Current News

The Costco Lawsuit: An Attempt to Dismantle Washington's Three-Tier System

Senate OKs change in wine-sales rules The Senate passed a bill Thursday that would allow out-of-state wineries and breweries to distribute directly to Washington stores, a move that settles a legal ruling but doesn't necessarily translate into savings at the cash register. (Associated Press) 2/10/06

Look before leaping on alcohol laws Large wine producers and big-box retailers, who want to sell more alcohol and boost their bottom line, are putting intense pressure on the Legislature to dismantle our state's sensible alcohol regulations. Editorial by Everett Police Chief Jim Scharf. (The Everett Herald) 2/4/06

Stores, brewers, vintners watch fate of bill Compromise retains direct sales by producers. (Seattle Post-Intelligencer) 2/4/06

State’s Distributorship System Benefits Beer-wine Consumers (Word doc)
There is a reason why Costco – and not consumers – is fighting to dismantle the current system. That’s because eliminating the role of distributors benefits Costco, not consumers. Editorial by William Cammarano, former head of the Washington Beer and Wine Wholesalers Association. (Tacoma News Tribune) 1/22/06

Ruling may squeeze small retailers
Decision on wine, beer gives bulk-buyers such as Costco edge, some say. (The Olympian) 12/23/05

Wineries wary of Costco lawsuit (Word doc)
Mid-Columbia winery owners are concerned that a legal battle between Costco and the state could affect their ability to distribute their wine to restaurants and wine shops. (Tri-City Herald) 10/16/05

Costco's lawsuit against Washington state (Word doc)
Dismantling Washington’s alcohol regulations may be good for Costco, but it’s bad for Washington consumers, for the vast majority of wine and beer producers, and for small-and medium-sized retailers. Editorial by Senator Bob Morton. (Colville Statesman-Examiner) 04/20/05

Costco fighting wine, beer sales rules
Costco faces the state in U.S. District Court in Seattle over its attempt to challenge — and possibly dismantle — the decades-old regulatory system that governs the sales and distribution of wine and beer. (Seattle Times) 11/19/04

Costco lawsuit marks crossroads for industry (pdf)
Costco's challenge to Washington state's alcohol distribution system marks a crossroads for the entire industry with serious consequences for distributors, wholesalers, and retailers. (ABL Leader/The American Beverage Licensees Monthly) 11/04

Box stores' profit motives threaten states' rights
(pdf)
Ongoing attempts by giant box store chains to bypass wholesalers and get into the retail distilled spirits business hold profound implications for the entire three-tier beverage alcohol distribution system. (ABL Leader/The American Beverage Licensees Monthly) 11/04

Costco suit could destroy 70-year-old system (pdf)
Statement from Phil Wayt, Executive Director of the Washington Beer and Wine Wholesalers Association (ABL Leader/The American Beverage Licensees Monthly) 11/04

Liquor control system levels the playing field (Word doc)
Letter to the Editor from Kevin Yoo, Executive Director of the Korean American Grocers Association of Washington State (Tacoma News Tribune) 09/09/04

Costco sues state, county over booze-buying rules
State beer and wine distributors are joining with independent retailers to fight Costco's effort to get rid of Prohibition-era state laws that stop it from buying beer and wine directly from out-of-state distributors. (King County Journal) 09/20/04

Defendants seek to dismiss Costco suit challenging state liquor rules
(Seattle Post-Intelligencer) 08/12/04

A few clicks can get minors liquor (Seattle Post-Intelligencer) 08/09/04

WBWWA Executive Director Phil Wayt Denounces Costco Lawsuit
Costco’s lawsuit against Washington State seeks to dismantle the state’s system of regulatory safeguards that protect the public by controlling sales of beer and wine. (04/13/04)

Deregulation by Litigation-Efforts to Undermine State Power Under the 21st Amendment to Regulate the Importation and Distribution of Alcohol: Judge Fred Van Sickle initially analyzed the Washington State alcohol distribution system and noted that the state created its three-tiered system in order to protect the "welfare, health, peace, morals and safety of the people of the state." (WSWA 03/11/04)

Costco's suit vs. state sparks backlash (Seattle Post-Intelligencer) 02/25/04

The Supreme Court Lawsuit:
States' Constitutional Power to Regulate Alcohol Sales & Shipments


Supreme Court Upholds States’ Broad Authority To Regulate Alcohol
The Supreme Court today upheld a state’s right to regulate the sale and distribution of alcohol within its own borders but said states must also treat in-state and out-of-state alcohol producers the same. (WSWA Press Release) 5/16/05

Opinion: Current laws make sense
Opinion piece by former White House Counsel C. Bowden Gray (USA Today) 12/06/04

Supreme Court hears wine case
Big implications for consumers, regulators, vintners
In Granholm v. Heald, which consolidated similar cases from the two states, the high court is considering whether states have the right to bar direct-to-consumer wine shipments from other jurisdictions, while permitting them for in-state wineries. (CBS Marketwatch) 12/06/04

Supreme Court cases post challenge to state's rights (pdf)
The Constitutionally guaranteed right of states to regulate the sale and distribution of alcohol hangs in the balance in a pair of cases now before the U.S. Supreme court. (ABL Leader/The American Beverage Licensees Monthly) 11/04



General News:Maryland case tests states rights
The case has ramifications ... for those seeking to prevent large chains like Costco or Wal-Mart from gaining a competitive advantage over smaller operators and driving them out of business (ABL Leader/The American Beverage Licensees Monthly, 06/06/05).

The Bob Rivers Show – 102.5 KZOK-FM Radio (Mon-Fri 5-10 am) (QuickTime audio 3.9 MB) and (MS Word transcript 21K) It’s a growing trend: buying things that are illegal... and doing it online. A group of Gonzaga University students were able to buy alcohol on-line with no ID, no age check, and had bottles of liquor delivered directly to their doorstep...Seattle Washington (08/10/04).

Point, Click, and Drink? No.
A National Academies of Science report this year shows that 10 percent of minors have obtained alcohol over the Internet or through home delivery. (The Christian Science Monitor (06/14/04).

 

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