United States: AB InBev wants the rights of small brewers in Illinois

Brewing giant AB InBev has filed against the Illinois liquor control commission a suit claiming local brewers have an unfair advantage, WSIL communicated on June, 4.

Small brewers are allowed to distribute product themselves and InBev wants the same right, it is reported.

Chuck Stuhrenberg, the owner Big Muddy Brewing who makes a living delivering a case of beer at a time, says he’s never thought that would catch the attention of a multi-billion dollar beer company.

"Their argument is that we are unfairly competing with them since we are allowed to self distribute," he says.

His business produces about 400 barrels of beer a year.

So small, by law he can cut out a distributor.

Starview Vineyard owner Kate Sensmeier says most local wineries do the same.

"A distributor is not going to take two or three cases up to Springfield for me," she says.

Local wineries may only deliver a few bottles of wine at a time. It's a practice that wouldn't be profitable to large distributors. So if small wineries or brewers lose the right to distribute their product, it would be bad for business.

"So it's really unfortunate, if it goes away then we will have to cut jobs here," says Sensmeier.

The lawsuit could go another way.

If InBev earns the right to distribute their own product, Stuhrenberg wonders what's stopping Coors, Miller or anyone else from doing the same thing.

"Right away it will affect many jobs in the distribution industry in the state of Illinois," he says.

Both Starview and Big Muddy Brewing only produce a tiny fraction what InBev puts out.
They're concerned changing the rules would change what they do for a living.

"Southern Illinois is becoming known as a tourist destination for both the wineries and craft brewing. To take that away would be really devastating to the area" says Sensmeier.

There's a hearing on the case set for later this month.

04 June, 2010