The Indiana Beverage Alliance Responds to “Balanced approach needed to make wholesale changes to state’s alcohol distribution system”

By: Tyler Starkey, Executive Director of the Indiana Beverage Alliance

In recent weeks there have been a few articles directed at the recently concluded legislative session regarding the system of alcohol distribution in Indiana. As is always the case, those pushing a one-sided perspective only offer their side of the story.

The Indiana Legislature did not “reject” a legislative proposal from the Indiana beer wholesalers to allow them to carry limited spirits products. The measure was not allowed to be discussed at a hearing even after being sponsored by 8 out of 10 members of the Senate Committee on Public Policy to which it was assigned.

Why did eight of the ten Senate Public Policy Committee members sign on as sponsors of the legislation? The answer is the members of the Committee thought it was a policy worthy of consideration.

The measure also overwhelmingly passed out of the Indiana House of Representatives by a vote of 77 to 21. The legislation was hardly “rejected,” as the Indiana Wine and Spirit Wholesalers would like you to think. When vital information is left out, misinformation reigns supreme.

The legislation in question would have removed prohibitions on beer wholesalers and allowed them to offer low-alcohol spirit-based drinks, some of which are currently made by traditional beer manufacturers. In Indiana, only spirits wholesalers can lawfully offer low-alcohol spirit-based “Ready to Drink” (RTD) products, even if traditional breweries produce them. The current monopoly on distributing these products lies with the Wine and Spirits Wholesalers of and their misinformation campaign is meant to protect that monopoly.

They don’t want you to know they have distribution territories, too – that cover the entire State of Indiana. In fact, they purposefully kept that truth to themselves for sake of their false narrative. For many liquor products in Indiana, only ONE wholesaler in the state is allowed to sell them. How does that support competition and free-market principles?  All other states, with the exception of government-controlled states, allow all wholesalers to sell beer, wine and spirits.

It is time for the Indiana Legislature to allow more competition in this space. Competition drives prices down, not up, as spirit wholesalers incorrectly claim. That Free-Market principle is not just true in the alcohol industry but in every sector of our economy. Unfortunately, the Indiana State Senate did not hear this discussion, and by not passing this proposal, Indiana consumers will continue to have fewer choices and higher prices – for now.

Forces are already working against the possibility of having a discussion on this issue at the Statehouse in the future.  Those forces are directly hurting the many family-owned businesses, customers and consumers across the state. Consumers are paying the price for protecting the Wine and Spirits Wholesalers’ monopoly – is it worth it?