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Lessons from a Regulation Road Warrior

Lessons from a Regulation Road Warrior. Pamela S. Erickson, M.A. Public Action Management Former Executive Director, Oregon Liquor Control Commission Symposium 21, Des Moines, IA, October 3, 2013. Hot Issues. Liquor Stores v. Big Box Grocers—Same rules for all?

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Lessons from a Regulation Road Warrior

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  1. Lessons from a Regulation Road Warrior Pamela S. Erickson, M.A. Public Action Management Former Executive Director, Oregon Liquor Control Commission Symposium 21, Des Moines, IA, October 3, 2013

  2. Hot Issues • Liquor Stores v. Big Box Grocers—Same rules for all? • More outlets to make more money, sell more alcohol—No consequences? • Three tier issues—buying vertical integration, wholesale regulation enforcement • Late night entertainment districts—more money, more work for law enforcement • Anti-trust—sleeping beauty awakens

  3. Liquor Stores v. Big Box Grocers • Indiana: Sunday sales, cold beer and “same rules for all.” • Kentucky: Maxwell Pic-Pac case. Equal protection for drug stores and grocery stores! Is there a 21st Amendment? • Pennsylvania: Beer wars…beer specialty stores v. taverns v. grocers • Washington State: Market advantages shift to big box stores. • Alcohol specialty stores are safest venues for selling alcohol.

  4. Let’s make more money, create more jobs! • Connecticut governor wants to expand alcohol sales • New licenses created to sell alcohol in non-traditional spaces • Dry jurisdictions go wet • Sunday sales expands • Alcohol is a “legal product” so should be treated like any other legal product • Small changes have no consequences but create jobs and bring in more tax dollars

  5. Three tier system challenges • Illinois: Prohibits manufacturer from owning any part of a wholesaler • Other states adopt franchise protection laws • Arizona: Extensive three-tier violations uncovered • Washington: I-1183 and other efforts weakened, but did not destroy, three-tier system. • Wholesale price restrictions rated as highly effective.

  6. “Vibrant Night Life” • Revitalize inner cities • Create jobs, more money, more tax revenue by selling more alcohol • Law enforcement impact • Problems with public disorder, DUI, underage drinking • The “pre-drinking issue” • Is it cost/effective?

  7. Anti-trust…asleep no more? US DOJ files lawsuit over Anheuser-Busch/Modelo merger DOJ requires notification when ABI intends to buy wholesaler Mexican Federal Competition Commission limits exclusive arrangements of beer duopoly (GrupoModelo/ABI and FEMSA/Heineken have 98% market share) Craft beer implications

  8. Resources for these issues • www.healthyalcoholmarket.com for legal expert reports from Kentucky Maxwell Pic-Pac lawsuit; for affidavit on vertical integration filed in ABI Illinois case. • www.alcohollawreview.org for Indiana briefs , USDOJ lawsuit against ABI and many other recent cases. • For rating of 47 alcohol policies including wholesale price policies, see: “Efficacy and the Strength of Evidence of U.S. Alcohol Control Policies,” 2013 American Journal of Preventive Medicine, Nelson et al / Am J Prev Med 2013 3;45(1):19 – 28, www.ajpmonline.org • Nightlife issues: “Dealing with alcohol-related harm and the night-time economy,” Executive Summary, Monograph Series No. 43, Australian National Drug Strategy; Responsible Hospitality Institute for best practices and case studieswww.rhiweb.org.

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