New Holland's Media Blog

Action Needed! Michigan Liquor Control’s Price Freeze - Bad for Business

2009-08-23T10:00:00.001-07:00

August 23rd, 2009

Friends of New Holland Brewing and Artisan Spirits,
We must bring to your attention a “ruling” that the Liquor Control has just quietly announced. They have frozen any price increases for an undetermined length of time. Their rationale (which we have heard directly from MLCC staff) is that given the current state of the economy any further increases could impact the amount of smuggling that might occur into Michigan.

New Holland discovered this ruling because we are currently in the process of registering our Dutchess Vodka, scheduled for release into state-wide distribution on October 1st. Dutchess has been registered with the state previously, but only for in-house transfers, never being assigned to the A.D.A. (Authorized Distribution Agent.) In other words, it has only been sold to consumers from our building, so its price does not cover the associated costs with selling it into the trade. Costs such as freight, inventory carrying costs, sales and marketing, reformulation, and packaging/labeling improvements all need to be accounted for. Preparing for distribution, we submitted a price revision to address this change, only to be denied, due to a previously unannounced price-freeze.

We believe their position is both flawed and short-sighted. It is unfair, bad for business and will cost the State jobs. There are a few important points we’d like to make in asking for your support on this issue.
1) State –controlled liquor distribution should not be allowed to arbitrarily freeze or fix pricing from independent producers.
2) Supplier’s pricing does not affect smuggling. The difference between the retail price-point for a given product in MI versus the same product in an outlying state is the State of Michigan’s profit margin and excise tax. If Michigan believes it needs to be more competitive versus other states, it should evaluate its markup, rather than manipulate distillers. In fact, most Michigan producers have very minimal out-state business, if any at all, so their price in Michigan would not have any impact on border markets or smuggling of lower priced goods into the state.
3) Economic troubles are not directly related to perceived higher prices. A successful product or product launch at a higher price point means higher margins for the state, and all businesses related to the sale; delivery agents and the retailers that successfully build these brands.
4) This ruling prevents the Michigan distribution launch of New Holland’s Dutchess Vodka. Without an exception to or elimination of this price freeze, New Holland cannot afford to sell their Dutchess Vodka into Michigan distribution. It was scheduled for an October release, as October-December is the strongest quarter for spirit sales, industry-wide. This ruling will limit consumer choice by keeping Dutchess and other premium products from Michigan retailers and consumers. It will remove potential profit from three-tiers of business as well as the State of Michigan. In fact, it forces us to replace those potential sales by considering distribution of Dutchess to other states where our margin is intact; contrary to the intention of limiting smuggling or supporting Michigan businesses.

The Commission has set a hearing date for Tuesday, August 25 in Lansing at 12:00pm. If you do not support arbitrary price-control on spirits, and if you support the launch of Dutchess vodka, we urge you to write the commission now and ask them to reconsider. Of course, we ask that you remain polite and professional in your request. Their contact information is: Chairwomen Nida Samona contact info: woodl@michigan.gov PH. (517) 322-1353 FAX (517) 322-5188

Thanks for your support.

New Holland Brewing Company & Artisan Spirits
www.newhollandbrew.com

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2009-08-12T12:03:00.001-07:00

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2009-08-11T22:34:00.001-07:00

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2009-08-04T13:53:00.001-07:00

Testing out a system that will get the blogging engine rolling again.

2009-08-04T13:49:00.001-07:00

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2009-08-04T13:38:00.003-07:00

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2009-08-04T13:38:00.001-07:00

Webweaving with 36Squares.

Lucid Kolsch Ale set to release April 2nd

2007-02-28T11:43:00.000-08:00

Lucid, a kolsch ale is New Hollands latest brand launch. It is a beer that takes its spot in the year-round line up in place of recently retired brands, Paleooza and Full Circle. Lucid's refreshing quality is sure to make it a favorite session beer for many different beer drinkers. It has a soft and balanced malt character with a light hop profile and a crisp finish.. We recommend it with salads, fish, grilled vegetables, and just about anything served on a patio.

Lucid symbolizes our belief that the artistic balance of our ingredients and our craft actively engages us in our imagined landscape. In celebration of that balance, New Holland created a yin-yang image built from beer's ingredients. It's striking image is part of the brewery's recent packaging makeover that includes label, six-pack, case and tap artwork.

Lucid is available beginning April 2, 2007. The beer will be launched throughout the brewery's nine-state trade area. In Grand Rapids, the brewery is hosting a release party on April 2nd at Billy's, in the heart of Eastown, featuring Lucid and their summer beer, Zoomer. It will also feature appearances from the "New Holland All-stars" within Billy's infamous Monday Open-mic. Beer specials, giveaways and a genuine good time will be in abundance.

What is this blog about?

2007-02-28T11:31:00.000-08:00

In response to the many and multiple requests from beer and traditional media outlets, we're posting our upcoming information in a centralized blog. We'll still email you, or respond to questions, but we're hoping this provides and easy way to check in and grab the basics.

Please feel free to email fred@newhollandbrew.com with suggestions, comments or additional requests.

Thanks & Cheers,

Fred