Costco Cellars

Costco won the latest round in its fight against Washington's beer and wine distribution laws. A federal court is allowing Costco to challenge the distribution laws as violating the Sherman Antitrust Act. Washington doesn't allow manufacturers to sell directly to retailers and requires the intermediate distributors to charge at least a 10% mark-up. The odds of Costco winning? Washington used to have the same mark-up requirement for retailers, but Costco took it down in court. The effect if Costco wins? The big boxes and grocery chains will love it, the convenience chains ought to be OK, but the independents will be in trouble. If you're a strip mall owner effectively anchored by a liquor store, watch out.

Perhaps it's time for the independents to develop some joint purchasing power, a la the independent grocers' associations.