Why Was Coors Beer Illegal East of the Mississippi?
As a kid growing up in Colorado, I always wondered why Coors beer was only available west of the Mississippi. It seemed like such a strange restriction, and I couldn’t understand why my friends in other parts of the country couldn’t enjoy this iconic Colorado beverage. As I got older, I finally learned the fascinating story behind Coors’ limited distribution, and I’m excited to share it with you today.
The Consent Decree
In 1959, Coors Brewing Company was found guilty of violating antitrust laws by refusing to sell beer to distributors east of the Mississippi. The company had argued that its limited distribution was necessary to protect its quality, but the court ruled that this was an anticompetitive practice. As a result, Coors was forced to sign a consent decree, which is a court order that requires a company to modify its business practices.
The consent decree required Coors to sell beer to any distributor that wanted to buy it, regardless of its location. However, the decree also included a provision that allowed Coors to limit its distribution to areas where it could maintain its quality. This provision gave Coors the legal justification to continue its limited distribution east of the Mississippi.
The Quality Issue
So, why did Coors believe that it could only maintain its quality west of the Mississippi? The answer lies in the company’s unique brewing process. Coors uses a cold fermentation process, which takes longer than the warm fermentation process used by most other brewers. This cold fermentation process produces a beer that is cleaner and more refreshing, but it also makes the beer more susceptible to contamination.
Coors argued that the long distances and warm temperatures east of the Mississippi would make it difficult to maintain the quality of its beer. The company also claimed that the water quality in the East was not as good as in the West, which would further compromise the quality of its beer.
The Changing Landscape
For decades, Coors’ limited distribution was a major obstacle to its growth. However, the company’s decision to expand eastward in the late 1990s proved to be a wise one. Coors quickly became one of the most popular beers in the East, and it now sells beer in all 50 states.
Coors’ success in the East is due in part to the company’s commitment to quality. The company has invested heavily in its distribution network, and it now has the infrastructure in place to maintain the quality of its beer from coast to coast.
Tips for Distributing Beer
If you’re a brewer who is looking to expand your distribution, here are a few tips:
- Start by building a strong distribution network in your home market. This will give you a base of operations from which to expand.
- Invest in your distribution infrastructure. This includes refrigerated trucks, warehouses, and other equipment.
- Partner with distributors who are committed to quality. Your distributors should be able to handle your beer properly and store it at the correct temperature.
- Be prepared to address the quality concerns of potential customers. You should have a clear explanation of how you maintain the quality of your beer over long distances.
FAQ
Q: Why was Coors beer illegal east of the Mississippi?
A: Coors was found guilty of violating antitrust laws by refusing to sell beer to distributors east of the Mississippi.
Q: What is a consent decree?
A: A consent decree is a court order that requires a company to modify its business practices.
Q: Why did Coors believe that it could only maintain its quality west of the Mississippi?
A: Coors uses a cold fermentation process, which makes its beer more susceptible to contamination. The company argued that the long distances and warm temperatures east of the Mississippi would make it difficult to maintain the quality of its beer.
Conclusion
Coors’ limited distribution east of the Mississippi was a major obstacle to its growth for decades. However, the company’s decision to expand eastward in the late 1990s proved to be a wise one. Coors quickly became one of the most popular beers in the East, and it now sells beer in all 50 states.
Coors’ success is a reminder that quality is the key to success in the beer industry. By investing in its distribution network and partnering with distributors who are committed to quality, Coors has been able to maintain the quality of its beer from coast to coast.
Are you interested in learning more about the beer industry? If so, I encourage you to read my other articles on the topic.
