US: Liquor Group gets bailment clearance from TTB
Liquor Group Wholesale has received the green light for its bailment distribution business model in the US.
The wine and spirits distributor said late last week that it has received clearance from the director of the US Tax and Trade Bureau (TTB) for its distribution business model.
The patent-pending bailment distribution business model in use by Liquor Group (LGW) in both licence and control states in the US has been approved by the TTB in a recent notice of compliance, the company said.
"Because there are specific Federal and State laws prohibiting 'consignment sales' of alcohol beverages, several industry members and distribution competitors of Liquor Group had levied complaints with the TTB and State Alcohol Control agencies claiming that the 'Innovative Distribution' approach utilised by Liquor Group through it's patent-pending bailment warehousing business model was in violation of regulations and constituted an "Unfair Business Advantage"," LGW said.
The company cited a complaint by an unnamed competitor as clarifying the success of its system: "Liquor Group does not have any carrying costs for the inventory placed in their control by alcohol beverage manufacturers on a state-by-state basis, allowing them to continue to grow rapidly and unfettered by the costs of the alcohol beverages in their inventory; unaffected by the volume of alcohol beverages they place in each state wherein they operate; and with no need for additional capital to grow their operations; which makes them unmatched in the alcohol beverage industry, and as such they are utilising an unfair business advantage," the company claimed the complaint said.
LGW represents in the region of 1,700 spirits and wine products with varying degrees of operations in 31 US states.
Discounters have been steadily building up their presence in the global alcoholic drinks market over the last decade, according to Euromonitor International's latest global briefing 'Global Alcoholic ...
The recession has prompted trading down in the spirits market, even putting the brakes on the seemingly ever-increasing premium vodka category. With reference to a new IWSR/just-drinks report, Ben Coo...
Industry advocates may have branded the recent tax rise for RTDs in Australia a "tax grab masquerading as health policy", but it has shown the Government's resolve when it comes to alcohol regulation....
The top ten stories published on just-drinks this week:...
The Scotch Whisky Association has attacked a proposal by the Scottish Government to introduce minimum pricing for alcohol in the country....
Cider firms in the UK this week said they may look to lower the alcohol content of their products, following in the footsteps of a new wave of lower alcohol beers, Henry Chevallier Guild, the new head...
Cider firms in the UK may look to lower the alcohol content of their products, following in the footsteps of a new wave of lower alcohol beers, the new head of the country's cider trade body believes....
Tougher alcohol licensing laws have come into force in Scotland this week, as part of the ruling National Party's strategy to combat excess drinking and alcohol-related harm....
- Craft spirits shake-out will be just the beginning
- How Treasury is rewriting the rule book - Comment
- Drinkable yogurt - The next drinks opportunity
- Coca-Cola India suspends bottling operations
- Has Diet Coke passed its sell-by date? - Comment
- Diageo brands need "fixing and nurturing" - TWE
- SAB shareholders granted AB InBev vote split
- Diageo's Guinness Rye Pale Ale - NPD
- Craft Brew Alliance poised for AB InBev takeover?
- Pernod Ricard wins Ron Matusalem 'Cuba' legal row
- The Next Seven Big Beverage Markets
- Global rum insights - market forecasts, product innovation and consumer trends
- Carlsberg AS (CARL B) - Financial and Strategic SWOT Analysis Review
- Global RTD insights - market forecasts, product innovation and consumer trends
- Adultifying Soft Drinks; Capitalizing on rising adult demand for non-alcoholic beverages