spendmatters
 

February 09, 2012

 

What Does a Non-Union Beer Taste Like?

The answer, in the case of Yuengling, a local Pennsylvania brew, is quite good (it was practically my fifth food group when I was in college). In fact, it's probably the best deal going in the US in beer if you can get it (I believe it compares quite nicely to many microbrews and global premium brews at nearly half the price). According to a local news source in Pennsylvania, Yuengling has been able to keep its costs down in part because of a recent aggressive stance against the Teamsters union (it should be noted for the record that Yuengling already pays a livable wage of $20/hour and provides complete healthcare coverage for its employees).

How did this family-owned business make the Spend Management decision to rid itself of the Teamsters? Apparently, "Dick Yuengling Jr., fifth-generation owner of the brewery that bears his name, called his employees together a few weeks before their labor contract was set to expire to talk about the future of the business ... [After this] the brewery says employees started a decertification drive on their own with no encouragement or interference from the owner." Even though the Teamsters are boycotting the beer because they're losing revenue -- it is a business in itself, after all -- one local software developer is still drinking the beer and notes "this is a pretty tough part of Pennsylvania. There's not a lot of jobs around here and they provide a lot of employment .. If the union gets decertified, it's because they're not adding value."

For all those CFOs and procurement executives who still have to deal with union threats in their own organization -- not to mention the supply risk from union suppliers -- the Yuengling case should provide encouragement to give the Teamsters the boot once and for all. After all, it's not just about reducing labor and operating costs (which is often the wrong reason to get rid of a union, except in the case of the UAW). Rather, reducing your own operational risk -- and the supply risk for your customers -- is reason enough to take the plunge.

- Jason Busch


Commodity Edge Conference

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Comments
Justin Fogarty's Gravatar Was the potential Teamster deal in any way an attempt to broaden their distribution beyond the mid-atlantic?

If so, this fairly recent Philly resident who is now back on the west coast for good gives the move a thumbs down. We want our Yuengling out here (and if they could throw a few Amoroso rolls on the trucks that would be even better).
# Posted By Justin Fogarty | 7/10/07 11:44 AM
Jason Busch's Gravatar Beer is all about local distribution, so I doubt it (unless they were to build another plant).

But perhaps we could figure out how to ship you out a container load of rolls, hoagies, Yuengling and soft pretzels (the last of which I crave the most when I'm not in Philly).
# Posted By Jason Busch | 7/11/07 7:29 AM
Gary Hare's Gravatar All I've got to say is........gimme a Black and Tan!

Here in CT we get our Yuengling without the teamsters (have a neighbor who grew up in PA, who goes back once a month to visit his mom).

Seriously, I was always told that their regional market alone is enough to keep them brewing at full capacity, that to expand distribution, they'd have to add brewing capacity?
# Posted By Gary Hare | 7/11/07 7:38 AM
Gary Hare's Gravatar Jason...add cheese steaks, but keep the sports teams and you've got a deal!
# Posted By Gary Hare | 7/11/07 7:40 AM
Greg Holt's Gravatar Yuengling has significantly expanded its distribution to the south in the last few years. To Gary's point re: capacity, I believe they bought a brewery in the Carolinas (or perhaps Virginia) a few years ago, and you can now find Yuengling at various points along the SE coast. I recall a trip to Virginia Beach a few years back where original Lager and Black and Tan was readily available on beer lists at multiple bars along the beach.
# Posted By Greg Holt | 7/11/07 7:50 AM
Jason Busch's Gravatar We go down to Northern Florida every year, and I always look forward to picking up a six pack of black and tan at Harris Teeter for $4.99! Not on sale, that's the regualr price -- cheaper than Bud. And, man, it's a real beer, the real thing. They've had it there for at least a couple of years.

Now, it's not in the same leauge as Rogue, Bells, New Glarus, etc., but for the money, you can't beat it. It's truly the Spend Management beer.
# Posted By Jason Busch | 7/11/07 7:54 AM
Justin Fogarty's Gravatar I have heard they would need to add capacity as well. But hey...they did it for Florida...why not the West Coast too?!?!

Seriously, the company is obviously doing well and they have more loyal fans than any other beer I can think of and best of all they have a great beer! There must be loads of communities all over America that would love to have a solid family run company that pays a living wage set up shop in town.

I honestly don't see why Yuengling doesn't make a run at becoming the Official Spend Management beer of the entire USA.
# Posted By Justin Fogarty | 7/11/07 8:38 AM
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