Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

Omaha Steve

(99,653 posts)
Mon Feb 6, 2012, 10:30 PM Feb 2012

Can cheap beer be outlawed?


http://www.omaha.com/article/20120206/NEWS01/702079963#can-cheap-beer-be-outlawed

Published Monday February 6, 2012

By Paul Hammel

LINCOLN — To some people it sounds downright un-American, but a bill in the Nebraska Legislature would outlaw cheap beer.

State Sen. Russ Karpisek of Wilber testified Monday in favor of his proposal to prohibit grocery and liquor stores from selling beer and other liquor for less than its wholesale cost.

Karpisek said he fielded plenty of complaints from small grocers and liquor outlets last year after they noticed that some large supermarkets were selling cases of beer below cost.

The retail strategy is known as a "loss leader," in which a store will sell a product at less than its market value so that customers will be drawn into their business and buy other stuff — stuff that has a profit margin built in.

FULL story at link.


14 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies

Nye Bevan

(25,406 posts)
1. I think that's already the law here in CT.
Mon Feb 6, 2012, 10:32 PM
Feb 2012

Plus, we can't buy any alcoholic bevarages on Sundays. And supermarkets cannot sell wine or hard liquor. Stupid antiquated blue laws.

 

Swamp Lover

(431 posts)
7. We've justed started to shed blue laws in South Carolina.
Mon Feb 6, 2012, 10:36 PM
Feb 2012

Come on CT. Try to be as progressive as South Carolina.

unblock

(52,243 posts)
4. "below cost" alcohol is a funny concept, due to the huge profit margin.
Mon Feb 6, 2012, 10:35 PM
Feb 2012

yeah, looks like they're talking about retailers selling below the price the producers charge them, not the producers charging below the cost of actually making the stuff.

but still....

Honeycombe8

(37,648 posts)
5. Hmmmm. I don't know. Less than wholesale is something more than just cheap. It's taking a loss...
Mon Feb 6, 2012, 10:35 PM
Feb 2012

which leads to unfair competition with small businesses that can't afford to take a loss.

Still, that's part of the free market thing, right? I don't know.

Response to Omaha Steve (Original post)

Initech

(100,079 posts)
8. Two words: home brew!
Mon Feb 6, 2012, 10:45 PM
Feb 2012

If cheap beer is outlawed, brew your own. It will be way better and won't have the canned taste that Bud and Coors do.

yellowcanine

(35,699 posts)
9. If cheap beer can be outlawed I guess that means free beer can also be outlawed.
Mon Feb 6, 2012, 10:53 PM
Feb 2012

And that is downright unAmerican.

Ohio Dem

(4,357 posts)
11. Here in Ohio,
Mon Feb 6, 2012, 10:55 PM
Feb 2012

many places that sell beer advertise that they sell at the "legal minimum price," so I assume that is the law here. I see nothing wrong with it. It keeps Walmart from running places like small carry outs out of business.

A Simple Game

(9,214 posts)
13. Sounds like price fixing to me.
Tue Feb 7, 2012, 12:51 AM
Feb 2012

I had a professor in college that also ran a small store. He told us that he bought his Pepsi and Coke products at BJ's because he could get it cheaper there than he could from the local distributor. Seems to have a lot to do with volume buying. I think beer probably works the same way.

There was a country store on my route to and from work years ago that sold a local brand of beer far cheaper than anyone else in the area. He did it by buying in volume.

niyad

(113,318 posts)
14. gosh, steve, I am so glad that things are so wonderful in your state, all major problems solved,
Tue Feb 7, 2012, 03:22 AM
Feb 2012

that the legislature has time to focus on things like this.

Latest Discussions»General Discussion»Can cheap beer be outlawe...