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Minnesota's current liquor laws continue to protect the powerful liquor lobby at the expense of Minnesota consumers. By limiting competition, the laws cost consumers hundreds of millions of dollars each year in higher alcohol prices, providing them with little convenience. The Wine With Dinner proposal would finally put an end to these anti-competitive laws.
The liquor lobby has claimed over the years that more competition will hurt public safety. But data from the FBI and other sources demonstrate that there is no difference in public safety statistics between states that allow wine sales in grocery stores and those that do not. So why do restrictive retail laws continue to exist in Minnesota? Because Minnesota's powerful liquor lobby continues to oppose pro-consumer bills such as Wine With Dinner in order to protect their significant monopoly profits.
Minnesota's current liquor laws
Minnesota's approach to regulating liquor sales has two major parts:
- Similar to other states, Minnesota prohibits manufacturers, distributors and retailers from having direct financial interests in each others' business. This "three-tier" system also includes various restrictions on wholesale territories and franchises.
- Unlike many other states, Minnesota tightly limits access to retail licenses to sell liquor. For example, wine for home consumption can only be sold in liquor-only stores, and in 226 cities those stores can only be owned by local governments. To find out if you live in one of those cities, click here:
No competition means higher prices, less convenience
Three studies in the past two years – including one conducted by the Minnesota Office of the Legislative Auditor – have demonstrated that Minnesota's system of liquor regulations is broken.
The studies report that the state's current liquor laws are restricting competition, denying consumers convenience and costing Minnesotans hundreds of millions of dollars more each year for alcohol purchases than it would cost them if Minnesota's liquor laws were the same as Wisconsin's.
Read more about the State Auditor's report, which outlines the effects of Minnesota liquor laws on consumers and identifies the Wine With Dinner proposal as a low-risk solution to address these anti-competitive problems.
Read more about the reports issued by The American Economics Group of Washington DC, which compares Minnesota's retail licensing system to other states.
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