Showing posts with label ebay. Show all posts
Showing posts with label ebay. Show all posts

Sunday, April 1, 2012

Beer Licensing Agreements

In college we used to say, "You don't buy beer, you rent it".  That statement may become more true than ever if a trend that started with some well-known California brewers catches on.  To fight against the black market in rare beers, Stone Brewing Co. has announced it will stop selling its limited release beers, and start licensing them instead, in the same way that computer software is licensed and not sold.  [Editor's note: At Stone's request, I would like to point out that this post is an April Fool's gag.  The folks at Stone enjoyed it on April 1, but the joke wore thin as they continued to get complaints about the new policy from readers who thought it was true.  For maximum effect, be sure to click on the "Stone's BEULA" link below.]

It sounds very peculiar at first, but it is a logical extension of brewers' efforts to prevent unscrupulous scalpers from making obscene profits re-selling highly prized beers.  Several prominent brewers have been vocal about their opposition to beer auctions on Ebay for quite some time.  Lost Abbey's Tomme Arthur penned an article called *&^% Ebay about four years ago, and last year an article in the Washington Post interviewed several brewers about the problem.  Stone's founder Greg Koch was quoted in that article as saying "We have involuntarily been a part of the eBay aftermarket for many years".  Since then, Stone and Lost Abbey have hit on a clever solution to the problem.  Henceforth, their rare beers will be subject to End User License Agreements, similar to those you might be familiar with if you use computer software from companies like Microsoft or Apple.

The first beer of Stone's to be sold under a "Beer End User License Agreement" -- BEULA for short -- is a rich and flavorful triple IPA along the lines of Russian River's vaunted Pliny the Younger, aptly named "Not For Sale Ale".  Whereas the back of a typical Stone bomber is adorned with several paragraphs of whimsically rambling boasts, NFSA's bottle (click on the picture for a closer look) is embossed with a dense legal contract that stipulates -- among other things -- that purchasers "may not lend, sell, auction, redistribute or sublicense" the beer, and that the beer may not be used in "the development, design, manufacture or production of nuclear, chemical, or biological weapons".  Click here for the full text of Stone's BEULA.

As a fan of good beer, I have inveighed against Ebay beer scalpers for quite awhile -- I even auctioned an empty Abyss bottle once to demonstrate what a joke it is for beer auctioneers to skirt Ebay's rules by claiming that the bottle itself is what's valuable, not the beer inside.  Even so, I confess that I'm a little uncomfortable with treating beer as intellectual property in this way.  Aside from the essentially coercive nature of EULAs and BEULAs, the legalese in the contract goes against the convivial spirit of the beer world.  There is also the practical question of how to enforce a BEULA, though I suspect that having the prohibition printed right on the bottle might finally convince Ebay to be more proactive about shutting down beer auctions.

Several more California brewers are rumored to be working with lawyers to prepare BEULAs for future releases, starting with the next offering for Lost Abbey's Saints and Sinners club.  The Bruery and Russian River are likely to be the next breweries to follow suit -- the Bruery's license allegedly goes so far as to prohibit the use of its beers in so-called beer cocktails.  Russian River seems to be taking it a little more slowly -- supposedly they will try out their new BEULA on this year's bottling of Objectification, a lighter beer unlikely to attract much collector interest anyway.

What's your opinion?  Are beer license agreements a legitimate and reasonable way to combat beer profiteering?  Or are they an unwarranted intrusion into our enjoyment of quality fermented beverages?

Thursday, September 8, 2011

Ebay vs. Beer

Yesterday on Beervana, Jeff commented on a Washington Post article about Ebay's black market for beers.  He really got it stirred up, 31 comments and counting.  Jeff thinks the brewers shouldn't be whining about the black market, they should raise their prices to eliminate it.

I'll go into why I disagree with Jeff below, but first some facts about beer sales on Ebay:
  1. Ebay doesn't allow the sale of alcoholic beverages.
  2. There is a loophole for collectible bottles, if the seller posts a disclaimer that it is the bottle that is valuable, not the beer inside.
  3. For rare beers of recent vintage, that disclaimer is obviously a lie.
  4. If the seller is willing to lie about the value of the beer to make a few dollars, how can you trust them to treat you honestly in the sale?
  5. If you don't like to see beer scalping on Ebay, you can report beer auctions by clicking on the "Report Item" link on the page.  They usually take reported auctions down.
  6. Just for fun, check out the time I auctioned an empty Abyss bottle on Ebay.
Occasionally I will report a beer auction on Ebay, just to strike a blow for honesty in the world.  I am not puritanically opposed to people doing what they want, but if you don't like Ebay's rules, you should find some other way to sell your beer.  Today Ebay took down a Dark Lord auction I reported, but it looks like they are going to leave up an auction by one of their "Top-Rated Sellers" of Stone's Framboise for the Cure, which was one of the scalped beers mentioned in the Washington Post article.

Part of the controversy would disappear if Ebay would simply drop their restriction on beer auctions.  Brewers couldn't complain about profiteering -- they would be free to participate in it if they wanted to make more money off of their products, or distribute to a wider audience.  It would also open the door for honest resellers to develop a reputation for properly handling a somewhat delicate product. Of course, Ebay doesn't drop their beer prohibition because they are constrained by a fractured regulatory system in the U.S., where every state has different restrictions on sale and delivery of alcohol.

Jeff's idea that raising prices will eliminate the black market is ridiculous.  This faith in a magical Market that can correctly determine the price of goods is part of the insanity of our times.  At best, it works in a circular definition sort of way:  the market determines the correct price at any given second because the correct price is what someone will pay.  But it doesn't work in any sort of predictive way:  based on this level of supply, and this level of demand, and this attribute of the product, the price will be such-and-such.  Since it can't predict anything, but can only rationalize what happened, this efficient-market model that modern Americans apply to everything has much more in common with religion than with science.

Given the fact that no one can predict ahead of time the market price of something traded in billions of units -- say, common stock of the Intel Corporation -- how is a small brewery supposed to calculate ahead of time the market price of a beer they made 5,000 bottles of?  Simply put, they can't calculate that.  So they set a reasonable price based on their costs, prices of similar products, and their past experience of what their customers will pay.  Of course they want to make a good profit, but there is also value to them in selling out fast -- they don't have to sit on an inventory, and they can devote more space in their operation to the next production run.

Further reading:
It's interesting how much more pro-Ebay the BAs have become in three years.

Monday, November 17, 2008

Deschutes Abyss 2008

Gentlemen, start your engines! Ladies, you too. The race is on to see if you can get your bottle of Deschutes' legendary oak-aged Imperial Stout before all of it gets hoarded or auctioned on ebay. I ran into a fellow last year who had made the rounds until he had -- this is what he told me -- 5 cases in his basement. That's only because he drank the sixth case. At least he wasn't auctioning it.

I wasn't up for the 10 PM release party Friday, but Dave and I headed over to the Portland pub for lunch Saturday. They had sold out of bottles Friday night, but they still had both the 2007 and 2008 Abyss on tap -- they'll do you a "flight" of 5 oz. of each. It was great to taste them side-by-side. This year's is spot-on, big body, big booze, and big hops occasionally peeking out. Last year's is even better. I don't chalk it entirely up to age, because tasting it immediately brought me back to remembrance of that same flavor from last year. Among other things, I think the 2007 has more licorice flavor, which seems like it would turn me off but which somehow works just right.

They still had the little two-stop flights when Carla was there yesterday, so you might want to scoot down there and check it out. They come out of the taps way too cold, let them warm up a bit. Drink, hoard, and share as much as you can, but don't be a lowlife and buy it up just to auction it on ebay. You do have my permission to auction your empty bottles.

Tuesday, April 1, 2008

Really Not Intended for Consumption

It happened before April Fool's Day, but someone out there came up with another prank to make fun of the Ebay beer auctions: a wax-dipped Pabst Blue Ribbon longneck for sale. When I wanted to sell my collectible Abyss bottle, I had to drink its contents to comply with Ebay rules; this guy decided instead to sell something where he could credibly claim that the bottle was worth more than the beer. Photo credit: the picture here is brazenly lifted from the auction post.

It looks like he'll fare a little better than I did on the money end of things, with $9.50 plus $20 shipping. He's got the ALL CAPS auction idiom down, with flashing sirens, dancing babies, dancing bananas, and waving U.S. and Iraqi flags -- buy this bottle or the terrorists win. He notes that PBR won the GABF 2006 Gold Medal for American Lager, but must not have noticed that just a couple of weeks ago Pabst took the gold at Portland's 2008 Spring Beer and Wine Festival. Maybe they should start holding the SBWF on April Fool's Day.

Monday, February 11, 2008

Incidental Contents Are Not Intended for Consumption

When I conceived my prank, it came with a good blog-post title: "Nobody Wants My Collectible Bottle". But then someone out-pranked me and actually bid on the empty bottle of Abyss that I listed on Ebay for $15 plus $10 shipping and handling.

Like many other beer mavens, I was not pleased to see people scalping bottles of the Abyss on Ebay or craigslist. The scalper hasn't done anything of value, he's just rushed out and bought up something that would be valuable to someone else, but isn't to him. Then, because Ebay doesn't want people selling alcohol, the scalper adds insult to injury with the following boilerplate required by Ebay:

The value of the item is in the collectible container, not its contents.

The container has not been opened and any incidental contents are not intended for consumption.

The item is not available at any retail outlet, and the container has a value that substantially exceeds the current retail price of the alcohol in the container.

There's no way you could believe that was true, especially since the Ebay sellers all proclaim the excellence of the top-ranked Imperial Stout in their descriptions of the bottles for sale. It's a measure of the malaise we've fallen into, that people will tell any lie for convenience, no matter how obviously false it is. As a beer fan, I'm annoyed by beer scalping; you can understand why brewer Tomme Arthur takes it more personally when someone says his beer is worth less than its bottle and is not intended for consumption.

Anyway, when I saw bottles of the Abyss going for $40-$45 under the premise that it was the bottle that was valuable, I decided I would auction the empty bottle pictured above, just to point out the ludicrousness of the "incidental contents" claims. Here's the text of the auction:

You are bidding on an EMPTY bottle!!!

Since Ebay does not permit the sale of alcoholic beverages, I drank the contents of this collectible 2007 Abyss bottle before listing it for auction. If you win the auction, I will ship you the empty collectible bottle, plus the collectible wax-covered bottlecap, plus a couple bits of collectible wax that broke off when I removed the bottlecap.

Other collectible Abyss bottles have sold this year for as much as $45 apiece!!! Of course, those were unopened collectible bottles that contained an alcoholic beverage. When you buy this EMPTY collectible Abyss bottle, you can buy with the confidence that you're buying from someone who plays by the rules, and you get the satisfaction of knowing how much I enjoyed drinking this delicious Imperial Stout.

Good Luck!


I thought it would be good for a laugh, and that I would get a blog article out of it with the title I mentioned. Late Thursday evening, I noticed that the auction had caught someone's eye, because the number of people who had viewed the auction suddenly jumped into the hundreds. Turns out someone had pointed it out in a ratebeer forum, and someone else on Beer Advocate. I started to get questions about the item:

Q: How many bits of wax will you be including? I'm trying to decide if it's really worth it. :) - Bob

A: Hi Bob! There are a two little chunks that broke off when I opened the bottle. One is about the size of a toenail clipping, the other is smaller, maybe fingernail clipping size. Don't forget that there is still a scab-sized chunk of wax adhering to the bottle cap. Enjoy :-)



Q: Hi- I'm excited about this item!!! This is less than half price from those other items. My question: It's nice to see someone that plays by the rules, but isn't the S&H a bit over priced as the weight won't include the contents?:-( cheers, john

A: Good point. I just put what Ebay said UPS ground would cost. I'll negotiate something reasonable with the winner.



Q: Can you guarantee there's no beer - no bits of yeast sticking to the bottom, no sludgy stuff up the sides? I'd hate for there to be any yukky beer stuff ruining a good looking bottle ;-)

A: Oh, I drank every single drop. Even when the bottle looked empty, I laid down with it on the couch for a couple of hours to make sure every bit went into my mouth.



Q: Hi there, I was wondering if you could post a picture of the wax shards. Are all shards still intact or are a few missing? What is the condition of the bottle cap? Did you use a quarter on top while prying it off it ensure it stays in M10+ condition?

A: I understand your concern, since the wax on this bottle was rated the best bottle wax in the world by the Men's Journal. I tried to preserve it all, but there could be some missing molecules. Sadly, I didn't do the quarter trick when opening the bottle. I was in a big hurry to pour myself a glass. So I can't guarantee the excellence of the bottlecap.

Then, horror of horrors, someone actually bid on it. Now I really have to rinse the bottle out, and find a box, and, and -- please, no! -- go to the post office and mail it!
My interest was piqued a little to see that the bidder's Ebay ID was "ftommearthur". Wow! It looks like Tomme Arthur liked my little joke and decided to throw some fuel on the fire. Hey, maybe instead of cash, he'll pay me with some "incidental liquids" from his brewery. But what's the "F" for? Is his legal name F. Tomme Arthur? Or is this someone else, the Female Tomme Arthur perhaps? Ah, probably someone just pranking me back -- with no intention of paying -- and yanking Tomme's chain at the same time.

That would be great, I wouldn't have to journey into the scary UPS office. But, no such luck. Paypal "You've got cash!"-ed me the morning after the auction closed. Aha! Some guy in Vermont, definitely not the California brewer. Oh well, the "ftommearthur" moniker at least indicated he was in on the joke, and wasn't some poor sap who thought he was -- wink, wink, nudge, nudge -- bidding on a full bottle. Here's how he explained himself in an email:

Thanks Bill. Just trying to further the entertainment / discussion from the BA "*&^% eBay" thread. Didn't work. In any case I thought your auction deserved a bid for its satirical / comedy value. You made a good point. For the record I too detest the eBay beer profiteering. Looking forward to my wax shards...

/Cedar

Luckily, I had been careful to safely stash away the promised bottlecap and bits of wax, otherwise I'd have to drink another bottle of incidental non-collectible stout.

I don't think I'm cut out for this Ebay thing. UPS charged me $13.59 for shipping (including $2.70 "Rural Surcharge", for the Vermont end), and Ebay invoiced me $1.39. My laziness caused me to pay another $5.65 to UPS to pack it all up for me. Suddenly $15 + $10 shipping looks like quite a bargain! There go my hopes for getting rich by drinking beer... unless... maybe someone wants to buy a set of 3 collectible bottles. Empty, of course.