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June 28, 2013
05:57 EDTDEO, PDRDYDiageo takes on Missouri's 1930s wholesaler rules, WSJ reports
The "Missouri Liquor Wars," a fight between the world's biggest liquor makers and a family-owned wholesaler, could change the way spirits are sold in the U.S. and undo one of the last vestiges of the 1930s Prohibition, reports the Wall Street Journal..The issue is post-Prohibition-era regulations in about a 12 U.S. states that can lock in liquor producers with specific wholesalers, making it difficult to consolidate middlemen or change distributors. Diageo (DEO), Bacardi Ltd., Pernod Ricard (PDRDY) and their Washington lobby say thos laws artificially prop up local wholesalers and drive up distribution costs. They want the right to consolidate their wholesalers. Reference Link
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