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Treasury focuses beady eye on distributors

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Robin Garr

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Treasury focuses beady eye on distributors

by Robin Garr » Fri Feb 11, 2022 1:02 pm

Good article by Wine-Searcher's Blake Gray:
US Treasury Pushes Alcohol Reforms
with this key takeaway:
"Last July, President Biden issued an executive order "Promoting Competition in the American Economy". As part of it he asked Treasury to submit a report on the current state of competition in the alcohol industry.
"The most striking aspect of the report, to me, is how well Treasury knows what's really going on. Maybe my expectations were too low for a federal report in a country where the largest barriers to competition are state laws, not federal laws. The people who put the report together for Treasury figured that out. Also, the most damaging consolidation and anti-competitive behavior is from distributors, not producers. Distributors come in for much of the report's opprobrium."

Good stuff. Gray didn't link to the TTB report, but if you really want to dig deep, it's here:
Competition in the Markets for Beer, Wine, and Spirits
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David M. Bueker

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Re: Treasury focuses beady eye on distributors

by David M. Bueker » Fri Feb 11, 2022 2:00 pm

Distributors - evildoers!
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Dale Williams

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Re: Treasury focuses beady eye on distributors

by Dale Williams » Fri Feb 11, 2022 5:27 pm

David M. Bueker wrote:Distributors - evildoers!

Well, basically yes, at least the big ones (Southern Glazers, Republic, Empire, etc)
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Re: Treasury focuses beady eye on distributors

by David M. Bueker » Fri Feb 11, 2022 5:58 pm

Dale Williams wrote:
David M. Bueker wrote:Distributors - evildoers!

Well, basically yes, at least the big ones (Southern Glazers, Republic, Empire, etc)


Some smaller ones are evil in their own ways. They may not be stifling competition, but a few cook wines for a hobby.
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Re: Treasury focuses beady eye on distributors

by Paul Winalski » Sat Feb 12, 2022 1:59 pm

Unfortunately the 21st amendment contains a loophole to the commerce clause of the US Constitution that allows states to erect trade barriers to the interstate sale of alcoholic beverages. There's not much the commerce department can do about it.

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