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LA Times on US Liquor Wholesalers


Joe Blowe

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http://www.latimes.com/business/la-fi-whol...a-home-business (may require free registration...)

Los Angeles Times

April 10, 2005

Is Wholesale Change in Alcohol Pricing on Tap?

Pressure is rising to strike down post-Prohibition state laws governing beverage distribution that add up to higher costs for consumers outside California.

By Jerry Hirsch, Times Staff Writer

"Empowered by Byzantine regulations that grew out of the repeal of Prohibition in 1933, wholesalers hold a tight grip on the alcoholic beverage industry, maintaining legal monopolies in Ohio and many other states. But now these distributors, who have protected their power for decades, are facing a seismic shift in the liquor business.

"Some of the country's largest retailers and beverage companies are challenging the wholesalers' power in courts and state capitols. Some want to deal directly with each other, cutting out the middleman, which they say will lead to lower prices for consumers."

So we finish the eighteenth and he's gonna stiff me. And I say, "Hey, Lama, hey, how about a little something, you know, for the effort, you know." And he says, "Oh, uh, there won't be any money. But when you die, on your deathbed, you will receive total consciousness."

So I got that goin' for me, which is nice.

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