Thursday, July 14, 2011

Minnesota - Millers/Coors kicked off store shelves

Minnesota - Millers/Coors kicked off store shelvesJuly 13, 2011

The MillerCoors brewing company landed in the cross hairs of Minnesota's government shutdown Wednesday when state officials said it would have to stop selling its beer in the state because of expired licenses.
The Department of Public Safety told the brewer it must stop distribution in Minnesota and devise a plan to pull its product from the shelves, including Coors, Coors Lite, Miller Lite, Miller High Life and 35 other name-brand beers. That would decimate choices for consumers. MillerCoors supplies 38 percent of the beer sold in Minnesota, and the state is one of the top five markets in the country for the brewing giant.
MillerCoors officials said on Wednesday they intend to fight the state and keep distributing. "We believe we've followed all applicable state laws on this," said Julian Green, director of media relations for MillerCoors. "It is our feeling that if we follow all state laws then we should be permitted and have the right to sell our products in the state."
But Department of Public Safety spokesman Doug Neville said the law is the law. "There's really nothing in the statute that allows us to make an accommodation for anybody," he said.
Retailers, meanwhile, were reduced to helpless spectators Wednesday, in yet another unexpected twist to a budget stalemate that has dragged on for 14 days and touched all corners of Minnesota.
"My advice would be come in and buy it now. Stock up," said John Wolf, owner of Chicago Lake Liquors in Minneapolis. He is unsure how it will affect business, since customers may simply opt for other brands of beer.
At Primetime Sports Bar & Grill in Burnsville, 85 percent of the beer sold is MillerCoors.
"Obviously if it completely cut off, that would make a huge impact on my business," said Dave Sperling, general manager of Primetime.
Eric Shepard, executive editor of the trade publication Beer Marketer's Insights, said he's never heard of a similar precedent in other states and said the situation is "serious" for MillerCoors.
"Do you think they are really going to go and pull the beer off the shelves?" Shepard asked. "Who's going to do it?"
No license, no beer
The problem stems from brand label registrations that brewers must renew with the state every three years, showing the label on each brand of beer. MillerCoors attempted to renew in mid-June, but, according to company officials, sent the state a check for more than the required amount. Green said the company followed up with a new check, which the state received June 27.
But on June 30, one day before the government shutdown, the company received a letter from the state that its brand licenses had expired. State employees who would typically renew those licenses have been deemed noncritical during the shutdown and laid off.
How or when the products would be removed remained unclear. MillerCoors continued distributing on Wednesday night, despite violating state law. State statute says alcohol without an approved brand label cannot be sold in Minnesota, and administrative rules direct state officials to confiscate it.
"That's why we reached out to them earlier this week to try to work with them to find a way to stop their distribution and their sales," Neville said. "Because we figure they're good corporate citizens. And we're still hopeful that they'll work with us."
Said Green: "We are currently in discussions and hoping that we can get a resolution with the state."
Heading to court or to the court-appointed special master might be next if no agreement can be reached.
Frank Ball, who represents thousands of liquor retailers in the state for the Minnesota Licensed Beverage Association, said many of his members "are buying as much MillerCoors product as they can, because they don't know what's going to happen."
The association also is coping with the shutdown's effect on individual bar owners, hundreds of whom can no longer buy alcohol because of purchasing licenses that expired at the end of last month. The association has petitioned the special master to let them continue buying.
Leinenkugel beer, which is owned by MillerCoors, will not be affected since it renews separately.
But if the shutdown were to last into October, another brewing behemoth would have to grapple with an expired license: Anheuser-Busch, responsible for 48 percent of all U.S. beer sales and producers of Bud and Bud Light.
Craft beer, anyone?
Staff writer Mike Hughlett contributed to this report. Eric Roper • 651-222-1210 Twitter: @StribRoper
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ldinmnJul. 13, 11 9:12 PM
Time to compromise GOP! Minnesota wants a mix of budget cuts and tax increases. Stop loading up any budget with your social agenda. We need to bail Minnesota out of TPaws miserable "Borrow and Spend" budgets.
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fenstratoJul. 13, 11 9:13 PM
Lousy beer - no big loss.
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mahrebJul. 13, 11 9:13 PM
"Whether it was the 13th or 15th might not have mattered because the check was for $1,380, a $210 overpaymen­t, Green said. That delayed the process. The state received a second check for the right amount on June 27, he said." In other words, the state Government is exempt from using common sense . . . What happens when you overpay your taxes to the state? They issue a refund. What happens when you overpay your energy bill? They credit your account. If MillerCoor­s had underpaid, I'd say too bad but this just makes one scratch their head on the incompeten­ce of the MN Government­.
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willowtree61Jul. 13, 11 9:13 PM
Very BAAAAD things happen when you vote for Liberals. Dayton does not care about business, he has all the money he ever needs already. Hope you liberals are enjoying the ride. Think about who you vote for next time. This man was voted as the worst senator by his peers when a Senator.
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armi0020Jul. 13, 11 9:16 PM
What an amazing opportunity beer drinkers to try a better beer!
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mngoldJul. 13, 11 9:16 PM
It should read: GOP kicks MillerCoors out of MN. Before you know it, it'll only be the top 2-percent left in MN.
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bigolwillieJul. 13, 11 9:23 PM
the lists I have seen say Miller High Life cans, does that mean the bottles are ok?
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roscoe2511Jul. 13, 11 9:24 PM
Bigger job killer than taxes = the shutdown shutdown. Its time to compromise and get a deal done. Do a combination of cuts and the necessary only taxes and reopen the government and keep people working and paying their taxes.
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bjflorida28Jul. 13, 11 9:26 PM
Just glad I live in Florida....pulling Miller Lite....not good
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badgerstaterJul. 13, 11 9:29 PM
More proof of a bloated, failed, unproductive state government in Minnnesota. Glad I live in a state where the governor and legislature make tough decisions to balance a budget and get rid of a deficit. Governor Dayton in his shutdown kills revenue streams of selling fishing licenses and closing Canterbury and Running Aces. There's a budget crunch and the revenue producers can't produce. When a beer company can't sell beer because the state can't handle a renewal application it's time to play the song, "It's the end of the world as we know it." Good luck Minnesotans!
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bigolwillieJul. 13, 11 9:36 PM
mngold, why do you blame this on the GOP? Does Mark Dayton not need to share any of the blame?
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dhayenJul. 13, 11 9:37 PM
Some State employees, with Neville being the prime example, don't deserve their jobs.
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mahrebJul. 13, 11 9:38 PM
So we shut down those that pass out the licenses . . . but the people that enforce them are still running around . . . interesting.
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mngoldJul. 13, 11 9:41 PM
The GOP warned us business would leave the State. Who knew that their GOP shutdown would be the cause of it?!?
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jfoxwi78Jul. 13, 11 9:41 PM
Time to compromise DFL AND Republicans. It's far beyond partisian lines this time...someone needs to act and get off the high horse soon. Too much at stake here - like giving away revenue to Wisconsin when people go there for beer, etc...or to play the lottery or for state parks. Not a bright move Dayton and Co.
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badgerfan1Jul. 13, 11 9:43 PM
Tell miller coors to take it up with the conservatives who won't compromise and won't even respond to constituents. More economic terrorism brought to you by the right wing.
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mspbobJul. 13, 11 9:43 PM
Raise my taxes! Raise my taxes! Raise my taxes! I WANT BEER! -H.S.
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mikew13Jul. 13, 11 9:43 PM
Dear Richie Rich, (Mark Dayton) Please do Minnesota a favor and resign!
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landry1Jul. 13, 11 9:45 PM
The state shut down has effected me nil. How about the state shut down 10 months per year! And I pay 1/6 of my annual sale and income tax- works for me!
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JeffyBJul. 13, 11 9:48 PM
At least let the vendors (bars, stores, restaurants, etc.) sell what they have currently in stock... It would bring in some revenue to the state.
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chrishaaseJul. 13, 11 9:50 PM
End the shut down. This stupid.
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srlabelleJul. 13, 11 9:50 PM
It's amazing that the dflers and Dayton were willing to veto the lights on bill and creat this sort of chaos... I think that the bureaucracy is a bit out of touch with reality
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sonjalangJul. 13, 11 9:50 PM
badgerstater--your state has a state government nearly twice the size. Perhaps you're the one who wants to come here.
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snowthunderJul. 13, 11 9:51 PM
In addition to this Beermageddon, just wait until folks can't get cigarettes because the vendors have used up all their state licensing pack stamps!
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nickfunJul. 13, 11 9:51 PM
This is INSANE!!! MillerCoors brings the state millions of dollars in revenue and they're going to shut it down due to a technicality???
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elementxJul. 13, 11 9:52 PM
Leave that garbage off the shelves! It'll make room for more microbrews.
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bill1369Jul. 13, 11 9:55 PM
This is a prime example of why the SHUTDOWN needs to continue. How many government jobs does it take to sell beer in MN? You one to approve the brand, one to give the company a license, probably another to give out a card to the distributor, one to the stores/bar, and probably 20 others to supervise. KEEP THE SHUTDOWN until GOVERNOR QUITTER(remember he bailed out of Washington D.C when he was a Senator)comes back to the capitol and signs the original budget bill that was passed.
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husker1983Jul. 13, 11 9:57 PM
A classic example of what is wrong with our bloated gov't. We need representatives that will exercise some common sense in search of the greater good instead of using something as trivial as a inexpensive license as a political pawn. When everything is regulated do you really feel protected? I thought so.
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thbensenJul. 13, 11 9:57 PM
Good thing I remember how to get to Wisconsin. Load up the pickup and I'm good to go.
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mtnhilldewJul. 13, 11 9:59 PM
I love how the gov't official acts like he is being reasonable for shutting down a multi-million tax generating business over a $200 overpayment.
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homaspaul09Jul. 13, 1110:01 PM
Good. Miller sucks. It's a Wisconsin beer anyway!
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lh_3310Jul. 13, 1110:01 PM
Wait, I thought the government was shut down? If they are shut down how can they enforce their rule of needing a license to distribute beer here? If you are shut down, your rules aren't enforceable and they are void. If your rules still apply that tells me you aren't really shut down, in which case, BALANCE THE BUDGET AND GET BACK TO WORK!
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MatchgirlJul. 13, 1110:03 PM
The liberals just think that they should collect more taxes and spend more. Socialism has NEVER worked!!!
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goferfanzJul. 13, 1110:05 PM
"""I love how the gov't official acts like he is being reasonable for shutting down a multi-million tax generating business over a $200 overpayment."""............>You think state workers werent pulling shenigans in delaying licenses/paperwork/forms, etc as the shutdown approached. "Oops, didnt get done on time. Huh--go figure!"
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highlife75Jul. 13, 1110:05 PM
Whats it take 5 minutes to stamp "paid" on the paperwork? About the same amount of time Mr. Bureaucrat Neville took to spew his "we control everything, do a terrible job doing it, but what are you going to do about it we are God" interview? I would leave my product right were it is, not sure the courts would cover for this blatant lack of ability by the state?
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badgerstaterJul. 13, 1110:06 PM
sonjalang -- Good comment on Wisconsin' gov't being larger than Minnesota's. We need to work on that problem too. Lots of fat to trim. Moreso nationally.
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combin8tionJul. 13, 1110:07 PM
Another needless rule. Think how much government expense could be eliminated if the needless rules were revoked. These piddly license fees don't make a hill of beans in the budget but the employee expense needed to maintain the rules does. Get rid of the stupid rules and get rid of the people. Smaller government all around.
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bherrsky77Jul. 13, 1110:08 PM
MillerCoors says they have no immmediate plans to bull the beer from liquor store shelves. I guess if the state wants the beer off the shelves, they can come in and do the job...oops, they aren't working!
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phastz28Jul. 13, 1110:08 PM
Many things about this are idiotic. Why on earth would they need to pull the beer off of the shelves? MillerCoors already sold their products to the stores/bars. Now, the stores/bars have the product and are using THEIR license to sell the product. Dang glad I do not live in MN.
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grinnell4Jul. 13, 1110:14 PM
Buffalo Sweat from Tallgrass Brewery is fantastic!

johnsopinionJul. 13, 1110:14 PM
Yeah, when the Old English 800 is no longer present, that's when you will really see trouble in the big cities. Bring it on!!
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highlife75Jul. 13, 1110:15 PM
So let me see if I have this right, it seems we have only a partial shutdown. Anything that produces revenue for the state is being attacked, but anything that consumes the revenue like welfare, and executive servants, are good to go? I think the DFL is in line for another lesson next election, they must have somehow misinterpreted the last one!
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kpersson8Jul. 13, 1110:17 PM
Come on forget Miller- Drink local!
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grandpabobJul. 13, 1110:22 PM
Really makes me want to pay more taxes to support a government capable of this.
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rubydoJul. 13, 1110:22 PM
It will be interesting to see how the State handles the State and county fairs. Imagine the permits/licenses that need to be issued, I heard (on radio) that onlt 25% of the food vendors for the State Fair have their licenses. How about ride inspectors, animal exhibits,etc?
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perrucheJul. 13, 1110:23 PM
I support Governor Dayton and I'll be supporting our fine Minnesota craft brewers. Think globally, drink locally!
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snowthunderJul. 13, 1110:25 PM
Regarding comments about governance some here call "socialism," you know what truly has never worked? Trickle-down economics as started by your St. Ronnie!
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tamaymayJul. 13, 1110:26 PM
I'm generally not a conspiracy theorist, but seriously. Anyone think the Dept of Public Safety's Liquor Division intentionally scr*wed over MillerCoors, knowing this would cause a big uproar when it hit the news? MillerCoors received their *letter* of expiration (something that does take time to mail) even before the shutdown went into effect?
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wildbill987Jul. 13, 1110:30 PM
Do you suppose Gov Dayton and or union state employees took into account the following. Coors has a long history of no unions in the world's largest brewery. It is located in Golden Colorado. Many years ago, the union went on strike. The union lost, the workers voted to de-certify. Since then there has been attempts by the unions to organize and they keep losing the vote. Coors is still non-union. Call the special session Gov. Dayton.
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Bob_SmithJul. 13, 1110:32 PM
We need to get this stuff off the shelves by Thursday night. We have a company picnic on Friday and I don't trust management to buy good beer. This is the first good news I've had since the shutdown started.
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happytopayJul. 13, 1110:35 PM
The shutdown has "touched all corners of Minnesota?" Not according to the Star Tribune a couple of days ago. I believe the headline was "What shutdown?"
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rubydoJul. 13, 1110:35 PM
We have a $5 Billion budget gap. Say we tax the 7700 people in MN making more than $1 million. This would raise an additional $500 million-$700 million, add a Racino that's another $200 million. We are still $4 Billion short. WE HAVE A SPENDING PROBLEM! Turn the lights on and cut the fat.
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perronjpJul. 13, 1110:38 PM
Dayton owns this shutdown lock stock and barrell. Someone posted on an earlier article about the Miller problem - The State seems to have enough employees left to go statewide and pull these products from liqour stores and make sure the bars aren't selling it, but they can't put one person back to work for half a day to process Miller's check. What a joke. Shut down the lottery that brings MN 1 million a day, Canterbury Downs that creates revenue (and watch the horses and owners disapear for the season), The State Parks that generate big bucks during the summer, and couldn't we man the one seat in the lift bridge in Stillwater to accommodate 18,000 commuters a day? Don't blame the republicans, Dayton calls the shots regarding the shutdown. That is the bottom line.
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themostancieJul. 13, 1110:39 PM
wildbill98 - you forgot the SAB part...those South Africans and Belgians...not anti-union like those oligarchs in Colorado. But I do hear they are having a special on tin foil at Menard's! A Shutdown of Savings!
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jkohagenJul. 13, 1110:44 PM
ldinmn--' Minnesota wants a mix of budget cuts and tax increases' No Minnesota does not want this. You might want it, but I don't. The state is spending too much, it needs to be cut. This shutdown is showing just how ridiculous the laws are. Huge costs are going to be incurred just because a 'Form' was not filled out and the check made out for the exact amount.
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elmore1Jul. 13, 1110:45 PM
Outsource all of the state jobs. Reduce expenses by 35%, better service, good attitudes and NO WHINING! I'll bet that they could even totally automate the liquor license renewal process. Oh wait, that would impact the number of union jobs required.
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gankmanJul. 13, 1110:57 PM
What a bunch of whinning political babies this state has turned into. Grow up and compromise already. Tax payers are more burdened now with the shutdown then with a compromised agreement between parties.
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StarquestJul. 13, 1110:58 PM
Miller High Life and a box of wine. Now THERE'S a party! *rolls eyes*
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lawstarJul. 13, 1111:12 PM
Thirsty ? How about a short drive to Hudson to stock up. Wisconsin is a state that works, what with a Republican governor and legislature and soon with a balanced budget.
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spendmoreJul. 13, 1111:13 PM
MillerCoors attempted to renew in mid-June, but, according to company officials, sent the state a check for more than the required amount. - Gov Trust Fund... They paid us too much money we will show them. You can't sell now, the law is the law. I will forgo any revenue and punish business owners and taxpayers to prove a point. I deserve an "F", my own rating. Such a good gov! Glad I live in a blue state!
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moomoogooberJul. 13, 1111:13 PM
Way to go Dayton!
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whyme123Jul. 13, 1111:24 PM
Looks like I will be making a weekly trip to Hudson, WI to buy my Coors Light for the week.
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hotrodlinkinJul. 13, 1111:29 PM
It just goes to show you just how much goverment controls. This is scary when you think about it
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whadjawantJul. 13, 1111:29 PM
Thirsty ? How about a short drive to Hudson to stock up. Wisconsin is a state that works, what with a Republican governor and legislature and soon with a balanced budget. =========================================== up and a 66 billion dollar state budget! see the GreenBay Gazette from June 17th ... "Walker said in a statement after the budget passed the Senate on Thursday night that he would act within days on signing and issuing vetoes, if any, to the $66 billion two-year spending plan that generated weeks of protests."
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fourthirty3Jul. 13, 1111:32 PM
Eighty-five percent of your sales are that swill? Guess I just found a new bar to stay far away from.
 
 

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