Since the repeal of Prohibition, most regulations pertaining to the sale and distribution of alcohol has been left to the states under the “three tier” system of distribution, in which manufacturers sell to distributors and control boards, who sell to retailers, who sell to the public according to laws and guidelines of varied stringency. Some states are better than others: Massachusetts bans the concept of happy hour entirely, and in 17 “control states” the government is in charge of selling alcohol to some degree. Virginia’s Soviet-style state-run ABC stores offer consumers the opportunity to enter a lottery to purchase rare spirits, and in Pennsylvania, the Keystone state is your sole provider of liquor and wine.
Missouri, however, stands out as a bright beacon of common sense when it comes to indulging in vice products. It has the lowest state tax on cigarettes in the nation at 17 cents a pack, and among states that levy a per-gallon excise tax on liquor, it’s the lowest at $2 a gallon. And not only is the booze cheap in Missouri, you can get it at your local grocer, or even at Walgreen’s.
For followers of booze policies, this should come as no surprise: The Show Me State is home to a rich alcohol culture, owing to its many German immigrant brewers, and was, during Prohibition, “wetter than the Mississippi” despite the Volstead Act.
But one area where Missouri is far behind the times is in allowing its alcohol retailers to advertise their prices if they are discounted. At present, it’s illegal for bars, grocers, big box stores—anyone who sells alcohol—to put advertisements in print media, on television, or on the radio.
Happy hour prices? Ladies night specials? An inventory reduction sale? Consumers are relegated to physically going to the store, calling it, or visiting its web page to see their prices.
Naturally, the biggest proponents of changing the law have been media companies in Missouri, who lose out on advertising revenues from retailers who wish to advertise their prices but can’t. Led by the Missouri Broadcasters Association, a winery, a radio station, and a sports bar, there’s a legal challenge making its way through the federal courts.
The broadcasters and their allies argue that the regulations aren’t consistent with decades worth of Supreme Court precedent upholding the right to commercial free speech. Although a lower court ruled against them, the 8th Circuit Court of Appeals reversed a motion to dismiss the case, allowing it to proceed.
They have good reason to be optimistic: In 1996, the Supreme Court ruled in 44 Liquormart, Inc. v. Rhode Island that a law enacting a blanket ban on the advertisement of alcohol prices except at the store violated the First Amendment. And in other cases, the High Court has struck down advertising regulations on advertising for tobacco, casino gambling, and beer.
But it might not even need to get to the High Court, as Missouri’s newly installed all-GOP state government is already moving to repeal the “Discount Advertising Prohibition” regulations.
A generally conservative state, Missouri Republicans spent the last eight years negotiating with Governor Jay Nixon, a Democrat, to avoid his veto pen. No more, now that free-market advocate and Republican Governor Eric Greitens is in office. In recent months, Missouri Republicans passed laws to make Missouri a right-to-work state and the first of a few tort reform efforts.
A bill introduced by state Rep. Robert Cornejo, a Republican representing exurban Saint Louis, passed the Missouri House last week by a wide margin. The state senate is expected to take up the legislation soon.
If successful, local grocers, bars, big box stores, alcohol specialty stores, or even Walgreen’s might be competing with each other on price in print and over the air waves in the Show Me State.
That’s something to raise your raise your (discounted) drink to.
