WBWWA Legal Issues

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. We must remember that beer and wine are controlled substances with a history of abuse. Regulations for the sale of this controlled substance are critical.

Costco’s lawsuit ignores the clear lessons learned from the nation’s history of alcohol marketing – lessons which led the states, after repeal of Prohibition and passage of the 21st Amendment to the U.S. Constitution, to craft laws to replace a totally free market system for alcohol products with state regulated systems.

The 21st Amendment gives the states sole authority to regulate importation and distribution of alcohol within their borders. Washington State developed a system of controls to ensure that the marketing of alcohol is subject to very strict regulation at every step of the way.

Costco’s lawsuit attempts to paint a picture of laws designed only to benefit wholesalers. In fact, the position of beer and wine wholesalers was created by law in this state, as in all other states, as a matter of public policy to safeguard public health. They help to foster a controlled market for beer and wine and protect the public from the kind of abuses that occurred in alcohol marketing prior to Prohibition, when manufacturers and retailers were joined at the hip and colluded to promote alcohol sales.

The state’s regulatory system serves an important role in Washington State. It ensures:

A level marketplace for the sale of a regulated substance.
The State receives the excise taxes it imposes on beer and wine.
Small brewers and small wineries have access to the marketplace and large brewers or vintners are prevented from forcing smaller ones of out business. Consumers, therefore, have more choices.
A competitive playing field for small grocers who otherwise could not afford to compete with the chain box stores.
An important check on the relationship between retailers and manufacturers – a check which ultimately benefits the consumer.
Sales are made only by responsible, licensed entities and, to the greatest extent possible, purchases are made only by responsible adults.

The current system works. Undermining it to increase the profits of large retailers like Wal-Mart and Costco is not the way to sell a controlled substance and preserve the public interest.



• Retailers' & Producers' Response to Lawsuit • WBWWA's Response to Lawsuit • 21st Amendment • Media Coverage		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. We must remember that beer and wine are controlled substances with a history of abuse. Regulations for the sale of this controlled substance are critical. Costco’s lawsuit ignores the clear lessons learned from the nation’s history of alcohol marketing – lessons which led the states, after repeal of Prohibition and passage of the 21st Amendment to the U.S. Constitution, to craft laws to replace a totally free market system for alcohol products with state regulated systems. The 21st Amendment gives the states sole authority to regulate importation and distribution of alcohol within their borders. Washington State developed a system of controls to ensure that the marketing of alcohol is subject to very strict regulation at every step of the way. Costco’s lawsuit attempts to paint a picture of laws designed only to benefit wholesalers. In fact, the position of beer and wine wholesalers was created by law in this state, as in all other states, as a matter of public policy to safeguard public health. They help to foster a controlled market for beer and wine and protect the public from the kind of abuses that occurred in alcohol marketing prior to Prohibition, when manufacturers and retailers were joined at the hip and colluded to promote alcohol sales. The state’s regulatory system serves an important role in Washington State. It ensures: A level marketplace for the sale of a regulated substance. The State receives the excise taxes it imposes on beer and wine. Small brewers and small wineries have access to the marketplace and large brewers or vintners are prevented from forcing smaller ones of out business. Consumers, therefore, have more choices. A competitive playing field for small grocers who otherwise could not afford to compete with the chain box stores. An important check on the relationship between retailers and manufacturers – a check which ultimately benefits the consumer. Sales are made only by responsible, licensed entities and, to the greatest extent possible, purchases are made only by responsible adults. The current system works. Undermining it to increase the profits of large retailers like Wal-Mart and Costco is not the way to sell a controlled substance and preserve the public interest.
		Contact us at phil@wbwwa.com 915 Trosper Rd., Suite #102, Tumwater, WA 98512 Voice: 360-352-5252 \| Fax: 360-943-9784 © 2004