A Federal appeals court upheld Missouri’s prohibition on out-of-state retailers shipping bev/al directly to Missouri consumers.
The decision was praised by Wine & Spirits Wholesalers of America President Michelle Korsmo:
“We commend the opinion handed down by the 8th Circuit in the Sarasota Wine Market v. Schmitt case that upholds Missouri’s law that allows in-state retailers to ship wine to Missouri consumers but prohibits out-of-state retailers from doing the same.
“In reaching their conclusion, the court recognized that “[t]he licensing requirements and restrictions at issue have been consistently upheld, before and after Granholm and Tennessee Wine, as essential to a three-tiered system that is ‘unquestionably legitimate.’” The court also noted that those seeking change to a state system must to do through the legislature as this law is valid.
“Today’s decision follows the 6th Circuit’s decision in Lebamoff v. Whitmer that came out last year on this same issue regarding retailer interstate shipping. Now there are two Courts of Appeals (6th and 8th Circuits) that have upheld the states’ ability to allow in-state (but not out-of-state) retailers to ship to in-state consumers as valid under the 21st Amendment.”
The court noted that prior to Prohibition, “some States enacted laws adopting a “three-tiered distribution model.” A primary purpose of this model is to prevent a return to “the English ‘tied-house’ system” in which alcohol producers monopolized distribution from producer to consumer, a system widely perceived as causing or at least contributing to the social ills of excess alcohol consumption and consumption by minors.”
In 2007, Missouri amended its laws to permit in-state — but not out-of-state — retailers to ship wine directly to Missouri consumers.
This doesn’t violate the Commerce Clause, the court explained, ‘ because the challenged laws do not impermissibly discriminate against out-of-state producers, and Section 2 of the Twenty-first Amendment permits Missouri’s restrictions on out-of-state retailers.”
Wine & Spirits Wholesalers of America, Inc.; American Beverage Licensees;National Beer Wholesalers Association, nd Missouri Beer Wholesalers Association all filed amicus briefs in support of Missouri’s law.