Maryland State Licensed
Beverage Association

Representing the Maryland Alcohol Beverage Licensee since 1950

 

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New Maryland Health Insurance Program
Offers Up to $5,000 Health Insurance Subsidy Per Employee!

If you are a small employer with 2 to 9 employees who work at least 30 hours per week (includes owners) and have not offered employee health insurance within the past 12 months, you and your employees could each be eligible for an annual health insurance subsidy of up to $5,000 each. The amount of subsidy varies depending on the combined average wage of your employees, requires 75% participation of eligible employees and that the majority of your employees work in Maryland. For complete details regarding eligibility and subsidy amounts visit the Maryland Health Insurance Partnership website at: mhcc.maryland.gov/partnership

Enrollment begins September 9, 2008 and is capped to stay within the approved annual budget. If you believe you are eligible, contact a health insurance agent now to begin the application process.


FOR IMMEDIATE RELEASE

CONTACT:
John Bodnovich
American Beverage Licensees
301-656-1494 bodnovich@ablusa.org


America’s Beer, Wine & Spirits Retailers Celebrate 75th Birthday of the Three-Tier System
Reject Activist Group’s False Claims About Wine Deregulation


Bethesda, Md. – April 24, 2008 – With the 75th Anniversary of the repeal of Prohibition this April, the American Beverage Licensees (ABL) is not only celebrating the end of this failed experiment, but also the 75th birthday of the Three-Tier System. The effective and efficient system of regulating alcohol beverages sales has helped produce billions of dollars in revenue for the federal government, states and municipalities; allowed state and local governments to adapt laws and policies that best reflect the values of their citizens; and most importantly, introduced millions of consumers of legal drinking age to beer, wine and spirits from different regions of the country and every corner of the world.

“Thanks to the innovative producers and all-important distributors of alcohol beverage products, retailers - those last to handle beer, wine and spirits products before they reach the customer - are extremely well served by today’s Three-Tier System,” said ABL executive director Harry Wiles.

When it comes to alcohol beverage products, the selection offered to American consumers is broader today than ever before. Though much of this choice and variety has to do with the increasing number of brands produced by alcohol beverage manufacturers, this ever-widening selection of products would not reach retailers and their customers were it not for the hard work of alcohol beverage distributors.

“Walk into the average American liquor or package store, and then walk into a liquor store anywhere else in the world. Almost anywhere in the U.S. you can find wines and spirits from every continent except Antarctica,” said Wiles. “The U.S. has the most diverse and consumer-friendly beverage alcohol marketplace in the world due to the cohesion that exists between the three tiers.”

Despite the evolution and advances in the alcohol beverage industry made over the past 75 years, there are still those who wish to misconstrue the effectiveness of the Three-Tier System. Peripheral activist groups such as the Specialty Wine Retailers Association, speaking only for an elite cadre of wine merchants, rather than the greater alcohol beverage retail community they purport to represent, only serve to blur and disparage the importance of proper regulation of alcohol beverages.

“Comments about how ‘America's wholesalers have proven to be a failure at providing retailers and their customers with even a fraction of the wines available in the United States’ are simply not true and are misrepresentative of the sentiments of the vast majority of retailers,” said Wiles.

Wiles added, “Any ability SWRA members have to provide consumers with a wide range of products is derived directly by the variety and selection provided by wholesalers.

“Retailers and their distributor colleagues are not luddites. Technology is something that the alcohol beverage industry is embracing. Whether it is inventory software programs, fully-integrated POS systems or ID scanners to verify a customer’s age, the industry is on the cutting edge,” said Wiles.

“The past fifteen years have shown that the Internet holds vast opportunities for commerce, but we should not let those possibilities blind us to the fact that alcohol is a unique and age-restricted product; states have the ‘unquestionably legitimate’ right to regulate its sale and distribution; and tearing down an effective system of regulation will increase the costs associated with getting products to market and handling the administrative, bureaucratic and regulatory issues.”

Bricks-and-mortar retailers, who pay local property and sales taxes, are an important link in the alcohol beverage system and assets to their communities. If shadowy, unregulated networks for alcohol sales undercut these legitimate businesses, the losses in jobs, tax revenue and public safety would be staggering.

The same is true for alcohol beverage distributors who provide thousands of products to retailers and also ensure product safety and product integrity on the way to the marketplace. By centralizing distribution, they reduce the costs of that process to both suppliers and retailers, and pass those savings on to the consumer.

In New York State, for example, there are some 19,000 wine products and almost 10,000 spirits products posted with the state and available to every retailer. This means thousands of manufacturers around the world make use of the distributor tier to get their products to consumers.

“The fact is, the great majority of retailers in this country feel very well served by their distributor friends, both in terms of selection and in terms of the raw dollar value distributors bring to the marketplace,” said Wiles. “Wholesalers provide efficiencies and functions that benefit suppliers, retailers and the consumer.”

ABL looks forward to another 75 years of consumer choice, cost-effectiveness and a strong Three-Tier System.

About American Beverage Licensees (ABL)
American Beverage Licensees (ABL) is the preeminent national trade association for retail alcohol beverage license holders across the United States. Its members, who number nearly 20,000, are comprised of on-premise and off-premise retailers who annually help infuse billions of dollars into the American economy. ABL represents the interests of American small business owners and a historical part of the American way of life. Many members are independent, family owned operators who assure that beverage alcohol is sold and consumed responsibly by adults. ABL serves as a way for beverage alcohol retailers nationwide to bring their combined wisdom and strength to bear on the challenges each face daily.

©2008 American Beverage Licensees

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In Other News ...


NEWS RELEASE

FOR IMMEDIATE RELEASE
CONTACT: John Bodnovich 301-656-1494

States’ Rights to Regulate Alcohol Sales Endorsed By Supreme Court

“All or nothing” direct shipping decisions to be determined by states

Bethesda, MD (5/18/05) – The Supreme Court on Monday reaffirmed the right of states to regulate the sale and distribution of beverage alcohol within their borders but also ruled to level the playing field for in-state and out-of-state beverage alcohol producers.

The 5-4 ruling reaffirmed the Three-Tier System of beverage alcohol sales and distribution as “unquestionably legitimate”. The decision struck down laws in Michigan and New York that held in-state and out-of-state producers to different standards for directly shipping beverage alcohol to consumers.

Writing the majority opinion, Justice Anthony M. Kennedy said that by having different standards for the two parties, these states were in violation of the Commerce Clause of the Constitution. Despite the existence of the 21st amendment, which repealed Prohibition and explicitly enumerated the rights of states in beverage alcohol matters, the majority found that alcohol must be treated as any other commodity so as not to impinge upon the nondiscrimination principle of the Commerce Clause.

In a dissent, Justice John Paul Stevens argued that the decision seemed to be largely based on economic considerations rather than stricter Constitutional interpretation, stating that the Court’s decision “is not, however, consistent with the policy choices made by those who amended our Constitution in 1919 and 1933.”

Justice Stevens went on to acknowledge that if beverage alcohol were not a substance of such unique nature, that it would clearly be governed by Commerce Clause standards. To that end he added, “our Constitution has placed commerce in alcoholic beverages in a special category” thus keeping it from the reach of Commerce Clause.

“While we are pleased that the Court upheld the rights of states to regulate the sale and distribution of beverage alcohol, we are eager to see how state legislatures and regulatory groups might modify their laws in accordance with the decision,” ABL Executive Director Harry Wiles said.

States that currently treat in-state and out-of-state producers differently are faced with a choice of prohibiting direct shipping altogether or opening their doors to out-of-state direct shippers and allowing them to operate under the same guidelines as in-state direct shippers.

Retailers, the last people to handle products before they are consumed, are the final link in a system that promotes responsibility. It is face-to-face transactions that retailers are proud of and hope will be preserved by their state governments.

About American Beverage Licensees (ABL)
American Beverage Licensees (ABL) is the nation's largest trade association dedicated to representing the interests of “America's Beer, Wine and Spirits Retailers”. ABL represents nearly 20,000 bars, restaurants, taverns, and liquor stores, including off-premise licensees in the "open" or "license" states and on-premise proprietors in markets across the country. Today, ABL has members in 348 of the 435 Congressional Districts across the nation. For more information about ABL, please visit www.ablusa.org

 


 

By:      Joseph A. Schwartz, III
            MSLBA Lobbyist

On September 15th, MSLBA plans to file an Amicus Curiae Brief (Friend of the Court Brief) in the United States Fourth Circuit Court of Appeals in Richmond, Virginia.  This amicus brief will support the State of Maryland in a case known as TFWS, Inc. v. The Comptroller.  TFWS is a corporation owned by David Trone and operates a large (20,000 square feet) liquor store in the Towson area. 

            Trone filed suit against the Comptroller claiming that two Maryland laws violated the Federal Antitrust law.  After a number of court battles (this appeal is the third time the case has been before the Federal Appellate Court in Richmond), Trone was successful in having the United States District Court for the District of Maryland in Baltimore declare the two Maryland laws as being in violation of the Federal Sherman Act.  The two laws in question are the (1) post and hold law which requires distilled spirits and wine wholesalers to post a price and hold it for 30 days and (2) the law that provides that wholesalers may not provide volume discounts. 

            MSLBA’s brief will concentrate on the volume discount provision which MSLBA believes is extremely critical to small retailers.  Indeed, the MSLBA brief argues that this is one of many laws that protect the “mom and pop” establishment against the mega retailers.  Other examples are the Maryland laws which specify that a person may only hold one license and that a license may not be held at all by a supermarket or a chain store.

            The real losers if Trone is successful will be retailers who purchase relatively small amounts of distilled spirits and wine.  Predictably, this includes most bars and restaurants, which will see, increased prices.  And, while MSLBA’s brief will concentrate on the volume discount law, please note that, without a “post and hold” law, it will be very difficult to monitor whether volume discounts are being offered on a uniform basis. 

In the trial court, Trone reversed field from arguments he made before the Maryland legislature a few years ago.  In the General Assembly, he had argued that the “volume discount” ban raised prices and that, if it were repealed, the prices would go down.  The Legislature turned him down so he turned to the courts.  In court, he argued that the volume discount ban did not work and that, actually, Maryland prices were lower than Delaware prices; Trone also operates two stores in Delaware which does not have a volume discount prohibition.  The judge ruled in his favor and against the State’s argument that the Maryland laws promoted “temperance” by actually increasing prices over neighboring states. 

            Thus, the case is in a very odd position and many of the issues that will be raised in the MSLBA amicus brief have not been carefully considered.  It remains to be seen whether the appellate court will allow MSLBA to participate (a motion to file the brief must be granted) and, further, whether the MSLBA arguments will be accepted at this juncture (there have already been three proceedings before the trial court in Baltimore and this is the third appeal to the appellate court in Richmond).

            MSLBA believes that it was important to participate because Trone’s success presages potential legal attacks on other Maryland laws which have had the favorable effect of supporting “mom and pop” retailers. Maryland has a unique retail industry, generally consisting of small, locally owned neighborhood establishments and MSLBA believes this uniqueness should be preserved by defending the laws that make it possible.