The California Department of Alcoholic Beverage Control is investigating whether or not Amazon’s Los Angeles location meets state qualifications for a liquor store. Amazon intends to focus on delivering alcohol giving the online corporation a competitive advantage over California alcohol retailers who must pay for staff, stocking, and real estate.
Read MoreOn November 20, wine and spirits distributors Breakthru Beverage and Republic National Distributing Company (RNDC) announced that they plan to merge. The two companies are the second- and third-largest distributors, and would together have nearly a 60% market share. Experts say continued consolidation in distribution means less leverage for small retailers, and an uphill struggle for small wineries seeking distribution contracts.
Read MoreMcLane Distributors, a subsidiary of multinational conglomerate Berkshire Hathaway, is suing to overturn a Texas regulation that prevents monopolization in the liquor industry. The company, which serves numerous retailers, is seeking a wine distribution license. But because their owner, Warren Buffett, is also invested in Walmart, which sells beer and wine in the state, the license would violate state regulations designed to prevent concentration of power in the alcohol sector.
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