The Seattle Post-Intelligencer reports that “Costco Wholesale Corp. won a battle against the Washington State Liquor Control Board, when U.S. District Judge Marsha Pechman ruled Washington's three-tier system for distributing beer and wine breaks federal antitrust law.”
The ruling is expected to eventually allow Costco and other retailers to directly source beer and wine from out-of-state producers without going through distributors/middlemen who can control the flow and cost of product.
However, the newspaper notes that the state legislature has to weigh in on the subject, and could ban all direct shipping to retailers – a move that Costco and a number of small wineries say would limit supply, raise prices and potentially put small vintners out of business.
The ruling is expected to eventually allow Costco and other retailers to directly source beer and wine from out-of-state producers without going through distributors/middlemen who can control the flow and cost of product.
However, the newspaper notes that the state legislature has to weigh in on the subject, and could ban all direct shipping to retailers – a move that Costco and a number of small wineries say would limit supply, raise prices and potentially put small vintners out of business.
- KC's View:
- We are completely on Costco’s side in this issue. The restrictions and regulations that allow distributors to essentially put a hammerlock on the system essentially are anti-entrepreneurial…and have no place in a 21st century economy.
