A recent post highlighted how the golf industry and the beer industry could, in some ways, be heading down similar paths. There were several responses to that post. What was not discussed, however, which currently is, and will be an issue in the future, is one of bifurcation.
There is a small, but vocal movement within the golf industry to change parts of the game. This would include changing the rules and requiring the pros to play by a different set of rules than the amateurs, changing the equipment, specifically the golf ball which, in turn, might require the pros to all play with the same ball. One major complaint is that the golf ball is, or has gotten too hot for the pros.
What is unique about golf is that no matter what your handicap, you can play the same course, tees, equipment, balls, etc. as the pros. You can even play with the pros in the pro-ams. Now there is a movement to change the rules to grow the game. Bifurcation.
The annual NBWA convention recently ended in New Orleans. Even though this year’s event was considered an off year, the convention was, as usual, well attended. Thousands of beer wholesalers, suppliers, and industry executives attended this year’s convention.
Recently, the convention has been the time and place for the industry to reveal its the pressing issues, including the dramatic growth of crafts, the attacks on the three-tier, franchise reform, national and state tax proposals, and other key topics. Since prohibition there has probably has not been a time that the industry has faced so many threats.
In April 2015, the Brewers Association will conduct its annual convention in Portland, Oregon, a bastion for crafts. The attendance will exceed 10,000, about double the annual NBWA convention. Topics will include those discussed at the NBWA with a different twist. How can the craft industry benefit and grow within the current framework of the beer industry?
In the beer industry, similar to the golf industry, there is a segment that wants bifurcation. To some degree, those who do want bifurcation are the have-nots while those who do not want bifurcation are the haves. Actually bifurcation already exists. Consider the carve-out laws. Depending on the state, if the supplier is small, and fits into the parameters of the law, they can leave their wholesaler for a price. The larger suppliers cannot leave. Bifurcation!
Bifurcation will certainly be a major topic this coming spring in Portland, including the continuing efforts by all sides to either change or strengthen various state and federal laws which address the beer industry.
The golf industry, just like the beer industry, is very healthy at its core. Both industries have been negatively affected by the economy and continue to be affected. Both are desirous of growth and expansion, but bifurcation will hold them back. Ultimately it always breaks down to: if you want the rainbow; you have to put up with the rain.
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