Hi Ed,
Here in Ontario we do not have regulated line cleaning (yet). Our distribution system is different than yours; we only have a two tier. The three largest brewers own the distribution channel called “The Beer Store” (TBS). All breweries pay a fee to TBS to have their brands sold. TBS sells through retail outlets and direct to licensees. They are the only places allowed by law to sell beer in Ontario, with the exception of a few brewpubs and on site stores at the breweries.
That said, the micros provide a coupler, faucet, and handle once their brand gets listed at an account. They also (most anyhow) clean their own lines. The Alcohol & Gaming Commission of Ontario (AGCO) have deemed that equipment & line cleaning is inducement and is illegal for brewers to provide the service to accounts. Despite this, the micros do it anyhow. I think the AGCO has other larger issues to deal with so they turn a blind eye.
I have yet to speak to a brewer who doesn’t think that line cleaning should be mandated.
The problem that everyone has is that if it does become mandated and breweries are allowed to pay for it the cost has to be absorbed somewhere. So either the price of the beer goes up (which nobody wants) or they do not provide the service. Either way, the brewer looses. So as much as they want it for quality, they don’t for fiscal reasons.
I don’t think that it would be a bad thing if the law went through in your state because breweries do not want the hassle of line cleaning. I’m seeing that here now. Breweries are backing away form it and either not providing it anymore or are sub-contracting it out. Most micros that clean their lines have the delivery guy cleaning the lines as well. If it comes down to delivering beer or cleaning lines, it doesn’t take an MBA to figure out which one will win.
As you know there is a high cost to cleaning lines. You have transportation, chemical, insurance, wages, gas (!!!), and all the other crap to cover. The breweries are figuring this out and there is a magic number where it becomes beneficial for you to do the service for them.
The trick is to figure out that magic number. Is it $20 a line, 30, 40??? Perhaps you could take on the lines for several breweries to save you some time and bring the cost down.
Great topic. I’m interested to see other replies.
Cheers.
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