Friday, July 18, 2014

Costco and the Three Tier Liquor Distribution System

Old article, funny quote:

"Costco is pushing for the right to buy beer and wine just as it does soap or flat-screen TVs—bypassing middlemen and negotiating big discounts from manufacturers. Under the current system, its costs vary from one state to the next. At the time Costco sued, in 2004, the retailer was paying as much as 8% more for Washington-made wine and beer in-state than it was for the same product shipped to California. 'I would like to have a business where everybody had to buy from me,' says James D. Sinegal, chief executive of Costco. 'I'd try to protect that too.'

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