It is difficult to understate just how politicized America’s alcoholic beverage markets are. And I say “markets” because the country does not have a single nationwide market. Rather, it has markets far too numerous to count. These markets are the product of various regulatory regimes across federal, state, county and municipal levels of government.
The federal government taxes alcoholic beverages, regulates their production and acts as gatekeeper for proposed new products. Each state has its own regulatory regime; counties and other sub-state governments also have their own sets of policies. I cannot tell you how many times I have heard that neighborhood community advisory boards, whose decisions hold great sway with alcohol licensing authorities, put a bar out of business before it even opened.
To make matters even more confusing, alcohol sales regulations also vary based on the type of beverage (beer versus spirits versus wines); the type of seller (sole proprietor shop versus chain store); and the venue (e.g., tavern versus restaurant versus party boat). It is sufficiently baroque that a “field guide” to state liquor laws has been published, and law firms specialize in alcohol policy. (Read more at the R Street Institute Blog)
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