There’s lots to debate around the technicalities of alcohol market regulations, but one category of argument that has no business getting taken seriously is the idea that certain kinds of business models don’t deserve to fail because we like the kind of people who run them:
Beer distributors are not fans of the plan. They worry supermarkets, convenience stores and big retailers would chip away at their business.
“If you add the Walmarts and the Costcos and Sam’s Clubs of the world, you will put those 1,200 beer distributors out of business,” said Jeff Barber, a partner in Allentown’s Wise Guys’ Beer Depot.
Many beer distributors are family-owned businesses unable to raise the capital to compete at auction for wine and liquor licenses, Barber said.
The beer distributor business model only makes sense under the strange cartel system we have now. In the booze market everybody wants, their business model makes no sense, and most will be overtaken by supermarkets and large retailers. And that’s perfectly ok! You can be sad for the nice people who go out of business and still support reorganizing this market.