It's not illegal to market the exact same beer under two different labels, or to sell the same formula of beer at two different prices. However, the beer distributor did break the law by only allowing select retailers to buy and sell the cloned beer.
The Washington State Liquor Control Board (WSLCB) served the beer's distributor, Western Washington Beverage (WWB), with an administrative violation notice on July 17 for giving quantity discounts. The distributor was only allowing Safeco Field and Sea-Tac Airport to purchase the $70-per-keg Pyramid Bavarian Hefeweizen Ale. Other retailers had to fork over $89 per keg for the regular Hefeweizen Ale. WWB faces a possible five-day suspension or a $250 fine. The WSLCB's investigation, however, raises unavoidable questions about publicly funded entities like Safeco Field and the Port of Seattle.
The whole story started when Chris Clifford, owner of Jerseys All-American Sports Club in Seattle, blew the whistle on WWB. Clifford and his partner tried several times over the past year to purchase the cheaper Pyramid brew, even offering to increase their order or to replace a competitor's beer with the Bavarian Ale. The distributor claimed that the beer was unavailable to smaller retailers because Safeco Field bought out every batch of Bavarian Ale that WWB received.
Frustrated, Clifford put in a call to the liquor control board and helped set up a small sting operation at his bar, where a WSLCB agent witnessed Clifford's attempt to order two kegs of Bavarian Ale. The sales representative okayed the order, then later rescinded it, saying the Bavarian brew was discontinued and the WWB no longer carried it.
Four days later the liquor control board inspected the WWB warehouse, and discovered that the sales representative lied. There were 98 kegs of the Bavarian Ale in stock.
Though WWB was withholding the beer, Clifford thinks that punishing only the distributor is the wrong way to go. His theory is that the distributor is at the mercy of the brewery and the large- account retailers.
"Western Washington [Beverage] is the little guy," Clifford says. "[If I were the distributor], would I obey the law and lose millions of dollars? Should I obey the law? Yes. But in reality, not in a million years."
Clifford is also annoyed that Safeco Field is partially supported by taxes on the same restaurants and bars that are being hurt by the ball park's monopoly on discounted beer.
Restaurants and bars in King County have been paying a 0.5-percent tax on sales since January 1996 that goes directly to the stadium. Over $52 million has been collected to date.
"Not only do I give [Safeco Field] extra taxes, now I'm subsidizing their beer sales," he says. "It's just such a kick in the ass for people who are paying for the facility."
Pyramid Brewery, the Port, and Safeco Field at best pass the buck, and at worst plead ignorance about the whole affair.
Bob Parker, spokesperson for the Port of Seattle, which runs the airport, was unaware that the concessionaires at Sea-Tac Airport were receiving the beer discount. "[The Port is] the landlord. But we expect our vendors [Host International Inc.] to follow the law," Parker says.
Safeco Field spokesperson Rebecca Hale also plays dumb, claiming Safeco had no knowledge of the special deal. (The concessionaire at Safeco is Service American Corporation.)
Meanwhile, Pyramid knew that Safeco and the airport were receiving the special-label Bavarian Ale, but they did not know it was limited to those retailers, says Gary McGrath, Pyramid's vice president of sales.
However, the WSLCB's investigation shows that the big guys may know more than they admit.
The investigative summary noted that Robert Stevens, senior vice president of sales and marketing for WWB, thought all of the businesses involved sat down at the table once to discuss a way to get prices down for those high-volume accounts. He also acknowledged that if smaller retailers asked to buy the Bavarian beer, the distributor would try to talk them out of it and keep Bavarian as a privileged label. If Stevens' testimony is to be believed, it is nonsensical to conclude that WWB was the only one in the know. After all, what's the point of giving certain clients special deals without alerting them?
The liquor control board's investigation is still ongoing. Tricia Currier, public information officer for the WSLCB, said the board has not found any substantial evidence that the brewery, the stadium, or the airport were directly involved in the violation.
The Bavarian Ale is no longer as exclusive as it was last month. Clifford asked for the beer from WWB last week, and was able to purchase it.
"Now I feel so privileged," Clifford says.
