S.C. GENERAL
ASSEMBLY
Distribution debate ices S.C. action on free
pour Coming bill would force sides to
reach deal on liquor sales By
Zane Wilson The Sun
News
An unresolved dispute about liquor distribution has delayed
implementing free pouring, but one legislator said he will file a
measure Wednesday and force the sides to fight it out.
In November, voters approved ending the nation's last requirement
that bars serve liquor in minibottles. How to put that into effect
has created turf wars between the four major distributors and the 58
liquor stores that sell minibottles.
Currently, bars must buy their minibottles from the 58 liquor
stores that have federal licenses to sell wholesale. Bar operators
also have to pick up supplies themselves, but they want the new law
to allow them to have liquor delivered.
The four major distributors want to deliver to bars, but the 58
liquor stores fear they will be cut out because distributors can
offer lower prices.
The distributors also will have the advantage because they
already deliver, so they have trucks on hand. The liquor stores
would have to buy delivery trucks.
Legislators hoped the industry would work out a compromise before
now so they could pass a measure in time for the main tourist
season.
Rep. Bill Cotty, R-Columbia, said he is frustrated with waiting
for the dealers to agree and will file his bill Wednesday including
everything but distribution specifics "and let them go at it."
Nothing else about the enabling law is in dispute, Cotty
said.
Although a similar proposal has been filed in the Senate, it has
not been taken up yet.
Cotty said his proposal is to put off free pouring until the end
of the year so the wholesalers will not be stuck with inventory,
which meets one of their concerns.
Tom Sponseller, president of the S.C. Hospitality Association,
said his members are willing to wait if they can get a law that
allows them to receive deliveries of liquor instead of having to
pick it up themselves.
He said they are asking that free pouring not be delayed past
September.
His members also are divided about whether the four major
distributors should be allowed to sell directly to bars.
Each distributor carries only certain brands, so most bar
operators would have to deal with more than one to get all the
brands they want, Sponseller said.
He said he thinks there is room for both liquor stores and
distributors to sell to bars.
Allowing both types of licensees to sell to bars also creates
more competition, but so far neither side has budged.
"They're not willing to give yet," Sponseller said.
Joe Berry, a lobbyist for the distributors, said his four clients
do not even agree with one another on what should be done.
The failure to reach agreement on distribution is not a delaying
tactic, Berry said.
The distributors spent hundreds of thousands of dollars on an ad
campaign urging voters to vote against allowing free pouring, partly
because of the higher income on minibottles compared with larger
containers.
"They know implementation is coming," Berry said. He said he is
confident something will be worked out.
So is Cotty, who has supported allowing free pouring for
years.
"We are going to pass something this year," he said.
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