Examples Chapter 7 Flashcards
Examples of comapnies working in more than one role in 3-tier sytem?
E&J Gallo - producer who is also an importer (can’t be wholesaler)
Republic National Distributing Company - wholesaler who can also import, but cannot produce
Examples of control states?
Idaho
Michigan
New Hampshire
Pennsylvania
What are regulations in Idaho?
monopoly on off-premises sales of beverages with greater than 16% abv
What are regulations in Michigan?
monopoly only on wholesale sales and only of spirits
What are regulations in New Hampshire?
allows beer and wine to be sold in grocery and convenience shops only and operates state package shops (shops that sell prepackaged alcoholic beverages), but also allows a small number of private off-premises permits, which tend to specialise in smaller brands that the state shops do not carry
What are regulations in Pennsylvania?
one of the strictest controls, with all spirits sold in state package shops, and where bars and restaurants who are permitted to sell on-premises must buy from the state package shops.
3 ways states can be split regarding
rules in 3-tier system? With examples?
Control - Idaho, Michigan
Open - Texas
Franchise - Connecticut
Only state privately operateing retailing and distribution that does not require any form of three-tier system
State of Washington.
Retailers may purchase alcoholic beverages directly from producers, may negotiate volume discounts, and may warehouse their inventory themselves.
However, the three-tier system largely remains in fact a reality in Washington despite the lack of a law requiring it
Which state has very strict rules regarding leaving distributor?
Georgia, if you wish to change wholesaler because they aren’t performing, you can be forced to leave the market for four years before changing
Example of very strict laws regarding selling alcohol?
Connecticut:
- restricts the number of off-premises licences that can be held by any entity,
- restricts the number of licences available in each city and town (by population)
- prohibits quantity discounts given by distributors,
- ‘minimum bottle pricing’ for each of the tens of thousands of bottles sold by distributors
- until recently, prohibited the sale of alcohol by an off-premises retailer on Sundays
Changes in number of producers and distributors in USA?
Last 20 years:
Distributors from around 3,000 to 1,200
Wineries: from almost 2,000 to over 9,500).
Systembogalet restriction examples?
The minimum age to buy alcohol at Systembolaget is 20 years.
restaurants and bars the legal age to buy alcoholic beverages is 18 years, though bars and clubs may voluntarily set an age limit higher than 18 if they prefer.
Stores must close no later than 20:00 on weekdays and 15:00 on Saturdays. On Sundays and public holidays are closed, like on Christmas Eve and Midsummer Eve.
Other companies (producers and importers) can sell directly to restaurant and bars (EU enforced rule).
Dry county example?
Moore County in Tennessee
(Home of Jack Daniel’s)
