Total Wine Loses Appeal On Minimum Bottle Pricing

Total Wine and More lost its appeal in the United States Court of Appeals Second Circuit over allegations that Connecticut’s minimum bottle pricing and ban on volume discounts for retailers violated antitrust laws.

Total Wine sued the commissioner Department of Consumer Protection and the director of Liquor Control. The Connecticut Package Stores Association, Connecticut Restaurant Association and Connecticut Beer Wholesalers Association joined the lawsuit against Total Wine.

The court case was dismissed in June 2017 in the U.S. District Court.

Total Wine alleged in its complaint that state statute and regulations violated federal antitrust laws and essentially amounted to illegal price fixing between manufacturers, retailers and wholesalers.

State law requires retailers to sell alcoholic beverages to customers at or above cost, with the exception of discounting one item to 90 percent of cost once per month. Retailers are bound by the minimum bottle price rather than the case price. Wholesalers must sell to all retailers at the same price, so a big business like Total Wine pays the same price as a local Mom and Pop liquor shop.

Connecticut’s minimum bottle price rule results in up to 24 percent higher prices for identical products offered in different states, according to the Distilled Spirits Council of the United States.

Former Gov. Dannel Malloy pushed for the state to end its minimum bottle pricing law, but the effort didn’t gain traction in the state legislature. Malloy’s proposal for Sunday sales and increased sale hours on other days were successful.

State Rep. Anne Dauphinais (R-Plainfield) has proposed a bill this legislative session that would eliminate minimum bottle pricing.

Total Wine has 193 locations, four of which are in Connecticut. It’s the country’s largest independent fine wine retailer.