Wine Monopolies, Cracked: Entrepreneurial Insights From A Closed System

Aug 5, 2014

(Forbes) - In most markets across the US, independent liquor stores reflect the tastes and penchants of their owners. Enthusiastic wine drinkers know that a particular store in a particular neighborhood carries the best selection of wines from South America, say, while another store a neighborhood or two away is known for its selection of wines from France or Australia.

It adds up to an eclectic mix of wines, for an eclectic clientele, chosen by an eclectic group of owner/buyers. It’s an adaptable system that keeps things lively for both retailers and consumers.

That adaptability of independent retailers is in sharp contrast to government-regulated “control states” (like Pennsylvania and New Hampshire in the US) and monopoly-style systems abroad (in countries like Canada and Sweden).

The options available to wine enthusiasts in those areas are subject to decisions of a small, centralized group of buyers who, in addition to taste and quality, weigh logistical factors of scale and availability in relation to the large number of stores within their network.

What gets left behind, in my experience, is most often the context and the narrative of what makes a wine appealing.

That lack of context trickles down, for me, to an altered wine shopping experience. Choices feel more limited, even though there is plenty of wine on the shelves. Asking for advice from the staff seems less personal, even when they’re well-informed and earnest; the in-store staff simply weren’t part of the decision-making process. And making a purchase feels somehow hollow: your money is going into a large government-backed system rather than into the pockets of independent shop owners.


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