Oklahoma County District Judge Thomas Prince ruled Oklahoma Senate Bill 608 is unconstitutional. SB 608 required producers to sell to all licensed wholesalers.
“This is a victory for the voters of Oklahoma, who overwhelmingly approved changes to the state’s alcohol distribution laws when they said yes to State Question 792 in 2016,” said Institute for Responsible Alcohol Policy (IRAP) President John Maisch. “SB 608 ignores the will of the voters and violates the plain language of the Oklahoma Constitution.”
IRAP was the lead plaintiff in the case.
“Many Oklahoma businesses invested in the modernized alcohol distribution system, and those companies should not be punished by once again facing radical shifts in the regulatory system which are likely to be overturned,” Maisch said.
SQ 792 allows suppliers of wine and spirits to choose whether they sell their product to all wholesalers, or only those who agree to standards regarding quality control, inventory management, sales information, marketing, intellectual property protection and other matters.
The Distilled Spirits Council of the U.S. praised the decision. In a statement DISCUS VP Dale Szyndrowski called it “a win for Oklahoma residents who voted overwhelmingly in support of State Question 792 in 2016. Spirits consumers are best served when suppliers have the freedom to choose their own distributors based on their ability, performance and commitment to quality.”
DISCUS joined the Wine & Spirits Wholesalers of America, American Distilled Spirits Association and Wine Institute in filing an amicus brief in support of the plaintiffs’ motion.