Anheuser-Busch’s chief rival, and groups representing retailers, including the Tavern League of Wisconsin and the Wisconsin Grocers Association.
The legislation prohibits brewers from buying wholesale distributorships, while allowing brewers that produce up to 300,000 barrels annually to do their own wholesale distribution.
Some Wisconsin craft brewers do their own wholesale distribution. Others sell their beer primarily through wholesalers, while also doing limited self-distribution by selling beer at festivals or filling emergency orders from taverns. The state’s largest independent craft brewer, New Glarus Brewing Co., sold about 92,000 barrels in 2010."
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Re:
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Re: Re:
Masnick chose to source a fellow conspiracy-theorist, tin foil hat wearing rag rather than a dozen other reputable sources in his pathological need to make something out of nothing. He crafted a headline to make it appear that this was another one of big business conspiracies he seems to see everywhere, failing to note that MillerCoors was on one side and A-B on the other and that it exempted breweries producing under 300k barrels/year (which appears to be every indy brewer in the state). This is just one more example of how Masnick's personal agenda colors his so-called "journalism".
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Re: Wow Masnick has his own personal apologist?
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You have to do more than that. You have to have 25 different customers. This makes it very difficult for small brewers starting out.
It also eliminates small brewers having a couple of breweries and putting restaurants out front. That's a pretty popular business model.
http://positivebusiness.co/news/stop-millercoors-tapping-out-local-breweries
If the legislation is about stopping Inbev, then why add the other stuff to it? Why cap a small brewers growth at 300k barrels? Why make it more difficult for distributors to get a license?
Walker was elected with the promise of creating 250,000 jobs. He promised to do this by removing legislative obstacles to growth. How does this new legislation do anything to help small brewers when it only creates legal loopholes for them to jump though?
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http://wisconsinwave.org/news/mjs-anti-craft-beer-bill-passed-joint-finance-committee
of course, AC probably didn't provide a link because the end of the article refutes his point a bit:
"However, self-distribution is often less efficient than selling beer through a wholesaler, said Hamilton, Wisconsin Brewers Guild president. As wholesalers have consolidated, there are fewer choices for craft brewers, who often find that larger wholesalers are devoting less attention to selling smaller-volume craft brands, Hamilton said.
Instead of self-distributing, or relying on their current distributors, some Wisconsin craft brewers have discussed the possibility of joining forces to buy or start a beer wholesaler, he said. But the legislation would prohibit that approach, which could restrict future growth for craft brewers, Hamilton said."
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Re:
I don't, I'm a blogger. I post what I find interesting, and I have open comments so that people can add to the story, as you did.
Not sure why you have to be such an asshole about it.
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Re: Re:
Why don't you simply retract the whole thing and do some honest reporting for a change? Otherwise, just post shit from the supermarket tabloids which generally have higher journalistic standards than you bother to observe here.
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As I said, I post what I find interesting, and I expect that people will add to the story -- that includes corrections, other points of views, additional information, etc. The idea is that we all learn.
I didn't realize that was such an evil idea.
Why don't you simply retract the whole thing and do some honest reporting for a change? Otherwise, just post shit from the supermarket tabloids which generally have higher journalistic standards than you bother to observe here
I'm not a reporter. Why do you pretend I am? I already explained what I do. I recognize that you have trouble understanding this. You added something valuable to the conversation, and I appreciate that and linked to it from the post.
What I don't understand is your need to be an asshole about it all.
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Way to wiggle!
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...OH, wait, please don't.
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Can we have an 'Ignore this asshole' button?
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Masnick's recent self-immolation has been a true pleasure to observe.
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Re: Re: Re: Re: Re:
This is AC's way of saying he masturbates while posting his idiotic comments.
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Re: Re: Re: Re: Re:
Not at all. People have called me out for making mistakes or disagreeing with me in the past. That's fine. This individual is, pretty clearly, being an asshole. I think it's pretty easy to understand the difference between constructive criticism, correcting errors... and being an asshole.
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Also, for the record: Making a claim that then encouraging others to Google your sources for you? That isn't how it's done.
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Re: So where is the "Giant Breweries Conspiracy"?
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Re: Re: So where is the "Giant Breweries Conspiracy"?
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Re: Re: Re: So where is the "Giant Breweries Conspiracy"?
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Re:
In other words, after looking into this issue as you recommended, I am saddened to discover that you are completely wrong. Perhaps you would have seen this had you taken off your rage-colored glasses before commenting.
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Re:
It appears that you are glossing over the concerns of small breweries. In fact, I've yet to see a single craft brewery that is in favor of this bill.
The consensus seems to be this:
- O’so Brewing (quoted in Eat Wisconsin)
Indeed, I took your advice, and did a "simple search of local newspaper articles." Here's some I found:
Boot beer brouhaha from budget (Madison.com)
Craft brewers prepare to fight possible brewing changes (NBC26)
Small brewers say they're victims in Miller-Bud war (Wasau Daily Herald)
Craft brewers vent anger over budget provision (The Cap Times)
Bill to limit brewers' ownership of distributors stirs worries (Journal-Sentinel Online)
South Shore Brewery Concerned About Pending Legislation (Ashland Current)
It also turned up an opposition statement and fact sheet from Tyranena Brewing Company (both PDF's). And another oposition statement from Wisconsin Positive Business Alliance. And YouTube video of Jim McCabe (Milwaukee Brewing Company) speaking out against the bill.
So, where are the people that are actually for this motion? Well, there's a facebook page that looks an awful lot like an astroturfing site. In fact, Craft Beer Critic makes this astute observation:
If you want to read it, the text of Motion 414 is posted on Madison Beer Review. It's a bit more complicated than Mike said, but according to local brewers, he's right about its effect:
- from the Ashland Current article linked above
So... Maybe before you call someone a "fraud", claim that "Every article finds you distorting the truth," and say that they are "full of shit (again)," you should take a long, hard look in the mirror.
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Re: Re:
The less than 300,000 barrels makes it seem small brewery friendly but their are a bunch of other small provisions other people have already mentioned that make this bill very dangerous for the little guy brewer and the tiny on-site brewpub/restaurant, which Wisconsin is jammed full of(I highly recommend the SouthShore Brewery if you ever find yourself in Ashland WI, which you probably wont because its a tiny little shithole in the middle of nowhere and inbetween almost nothing, the food sucks but they got some amazing brews).
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Beer snobs, unite! Our pursuit of happiness is under attack and we can't allow this to continue, or today it's Wisconsin, tomorrow, the world!
We must fight!
"It's only Wisconsin!"
"I got the shit kicked out of me in Wisconsin."
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Re:
If anything, you claiming that he characterizes himself as a journalist is more fraudulent than had he really characterized himself as a journalist.
"Every article finds you distorting the truth"
You mean like how you're distorting the truth by claiming that he characterizes himself as a journalist?
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If you want to prove Mike wrong, then do so with evidence, please, not vitriol.
Vitriol does not a case make.
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already been done across the border
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Re: already been done across the border
"A craft brewer's license, which may only be issued to a licensed brewer or licensed non‑resident dealer, shall allow the manufacture of up to 465,000 gallons of beer per year. A craft brewer licensee may make sales and deliveries to importing distributors and distributors and to retail licensees in accordance with the conditions set forth in paragraph (18) of subsection (a) of Section 3‑12 of this Act."
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Re: Re: already been done across the border
Enough bureaucracy to for some to go through the middle men instead. It isn't necessary to ban something when you can just make it worse than the alternative.
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Re: already been done across the border
The idiocy on this blog knows no end...
http://www.chibeerweek.com/
http://www.metrobrewing.com/
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Re: Re: already been done across the border
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Re: Re: Re: already been done across the border
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http://www.winespectator.com/webfeature/show/id/Pennsylvania-Wine-Shipping-Laws-Declared-Unconstit utional_2811
Even with this chink in its armor, the PLCB remains A STATE ENFORCED MONOPOLY in the communist vein that would seem more at home in Cuba.
Wisconsin is attempting to nationalize its alcohol industry much as PA has done because the profits it can make controlling the distribution of alcohol are staggering. The wal-marts of beer don't care because their margins don't need to be that big to turn a profit, so in a state like PA enacting an 18% excise tax (to pay for the Johnstown flood of 1936) on a case of bud light is not going to affect much, it is still profitable to sell. But for smaller producers, already hobbled by the states refusal to distribute small amounts, it is even more crippling since the margins needed for profitability are much higher.
Sorry, I guess this isn't directly related to the WI article, Id just hate to see another state slip down the same slope PA did.
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All that aside from having to go here for beer, here for wine/liquor, here for non-alcholic beverage, food and/or party supplies...seriously, just throwing a small backyard bbq requires a stupid amount of route planning, driving, parking, time and gas-wasting...OH and the introduction of "breathalyzer" kiosks (you blow onto a sensor and someone somewhere validates results and driver's license...LOL...god) that all decided to malfunction at once...total boondoggle...
There are movements afoot in PA govt. to change this up (again - past attempts have withered on the vine), but the PLCB is so entrenched in cronyism the fight is always uphill.
I happened to catch part of a debate on the matter a few months back and it was hilarious watching a congressman (forget who) try to defend the system as is - he had nothing to work with, really.
Booze is big business. Tax it and get the hell out of the market, you grasping governments, you!
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Trolls and AC's aside, it was in vogue for many states to implement a three tier system after the end of strict Prohibition. 1) Manufacturer 2) Distributor 3) Retailer
Generally speaking, only in limited circumstances can a those roles blur together. For example, micro-breweries that manufacture, and sell on site, are often (but not always) exempt from the three tier setup. Yes, in some states micro-breweries are required to ship their product to a distributor, get a Federal Tax Stamp, and have it shipped right back to them. As many have said, welcome to the Alcohol Laws in the US.
I make mention of the end of "Strict Prohibition" because in many ways Prohibition has not ended. The US Government did not make Alcohol legal in the same sense that it was legal before Prohibition. Instead, the restrictions on it were loosened, and it was made legal in certain circumstances. Very controlled, and heavily taxed circumstances.
All that being said, many states are considering removing the mandatory three tier system (of course the distributors are fighting this tooth and nail), as it is often viewed as a unnecessarily contrived setup who's functionality has come to pass. (sarcasm) It's nice to know that Wisconsin is stepping up to the early 20th century. (/sarcasm)
And if you think the brewing of beer is bad, you should see the laws surrounding the distillation of liquor.
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Not quite as bad??? It only points out that your headline is patently false- A-B and MillerCoors were on opposite sides of the bill, not working together in an evil big business conspiracy. And that the bill exempts indy WI brewers making less than 300,000 barrels/year when the largest indy currently makes less than 100,000. So yeah, not quite as bad; but eerily consistent of the specious fantasies you spin around the Protect IP and Felony Streaming bills.
I don't know why you think being a blogger some how gives you a pass when it comes to truth and accuracy. Typical zealot. If the facts don't suit, distort or manufacture new ones.
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It's odd how may fail to understand what a blog is.
Blogging is a commentarial form of communication and not a journalistic one, and as such should never be confused as the latter. Even if the blog is from a reporter, it should not be held to the same standards.
You don't hold tweets to this standard do you? Facebook posts? The crazy guy on the corner with a sign board denoting 'the end is near'?
I'm not sure why I just wasted my time on an internet argument, the parties targeted are most likely the same trolls who fail to understand the difference between steal and copy.
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Re:
I said no such thing. (1) the original post at TP made these claims. I reposted them here because I found them interesting. (2) I am very much interested in truth and accuracy which is why this *is a discussion site*. I post what I find interesting and I expect the community to add more information and details. And so we all learn. So we learn that TP exaggerated, but further down below, we also learn that you too are exaggerating and misrepresenting the bill.
So, I have to ask, why didn't you heed the journalistic standards you've made up that you insist I must follow? And, what journalistic standards involve being a total and complete asshole?
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Are you genuinely not capable of having a discussion with someone you disagree with without resorting to angry abuse? With that attitude I wouldn't take a thing you said seriously.
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It can make it very hard for brewers with a small base because distributors do not want to pick up a brewery that only puts out a few kegs week. It doesn't make financial sense for most of them to distribute on such a small scale.
That being said we have hundreds of micro-brews that do make it and grow so it's not impossible... just harder.
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"Anonymous Coward, Jun 21st, 2011 @ 2:49am
Anyone that calls out Mike Masnick for his serial bullshit = asshole.
Masnick's recent self-immolation has been a true pleasure to observe.
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This comment has been flagged by the community. Click to re-hide it.
insightful funny report
Re: already been done across the border
Anonymous Coward, Jun 21st, 2011 @ 2:54am
this happens in illinois, and it's exactly like you say. it has basically killed small breweries"
The idiocy on this blog knows no end...
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Re:
They take away much more from the conversation they add.
Good day.
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Politeness is important for a few reasons:
1)Lack of politeness detracts from the issue at hand. I've read the arguments and counter-arguments for being an asshole/having a dissenting opinion, (That is, which one is true), I don't want to read them again for the millionth time
2) Lack of politeness also causes a number of effects to kick in; The backfire effect, for example. (IE: Because they read your refutation as hostile, it makes them less likely to adopt your position, than if you had said nothing).
3) The 'us or them' mentality. Turns out, the real world is much more complex than two sides of a line.
TL;DR: I don't care what you have to say, 'you', (plural you, including the person who started this idiocy), have caused a number of people to waste their time calling you an asshole rather than to research the issue more, or make offhand observations that might lead others to discover a little bit more about what's happening. Don't be an asshole, and I will value your input as much as I do that of any other member of the community.
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Re: Re: Re: Re: Re: This subject makes you stutter when you read it aloud
Damn you Mike for leaving that out...maybe if you were a better reporter you could post factually inaccurate television shows like Fox News...why aren't you Fair and Balanced? Yous should show the side of the argument that you believe and then have a completely weak strawman that looks like you're actually presenting both sides.
To add to the amusement of this article the advertisement was for Chivas.
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The internet is a vast frontier, don't get all worked up over nothin, pal.
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The internet is a vast frontier, don't get all worked up over nothin, pal.
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Then why do you bother? The only idiocy i see is yours. This is Mike's blog, and as such is his opinions, and in some cases, his interpretation of the facts. If you don't like it, then don't participate. It really is that easy.
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The internet is a vast frontier, don't get worked up over nothin, pal.
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Seems to me what is relevant is what what does the legislation in Wisconsin actually say? I snooped around the internet and found very general references that the pupose of the legislation is to prevent "big guys" from buying up wholesalers, something that has been done in the past in other states...and to the detriment of other brands as brand owned distributors are many times inclined to only handle the brand of their owners.
Again, this is just internet hearsay, but at least it is a start peeling back the layers of the onion that make up the basis for what it appears is being done in Wisconsin.
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Wisconsin
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Attack the Messenger!
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Updated
http://www.techdirt.com/articles/20110619/23410614742/giant-breweries-get-laws-passed-wis consin-to-make-life-hard-small-breweries.shtml#c386
Unfortunately, Karl's comment originally got caught in the spam filter, so you might have missed it.
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hmm
That sounds very like someone has been waiting for Mike to do something bad...desperately hoping and praying for months/years...and touching himself all the while in a way that would make the baby jesus cry :)
Also why the HELL should small brewers be forced to sell their goods through ANYONE in a way not of their choosing?
Land of the FREE?????
Brewers should be able (if they want) to sell their beers naked whilst doing handstands singing "I'm just a girl who can't say no"....as long as they aren't doing it in front of the underage.
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lets break that down for the AC:
we assume (for the sake of example only) that Mike HAS "self-immolated" (either through spontaneous human combustion or posting something with errors).
Why would you derive PLEASURE from someone elses misfortune/mistakes?
what kind of terrible human being are you?
I'd like if it the AC actually answered the question. No jokes here, just a genuine request because I'd like to know what nightmares your soul must contain.
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Microbrews...
Perhaps the new laws being pushed in places like Wisconsin are because of the example of how local brewpubs can take over a local market like in Portland Oregon and Boston.
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I'm not sure if this is the case with hard liquor.The feds act, the states react.
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the simpler explanation
How I WISH I could travel back in time and copyright taking bribes to abuse copyright and distribution law......
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Scott Walker
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