Will Biden Executive Order to Reduce Competition in the Alcohol Industry Get Anywhere?
The United States is the most profitable market for beer, wine and spirits producers in the world. But it is fragmented and covered by a maze of regulations that vary state by state. President Joe Biden could be about to change all that, so states an article in The Drinks Business.
At the end of Prohibition, Congress enacted legislation that among many things, prevented vertical integration of the industry. The 21st Amendment and legislation that followed was intended to moderate over consumption of alcohol. For instance, an alcohol beverage producer is prevented from owning licenses in the distribution and retail segments of the business in most states.
Over the years, many industry players have tried to chip away at these tied-house provisions. And a growing number of both state and federal legislators have backed these attempts, unable to rationalize tied house laws in today’s modern marketplace.