America’s Monopoly Problem

How big business jammed the wheels of innovation

Politicians from both parties publicly worship the solemn dignity of entrepreneurship and small businesses. But by the numbers, America has become the land of the big and the home of the consolidated. Entrepreneurship, as measured by the rate of new-business formation, has declined in each decade since the 1970s, and adults under 35 (a k a Millennials) are on track to be the least entrepreneurial generation on record… READ FULL ARTICLE

Craft Beer Distribution

Study the market, distributors and your own operations

Craft brewing is a unique industry in America, not just for its creative, bold products, but also because of the regulation of its distribution and sales.

Stone started brewing in 1996 and started self-distributing immediately, Heath said, out of necessity, not luxury. Since that time, Stone has grown that aspect of its business and now distributes for more than 30 craft brewers within its footprint.

In most consumer goods markets in America today, two or three giants dominate — think toothpaste, eyeglasses and soft drinks. New entrants—be it Tom’s toothpaste or Vitamin Water — can find it very hard to keep their independence for long. In large part, this is because most distribution systems — and even most shelving decisions inside the retailers — are managed by the giants.

In the beer market, by contrast, new entrants still find more than 3,000 small distributors that have both an interest in promoting new and better products and the means to do so. In this one instance at least, a market designed to yield a particular set of moral outcomes has also proved to be extremely effective at promoting innovation and variety… READ FULL ARTICLE

Economic Impact of Beer Distribution

Key findings of the economic impact study include:

  •  The beer distribution industry directly employs more than 135,000 people in the United States.
  • When the impacts of distributor capital investment and community involvement are considered, the total number of impact jobs exceeds 338,000.
  • Beer distributors add $70 billion to the nation’s gross domestic product.
  • Beer distributor activities contribute nearly $13 billion to the federal, state and local tax bases. This does not include the nearly $11 billion in federal, state and local alcohol excise and consumption taxes.
  • The beer distribution industry contributes more than $23 billion in transportation efficiencies for the beer industry each year.
  • Beer distributor activities result in nearly $178 million in economic impacts to communities through support of charities, local events and economic development… READ FULL ARTICLE


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