{"id":3588,"date":"2016-09-06T06:00:34","date_gmt":"2016-09-06T11:00:34","guid":{"rendered":"http:\/\/www.beerbusinessunplugged.com\/?p=3588"},"modified":"2016-09-04T16:11:03","modified_gmt":"2016-09-04T21:11:03","slug":"competition-is-the-keen-cutting-edge-of-business-always-shaving-away-at-costs","status":"publish","type":"post","link":"https:\/\/www.beerbusinessunplugged.com\/?p=3588","title":{"rendered":"Competition is the keen cutting edge of business, always shaving away at costs."},"content":{"rendered":"

\"marijana\"<\/a>The west coast has always been the incubator of trends for the United States, and this, of course, includes trends in the beer industry. \u00a0Crafts got their start on the west coast, predominantly due to that area\u2019s favorable laws, and as some will point out, the mild climate of that area. \u00a0Expect the next big trend in the beer industry to appear on the west coast as well. \u00a0It just works that way.<\/p>\n

So what will be that next industry trend? \u00a0If we knew what that trend would be, we would all probably be living in Palm Springs playing golf. \u00a0Perhaps the next trend in beer is not beer! \u00a0Maybe it will be marijuana.<\/p>\n

How the legalization of weed will affect the beer sales has yet to be determined.\u00a0 Most industry pundits are predicting a negative impact on beer sales, however, it is too early to make any such prediction.<\/p>\n

What is clear in the early days of legalized sales is the dramatic impact on state budgets. \u00a0Oregon recently legalized the sale of marijuana for 2016. \u00a0Initial projections for the first two years<\/em> of legal sales were $18.4 million dollars, however the total revenue collected between January 1 and July 31 is more than $25 million! \u00a0This is due, in part, to the fact that the Oregon medical dispensaries that sell recreational pot, started collecting a 25% tax on their sales. \u00a0In January alone, that amounted to $3.48 million in taxes. \u00a0The tax revenue collected is supposed to pay for police, addiction programs and schools.<\/p>\n

The amount of tax revenue collected really has a positive effect on all Oregon beer sales, and one must believe that this tax will, especially in the early years of marijuana sales, take pressure off the beer industry for any tax increases!<\/p>\n

Even with the marijuana-driven tax revenue increase for the state, Oregon has passed legislation to double the amount of deposits collected on all bottles and cans. \u00a0Oregon was the first state to implement a deposit law of five cents per container. \u00a0The Portland beer wholesalers created CRINC, a company owned by the wholesalers, to collect, process and sell aluminum and glass. \u00a0Even at five cents redemption, CRINC was a profitable company. \u00a0Now, doubling that deposit fee, one has to believe CRINC will be substantially more profitable. \u00a0The redemption rate of containers sold is below 100% which provides a cushion to cover costs. \u00a0It will be interesting to see if\u00a0containers come in from California, Washington and other states for redemption. \u00a0What happens if the redemption rate goes to 105%+?<\/p>\n

The impact of marijuana sales on beer sales is yet to be determined, however, early signs are positive for the beer industy, at least in the aspect of any new beer taxes. \u00a0Either way, these trends on marijuana sales and increased container deposit has begun on the west coast and will definitely be moving east. \u00a0Trends are headed east. \u00a0It will not be long, get ready.<\/p>\n

Competition is the keen cutting edge of business, always shaving away at costs….<\/p>\n

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The west coast has always been the incubator of trends for the United States, and this, of course, includes trends in the beer industry. \u00a0Crafts got their start on the west coast, predominantly due to that area\u2019s favorable laws, and as some will point out, the mild climate of that area. \u00a0Expect the next big […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_s2mail":"yes","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_newsletter_tier_id":0,"jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[1],"tags":[],"jetpack_publicize_connections":[],"aioseo_notices":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p2xRTi-VS","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/posts\/3588"}],"collection":[{"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3588"}],"version-history":[{"count":15,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/posts\/3588\/revisions"}],"predecessor-version":[{"id":3620,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/posts\/3588\/revisions\/3620"}],"wp:attachment":[{"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}