"Serving Connecticut's alcohol beverage wholesalers since 1964"

Wine & Spirits Wholesalers of Connecticut

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Impact on Economy

What is the Benefit?

Benefits

  • The state licensed system of alcohol distribution prevents vertical integration of the alcohol industry, thereby protecting competition and consumer choice from the corrosive effects of conglomerate monopolies.
     
  • Regulations effectively require the wholesale tier to consist of a large number of mostly smaller businesses, which must be state-licensed entities. Thus, wholesalers are easier to regulate than remote companies, some of which might be located overseas. Cross-checks ensure that every product sold in the state pays its fair share of taxes, collected by the licensees themselves.
     
  • Most importantly, since manufacturers cannot control the wholesale tier, it is relatively easy for new products to enter the industry and gain market access through such independent distributors.
     
  • Consumer choice and competition are guaranteed by restricting unfair trade practices.
     
  • Retailers operate free from undue pressure to buy particular products.
     
  • It is illegal for big retailers to pressure wholesalers to provide concessions unavailable to small "mom and pop" stores.
     
  • Wholesalers cannot "buy" retail shelf space. If allowed, this would restrict consumer choice.

Copyright � Wine & Spirits Wholesalers of Connecticut  (WSWC)  2012.