Tuesday, August 21, 2012

Wildcats Not Buying Wine in Volunteer Groceries


Media hype seized upon the recent Kentucky case that ruled in favor of wine in grocery stores. The front-page headline of The Tennessean trumpeted: "Wine-in-grocerires effort gets boost from Kentucky Ruling."

Not so - from a legal perspective. Tennessee and Kentucky law are vastly different. It's an apples and oranges comparison.

Kentucky law allows drug stores to sell liquor anywhere inside the store. Grocery stores have to have a separate store, where access by minors is controlled.

A Kentucky licensing friend, Dan Meyer, was quoted as explaining that "the law dealing with the sale of wine and liquor in pharmacies and grocery stores dates to Prohibition, when prescriptions could be obtained to buy alcohol at drug stores." The sales were restricted in grocery stores, he said, because the thought was that minors are often in grocery stores and should not be exposed to booze.

Judge Heyburn noted that in modern times, drug stores and grocery stores sell similar goods and both are frequented by minors. The judge found that Kentucky failed to justify “why a grocery-selling drugstore like Walgreens may sell wine and liquor, but a pharmaceutical-selling grocery store like Kroger cannot. The Louisville Times Courier has more details.

We understand why the judge found that Kentucky's law was invalid. 1930's drugstores are completely different from today's Walgreens and CVS, which cater to the same audience as grocery stores - including minors. Personally, both my kids are drawn to Walgreens and CVS for impulse purchases of holiday items, toys and candy.
  
Tennessee liquor laws do not allow drugstores or grocery stores to sell liquor. Tennessee requires that liquor store owners be Tennessee residents. Liquor stores can only sell liquor, cash checks and sell lottery tickets. Only one liquor store can be owned by one person or shareholders.

In Tennessee, a pharmacy, as well as a grocery store, does not qualify for a liquor license.

There may be legal issues with Tennessee's retail liquor store laws, but the problems that lead to the failure of the Kentucky law are not relevant to Tennessee.

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