Crew Brew of Wisconsin plans to build a microbrewery on a small stream in that s

Question

Crew Brew of Wisconsin plans to build a microbrewery on a small stream in that state. After sampling water from the stream, Chris Pierson has found that it is contaminated with pulp and paper waste from a local paper mill.

Chris has asked you to explain why the market system has failed in this circumstance. What are your recommendations for Chris and his fellow libertarian free-market entrepreneurs?

Please answer this in two paragraphs, I need some good details to help me finish a report. I am offerning good amount of points so please be detailed and no bs. I will rate after i read over them and if it is good work i will rate the same.

Explanation / Answer

Chicago-based Berghoff has used the Monroe brewery, the second-oldest in the country, since 1955. Minhas allowed the Dixie Brewing Co. to survive after its brewery in New Orleans was destroyed in 2005 by Hurricane Katrina. Since 2006, Minhas has made 5,000 to 7,000 barrels of Dixie per year, according to Tyler Peterson, brewery development manager for Minhas.

"Right now, we have some great relationships we contract for," Peterson said. "We're partners in this and it benefits both of us."

Randy Hull, director of business development at City Brewery, said the company does not discuss the specifics of its operations or what it makes but said the brewery, which employs 430 to 530 people depending on the time of year, works with about a dozen companies.

According to published reports, it makes "Game Day" beer for the 7-Eleven chain and the controversial Four Loko, a brand owned by Chicago-based Phusion Projects which has been criticized for its combination of alcohol and caffeine. The company announced last week it will reformulate the drink.

Reviving historic beers

Many of the contract brewing arrangements in Wisconsin involve relatively small brewing companies.

When Peter Fauerbach and his family set out in 2005 to revive Fauerbach beer, brewed in Madison from 1848 to 1966, they set up an agreement with Gray Brewing Co. in Janesville that would pay the family a royalty for every barrel sold. It was the job of Fauerbach to market the 300 barrels of beer produced each year.

"It's a fun thing to do and people loved it, but it takes a lot of time," said Fauerbach, who is a health care consultant, and stopped production of the beer last year. "We learned a lot."

Fauerbach's contract was unique. Most contract brewing arrangements involve flat fees charged by the brewing company based on how many barrels are brewed. In some instances, a brewing company will lease a brewery to make its beer using its own brewmaster. This is done by the Potosi Brewing Co., which expects to make 1,800 barrels this year and 4,000 next year at the Stevens Point Brewery.

"That's an important piece," said Greg Larson, executive director of the Potosi Brewing Co. "You can say it's brewed and bottled by the Potosi Brewing Co."

Others using Stevens Point include Esser's Cross Plains Brewery. The Esser family in 1995 relaunched the Esser brand

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