Archive for the ‘Three Tier System’ Category

Sep 7, 2021

Corruption and Regulatory Capture in the Alcohol Industry

REGULATORY CAPTURE Anyone working long enough in the alcohol arena will recognize the system this phrase describes, even if they are unfamiliar with the phrase itself “Regulatory capture is an economic theory that says regulatory agencies may come to be dominated by the industries or interests they are charged with regulating. The result is that an agency, charged with acting in the public interest, instead acts in ways that benefit incumbent firms in the industry it is supposed to be…

Aug 26, 2021

The Corruption in the Wine, Beer & Spirits Trade Was Anticipated

In 1933 a small book, Toward Liquor Control, was written and published. Sponsored by John D Rockefeller and written by Raymond B. Fosdick and Albert L. Scott, the book had a singular goal: to provide guidance to state lawmakers and policy wonks that, in the wake of Repeal, were tasked with creating a new alcohol regulatory system for their states. The philosophy behind the recommendations in Toward Liquor Control was a real fear that, in the wake of Repeal, America…

Aug 19, 2021

Dear Wine Industry…Signed, Anonymous

What would you tell the federal government about competition in the alcohol industry if you could keep your comments anonymous? This is the question that struck me as I began to look over the nearly 190 comments that have been provided to the TTB in response to the Biden Administration’s announcement it was looking into the subject of “Promoting Competition in the Beer, Wine and Spirits Market.” It began taking public comments in late July. The deadline for sending comments…

Aug 13, 2021

The Magical Powers of the Three Tier System

The Center for Alcohol Policy, a front-group funded by beer wholesalers, recently issued a white paper on the important issue of Drunk Driving in America. The White Paper, entitled “A Legislative History of Drunk Driving in America”, examines a number of steps that have been taken over the years to reduce drunk driving. Measures such as the 0.08 blood alcohol level, the 21-year-old minimum drinking age, and open container laws are all examined. But what caught my eye was this:…

Aug 3, 2021

The Real Threat of Counterfeit Wine From Wholesalers

Over the past five years or so some members of the alcohol beverage industry have voiced concern that counterfeit alcohol is such a potential problem that increased vigilance is necessary to keep unlicensed and counterfeit products from entering the supply chain and eventually making their way to the consumer. While America’s wine, beer, and spirit wholesalers have been most vocal in warning of this potential problem, what has gone unsaid is that it is the wholesaler that is most likely…