Craft brewers, wholesalers strike distribution deal - Boston Herald

Craft brewers and the state’s beer wholesalers have reached a deal that would resolve a decade-long dispute over distribution rights.

The deal, if accepted by legislators on Beacon Hill, would apply to almost all of the more than 200 craft brewers in Massachusetts.

The one notable exception would be Boston Beer Company, the brewer of Samuel Adams beer and the second largest craft brewer in the country.

Sam Hendler, one of the three founding brothers of Jack’s Abby Brewing in Framingham, helped negotiate the deal on behalf of the Brewers Guild.

“I’m really excited. There’s still some anxiety because we don’t have a signature from the governor on the bill just yet. We are anxiously hopeful for everything to play out over the next two weeks,” Hendler said over the weekend.

The compromise would allow any qualified brewer that produces under 250,000 barrels of beer a year to terminate their relationship with their current distributor without having to show cause. In exchange, the brewer would have to pay fair market value for the brand and buy back the wholesaler’s inventory and promotional materials.

The barrel threshold has long been the sticking point in negotiations between the two sides, and Hendler credited the decision by Jim Koch of Boston Beer to step back and take his company out of the mix with facilitating the compromise.

“It’s going to cover the vast majority of craft brewers and really ensure that the brewers that need that flexibility that they have control of their own future,” Hendler said.

In the past, brewers have sought a threshold as high as 6 million barrels — which would align with the federal definition and cover the 4.5 million barrels of Samuel Adams produced annually. Distributors have suggested as low as 30,000 barrels, and last summer made the brewers an offer of 100,000 barrels.

In a statement, Koch  predicted that amid the pandemic, some brewers might not survive without reform.

“From Lawrence to the Berkshires, craft brewers serve as economic engines, employers and draw tourism to their communities. If brewers have to wait another two years for a bill to be considered, some will not survive,” Koch said. “Boston Beer had to make a decision. At the end of the day, that decision was to sacrifice ourselves by being excluded from Franchise Law reform in order to protect the hundreds of our fellow craft brewers in the state.”

Joe Salois, the owner and president of Atlas Distributing in Auburn, said “I am extremely comfortable with this. As distributors our job is to represent our brewing partners in the best and highest way possible to build their brands. This protects us and gives them run room to innovate and align their business with their distributor.”

The compromise could be up for a vote in the Senate as soon as Thursday.

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Craft brewers, wholesalers strike distribution deal - Boston Herald
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