Protectionism or Protection?

The US Supreme Court recently invalidated a Tennessee law that required a lengthy period of state residency for persons and companies that wanted a license to operate a liquor store. The Court determined the law constituted "protectionism" which means it was "aimed at giving a competitive advantage to in-state businesses." Further, the Court found that protectionism is not a legitimate state interest that would shield alcohol laws from a commerce clause challenge-- unless it can be established that the laws further public health and safety or "some other legitimate non-protectionist ground."

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Industry NewsWSWA-SC
Minors can buy booze via Facebook, other sites, officials say. States want it to stop

Minors are buying alcohol online through Facebook, Craigslist and eBay, according to a group of attorneys general around the country.

The National Association of Attorneys General sent a letter to the companies Tuesday asking them to help stop the sale of booze to minors over the digital marketplaces. Attorneys general for 46 states and U.S. territories signed on to the letter.

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Industry NewsWSWA-SC
Direct Shipment of Alcohol: Are We There Yet?

Because so many products can be conveniently purchased online these days, there is an expectation that alcohol products should also be conveniently delivered to a consumer's door. And, although delivery of alcohol to residents is not new, it has become a much more important retail tool. This phenomenon is partly driven by the almost 20,000 breweries, wineries and distilleries that have sprouted up in the last few decades. Because the vast majority of businesses are very small, their products are not immediately available in most states. This growth is impressive. Below is a chart of Oregon distilleries. When I was a regulator there were only about three. 

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Industry NewsWSWA-SC
Private Labels Threaten Alcohol Market Balance

Private label alcohol has evolved to the point where it provides a benefit for large grocery chains that is not economically feasible for small independent retailers. Therefore, if it becomes a widespread practice, it represents a threat to the alcohol market balance that allows large and small operators to be profitable.

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Industry NewsWSWA-SC