The End of the New Hampshire Liquor Board?

[mvpel]

http://seattlepi.nwsource.com/business/253042_costco22.html?source=mypi
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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.

Among other things, Pechman said, Washington state law improperly requires that producers and distributors of beer and wine mark up prices at least 10 percent above cost.

In a separate ruling on Costco's case, Pechman agreed with the Issaquah-based discount retailer's claim that the state law that allows in-state beer and wine producers to ship directly to retailers but prohibits out-of-state producers from doing so, violates the U.S. Constitution's Commerce Clause.

While neither of the rulings will immediately change the way beer and wine is sold in the state, Pechman's decisions set in motion a chain of events that both Costco and the Liquor Control Board think could lower beer and wine prices for consumers in Washington -- pending a March trial and the Legislature's upcoming January session.
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I've always wondered about how the NH monopoly on liquor squares with federal antitrust law and Article 84 of the NH Constitution - looks like it doesn't.

This case could set a precedent to shut down state-run liquor distribution across the nation.

[Lex]

Wouldn't that be nice! 

[Fluff and Stuff]

http://seattlepi.nwsource.com/business/253042_costco22.html?source=mypi
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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.

This is great news.  But Costco is very powerful in Washington and that might have something to do with this.

[Recumbent ReCycler]

It would be nice if the NHLB would stop regulating alcohol sales in NH.  I once talked to a person who was stocking wine at a grocery store.  I told him that I wanted to try a certain kind of wine, but haven't been able to find it anywhere.  He told me that the state tells them what they can and can't stock, so if I really want to try that particular kind of wine, I would have to go out of state to buy it.  It's not worth the trip, but if I see some for sale while I am out of state visiting family or friends, I will probably buy a bottle.  The NHLB is retarded.

[donlovelace]

I will probably buy a bottle. 

I don't have any white zinfandel left 

What are you looking for?

[JonM]

I don't believe NH was on the list of states prohibiting wine from being shipped to it.  So you could go that route.

If a state can regulate itself dry, and they can, then they can probably say they'll be the only ones to sell a certain type of spirit.  Interference on commerce is another thing, so regulating what wine stores can buy might not stand up.  Not licensing them to sell liquor they can probably legally get away with.  The recent rulings have had to do with treating in state and out of state commerce differently, something you're not allowed to do.  If you prohibit everyone, you can do that too.  NH requires out of state shippers to get a permit, collect the taxes, and ensure the delivery company checks ID when delivering.

Sadly Costco only has one store in NH, in Nashua.  I believe their HQ is in Washington state, where they have over 2 dozen stores.

http://www.state.nh.us/liquor/direct_ship_rules.shtml

http://www.state.nh.us/liquor/direct_shippers.shtml

[Fluff and Stuff]

Sadly Costco only has one store in NH, in Nashua.  I believe their HQ is in Washington state, where they have over 2 dozen stores.

http://www.state.nh.us/liquor/direct_ship_rules.shtml

http://www.state.nh.us/liquor/direct_shippers.shtml

True.  Costco is located in WA and very powerful in all 3 West Coast states.  BJ is powerful in New England though.  If someone could explain to BJ how changing the law in NH would help BJ, that would be a good 1st step.  I've never so much as even seen a BJ store, so I don't think I would be of much use for this.

[vanguardist]

Huh. I didn't know that NH had that board. Does it also monopolize the sale of hard liquor like in other states?

[KBCraig]

Huh. I didn't know that NH had that board. Does it also monopolize the sale of hard liquor like in other states?

All liquor sales are at state-owned package stores. Beer and wine can be sold at grocery and convenience stores.

There's a lot of debate on this issue. Libertarians agree that the state shouldn't monopolize, but many also recognize that the state's profit on liquor means a whole lot of taxes don't get levied. NH prices are cheaper, attracting out-of-state buyers.

Kevin

[vanguardist]

Hhmm interesting point. But this is like saying that we should not oppose public transportation because the private alternative would be more expensive. I think this is an unprincipled position since a) the state is using violence to prevent other people from selling drinks and b) it is a socialist setup and you don't know for certain that the price would be lower or higher. Economic calculation in a socialist environment is impossible (see anything by Mises). So if that board goes away, maybe prices would rise, but then this would be a market signal for other stores to come into the market, and compete, and thus lower prices would be achieved. The objective is liberty, and not lower prices. Price is secondary.

That said, however, and setting aside economic and principled opinions, mabe it would not be better, as you say, to concentrate on that issue since it could cause overall taxes to increase. They would affect everyone, whereas the liquor issue affects fewer people. This is a perfectly reasonable, hopefully temporary, compromise.

[Fluff and Stuff]

There's a lot of debate on this issue. Libertarians agree that the state shouldn't monopolize, but many also recognize that the state's profit on liquor means a whole lot of taxes don't get levied. NH prices are cheaper, attracting out-of-state buyers.

Kevin

What your taking about is another issue that is not good either way- moving sideways.

At the very least, food stores like Walgreens and Costco should be allowed to sell any type of beer or wine that they want.