Posted on Tue, Feb. 08, 2005
S.C. GENERAL ASSEMBLY

Distribution debate ices S.C. action on free pour
Coming bill would force sides to reach deal on liquor sales

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.


Contact ZANE WILSON at 520-0397 or zwilson@thesunnews.com.




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